NOVAGOLD — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $36.0 million for the third quarter of 2026, with earnings per share of ($0.08).
• Net third quarter operational cash expenditures totaled $28.1 million, comprising $24.8 million for NOVAGOLD's share of the Donlin Gold project and $3.3 million in corporate general and administrative costs.
• Ended the quarter with approximately $343.4 million in cash and term deposits as of August 31, 2026, compared to $125.2 million in the same period the prior year.
• Total assets were $573.3 million as of August 31, 2026, compared to $345.4 million in the prior year period; total liabilities were $186.0 million.
• Cash used in operating activities was $2.4 million higher than the comparative prior year period.
• Cash provided by investing activities increased by $331.6 million from the prior year, driven by $137.0 million in net proceeds from maturing term deposits, $1.2 million from the sale of marketable securities, and the absence of the $210.1 million Barrick transaction payment made in the prior year.
• Cash provided by financing activities decreased by $25.5 million from the prior year due to the absence of proceeds from an underwriter's overallotment option exercise that occurred in the prior year.
• The company reported no revenue as it is a development-stage company with no production.

Guidance and Future Outlook

• Increased fiscal 2026 operating expenditure guidance by $11.5 million to approximately $110.0 million, reflecting higher corporate general and administrative costs of approximately $31.2 million (excluding share-based compensation) and unchanged Donlin Gold funding guidance of approximately $78.8 million.
• The $11.5 million increase includes $7.7 million in additional legal and professional fees incurred up to the third quarter and $3.8 million of anticipated expenses in the fourth quarter.
• The Bankable Feasibility Study (BFS) for Donlin Gold remains on schedule for completion in 2027.
• Management expects Donlin Gold expenditures to remain elevated over the next 12 to 18 months compared to historical levels.
• The company anticipates incurring additional professional fees and transaction-related costs in early 2027.
• NOVAGOLD expects to raise additional capital in the future to support subsequent project activities, including detailed engineering.
• Key catalysts for the coming year include completing the BFS and moving toward a construction decision.

Business Segments and Product Lines

• The company is focused on the Donlin Gold project, a Tier One gold development project in Alaska.
• Entered into definitive agreements on July 21, 2026, to acquire Paulson Advisers LLC's 40% ownership interest in Donlin Gold LLC, increasing NOVAGOLD's ownership from 60% to 100% in an all-share transaction expected to close by year-end 2026.
• Donlin Gold appointed Endeavour Financial and Macquarie Capital as financial advisors to assist in arranging project and infrastructure financing.
• The Donlin Gold team grew from approximately 35 to 77 employees since the beginning of 2026.
• Engineering integration led by Fluor Corporation continues, with geotechnical work concluding in the fall and Front-End Engineering Design (FEED) activities progressing.
• The project has approximately 40 million ounces of Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) on a 100% basis.
• Projected average annual production is 1.3 million ounces during the first 10 full years of production and 1.1 million ounces annually over the 27-year mine life on a 100% basis.

Market and Competitive Landscape

• Donlin Gold is projected to become the largest single gold mine in the United States with an expected market capitalization of approximately $4.9 billion post-transaction.
• The project's average grade of 2.22 grams per tonne is more than double the global industry average grade of 1.05 grams per tonne for similar deposits.
• Less than 7.5% of the broader land package has been systematically explored, indicating significant exploration potential.
• The company defines a Tier One project as one with a projected production life of at least 10 years, annual production of at least 500,000 ounces, and average cash costs in the lower half of the industry cost curve.

Risks and Challenges

• The Transactions are subject to shareholder approval, court approval, regulatory and stock exchange approvals, and the satisfaction of customary closing conditions.
• Permitting activities face ongoing review, including the Supplemental Environmental Impact Statement (SEIS) published by the U.S. Army Corps of Engineers on September 23, 2026, with the Final SEIS anticipated in April 2027.
• Dam safety permitting for seven dams is ongoing, with Detailed Design Packages anticipated by end of 2026 or early 2027 and potential issuance of Dam Safety Certificates expected in 2028.
• The company faces risks related to the need for additional financing, fluctuations in metal prices, changes in government legislation, and potential delays in obtaining permits.
• Professional fees are expected to remain elevated for the remainder of fiscal 2026 and into early fiscal 2027.

Management Commentary and Tone

• President and CEO Gregory A. Lang stated the company is strengthening its position as a "go-to" U.S. gold development company.
• Management described the Transactions as transformative, delivering immediate accretion to net asset value per share and increasing attributable production metrics by over 520,000 ounces of annual gold production during the first 10 full years.
• The tone emphasizes confidence in the project's scale, grade, and the ability to complete the BFS and secure funding.
• Management highlighted the establishment of a single point of contact for stakeholders and a better-aligned structure via a new U.S.-domiciled parent company.

Other Key Points

• The Special Meeting of Shareholders is scheduled for November 3, 2026, to vote on the Transactions.
• The company has the option to prepay the Barrick Mining Corporation promissory note in the fourth calendar quarter of 2026.
• Donlin Gold engaged with over 190 individuals and entities regarding infrastructure planning and held meetings with key government representatives, including Senators and the U.S. Department of Energy.
• The company conducted over 25 community visits and 150 engagements with government representatives, agencies, and candidates year-to-date.
• Environmental monitoring activities included sampling more than 7,000 fish for the George River salmon smolt monitoring program.
• The Transactions will consolidate 100% ownership of Donlin Gold under a single corporate parent while preserving NOVAGOLD's independent governance through specific lock-up, standstill, and voting restrictions.