Continued Higher Grade Drill Results From NovaGold's Rock Creek Property, Alaska.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--May 23, 2000

NovaGold Resources Inc. (TSE:NRI.) announced today excellent drill results from its Phase I in-fill drilling program on the company's Rock Creek property located 15 kilometers (10 miles) north of the city of Nome, Alaska (see Figure 1)*.

All holes intersected significant intervals of mineralization with grades better than indicated by previous drilling (see Table 1). The best intersections were encountered in Hole RR-002 where 30.5 meters averaged 2.7 g/t gold including 13.7 meters averaging 4.4g/t gold and Hole RR-003 where 27.4 meters averaged 3.0 g/t gold including 9.1 meters averaging 6.2g/t, and a separate 7.6 meter interval averaging 8.4g/t gold. In addition, two of the holes (holes RR-005 and RR-006) are from a previously un-drilled area demonstrating that the mineralized zone continues to the south and remains open (see Figure 2)*.

---------------------------------------------------------------
 DHID           Interval    Length             Length
                   (m)        (m)    Au_gt       (ft)    Au_opt
 RR001         16.8-21.3       4.6     2.0         15     0.060
including      16.8-19.8       3.1     2.7         10     0.080
---------------------------------------------------------------
 RR002          3.1-33.5      30.5     2.7        100     0.077
including       3.1-16.8      13.7     4.4         45     0.129
---------------------------------------------------------------
 RR003         16.8-42.7      27.4     3.0         90     0.088
including      22.9-25.9         3     3.7         10     0.106
including      33.5-42.7       9.1     6.2         30     0.181
  and          62.5-70.1       7.6     8.4         25     0.246
---------------------------------------------------------------
 RR004          9.1-13.7       4.6     4.1         15     0.120
  and          16.8-24.4       7.6     1.0         25     0.029
---------------------------------------------------------------
 RR005          7.6-22.9      15.2     1.1         50     0.032
including      18.3-19.8       1.5     4.3          5     0.125
  and          35.1-39.6       4.6     1.8         15     0.053
  and          47.2-53.3       6.1     3.2         20     0.092
  and          59.4-65.5       6.1     4.3         20     0.127
---------------------------------------------------------------
 RR006           7.6-9.1       1.5     3.1          5     0.090
  and          24.4-36.6      12.2     1.5         40     0.044
including      25.9-30.5       4.6     2.9         15     0.085
  and          51.8-56.4       4.6     4.8         15     0.140
---------------------------------------------------------------
Table 1. Rock Creek significant intercepts > 1g/t Au (using a
0.5g/t over 2.5 meters cut-off).

These drill results are from the first six holes of a thirty hole Phase I drilling program designed to further delineate the Rock Creek measured and indicated resource. The Phase I drill program began in mid-April with the objective to increase the drill density in the area of currently defined mineralization to a 30 meter by 90 meter grid pattern (see Figure 2)*. These results continue to confirm that previous drilling by others under-estimated the gold grade of the deposit due to insufficient sample recovery and poor sampling protocols. The Phase I program will be followed by a more detailed Phase II in-fill drilling program (30 by 45 meter grid). The Phase II program will allow definition of a measured and indicated resource which can then be used to estimate a proven and probable mining reserve. The Phase I & II drill programs are part of NovaGold's year 2000 objective to advance the 100% owned Rock Creek property to Feasibility.

The Rock Creek project benefits from excellent infrastructure with a port facility in Nome and road access. The project currently has a Measured, Indicated and Inferred Resource of 740,000 ounces of gold grading 2.78 g/t using a cut-off grade of 1 g/t based on previous drilling completed by NovaGold, Kennecott, Newmont, and Placer Dome. There is an additional inferred resource of 260,000 ounces (3.6 Mmt at 2.23 g/t) at the adjacent Saddle deposit, 3 kilometers to the south and numerous other targets in the district all of which are 100% controlled by NovaGold (see Figure 1)*.

Previously, NovaGold also completed a series of bench and pilot-scale metallurgical tests at McClelland Laboratories, Inc. of Reno, Nevada. The two main ore types were tested: Shear Veins and Tension Veins. Shear Vein mineralization is made up of blue-gray quartz vein material containing pyrite, sulfosalt minerals and arsenopyrite, and sheared and crushed fault breccia and gouge. Recoveries for this material averaged 90.7% overall using cyanide with 37.4% of the gold reporting to a gravity concentrate at a 65 mesh grind (P80 65M). The Tension Vein mineralization consists of a series of sheeted stockwork veins with a relatively simple mineralogy made of free gold in quartz veins with pyrite-arsenopyrite selvages. Recoveries of this material averaged 98.1% overall using cyanide with 86.2% reporting to a gravity concentrate at a 65 mesh grind (P80 65M). Overall recoveries for the entire deposit are expected to be 92%.

Rick Van Nieuwenhuyse, President and CEO of NovaGold said: "These results continue to demonstrate that we have a high quality resource at Rock Creek. We remain very confident that further in-fill drilling will define a +1 million ounce resource grading more than 3 g/t gold. The economics at Rock Creek look to be very favorable. With the demonstrated good metallurgical recovery and excellent infrastructure in Nome, we expect Rock Creek to be have operating costs well below $200/ounce."

All drilling in Phase I is reverse circulation drilling above the water table using a 5 1/2 inch (13 cm) diameter hammer or tri-cone drill bit. Sampling is done on each 5 foot (1.52 m) interval and employs strict sample protocols to ensure adequate sample size and quality. NovaGold's program used experienced reverse circulation drillers employing a compressor with 900CFM capacity, more than enough air-lift for complete sample recovery. NovaGold also had a geologist on the rig full time to insure strict sampling protocols were undertaken. The drilling program and sampling protocol were managed by NovaGold with oversight provided by Qualified Person Phil St. George, Project Manager for NovaGold Resources.

NovaGold is a diversified natural resource company focused on the acquisition, exploration 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. The Internet address is www.nrigold.com.

* Maps are available on the BCE Emergis website at www.e-newsservices.com.

News releases are available on our corporate website at http://www.nrigold.com/.