NovaGold Continues Progress On Donlin Deposit.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 29, 2001

NovaGold Resources Inc. (NRI:TSE; NVGLF:OTC) announced today that the first 6 drill holes have been completed in its first phase delineation drill program on the Donlin Creek Deposit located in Southwest Alaska.

The drill program is focused on one of several higher-grade targets within the Donlin resource area. All six holes encountered significant widths of visible sulfide mineralization similar to that seen in nearby drill hole 99-555, previously drilled by Placer Dome. Highlights from drill hole 99-555 include: 29.8 meters of 20.2 grams/tonne gold (97.7 feet of 0.59 ounce/ton); 31 meters of 7.7 g/t gold (101.8 ft of 0.22 oz/t); and 36 meters of 5.3 g/t gold (105 ft of 0.15 oz/t). The current program is progressing on schedule with the first gold assay results anticipated by mid to late September. Using two diamond drills, approximately 1,000 meters (3300 feet) of the first phase drill program have been drilled to date. NovaGold intends to better define the higher-grade resource in preparation for detailed engineering and pre-feasibility studies to begin in early 2002.

In other news, McClelland Labs, Inc. of Reno, Nevada has released their report and recommendations on the comprehensive metallurgical testwork completed on the Donlin Creek Deposit. Gene McClelland, president and Chief Metallurgist of McClelland Labs stated "the results of the metallurgical testwork completed on the representative Donlin samples definitively show that a conventional sulfide flotation concentration followed by pressure oxidation of the concentrate and CIL cyanidation for gold recovery would be effective for the higher grade Donlin Creek ores." He further stated that "In addition, there is excellent potential to improve the overall gold recoveries by further process optimization." The metallurgical composite samples were taken from representative ore grade intercepts from the main Donlin resource area. The results from this metallurgical testwork and mineralogical examination demonstrate that gold recoveries in excess of 90% are achievable from both intrusive and sedimentary ore grade material. A summary of the report is available on NovaGold's website at: www.novagold.net

NovaGold is a diversified natural resource company focused on the discovery, acquisition and development of gold, high-tech metals and construction aggregates in North America. NovaGold shares are traded on the Toronto Stock Exchange under the symbol NRI and on the U.S. OTC as NVGLF. Further information including previous news releases, annual reports and the recently released quarterly financial statements are available at NovaGold's website at www.novagold.net