Novagold Resources Inc. · AMEX:NG

Novagold Resources — Investor Presentation (June 2010)

50 slides from Novagold Resources's investor presentation, June 2010

1. Slide 1: NovaGold Resources Inc. Corporate Presentation

   NovaGold G ld Resources Inc. A growth‐focused precious metals company Corporate Presentation NYSE‐AMEX, TSX: NG June 2010

2. Slide 2: Forward-looking Statements

   Forward‐looking Statements This presentation includes “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,, statements regarding

3. Slide 3: 2010 – Back to Basics

   2010 – “Back to Basics” • 2009 was a year of review and refocus • Focusedd strategy to advance d our world‐class ld l projects through permitting and construction and into production • Focus on our strengths • Growth – acquisition, acquisition exploration • Adding value – advancing resources to rese

4. Slide 4: NovaGold Business Model

   NovaGold Business Model • Four‐step business model 1. 1 Identify Id if andd acquire i high‐quality hi h li assets 2. Expand deposits with exploration expertise 3 3. Advance to feasibility level = reserves, reserves greater value 4. Create strong partnership with senior producer to advance project to

5. Slide 5: Providing Superior Leverage to Gold

   Providing Superior Leverage to Gold 17.3M 17 3M ounces Gold Reserves 8.2M ounces Gold M&I 94M ounces Silver M&I 6.0B pounds Copper M&I 4.5M ounces Gold G ld IInferred f d 51M ounces Silver Sil Inferred I f d 2.7B pounds d Copper C IInferred f d • One of the largest resource bases of any junior or mi

6. Slide 6: Low Geopolitical Risk

   @ @ @ | Low Geopolitical Risk _ Ambler 100% NovaGold Copper-zinc-gold-silver Exploration property Rock Creek 100% NovaGold % Port of Nome Constructed gold mine On care and maintenance > / «Fairbanks / / Donlin Creek Port of Bethel 50/50 with Barrick Gold 34 Mozs gold reserves Feasibility, aig Ss ® W

7. Slide 7: World-class Projects, World-class Partners

   World‐class Projects, World‐class Partners • Senior operating partnerships in place Æ lower operating risk and higher potential value • Partners bring extensive operating experience Barrick Gold – 50/50 at Donlin Creek • World’s largest gold mining company • Portfolio of 26 operating mines worldwide

8. Slide 8: Financing Experience

   Financing Experience • Raised more than US$800 million over the last five years with major financial institutions including Citigroup, Citigroup JPMorgan, JPMorgan RBC • March 2010 – US$175 million equity financings • Paulson & Co. US$100 million 1 • Soros Fund Management US$75 million 2 • Cash and

9. Slide 9: Adding Value Through Resource Growth

   Adding Value Through Resource Growth One of the industry’s best track records for resource growth Note: Reflects 50% ownership of Donlin Creek, 50% of Galore Creek, 100% of Ambler and 100% of Nome Operations. Resource estimate updates as of 9 March 2010. Based on gold‐equivalent resources assuming a

10. Slide 10: Superior Value, Superior Leverage

    Superior Value, Superior Leverage • NovaGold offers significant value to investors • 17 17.3 3 Mozs M gold ld reserves, 8.2 8 2 Mozs M M&I gold ld resources • 6.0 Blbs M&I copper resources Æ each 10 shares of NovaGold = 0.9 ozs of gold plus 210 lbs of copper M&I ounces, or 1.5 ozs of gold equivalent

11. Slide 11: Comparative Gold Resources in the Americas

    Comparative Gold Resources in the Americas 50 Mid‐Tier Producers old Resource e 40 Junior Developers Producers 30 ons of ozs Go 20 10 Millio 0 Proven & Probable Measured & Indicated Inferred Source: Metals Economics Groups. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Reserve

