NovaGold Second Quarter Financial Results and Projects Update

July 11, 2008 - Vancouver, British Columbia - NovaGold Resources Inc. (AMEX, TSX: NG) today announced its financial and operating results for the three and six months ended May 31, 2008, 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 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.

NovaGold will host a conference call and webcast on Thursday, July 17 at 11 am PST (2 pm EST)
Toll-free 1-800-952-4972 or webcast at www.novagold.net

President’s Message

The first half of 2008 has certainly been challenging for metals companies along with the broader markets. Many of the junior mining companies are off by as much as 50%, due in large part to continuing operating and capital cost increases and the United States credit crisis. While most metals prices remain strong, with gold moving above $1000/oz in the first quarter of the year and copper also recently challenging its highs at over $4/lb, smaller capitalization mining stocks have continued to experience high volatility.

Despite this volatility, NovaGold management and industry analysts remain bullish on the sector, predicting continued strong metals prices in the near and long term. Gold demand is up while supply remains tight. With two of North America’s largest undeveloped deposits in its portfolio, NovaGold is well positioned to take full advantage of the bull market in gold and copper, leveraging its large and growing North American reserve and resource base to add significant value for shareholders.

NovaGold continues to work toward achieving its corporate objectives:

· Rock Creek – achieve commercial production in 2008
· Donlin Creek – complete feasibility study and initiate permitting in Q1-2009
· Galore Creek – identify preferred project design and complete feasibility study in 2009
· Non-core assets – divest interests to maximize shareholder value
· Potential growth – through the acquisition of producing assets or advanced-stage assets with potential for near-term production

NovaGold expects to achieve producer status this year, with Rock Creek production estimated at 100,000 ounces of gold on an annualized basis. NovaGold management continues to believe that achieving mid-tier level producer status will bring considerable value to shareholders. Mid-tier producers generate significant cash flow while retaining the ability to grow through exploration or acquisition. NovaGold would produce potentially more than 1 million ounces of gold, 4 million ounces of silver and 200 million pounds of copper annually with Nome Operations, Donlin Creek and Galore Creek producing, giving the Company an exceptional long-term production growth profile. NovaGold is currently looking at opportunities to enhance its production and cash flow in the near and medium term.

Another business objective for 2008 is to concentrate on our core gold properties, while maximizing the value of our non-core assets. To this end, NovaGold is considering the sale of its NovaGreenPower subsidiary for cash that will be reinvested to advance our core assets. NovaGold remains committed to using “green” energy sources as much as possible, and continues to assess alternative energy such as hydroelectric power and wind cogeneration at its projects.

Our primary goal in 2008 is to build shareholder value by achieving production and cash flow while realizing value from our portfolio of world-class gold and copper assets. While market conditions have been challenging, we are confident in our ability to execute our business strategies. We look forward to providing more information on project advancement and other business opportunities in the year ahead.

Changes in Management

Peter Harris, Senior Vice President and Chief Operating Officer, is retiring from his long-time mining career on August 21. Peter has been instrumental in guiding NovaGold through the challenges of construction at both Galore Creek and Rock Creek, and we wish him well in his retirement. Carl Gagnier has assumed the position of Vice President, Operations and will be taking a lead role at Rock Creek as the mine transitions from construction to operations.

In addition, Susan Mathieu, Vice President, Safety, Environment & Sustainability, is leaving NovaGold to pursue other career opportunities. Susan’s breadth of experience in safety and sustainability has helped NovaGold establish new policies and standards at its operations. We wish her well in her future endeavors.

Projects Update

Donlin Creek
The Donlin Creek LLC has identified a preferred project design for the Donlin Creek project. With an expected throughput design of approximately 50,000 tonnes per day, Donlin Creek would be one of the largest gold mines in the world, operating for 25 to 30 years and producing potentially 1 to 1.5 million ounces of gold annually. The Donlin Creek LLC plans to complete and approve a feasibility study by Q1-2009, allowing for the start of permitting in early 2009 with construction targeted for 2012. The feasibility study will provide updated economics and cost estimates for the project based on onsite diesel and wind cogeneration and the revised project design.

