Third Quarter 2026 Financial Results Conference Call - NOVAGOLD RESOURCES INC

Financial Performance:

• Reported a fiscal 2026 third-quarter net loss of $36 million ($0.08 per share), an increase of $20.4 million year-over-year driven by higher Donlin Gold expenditures and elevated corporate G&A.
• Share of Donlin Gold expenses rose $16.6 million due to Bankable Feasibility Study (BFS) activities; corporate G&A increased $5.7 million due to legal and professional fees related to the proposed acquisition.
• Treasury decreased by $26.8 million to $343.4 million due to $248 million in Donlin Gold funding and $98 million in G&A costs, offset by $3.8 billion in interest income and $1.2 million in securities sales.
• Adjusted 2026 corporate G&A guidance increased by $11.5 million to $31.2 million to reflect ongoing transaction costs through early 2027.
• Company remains well-funded, with sufficient liquidity to complete the BFS in 2027, prepay the Barrick Promissory Note, and cover G&A for the next 12 months.

Guidance and Future Outlook:

• Bankable Feasibility Study (BFS) is on track for completion in 2027, with engineering integration led by Fluor and specialist contractors.
• Proposed transaction to acquire 100% of Donlin Gold expects to close by the end of 2026, subject to shareholder approval by November 3rd and regulatory conditions.
• Long-term production profile projects 1.1 million ounces annually over a 27-year mine life; first decade production estimated at over 520,000 ounces per year (attributable).
• Management anticipates gold prices to reach $5,000 per ounce within six months and projects long-term prices could enter the tens of thousands, viewing the current cycle as the beginning of a major bull market.

Business Segments and Product Lines:

• Primary focus is the Donlin Gold project in Alaska, positioning it to become the largest single gold mine in the U.S. with 40 million ounces of measured and indicated resources (avg. grade 2.25 g/t).
• Proposed restructuring involves creating a new U.S.-domiciled parent company, "New Nova Gold," listing on the NYSE, with John Paulson owning ~40% (voting cap 19.99%) and Dr. Kaplan as Co-Chair.
• Donlin Gold adds approximately 13 million ounces in proven and probable reserves to Nova Gold's portfolio, increasing assets and NAV per share.
• Technical teams have more than doubled in size from 35 to over 70 employees in 2026 to support BFS and final investment decision preparations.

Market and Competitive Landscape:

• Project competes with major North American producers; positioned to rank among the highest annual gold producers in the Americas by reserve and production volume.
• Strong bipartisan political support in Alaska; leveraging tailwinds from global sovereign wealth funds and Asian nations (Japan, UAE, South Korea) seeking gold and U.S. investment opportunities.
• Regulatory environment viewed as stable, with a well-established framework and constructive engagement with state and federal agencies.
• Exploration potential remains significant at the ACMA and Lewis pits, covering 3km of an 8km gold-bearing trend, offering potential for resource expansion.

Risks and Challenges:

• Pending transaction carries risks related to shareholder approval (requires two-thirds vote), court rulings, and regulatory approvals.
• Elevated legal and professional fees are expected to persist through the end of 2026 and into early 2027 until transaction closing.
• Permitting timelines remain a critical path, with the final Supplemental Environmental Impact Statement anticipated in April 2027 and dam safety certificates expected in 2028.
• No direct comments were made on the Q&A portion regarding the transaction details, limiting real-time clarification on specific deal mechanics.

Management Commentary and Tone:

• Tone is highly confident and optimistic, emphasizing the "incredible investment opportunity" and describing the company as an "unexpiring warrant on an ounce of gold."
• Management highlights the strategic alignment between Nova Gold and John Paulson, citing complementary expertise and a shared conviction for long-term value creation.
• Dr. Kaplan emphasized the non-partisan nature of the project's permitting history while expressing strong alignment with the current administration's pro-resource development stance.
• Management stressed the benefits of the proposed consolidation, including streamlined decision-making, a single point of contact for stakeholders, and enhanced capital efficiency.

Analyst Questions and Answers:

• Matt Kovacs (Question 1): Asked about potential acceleration of the project due to the current U.S. administration.
  • Answer: Dr. Kaplan noted the project already has all necessary permits and has historically enjoyed bipartisan support; however, the current administration's pro-mining stance and the influx of foreign sovereign investment into the U.S. present compelling financing and acceleration opportunities.
• Matt Kovacs (Question 2): Asked about the end of the 8-year gold bull cycle and potential price targets.
  • Answer: Dr. Kaplan rejected the "8-year cycle" limit, predicting gold will hit $5,000 in six months and potentially reach the "tens of thousands" over the long term, characterizing the current market as a "pullback" before a much larger wave.

Other Key Points:

• The proposed transaction will establish New Nova Gold with a market capitalization of approximately $5 billion post-close.
• Community engagement continues with village visits in Crooked Creek and collaborations with Chistna Corporation and Tlingit & Haida Indian Tribal Corporation (Chalitna).
• Environmental stewardship includes a completed 2026 George River Salmon Monitoring Program sampling over 7,000 fish and ongoing biodiversity monitoring.
• Financial advisors Endeavor Financial and Macquarie Capital have been appointed to evaluate funding strategies, including potential sovereign wealth support.
• The company received strong backing from Alaska Governor Mike Dunleavy for responsible resource development.