Donlin Creek, a feasibility-stage gold project in Alaska, is operated by the Donlin Creek LLC, owned 50-50 by NovaGold and Barrick Gold U.S. Inc., a subsidiary of Barrick Gold Corp.

Calista Corp. is an Alaska Native regional corporation that owns 6.5 million acres in the Yukon Kuskokwim River Delta and the Kuskokwim Mountains regions of Southwest Alaska, including the land that hosts the nearly 40 million ounce gold deposit at Donlin Creek.

Donlin Creek is one of the largest known undeveloped gold deposits in the world. With a feasibility study completed, pre-permitting activities are underway to construct a mine estimated to produce more than one million ounces of gold annually for more than 20 years.

NovaGold said the amended lease includes:

• Additional lands that may be required for the development of the property;

• An extension of the term of the lease to April 30, 2031 and automatically year-to-year thereafter, so long as either mining or processing operations are carried out on or with respect to the property in such year, or Donlin Creek LLC pays Calista an advanced minimum royalty of US$3 million (subject to adjustment for increases in the Consumer Price Index);

• The elimination of Calista's option to acquire a 5 percent to 15 percent participating operating interest in the project and replacement with the payment to Calista of a net proceeds royalty equal to 8 percent of the net proceeds realized by Donlin Creek LLC at the project after deducting certain capital and operating expenses;

• An increase in the advanced minimum royalties payable to Calista under the lease to US$500,000 for the year ending April 30, 2010, increasing on an annual basis thereafter until reaching US$1 million for each of the years 2015 to 2024 and US$2 million for each of the years 2025 to 2030. All advance minimum royalties paid to Calista continue to be recoverable as a credit against Calista’s existing net smelter royalty under the lease agreement, which remains unchanged.