Exploration is ongoing at Donlin Creek, with the focus of identifying additional high-grade/high-quality ores that can increase the net present value of the project and reduce the capital payback period. Drilling completed to date in 2008 demon strates that mineralization continues approximately 500 meters to the east of the current pit-constrained resource in the East Acma area. The 2008 holes are intercepting mineralization below and beyond the current pit limit and highlight the potential to increase the Donlin Creek resource base with additional infill drilling.

NovaGold provided an updated resource estimate for the project in June, incorporating the remaining 20,000 meters of 2007 drilling not reported in the February 2008 estimate. Donlin Creek is currently estimated to contain 31.7 million ounces of measured and indicated gold resources with an additional 4.2 million ounces of inferred gold resources, making it one of the world’s largest undeveloped gold deposits. (See NovaGold’s June 10, 2008 press release, available at www.sedar.com or www.novagold.net , for a breakdown of the resource estimate by tonnage and grade.)

Rock Creek
The Rock Creek team has completed the tailings storage facility and significant testing of the mill and processing facilities, and is completing some alterations to the water recycle pond. State regulators have been to site for inspections and have requested some final documents and tests to fulfill permit requirements, at which point we expect the Rock Creek mine will be given final authorization for production ramp up. In addition, NovaGold has filled key management positions at Rock Creek with an experienced team, and is transitioning the mine from construction to operations.

The exploration team has drilled 1,300 meters of the 9,000 meters planned for 2008, with the goal of extending the mine life at Rock Creek and expanding the Nome Operations resource base.

Galore Creek
The Galore Creek project is managed by the Galore Creek Mining Corporation, an independent entity controlled equally by NovaGold and Teck Cominco. Under the ownership agreement, Teck Cominco is paying 100% of the costs associated with re-engineering the project. NovaGold and Teck Cominco share equally the costs required to maintain the infrastructure built during the 2007 construction season, budgeted at $15 to $20 million annually.

The Galore Creek Mining Corporation continues to re-engineer the Galore Creek project and expects to announce a preferred project design in the fall of 2008. The new feasibility study, scheduled for 2009, will update cost estimates for the project and may allow for the recommencement of construction.

Results of Operations

For the three-month period ended May 31, 2008, the Company reported a loss of $8.0 million (or $0.08 basic and diluted loss per share) compared to a loss of $3.2 million (or $0.03 basic and diluted loss per share) for the corresponding period in 2007. The larger loss before income taxes for the quarter is primarily due to a one-time gain of $4.2 million on the disposal of the shares of Pioneer in the three-month period ended May 31, 2007.

For the six-month period ended May 31, 2008, the Company reported earnings of $20.0 million (or $0.19 basic and diluted earnings per share) compared to a loss of $8.1 million (or $0.08 basic and diluted loss per share) for the corresponding period in 2007. For the six months ended May 31, 2008, earnings before income taxes were higher than the comparative period primarily as a result of a $15.3 million gain on disposal of the shares in US Gold Corporation and a $16.3 million suspension cost recovery at Galore Creek, net of related non-controlling interest, offset by the $4.2 million gain on the disposal of the Pioneer shares in 2007.

Revenues for the three-month period ended May 31, 2008 were $0.3 million compared to $2.0 million in the corresponding period in 2007. The Company generates modest revenues from land and gravel sales and gold royalties. The decrease in revenues from the previous period relates mainly to decreased interest income due to lower average cash balances in 2008 as compared to the corresponding period in 2007. Revenues for the six month period ended May 31, 2008 were $2.0 million compared to $3.0 million in the same period in 2007. The decrease in revenues from the previous year’s results relates mainly to $1.6 million less interest income in 2008 versus the same period in 2007. This is offset by $0.6million more land, gravel and gold royalty revenue in 2008.

Net expenses for the three-month period ended May 31, 2008 were $8.9 million compared to $8.8 million for the same period in 2007. During the quarter, the Company recorded a foreign exchange loss of $0.7 million compared to a foreign exchange loss of $3.0 million for the same period in 2007. The larger loss in 2007 is a result of the Company’s larger US dollar cash balances and greater strengthening of the Canadian dollar in 2007 as compared to the current period. The Company recorded $1.8 million and $0.6 million for stock-based compensation during the same period in 2008 and 2007, respectively. The higher expense in 2008 resulted from over one million options being granted during the current period, whereas there was no grant during the quarter ended May 31, 2007. During the current quarter, the Company incurred $3.8 million in care and maintenance costs at its Galore Creek project and a project suspension cost recovery of $2.2 million, with no comparable items during the same period in 2007.

