Teck Cominco Ltd. (NYSE: TCK)

NovaGold, Teck Cominco Committed to Advance Galore Creek

NovaGold Resources Inc. (AMEX: NG) and Teck Cominco Ltd. (NYSE: TCK) announced a new management team to move the Galore Creek project through the next phase of optimization and reengineering. We believe that this demonstrates that both companies place value on the opportunity and are aligned in their focus to advance the Galore Creek project as quickly as possible.

As this is the first joint announcement on Galore Creek since Thanksgiving weekend, investors were drifting through the end of the 2007 waiting for some sense of direction amidst a period of fierce tax-loss selling. We note that some in the industry had discounted the project completely, which we thought was overdone, especially when considering that Teck was funding an additional $140 million to complete its earn-in to establish a 50% ownership position.

It is still too early to surmise the extent or areas that the new team will address in order to produce a “modified construction approach and execution plan.” We believe that there remains several areas for potential improvement which should be highlighted over the coming year with additional time for study. We are encouraged with the statement from Teck’s CEO, however that “clearly both NovaGold and Teck Cominco remain fully committed to unlocking the potential of the Galore Creek resource as rapidly as possible." We are also interested in additional drill results from the 2007 drill program, and further study of the overall waste management plan which may lead to improved pit design or reduction of the tailings facility. In addition, should this require some amendment of permits, the government will likely be brought back to the table, which may potentially lead to some participation with infrastructure or other assistance with project costs. While this additional study will take time, we suspect that banker’s long-term price assumptions may creep toward current forward curve price levels, providing some additional lift for their models.

It is important for investors to revisit the Galore Creek project’s contribution to value of NovaGold shares. While Galore Creek is being sorted out, we continue to believe the story for NovaGold and the mining industry itself may be Donlin Creek during 2008. We are looking for the compilation of the 2006 and 2007 drill programs into an update and upgrade of the resource. In addition, NovaGold and Barrick Gold Corporation (NYSE: ABX) are scheduled to produce a feasibility study mid-year to offer direction for an optimal approach to power and track for permitting. We suspect that the Donlin Creek project may exceed investor expectations by being less costly, and having a larger resource than investors anticipate.

Investors may not fully appreciate the contribution of Rock Creek reaching full production in 2Q08 and a resource upgrade at its Ambler project. We continue to believe that as scheduled events unfold in 2008, and additional insights are gained on Galore Creek the fundamental value underlying NovaGold shares will be fully demonstrated.

The author is long NG and has no positions in any other stocks mentioned in this report. An affiliate of the author's employer provides corporate advisory services to NG.
Mike Niehuser
Mike Niehuser
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The other likely "hunters" include Teck Cominco Ltd. (TCK)

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VANCOUVER, BRITISH COLUMBIA, Jan 16, 2008 (MARKET WIRE via COMTEX) -- NovaGold Resources Inc. (CA:NG) (NG: novagold res inc com new) and Teck Cominco Limited (CA:TCK.A) (CA:TCK.B) (TCK:
teck cominco ltd cl b) today announced the appointment of a highly experienced senior management team to lead the Galore Creek project through the next phase of evaluation and optimization. NovaGold and Teck Cominco have appointed Mr. Pol Guzman as President & General Manager and Mr. Gary Ward as Project Director of the Galore Creek Mining Corporation.
Mr. Guzman and Mr. Ward have joined the Galore Creek team to lead an aggressive review of Galore Creek's development with the objective of producing a modified construction approach and execution plan that will deliver enhanced financial returns. This work will begin immediately.
Mr. Guzman is an internationally recognized senior project executive with in-depth experience in several complex and large-scale mine development projects. A mechanical engineer by training, Mr. Guzman brings with him decades of experience in the optimization, design and execution of mining projects, including the Escondida and Antamina mines in Latin America, where he served as Project Director during construction.
Mr. Ward brings over 40 years of project execution experience to the Galore Creek project. Mr. Ward has managed feasibility study updates, value improvement exercises and construction coordination, often in multicultural environments, and most recently as Project Director for the expansion of the Paracatu project in Brazil.
"I am very optimistic that this outstanding leadership team will be able to view the project with a fresh perspective and draw on their extensive experience to identify a path forward that will deliver clear value for both partners," said Rick Van Nieuwenhuyse, President & CEO of NovaGold.
"The appointment of two professionals with the breadth of experience that Pol and Gary bring to Galore Creek demonstrates clearly that both NovaGold and Teck Cominco remain fully committed to unlocking the potential of the Galore Creek resource as rapidly as possible," said Don Lindsay, President & CEO of Teck Cominco.
NovaGold and Teck Cominco would like to thank Doug Brown for his exceptional efforts in leading the Galore Creek project since the formation of the partnership in mid-2007. The project was operated to the highest environmental and safety standards and achieved significant progress under Mr. Brown's leadership. As the Galore Creek project moves into this phase of optimization and re-engineering, Mr. Brown will return to his role as Vice President Business Development for NovaGold but will remain actively involved in Galore Creek through its management committees.
Substantial value was added to the project during the 2007 construction season, including clearing 80% of the 135-kilometer road right-of-way, completing 66 kilometers of pioneer road, installing a number of key bridges and initiating work on the road access tunnel into the Galore Creek Valley. During the construction suspension and optimization period, the partners will maintain the existing infrastructure to ensure the project can be restarted quickly and efficiently as soon as a modified construction approach is defined and approved.
As a result of the decision to reassess the feasibility study and project economics, all of Galore Creek's proven and probable reserves have been reclassified as measured and indicated resources (see NovaGold's resource table at http://www.novagold.net). As a result, NovaGold expects to be filing a National Instrument 43-101 report prior to January 31, 2008. In the interim, the information contained in the Galore Creek Feasibility Study completed by Hatch Ltd. in October 2006 should not be relied upon.
About NovaGold
NovaGold is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. Production is scheduled for 2008 at the 100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, with Barrick Gold (50%). The Company also owns 50% of the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco (50%). Also in Alaska, NovaGold is earning a 51% interest as manager of the high-grade Ambler copper-zinc-silver-gold project in partnership with Rio Tinto. NovaGold has one of the largest resource bases of any exploration or development-stage precious metals company. NovaGold trades on the TSX and AMEX under the symbol NG.

to Captive Canadian Shippers

CALGARY, ALBERTA, Jan 17, 2008 (MARKET WIRE via COMTEX) -- Elk Valley Coal Partnership ("Elk Valley"), a Canadian company and one of Canada's largest exporters, has asked the Competition Policy Review Panel to review Canada's policy framework for the rail transportation sector as part of its mandate to ensure that Canada's national policies create a highly competitive economy and more and better jobs for Canadians. Elk Valley explains how monopolistic rail services create a significant barrier to its continued success serving the global steel industry. Elk Valley is a partnership between Fording Canadian Coal Trust (CA:FDG.UN: news, chart, profile) (FDG: fording cdn coal tr tr unit) and Teck Cominco Limited (CA:TCK.A) (CA:TCK.B) (TCK:
teck cominco ltd cl b).