Novagold Announces Full Exercise and Closing of Underwriters’ Option
www.novagold.com
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NEWS RELEASE
NOVAGOLD ANNOUNCES FULL EXERCISE AND
CLOSING OF UNDERWRITERS’ OPTION
All amounts are in U.S. dollars unless otherwise stated
June 5 , 2025 – Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) announces the full exercise and closing of the underwriters’ option to
purchase an additional 7,177,500 of our common shares at the public offering price of $3.75 per common
share, less underwriting discounts and offering expenses . The exercise of the underwriters’ option closed
today.
After giving effect to the full exercise of the underwriters’ option, the total number of common shares sold by
the Company in the public offering increased to 55,027,500 common shares and the net proceeds increased
to approximately US$195.2 million, after deducting the underwriting discount and offering expenses.
NOVAGOLD intends to use the net proceeds from the exercise of the underwriters’ option of approximately
$25.6 million for general corporate purposes , including covering its share of expenses associated with
updating the Donlin Gold Feasibility Study.
Citigroup, RBC Capital Markets, BMO Capital Markets and Canaccord Genuity acted as joint book -running
managers for the public offering. National Bank of Canada Financial Markets, Scotiabank and Morgan
Stanley also acted as joint book-running managers for the public offering.
A shelf registration statement on Form S-3 relating to the offered common shares was filed with the Securities
and Exchange Commission (SEC) on April 23, 2025 and automatically became effective upon filing. The final
prospectus supplement relating to and describing the terms of the offering has been filed with the SEC and
is available on the SEC’s website. Copies of the final prospectus supplement and the accompanying prospectus
relating to the offering may be obtained from the joint book -running managers: Citigroup, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (800) 831- 9146; and
RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, NY 10281,
by telephone at (877) 822 -4089, or by email to [email protected]; and BMO Capital Markets
Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036 by email to
[email protected]. You may also obtain these documents free of charge by visiting the SEC’s website
at www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor
shall there be any sale of these securities in Canada or in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About NOVAGOLD
NOVAGOLD is a precious metals company focused on the development of the Donlin Gold project. Located
in Alaska, one of the safest mining jurisdictions in the world, the Donlin Gold project is regarded as one of
the largest, highest-grade, and most prospective known open-pit gold deposits in the world.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
www.novagold.com
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Frank Gagnon
Manager, Investor Relations
604-669-6227 or 1-866-669-6227
www.novagold.com
Cautionary Note Regarding Forward-Looking Statements
This media release includes certain “forward -looking information” and “forward -looking statements” (collectively “forward -looking statements”) within the
meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include
future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding th e use of proceeds from
the exercise of the underwriter option . Such information is intended to assist readers in understanding NOVAGOLD’s current expectations and plans relating
to the future. Such information may not be appropriate for other purposes. Forward -looking statements are frequently, but not always, identified by words
such as “expects”, “continue”, “ongoing”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that
events, conditions, or results “will”, “may”, “could”, “would” or “should” occur or be achieved. Forward-looking statements are necessarily based on several
opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are
subject to known and unknown risks, uncertainties, assumptions, a nd other factors that may cause the actual results, activity, performance, or achievements
to be materially different from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included
herein are forward -looking statements. These forward -looking statements include statements regarding the anticipated timing of certain judicial and/or
administrative decisions; the 2025 outlook; the timing and potential for commencing a new feasibility study on the Donlin Gold project; the results of future
feasibility studies; our goals and expenditures for 2025; ongoing support provided to key stakeholders including Native Corporation partners; Donlin Gold’s
continued support for the state and federal permitting process; sufficiency of working capital; the potential development and construction of the Donlin Gold
project; the timing and ability for the Donlin Gold project to hit critical milestones; the ability for the Tier One gold development project to hit the anticipated
projections; the sufficiency of funds to continue to advance development of Donlin Gold, including to a construction decision; perceived merit of properties;
mineral reserve and mineral resource estimates; Donlin Gold’s ability to secure the permits needed to construct and operate t he Donlin Gold project in a
timely manner, if at all; legal challenges to Donlin Gold’s existing permits and the timing of decisions in those challenges; whether the Donlin Gold LLC board
will continue to advance the Donlin Gold project safely, socially responsibly and to sustainably generate value for our stake holders; continued cooperation
between the owners of Donlin Gold LLC to advance the project; NOVAGOLD’s ability to deliver on its strategy with the Donlin Gold project; the success of the
strategic mine plan for the Donlin Gold project; the success of the Donlin Gold community relations plan; the outcome of expl oration drilling at the Donlin
Gold project and the timing thereof; the completion of test work and modeling and the timing thereof. In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events or circumstances are forward -looking statements. Forward -looking statements are not
historical facts but instead represent the expectations of NOVAGOLD management’s estim ates and projections regarding future events or circumstances on
the date the statements are made. Important factors that could cause actual results to differ materially from expectations in clude failure to satisfy or waive
the closing conditions relating to the transaction or the proposed public offering; the need to obtain additional permits and governmental approvals; the timing
and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to complete an updated feasibility
study and to explore and develop properties and availability of financing in the debt and capital markets; disease pandemics; uncertainties involved in the
interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and
exploration successes; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of l aws,
policies and practices, expropriation or nationalization of property and political or economic developments in the United Sta tes or Canada; the need for
cooperation of government agencies and Native groups in the development and operation of propertie s; risks of construction and mining projects such as
accidents, equipment breakdowns, bad weather, disease pandemics, non -compliance with environmental and permit requirements, unanticipated variation
in geological structures, ore grades or recovery rates; unexpected cost increases, which could include significant increases in estimated capital and operating
costs; fluctuations in metal prices and currency exchange rates; whether or when a positive construction decision will be mad e regarding the Donlin Gold
project; and other risks and uncertainties disclosed in NOVAGOLD’s most recent re ports on Forms 10-K and 10-Q, particularly the “Risk Factors” sections of
those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be
obtained by visiting NOVAGOLD’s website at www.novagold.com, or the SEC’s website at www.sec.gov, or on SEDAR+ at www.sedarplus.ca. The forward-
looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes
no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.