Net expenses and other items for the six-month period ended May 31, 2008 were an income of $18.4 million compared with an expense of $14.6 million in the corresponding period in 2007. For the current six-month period, general and administrative expenses, corporate development and professional fees decreased by $1.2 million and stock-based compensation increased by $1.1 million compared to the same period in 2007. During the six-month period ended May 31, 2008, the Company recorded a foreign exchange gain of $0.2 million resulting from the Company’s net US dollar liability balance during a period where the Canadian dollar is strengthening, compared to a foreign exchange loss of $3.7 million for the same period in 2007 when the Company had a large net US dollar asset, also while the Canadian dollar was strengthening. Additionally, during the six-month period ended May 31, 2008, the Company incurred $3.8 million in care and maintenance costs and a suspension cost recovery of $32.6 million for its Galore Creek project.

The Company equity accounts for its strategic investment in Alexco Resource Corp. (“Alexco”) as it has significant influence over Alexco. For the quarter ended May 31, 2008, the Company recorded a net loss of $0.6million from the combination of its share of net income or loss and dilution in its ownership of Alexco compared to a net gain of $0.1 million for the same period in 2007. For the six-month period ended May 31, 2008, the Company recorded a net gain of $0.5 million from the combination of its share of net income or loss and dilution in its ownership of Alexco compared to a net loss of $0.4 million for the same period in 2007. At May 31, 2008, the Company had a pre-tax unrecorded gain of $12.5million in its Alexco holdings.

For the three-month period ended May 31, 2008, the Company recorded a future income tax (“FIT”) recovery of $0.4 million, which resulted mainly from an FIT recovery of $0.2 million on revised suspension costs at Galore Creek and an FIT recovery of $0.2 million on losses in NovaGold Canada Inc.

For the six-month period ended May 31, 2008, the Company recorded an FIT expense of $1.8 million, which resulted mainly from an FIT expense of $3.7 million from the suspension cost recovery at Galore Creek and an FIT expense of $4.5 million from the sale of US Gold Corporation shares, offset by an FIT recovery of $6.6 million from an income tax rate reduction totaling approximately 4.5%.

Outlook

At May 31, 2008, the Company had cash and cash equivalents of $37.6 million. Of this amount, $11.8 million was designated for Galore Creek suspension related activities, including payment of accounts payable. On March 26, 2008, the Company completed the issuance of US$95.0 million of 5.5% convertible senior unsecured notes due May 1, 2015 for net proceeds of US$91.5 million.

The Company initially budgeted to spend approximately $42 million in fiscal 2008 to complete construction at its Rock Creek mine. Significant adverse weather conditions combined with weather damage to the water recycle pond and extra work relating to storm water pollution prevention requirements (compounded by unusually high snowfall) have led to extended delays to commencement of start-up at Rock Creek. As a result, an additional $25 million has been added to the construction budget. Construction is targeted to be complete by mid-2008 and the Company plans to acquire additional mining equipment in the second half of 2008, expand the tailings storage facility for future production and complete additional storm water prevention measures. These post-completion costs are expected to total approximately $19 million. In March 2008 the Company announced it had received a Notice of Violation (“NOV”) from the State of Alaska regulators relating to preventative measures for stormwater discharges from its construction site. On June 9, 2008 the Company received a further NOV and on July 7, 2008 the Company received a draft Compliance Order by Consent (“COBC”) from the State of Alaska. The Company is working with the State on these matters and although the Company expects to resolve these issues, failure to adequately respond to the NOV and COBC could result in substantial fines, injunctive relief or other enforcement measures which may have a material impact on the Company’s ability to operate the Rock Creek mine.

The Company had budgeted to spend approximately US$25.4 million at Donlin Creek to May 31, 2008 for engineering and environmental studies, particularly related to power alternatives and optimization, and on exploration activities with the objective of expanding the existing resource base. At May 31, 2008, US$18.3 million had been incurred (US$7.1 million under budget). The Donlin Creek LLC expects to approve a second budget for the remainder of 2008, which will include a permitting phase budget and a budget to complete a feasibility study. The amount of these has yet to be determined.

