Third Quarter 2026 Financial Results Conference Call - NOVAGOLD RESOURCES INC

Explicit Guidance:

• Financial Guidance: Increased fiscal 2026 corporate G&A expense guidance by $11.5 million to $31.2 million to cover elevated legal and professional fees associated with the Donlon Gold acquisition; fees expected to remain elevated through the balance of 2026 and into early 2027.
• Capital Allocation: Treasury remains robust at $343.4 million (as of Q3 2026), sufficient to fund the Bankable Feasibility Study (BFS) completion in 2027, exercise the option to prepay the Barrick Promissory Note, and cover corporate G&A for at least the next 12 months.
• Transaction Timeline: Special shareholders' meeting scheduled for November 3, 2026; voting deadline October 30, 2026; expected closing by end of 2026.
• Pro Forma Metrics (Post-Transaction): New Nova Gold (NYSE-listed) anticipated market capitalization of approximately $5 billion; ownership of 100% of Donlon Gold; John Paulson's voting interest capped at 19.99% post-closing.

Business-Segment Outlook:

• Donlon Gold Production: Projected to produce approximately 1.1 million ounces per year over a 27-year mine life; projected production of 1.3 million ounces annually in the first 10 years.
• Resource Base: Post-transaction, the company will own approximately 40 million ounces of measured and indicated resources (average grade ~2.25 g/t) and 13 million ounces in proven and probable reserves (attributable to the new structure).
• Technical Milestones: Bankable Feasibility Study (BFS) remains on track for completion in 2027; dam safety permitting certificates expected in 2028; final Environmental Impact Statement (EIS) anticipated in April 2027; Clean Water Act Section 404 certification decision anticipated within the coming year.
• Expansion Potential: Significant exploration upside identified beyond current resources in the ACMA and Lewis Pits, covering a small portion of the 8-kilometer gold-bearing trend, with potential to add ounces and extend mine life.

Market and Competitive Outlook:

• Industry Positioning: Donlon Gold positioned as the largest single gold mine in the United States; projected to be among the highest annual gold producers in the Americas, comparable to major peers like Agnico Eagle and Equinox.
• Valuation Projections: Pro forma post-tax Net Present Value (NPV) at 0% discount rate exceeds $50 billion at gold prices above $4,000/oz (approx. $20 billion at 5% discount); management cites value creation as "incredible investment opportunity."
• Competitive Advantage: Attributes include exceptional scale, high-grade open-pit mineralization, long mine life, low projected operating costs, and a stable U.S. jurisdiction.

Macro / Industry Outlook:

• Gold Price Expectations: Management views current gold price pullback as "foothills" of a significantly longer bull market; anticipates gold reaching $5,000/oz within the next six months and potentially reaching "tens of thousands" in the long term.
• Currency & Macro Trends: Commentary suggests a long-term structural decline in the U.S. dollar against gold ("dollar will collapse" in real terms vs. gold); predicts a "definitive end" to the current cycle leading to a new long-wave bull market similar to the post-1987 Dow Jones trajectory.
• Geopolitical/Regulatory Tailwinds: Anticipates benefits from the Trump administration's pro-mining stance and specific sovereign wealth commitments (e.g., Japan $550B, Korea $350B, UAE) seeking U.S. investment; views the project as a compelling "investment grade" offering for Asian investors on the Pacific coast.
• Permitting Environment: Federal (Army Corps of Engineers, BLM) and state (Alaska Governor Dunleavy) support remains constructive; no immediate political risks anticipated regarding permitting.

Strategic Initiatives:

• Corporate Restructuring: Establishment of New Nova Gold (U.S.-domiciled, NYSE-listed) to consolidate 100% ownership of Donlon Gold via an all-share transaction; eliminates complex ownership structures and streamlines capital efficiency.
• Leadership Alignment: Co-chairman structure established with Dr. Thomas Kaplan and John Paulson to leverage combined technical and investment expertise; Paulson's voting interest capped at 19.99% to maintain independence.
• Financing Strategy: Appointed Endeavor Financial and Macquarie Capital as advisors to evaluate funding alternatives, including sovereign wealth funds and conventional project finance, to be executed in tandem with the 2027 BFS completion.
• Operational Scaling: Internal team size more than doubled from 35 to over 70 employees (Anchorage/Vancouver) since 2026 start to support final investment decision and project execution.

Risks and Headwinds to Outlook:

• Transaction Execution: Closing contingent upon two-thirds shareholder approval, regulatory approvals, and customary closing conditions; regulatory delays could impact the 2026 closing timeline.
• Permitting Timeline: Key regulatory decisions (Section 404 certification, final EIS, dam safety certificates) face schedule dependencies (e.g., final EIS in April 2027, dam certificates in 2028); delays could impact development start dates.
• Cost Execution: Elevated G&A and professional fees expected to continue into 2027 until transaction completion; BFS costs could exceed expectations if technical work packages face delays.
• Market Volatility: Gold price forecasts are based on long-term macro views; a reversal of the "bull market" thesis or failure of sovereign wealth investors to participate could impact financing terms.
• Regulatory/Environmental: While current permits are in place, the Clean Water Act Section 404 certification decision remains pending and is subject to legal review; ongoing environmental monitoring (salmon, biodiversity) requires sustained compliance.

Management Tone on the Future:

• Confidence Level: Highly confident and aggressive; management describes the gold outlook as a "very long wave" and characterizes the project as an "unexpiring warrant on an ounce of gold."
• Strategic Conviction: Strong emphasis on consolidation to "capture greater value" and streamline decision-making; views the current macro environment (sovereign buying, U.S. investment focus, weak dollar) as highly favorable for execution.
• Forward Guidance: Explicitly states they are "just in the foothills" of the bull market and do not see the cycle ending soon; tone suggests a multi-decade horizon rather than a short-term trade.

Miscellaneous:

• Community & Stakeholder Relations: Continued engagement with Chalista and TKC landowners, local villages (e.g., Crooked Creek), and the Subsistence Community Advisory Committee; completed 2026 George River Salmon Monitoring (7,000+ fish sampled).
• Infrastructure: Outreach initiated to over 190 individuals/entities regarding the proposed pipeline corridor; coordination ongoing with Senator Dan Sullivan and DOE on permitting/infrastructure.
• Q&A Restriction: Management explicitly restricted comments on the pending transaction during the Q&A session, directing inquiries to SEC filings.