NovaGold Resources Inc. (TSX: NG)(NYSE Alternext US: NG)(NYSE Amex: NG.A) today announced the results of its first quarter ended February 28, 2009 along with an update on the Company's project development activities. Details of the Company's financial results are described in the unaudited consolidated financial statements and Management's Discussion and Analysis which, together with further details on each of the Company's projects, including resource estimates, will be available on the Company's website at www.novagold.net and on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.

Highlights

- Increased Rock Creek resource estimate by 24%

- Donlin Creek feasibility study complete and technical report in progress

- Amended Galore Creek partnership agreement with Teck Cominco

- Cash and cash equivalents of $78.8 million and working capital of $62.9 million

President's Message

In early 2009, NovaGold's senior management team carefully reviewed the Company's business strategy and progress at each of our projects. The resulting business plan supports our continued focus on gold and our belief that advancing the Company's assets toward production will bring the greatest return to NovaGold shareholders. NovaGold recognizes the value of strong partnerships and a strong team, and is looking for opportunities that will bring good people or additional resources to the Company. We have also taken steps to streamline the Company and improve internal processes, safeguarding our financial position.

Worldwide economic markets are still in turmoil, but gold continues to outperform most asset classes. NovaGold has weathered the market challenges and is well-positioned to take advantage of the rising gold market and new opportunities. Indeed, NovaGold's share price has outperformed the gold sector in 2009.

Significant advances at the Donlin Creek project in 2009 should continue to support NovaGold's share price with the soon to be released 43-101 feasibility study, and as the project moves through permitting toward a construction decision. NovaGold will also maximize the value of Rock Creek in 2009. Since the decision to suspend start-up, the gold price has rallied while prices for fuel and other input materials have decreased. We will thoroughly assess the exploration upside at Rock Creek in the coming months and will formulate a re-start plan, which will consider a number of options including re-starting operations ourselves, bringing in an operating partner or possibly sale of the property. Whatever the decision, we expect Rock Creek to bring additional value to NovaGold shareholders in the near to medium term.

As a growth-focused precious metals company, NovaGold is committed to creating shareholder value while working responsibly with the communities in which we operate to bring long-term sustainable benefits. We look forward to reporting on further developments at the Company's projects during the months ahead.

Projects Update

Donlin Creek

NovaGold is completing a technical report for the Donlin Creek project based on a feasibility study that was completed on behalf of the Donlin Creek LLC on April 1, 2009. NovaGold expects to release the results of the feasibility study in a 43-101 compliant report by the end of April. The report will provide a detailed project description and outline the project economics, and most importantly bring significant reserves to the Company, and thereby greatly increasing the value of the Donlin Creek asset for NovaGold shareholders.

The Donlin Creek project is expected to have a throughput design of approximately 50,000 tonnes per day using onsite diesel and wind cogeneration for power. Using this design, Donlin Creek would operate for more than 20 years and potentially produce 1 to 1.5 million ounces of gold annually. Permitting is expected to start in 2009 with a construction decision targeted for 2012.

Donlin Creek is located in southwestern Alaska and is one of the world's largest undeveloped gold deposits. As currently envisioned, the mine would be developed as a high-tonnage open-pit year-round operation. NovaGold and Barrick are working together through the Donlin Creek LLC, a limited-liability company owned by NovaGold and Barrick on a 50/50 basis, to advance the project through feasibility and permitting while bringing sustainable economic benefits to the local Native Alaskan communities in the region.

Nome Operations, Alaska

Nome Operations comprises Rock Creek, Big Hurrah and Nome Gold. The Rock Creek mine has been designed as a 7,000 tonnes-per-day conventional open-pit year-round operation, expected to produce approximately 100,000 ounces of gold per year once in operation. Construction of Rock Creek mine commenced in the summer of 2006. Testing of the crushing circuit was initiated in October 2007. Commissioning start-up and systems testing began in September 2008 but was subsequently suspended in November in light of market conditions at the time, with rising costs, falling gold prices, extreme market volatility and a collapse of the equity and debt financing markets. Those factors combined with unanticipated mechanical issues with the crusher resulted in NovaGold placing the Rock Creek on care and maintenance to protect the infrastructure and investment at the property while a comprehensive assessment is completed.

Now that the property has been placed on care and maintenance, meeting all of our environmental responsibilities at the mine site remains our highest priority. NovaGold is collaborating with engineers and regulators to complete a revised water management plan for the project and is also assessing the possibility of using wind co-generation for a portion of the project's power needs, reducing both environmental impact and operating costs at the Rock Creek mine.

A recent resource update for Rock Creek increased its resources by 24%, bringing Nome Operations resources to nearly 3 million ounces, inclusive of reserves. An updated feasibility study is being completed as part of the project review, and NovaGold anticipates that a significant amount of the new resources will convert to reserves.

Our objective now is to review the Rock Creek project and establish a plan that maximizes value for shareholders.