The Company had estimated to spend approximately $33 million on suspension-related activities at its Galore Creek project, which is its portion (one third) of the estimated maximum suspension liability of $100 million. The Galore Creek Partnership’s efforts in 2008 are focused on demobilization of the project and then to place it on a care and maintenance basis that will enable the project to restart at a later date. A demobilization estimate of $93.1 million had been included as a liability in the Company’s November 30, 2007 year-end financial statements based on the information available at that time. Since year end, GCMC has negotiated settlement of numerous contracts having determined, after analyzing the costs and benefits associated with the purchase of the equipment compared with demobilizing the contractors’ equipment, that it was more cost effective to buy the equipment left at the site. Total contracts of approximately $38.0 million have been signed to date for the purchase of equipment. During the six-month period ended May 31, 2008, the Company revised the demobilization cost estimate to $60.5 million from the estimate of $93.1 million recorded at November 30, 2007 as a result of the settlement of the major contracts. The Company has reflected the $32.6 million reduction as a recovery in the current period’s statement of operations, net of non-controlling interest of $16.3 million and a future income tax expense of $3.7 million.

The Company is in the process of obtaining better value for its shareholders by monetizing various investments in its non-core assets, namely its green power business and exploration assets, including the Ambler project. This monetizing may be in the form of cash and/or marketable securities, dependent upon the asset. The Company is also negotiating a bank line of credit to be repaid from cash flow from the Rock Creek mine. In addition, the Company has 3.5 million warrants exercisable at $7.00 per share expiring on October 1, 2008 which, if exercised, would generate approximately $24 million for the Company. As at July 11, 2008, the Company anticipates funding its planned activities for the next twelve months from current cash and the aforementioned transactions.

Conference Call Thursday, July 17, 2008

NovaGold will hold a conference call and webcast on Thursday, July 17, 2008 at 11 am PST (2 pm EST) to discuss its financial results for the three months ended May 31, 2008 and to give an update on the Company’s project development activities. To participate in the conference call, dial 416-641-2140 or toll-free 1-800-952-4972. Live audio and a presentation will be simultaneously broadcast on NovaGold’s website at www.novagold.net.

Cautionary Note Concerning Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation; anticipated dates for receipt of permits and approvals, construction and production, and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; anticipated availability and terms of future financing; estimated timing and amounts of future expenditures, and NovaGold’s future production, operating and capital costs, operating or financial performance, are forward-looking statements. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. NovaGold’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and NovaGold does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Important factors that could cause actual results to differ materially from NovaGold’s expectations include uncertainties involved in disputes and litigation; fluctuations in gold, copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the possible effects of Alaska’s proposed “Clean Water” initiatives; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in NovaGold’s Annual Information Form for the year ended November 30, 2007, filed with the Canadian securities regulatory authorities, NovaGold’s annual report on Form 40-F filed with the United States Securities and Exchange Commission, and other information released by NovaGold from time to time and filed with the appropriate regulatory agencies.

National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained in this press release or released by NovaGold in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43-101 are not the same as those of the SEC, and reserves reported by NovaGold in compliance with NI 43-101 may not qualify as reserves under the SEC’s standards.

