NOVAGOLD

NOVAGOLD is well-financed precious metals company engaged in the exploration and development of mineral properties in North America. The company is focused on permitting and developing its 50%-owned flagship property, Donlin Gold, one of the world's largest known undeveloped gold deposits. The Donlin Gold project commenced permitting in 2012, a clearly defined process expected to take approximately four years. NOVAGOLD is also committed to maximizing value of its non-core assets and is currently exploring opportunities to sell its interest in the Galore Creek copper-gold-silver project in British Columbia, Canada.

Expert Comments:

John Bridges, J.P. Morgan (10/9/14)
"NOVAGOLD believes it has passed the halfway stage with permitting its Donlin gold project in Alaska and could be ready to build or sell in late 2016. . .we expect the state to be supportive of Donlin's development."

"NOVAGOLD's Donlin is one of the premier undeveloped gold assets in the world, full stop. There's also a strong partner in Barrick Gold. Donlin is a large, high-grade opportunity in a good jurisdiction, and once it becomes a mine, it will be producing for decades. It's one in a handful of truly strategic assets in the world. [Cowen and Company, JP Morgan and RBC Capital Markets all cover NOVAGOLD.]. . .that institutional support is certainly helpful, but a project of that scale is challenging to finance in today's market. In the market we had four years ago, it would be viable, and we will certainly see such markets again in the future. NOVAGOLD and Barrick are advancing the project and there will ultimately be a construction decision, but even if Donlin were permitted and ready to go and all they had to do was spend the money, I expect they would both choose to pause and wait for better capital markets and better valuations." read more >

"NOVAGOLD is on our watchlist as it owns the Donlin project, where it is partnered with Barrick. It has around 45 Moz gold in the Resource category. Donlin could possibly produce over a million ounces of gold annually at a high grade of 2.2 g/t. It can be purchased at a major discount. NOVAGOLD is currently trading under $4/share. In previous gold bull markets, the company was trading in the mid-teens. As the sector turns, I wouldn't be surprised if it makes that move again." read more >

John Bridges, J.P. Morgan (7/11/14)
"NOVAGOLD is an unusual and rare company with a large gold project in a politically stable location (Alaska) with a full feasibility study. . .the company has outperformed the S&P gold index by 40% this year. . .Donlin is a unique, low-cost, high-grade asset."

John Bridges, J.P. Morgan (7/9/14)
"NOVAGOLD is tracking within its $30M budget for the year. . .the company has $176M in cash and term deposits plus a motivated shareholder group (top two shareholders) controlling 36% of the equity. It is about halfway through the time consuming environmental impact statement process."

John Bridges, J.P. Morgan (6/20/14)
"NOVAGOLD is performing better thus far this year as it has advanced its permitting process. The Donlin project provides exposure to the long-term gold price but no near-term operating risk since commissioning is still years away; the company has secured financing for its share of permitting costs for the Donlin project."

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Investing Highlights
 
High-grade deposits with excellent production profiles and exploration upside
 
Safest leverage to gold, assets located in top-rated mining jurisdictions
 
Supportive, loyal and engaged stakeholders
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