12. Slide 12: Enterprise Value per Ounce in the Americas

    Enterprise Value per Ounce in the Americas Mid‐tier Producers 400 Avgg $310 EV/oz / Recently Acquired Junior Producers 300 Developers Developers Avg $250 EV/oz Avg $80 EV/oz Avg $110 EV/oz 200 NG $87 EV/oz 100 0 Source: Metals Economics Groups. Note: Reflects 50% ownership of Donlin Creek, 50% of Ga

13. Slide 13: Development-stage Discount

    Development‐stage Discount • Development‐stage projects tend to trade at a discount compared to future production valuation • Each development milestone decreases project risk • Market valuation should increase as milestones are achieved and project advances toward production • Exploration success i

14. Slide 14: Project Overview

    Project Overview e Fairbanks Anchorage © Whitehorse he k y Port of Stewart e Smithers

15. Slide 15: Donlin Creek

    Donlin Creek 50/50 Partnership with Barrick 33 6M 33.6M ozs Gold Proven & Probable 1 4.3M ozs Gold Measured & Indicated 1 4 4M 4.4M ozs Gold Inferred 1 (1) At 100% basis. NovaGold owns 50%. See “Cautionary Note Concerning Reserve and Resource Estimates” 15 and “Reserve & Resource Table” with footnot

16. Slide 16: Donlin Creek: Comparison of Undeveloped Gold Projects

    Donlin Creek Comparison of Undeveloped Gold Projects in the Americas 40 Donlin Creek: 2.2 g/t gold, open pit Gold Resourrces 35 30 Inferred Resources Measured & Indicated Resources 1 25 ns of ozs of G 20 15 10 Million 5 0 Mi Mine Donlin D li D Detour M Metates A Angostura Li Livengood d Canadian C d

17. Slide 17: Donlin Creek

    Donlin Creek 17 17

18. Slide 18: Donlin Creek Exploration

    Donlin Creek Exploration Red blocks > 0.74 g/t / Au Resources contained within green pit outline have been converted to P&P Reserves R Pit currently 3km x 2 km 18 18

19. Slide 19: Donlin Creek Exploration Potential

    Donlin Creek Exploration Potential Pit contained within 3km of 8km district Numerous exploration targets identified 19 19

20. Slide 20: Donlin Creek Proposed Site Layout

    Donlin Creek Proposed Site Layout Compact footprint, large land package p g for expansion Located entirely on private Alaskan l k Native land g designated for mining 20Based on April 2009 technical report available at www.novagold.net. 20

21. Slide 21: Donlin Creek Access & Facilities

    Donlin Creek Access & Facilities Proposed Infrastructure for the Donlin Creek Mine 21 Based on April 2009 technical report available at www.novagold.net. 21

22. Slide 22: Donlin Creek: One of the World's Largest Undeveloped Gold Deposits

    Donlin Creek: One of the World’s Largest Undeveloped Gold Deposits Comparison of Donlin Creek with Barrick Gold’s Goldstrike mine 1 Select Operating Statistics Donlin Creek (100%) 2 Goldstrike Mine 3 Years 1–5 (Open Pit) Production (ozs/year) 2 1.6 Million ozs/year 1.4 Million ozs/year 3 Reserves &

23. Slide 23: Donlin Creek – Potential Gas Power

    Donlin Creek – Potential Gas Power Donlin Creek Anchorage Cook Inlet • Potential to bring natural gas pipeline to project Æ could significantly reduce power costs • Additional cost reduction opportunities 23

24. Slide 24: Donlin Creek Value Drivers

    Donlin Creek Value Drivers • Future resource expansion potential • Workk program for f 2010 • Budget (100%) = US$47M (NovaGold’s share US$23.5M) • Environmental E i t l and d engineering i i studies t di tto update d t feasibility study for natural gas option • Continued communityy engagement g g an

25. Slide 25: Galore Creek

    Galore Creek 50/50 Partnership with Teck 8 9B 8.9B lbs Copper 3 5B 3.5B lbs Copper Measured & Indicated 1 Inferred 1 7.3M ozs Gold 3.3M ozs Gold Measured & Indicated 1 Inferred 1 123M ozs Silver 61M ozs Silver Measured & Indicated 1 Inferred 1 (1) At 100% basis, of which NovaGold owns 50%. Includes