NovaGold First Quarter Financial Results and Project Update April 15, 2009 - Vancouver, British Columbia - NovaGold Resources Inc. (TSX: NG, NYSE-AMEX: NG) 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. Rock Creek Gold Mine, Alaska 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 at Rock Creek 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 project 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 the project expanded the Rock Creek deposit by 24%, bringing total project 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 these resources will convert to reserves Our objective now is to review the Rock Creek project and establish a plan that maximizes value for shareholders. Since the decision to suspend start-up, the gold price has rallied while prices for fuel and other input materials have decreased. In 2009, we will decide whether to recommence start-up activities when the market becomes more favorable, bring in an operating partner or possibly sell the property. Whatever the decision, we expect Rock Creek to bring value to NovaGold shareholders in the near to medium term. Galore Creek Copper-Gold-Silver Project, British Columbia In February 2009, the Company announced that it had amended the partnership agreement with Teck Cominco for the Galore Creek Project, where Teck will now fund 100% of Galore Creek costs until the aggregate amount contributed by Teck after November 1, 2008, together with funds previously contributed by Teck on optimization studies, equals C$60 million. Both companies continue to hold 50% interests in the partnership but during the period of Teck’s sole funding, Teck will have a casting vote on the Partnership’s Management Committee with respect to the timing and nature of expenses to be funded. Following Teck’s $60 million contribution, all further costs at Galore will be funded by Teck and NovaGold in accordance with their respective partnership interests and there will no longer be any casting vote for either party. Galore Creek is located in northwestern British Columbia and is one of the world’s largest undeveloped copper-gold deposits. As currently envisioned, the mine would be developed as a high-tonnage open-pit operation producing a high-quality precious-metal-rich copper concentrate. Continued road work during 2008 connected portions of the access road to kilometer 40 to allow surplus equipment to be driven out. Eventual completion of the road to kilometer 90 will improve access to the project and reduce construction costs when the project can be restarted, largely eliminating the need for helicopter support. GCMC will continue to maintain and improve the infrastructure at site until a new construction decision is made. Other Project Ambler Project, Alaska In March, the Company negotiated an extension to its Ambler option agreement with subsidiaries of Rio Tinto. The agreement has been extended by nine months to December 22, 2009 to provide the Company adequate time to review the project’s potential. The Ambler property comprises 14,000 hectares of patented and State of Alaska mining claims, covering a major portion of the precious-metal-rich Ambler volcanogenic massive sulfide (“VMS”) belt. Arctic is the most advanced deposit ranking among the largest and richest VMS deposits in the world, based on both total in situ metal value and value per tonne. The Ambler VMS belt has been largely unexplored since the early 1980s. Results of Operations For the three-month period ended February 28, 2009, the Company reported a net loss of $28.5 million (or $0.20 basic and diluted loss per share) compared to net earnings of $24.2 million (or $0.23 and $0.22 basic and diluted, respectively, earnings per share) for the corresponding period in 2008. The $52.7 million reduction in earnings when comparing the first quarters of 2009 and 2008 is primarily due to the following: • A $15.2 million net project suspension recovery in 2008 related to the Galore Creek project and a $15.3 million gain from the disposal of investment with no comparable amounts in 2009; • An $8.6 million charge for project care and maintenance in 2009 related to the activities at the Rock Creek and Galore Creek projects with no comparable charge in 2008; • A $5.5 million increase in foreign exchange loss in 2009 compared with 2008 related to the weakening of the Canadian dollar against the U.S. dollar during the period; and • A $2.5 million increase in exploration expenditures in 2009 incurred mainly at the Donlin Creek project. Revenues for the three-month period ended February 28, 2009 were $0.4 million compared to $1.7 million in the corresponding period in 2008. The Company generates modest revenues from land and gravel sales and gold royalties. The decrease in revenues from the previous period relates mainly to significantly lower interest rates payable by the banks on cash balances in 2009 as compared to the corresponding period in 2008. Total expenses and other items for the three-month period ended February 28, 2009 were $31.8 million compared to $23.4 million net gain for the same period in 2008. During the quarter, the Company recorded a foreign exchange loss of $4.5 million compared to a foreign exchange gain of $1.0 million for the same period in 2008. The loss in 2009 is a result of the weakening Canadian dollar against the U.S. dollar during the first quarter of 2009 on US-denominated cash and financial liability balances. The Company expended $6.4 million on exploration activities during the quarter compared to $3.9 million for the same period in 2008. The Company also expended $8.6 million on care and maintenance activities at the Rock Creek and Galore Creek projects during the quarter with no comparable expenditures in 2008. Operations at the Rock Creek