NOVAGOLD Receives $46 Million From Warrant Exercise

NOVAGOLD Receives $46 Million From Warrant Exercise 
- Electrum Group Lifts Stake to 27% 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/02/13 -- NOVAGOLD
RESOURCES INC. (TSX:NG)(NYSE MKT:NG)(NYSE Amex:NG) received proceeds
of CAD$46.4 million on December 31, 2012 from the exercise of the
entirety of the 31,337,278 share purchase warrants held by Electrum
Strategic Resources L.P. The warrants, due to expire January 21,
2013, were exercisable at CAD$1.479(1) per share. Upon exercise of
these warrants, the shares received by Electrum were added to their
core NOVAGOLD holdings. Electrum and its affiliate GRAT Holdings LLC
now hold, in the aggregate, 84,569,479 shares or 27.2% of NOVAGOLD's
issued and outstanding shares. The proceeds from the warrants
exercise will be used for the advancement of Donlin Gold, NOVAGOLD's
flagship asset.  
As of November 30, 2012, NOVAGOLD had CAD$252.2 million in cash and
cash equivalents. Receipt of the additional CAD$46.4 million
increases NOVAGOLD's cash position, which is sufficient to satisfy
all of the existing financial obligations and to pay for its share of
the expected expenditures related to the Donlin Gold permitting
process, anticipated to take approximately three to four years.
NOVAGOLD now has 311.1 million shares outstanding and 329.7 million
shares fully diluted, giving effect to the exercise of the warrants
formerly held by Electrum. 
About NOVAGOLD 
NOVAGOLD is a well-financed precious metals company engaged in the
exploration and development of mineral properties in North America.
Its flagship asset is the 50%-owned Donlin Gold project in Alaska,
one of the safest jurisdictions in the world. With approximately 39
million ounces of gold in the Measured and Indicated resource
categories (541 million tonnes at an average grade of approximately
2.2 grams per tonne), Donlin Gold is regarded to be one of the
largest, and most prospective known gold deposits in the world.
According to the Updated Feasibility Study, once in production,
Donlin Gold should average approximately 1.5 million ounces of gold
per year for the first five years, followed by decades of more than
one million ounces per year. The Donlin Gold project has substantial
exploration potential beyond the designed footprint which currently
covers o
nly three kilometers of an approximately eight-kilometer
strike length of the property. Permitting is underway for the Donlin
Gold project, a clearly defined process expected to take 3-4 years.
NOVAGOLD also owns 50% of the Galore Creek copper-gold-silver project
located in northern British Columbia. According to the 2011
Pre-Feasibility Study, Galore Creek is expected to be the largest
copper mine in Canada, a tier-one jurisdiction, when it is put into
production. NOVAGOLD is currently evaluating opportunities to sell
all or a portion of its interest in Galore Creek and would apply the
proceeds toward the development of Donlin Gold. NOVAGOLD has a strong
track record of forging collaborative partnerships, both with local
communities and with major mining companies. 
Please note: As part of the rebranding, NOVAGOLD has converted its
primary domain to .com from .net, therefore, our website can now be
accessed at www.NOVAGOLD.com and all email formats within NOVAGOLD
are now firstname.lastname@NOVAGOLD.com. Please update your contacts
accordingly. 
Scientific and Technical Information 
Scientific and technical information contained herein with respect to
the Donlin Gold project is derived from the "Donlin Creek Gold
Project Alaska, USA NI 43-101 Technical Report on Second Updated
Feasibility Study" compiled by AMEC. Kirk Hanson, P.E., Technical
Director, Open Pit Mining, North America, (AMEC, Reno), Gordon
Seibel, R.M. SME, Principal Geologist, (AMEC, Reno), Tony Lipiec,
P.Eng. Manager Process Engineering (AMEC, Vancouver) are the
Qualified Persons responsible for the preparation of the independent
technical report, each of whom are independent "qualified persons" as
defined by NI 43-101. 
Cautionary Note Regarding Forward-Looking Statements 
This press 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. All statements, other than statements of historical fact,
included herein including, without limitation, the timing of
permitting and potential development of Donlin Gold, statements
relating to NOVAGOLD's future operating and financial performance,
outlook, and the potential sale of all or part of NOVAGOLD's interest
in Galore Creek are forward-looking statements. Forward-looking
statements are frequently, but not always, identified by words such
as "expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements that
events, conditions, or results "will", "may", "could", or "should"
occur or be achieved. These forward-looking statements may include
statements regarding perceived merit of properties; exploration
results and budgets; mineral reserves and resource estimates; work
programs; capital expenditures; timelines; strategic plans;
completion of transactions; market prices for precious and base
metals; intended use of proceeds; or other statements that are not
statements of fact. Forward-looking statements involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from NOVAGOLD's expectations include the uncertainties
involving the need for additional financing to explore and develop
properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpretation of drilling
results and geological tests and the estimation of reserves and
resources; the need for continued cooperation with Barrick Gold
Corporation and Teck Resources Limited for the continued exploration
and development of the Donlin Gold and Galore Creek properties; the
need for cooperation of government agencies and native groups in the
development and operation of properties; the need to obtain permits
and governmental approvals; risks of construction and mining projects
such as accidents, equipment breakdowns, bad weather, 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; and other risk and uncertainties
disclosed in NOVAGOLD's Annual Information Form for the year-ended
November 30, 2011, filed with the Canadian securities regulatory
authorities, and NOVAGOLD's annual report on Form 40-F filed with the
United States Securities and Exchange Commission and in other
NOVAGOLD reports and documents filed with applicable securities
regulatory authorities from time to time. NOVAGOLD's forward-looking
statements reflect the beliefs, opinions and projections 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. 
(1) As previously disclosed in the notes to NOVAGOLD's financial
sta
tements, the Company's functional currency is the Canadian dollar
and in January 2011 an agreement was entered into between the Company
and the holder of 37.1 million warrants, including all of the
warrants exercised by Electrum Strategic Resources L.P. on December
31, 2012, to amend the currency that the exercise price is
denominated in from U.S. dollars to Canadian dollars. The exercise
price was amended from US$1.50 to $1.479 at the prevailing spot rate
on the date of the agreement. The terms of an additional 5.1 million
warrants were unchanged.
Contacts:
NOVAGOLD RESOURCES INC.
Melanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227 
NOVAGOLD RESOURCES INC.
Erin O'Toole
Analyst, Investor Relations
604-669-6227 or 1-866-669-6227
www.NOVAGOLD.com
 
 
Press spacebar to pause and continue. Press esc to stop.