26. Slide 26: Galore Creek: Comparison of Undeveloped Copper-Gold Projects

    Galore Creek Comparison of Undeveloped Copper Copper‐Gold Gold Projects in the Americas 20 20 Billion 55 Mlbs Cu M&I 39 Mozs Au M&I Gold M&I Resource urce 26 Mlbs Cu Inf 11 Mozs Au Inf Gold Inferred Resource Copper M&I Coppe & Resource esou ce Millions of ozs of Gold Resou ns of lbs of C 15 Galore C

27. Slide 27: Galore Creek Updated Mine Plan

    Galore Creek Updated Mine Plan Optimized Mine Plan for the Galore Creek Project Km 40 27 27

28. Slide 28: Galore Creek Road Access

    Galore Creek Road Access • Access established to Km 40 • Road permits in good standing • Continuing to upgrade access road 28 28

29. Slide 29: Galore Creek Value Drivers

    Galore Creek Value Drivers 9 Project redesigned and re‐engineered • Major infrastructure moved out of Galore Creek Valley • Conventional tailings dam • Capacity for project expansion • Realign road and tunnel • Higher throughput and higher metal prices • Pre‐feasibility study underway, completion fi

30. Slide 30: Rock Creek

    Rock Creek NovaGold owns 100% 0 5M 0.5M ozs Gold Probable Reserves 1 0.4M ozs Gold G ld Measured & Indicated 1 0 04M 0.04M ozs Gold Inferred 1 (1) Includes Rock Creek and Big Hurrah. M&I Resources exclusive of Probable Reserves. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Re

31. Slide 31: Rock Creek

    Rock Creek • Project substantially constructed • On care and maintenance • Examining go‐forward alternatives to bring best value to shareholders • Significant g improvements p to water management systems • Potential gold production 100 000 ozs/year 1 estimated at 100,000 • Alaskan Native partners: B

32. Slide 32: Ambler

    Ambler NovaGold ld owns 100% 1.5B lbs Copper 937M lbs Copper lb Measured & Indicated 1 Inferred 1 2 2B 2.2B lbs Zinc 1 3B 1.3B lbs Zinc Measured & Indicated 1 Inferred 1 0.5M ozs Gold 0.3M ozs Gold Measured & Indicated 1 Inferred 1 32M ozs Silver 19M ozs Silver Measured & Indicated 1 Inferred 1 32(1

33. Slide 33: Ambler

    Ambler • Multiple promising targets on property • Arctic deposit most advanced • 30Mt very high high‐grade grade VMS deposit: 4% copper, 6% zinc 0.8 g/t gold, 60 g/t silver 1 • 8% C Cu equivalent i l t • 2010 objectives • Continued community engagement • Exploration • Environmental baseline studies

34. Slide 34: Ambler District – Arctic Deposit

    Ambler District – Arctic Deposit 34

35. Slide 35: Ambler District Geology

    Ambler District Geology Smucker Sunshine Shugnak Arctic BT Sun 35 35

36. Slide 36: Value of Gold Resource Per Dollar Invested

    Value of Gold Resource Per Dollar Invested $15 With t add additional t o a coppe copper US Dollars and silver resources $10 of Gold in U $5 Value o $0 36 Source: Metals Economics Group at May 18, 2010 using $1100/oz gold.