and Galore Creek projects are suspended and were placed into care and maintenance of which all costs are expensed as incurred. The Company recorded $1.4 million for stock-based compensation in 2009 and $0.2 million for the same period in 2008. The higher expense in 2009 resulted from 2,973,000 options being granted during the quarter ended February 28, 2009 to employees and directors to encourage staff retention. In 2008, $30.4 million project suspension cost recovery at the Galore Creek project was recorded with no similar amount recorded in 2009. During the first quarter of 2008, some of the costs estimated at the November 30, 2007 year end for suspension at Galore Creek were reversed as the Galore Creek Mining Corporation (“GCMC”) was able to negotiate a favorable purchase of contractor’s equipment remaining at the construction site. In 2008 the Company also recorded a $15.3 million gain on the sale of its investment in US Gold shares but it was almost entirely offset by non-controlling interest amount of $15.2 million. The Company equity accounts for its strategic investment in Alexco Resource Corp. (“Alexco”) as it has significant influence over Alexco. During the quarter ended February 28, 2009, the Company sold its entire investment in Alexco for net proceeds of $3.8 million. At November 30, 2008 the investment had been written down to fair value and no further gain or loss has been recorded on the disposition of the shares during the quarter. For the three-month period ended February 28, 2009 the Company recorded a future income tax (“FIT”) recovery of $1.0 million, which resulted mainly from additional losses from exploration expenditures incurred in Canada and the benefit of an income tax reduction on long-term tax rates in British Columbia. Outlook At February 28, 2008, the Company had cash and cash equivalents of $78.8 million and working capital of $62.9 million. Of this amount, $3.4 million was designated for Galore Creek suspension related activities, including payment of accounts payable. At November 30, 2008, the Company had cash and cash equivalents of $12.2 million and a working capital deficiency of $20.2 million. During the three-month period ended February 28, 2009, the Company completed private placements totaling US$75 million by issuing 57,692,308 Units at a price of US$1.30 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable at a price of US$1.50 prior to the fourth anniversary of the closing date. In addition, the Company’s US$20 million bridge loan was converted into 15,762,565 shares at a rate of $1.53 per share and 750,000 warrants at $1.53 per share were exercised for net proceeds of $1.1 million. The Company also sold its holdings in Alexco Resource Corp. (“Alexco”) for net proceeds of $3.8 million. The funds were used to pay accounts payable and accrued liabilities at November 30, 2008 of approximately $22.7 million which relates mainly to the suspension of activities at Rock Creek. The Company believes it has sufficient funds to meet its cash requirements for the next twelve months. The Company’s three material projects are the Donlin Creek, Rock Creek and Galore Creek projects. The Company’s remaining share of the 2009 budget at the Donlin Creek project is approximately US$10 million, part of which will be incurred completing the feasibility study and the remainder is planned to be used for permitting activities at the project. The Rock Creek project is in care and maintenance, pending a review of whether to recommence start-up at the project. The current remaining care and maintenance budget at Rock Creek for 2009 is approximately US$7 million. The budget for care and maintenance and optimization studies activities at the Galore Creek Project for 2009 is $16 million, however, NovaGold is not required under its revised agreement with Teck to fund any of those costs. The Company does not plan to commence development or construction at its Donlin Creek and Galore Creek projects in 2009, nor does it currently plan to recommence the start-up process at the Rock Creek project. However, the Company will need external financing to develop and construct its major properties and to fund the exploration and development of its other mineral properties in future years. Sources of external financing may include bank borrowings and future debt and equity offerings. There can be no assurance that financing will be available on acceptable terms, or at all. The failure to obtain financing could have a material adverse effect on the Company’s growth strategy and or results of operations and financial condition. Development of the mineral properties would require significant capital expenditures. There can be no assurance that the Company will be able to secure the financing necessary to retain its rights to, or to begin or sustain production at, any of its mineral properties. About NovaGold NovaGold is a precious metals company engaged in the exploration and development of mineral properties in North America. The Company has a portfolio of mineral properties located in Alaska, USA, and British Columbia, Canada. The Company’s largest projects are being advanced with major mining companies. The Donlin Creek project is held by a limited liability company owned equally by NovaGold and Barrick Gold U.S. Inc. (Barrick). The Galore Creek project is held by a partnership owned equally by NovaGold and Teck Cominco Limited (Teck). NovaGold owns a 100% interest in the Rock Creek, Big Hurrah and Nome Gold deposits in Nome, Alaska. NovaGold has one of the largest resource bases of any junior or mid-tier level producing gold company, and trades on the TSX and NYSE-AMEX under the symbol NG. More information is available online at www.novagold.net or by e-mail at info@novagold.net.