37. Slide 37: Global Gold Deposits – Contained Metal

    Global Gold Deposits – Contained Metal 1% 2% • Donlin Creek & Galore Creek are in the top 3% 22% of global gold deposits • Most discoveries < 1 Mozs gold • Large deposits 75% > 10 Mozs are extremely rare > 20 Mozs • Large deposits generally 10-20 Mozs 1-10 Mozs controlled byy seniors < 1 Mozs 37 Sou

38. Slide 38: Share Capitalization

    Share Capitalization Issued and Options Warrants Fully diluted 1 outstanding outstanding 220.2M 14.1M 53.7M 287.9M • Approximately $180M in cash and cash equivalents, with additional potential $80M from warrants 1 • ~US$2B market cap (in the money, fully diluted) • Share liquidity with an average of

39. Slide 39: Why NovaGold?

    Why NovaGold? Superior Value Superior Leverage • Large, high‐quality projects • Safe geopolitical locations • Senior operating partners • p Experienced management g team • Well financed • Strong sustainability commitments • Continued resource growth • Exposure to gold, silver and copper • NovaGold =

40. Slide 40: Appendix

    @ © @| Appendix

41. Slide 41: Sustainability Commitments

    Sustainability Commitments • NovaGold has published its first sustainability report and is establishing a process for data collection and more robust reporting metrics • NovaGold supports the UN Global Compact • NovaGold supports the International Council on Mining & Metals Sustainability Principles

42. Slide 42: Strong Metals Market

    Strong Metals Market • Fundamentals in place for continued gold strength • Gold ld and d copper d demand d increasing • Investment demand for gold • Copper pp demand from developing p g countries Gold, Silver & Copper 10‐Year Performance J January 2000 – April A il 2010 Gold Silver Copper 42

43. Slide 43: Fundamentals in Place for Continued Gold Strength

    Fundamentals in Place for Continued Gold Strength • Global monetary policy has accelerated inflationary pressures • Prices for ggold in real terms remain well below historical highs g • Demand for gold continues to increase • Investment demand remains a key price driver as investors look for a safe

44. Slide 44: Increased Global Demand for Gold

    Increased Global Demand for Gold Global Gold Demand in US$ Billions $120 • Overall demand increasing Investment by US$9 billion annually $100 I d ti l Industrial • Investment demand grown from 5% to >35% $80 Jewellery $60 $40 $20 $0 2000 2002 2004 2006 2008 44 Source: World Gold Council.

45. Slide 45: Copper: Increased Demand vs Constrained Supply

    Copper: Increased Demand vs Constrained Supply • Global demand for copper continues to increase with population growth and industrialization • D Developing l i countries i continue i to build b ild out infrastructure i f and d urban b populations l i are increasing • Consumers in developing countrie

46. Slide 46: China Driving Copper Demand

    China Driving Copper Demand Global Copper Demand Projected demand 18000 for India & China rest of 15000 the world Demand in kt USA 12000 China Projected India Demand USA 9000 for China 6000 3000 0 1996 2006 2015 Other* Europe Japan India USA China * Other Asian countries, Russia, Brazil. 46 Source:

47. Slide 47: China Driving Copper Demand

    China Driving Copper Demand Chinese demand still has a long way to go China USA China USA China USA Ratio Population Population Per Capita Per Capita Motorways (km) 1,447,200 6,711,634 1,340 M 307 M 1,080 21,862 20 Roads ((km)) 324,280 4,346,199 1,340 M 307 M 242 14,157 59 Railways (km) 80,000 230,2

48. Slide 48: Reserve & Resource Base

    Reserve & Resource Base NovaGold Resources Inc. Proven and Probable Reserves, Measured, Indicated and Inferred Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at June 1, 2010 Reserves Property Reserve Tonnes In Situ Grade Total Contained Metal NovaGold Share Net After E

49. Slide 49: Reserve & Resource Base – Footnotes

    Reserve & Resource Base – Footnotes Notes 1. These reserve and resource estimates have been prepared in accordance with NI 43‐101 and the CIM Definition Standards. See “Cautionary Note Concerning Reserve & Resource Estimates”. 2. See numbered footnotes below on reserve and resource information. Rese

50. Slide 50: Cautionary Note Concerning Reserve & Resource Estimates

    Cautionary Note Concerning Reserve & Resource Estimates This presentation uses the terms “proven reserves”, “probable reserves”, “measured”, “indicated” and “inferred” resources. United States investors are advised that, while these terms are recognized and required by Canadian securities laws, the

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