NOVAGOLD Significantly Reduces its Convertible Debt and Maintains a Strong Cash Position

NOVAGOLD Significantly Reduces its Convertible Debt and Maintains a Strong Cash 
Position 
(All amounts are in US dollars) 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/02/13 -- NOVAGOLD
RESOURCES INC. (TSX:NG)(NYSE MKT:NG) today purchased $72,821,000 of
the principal amount of its $95,000,000 outstanding 5.5% Convertible
Notes due May 1, 2015 (the "Notes"), pursuant to the terms and
indenture governing the Notes which provided Holders the opportunity
to require NOVAGOLD to purchase for cash all or a portion of their
Notes on May 1, 2013 (the "Put Option").  
Following NOVAGOLD's purchase of the Notes pursuant to the Put
Option, $22,179,000 of the principal amount of the Notes remain
outstanding and due on May 1, 2015. The terms and other provisions of
the indenture governing the Notes remain unchanged. As such, interest
in the amount of $2,612,500 was paid on May 1, 2013 to Holders of
record on April 15, 2013 and interest on the remaining Notes will
amount to $1,219,845 per year for the next two years. 
With nearly $220 million in cash and cash equivalents at May 2, 2013,
NOVAGOLD maintains a strong balance sheet and believes it has more
than sufficient cash resources to fund the advancement of its
flagship Donlin Gold project in Alaska through the permitting process
and support ongoing activities at its Galore Creek project in British
Columbia. 
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 a total of
approximately 34 million ounces(1) of gold in the Proven and Probable
reserve categories (505 million tonnes at an average grade of
approximately 2.1 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 (as defined below),
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 of gold per year on a 100%
basis. The potential for adding to reserves at Donlin Gold is
considered excellent, both within the pr
oposed mine area, along
strike and at depth, and throughout the property. The current
reserves and resources occupy only three kilometers of a mineralized
belt that is eight kilometers long. Permitting is underway for the
Donlin Gold project, a clearly defined process expected to take
approximately 3 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. 
Scientific and Technical Information 
Scientific and technical information contained herein with respect to
Donlin Gold is derived from the "Donlin Creek Gold Project Alaska,
USA NI 43-101 Technical Report on Second Updated Feasibility Study"
dated November 18, 2011 compiled by AMEC (the "Feasibility Study").
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 Feasibility Study, each of whom are independent "qualified
persons" as defined by NI 43-101. 
(1) Proven and Probable reserves of 0.57 million ounces and 33.28
million ounces respectively (504.8 million tonnes at an average grade
of approximately 2.09 grams per tonne) which are included in Measured
and Indicated resources of 0.63 million ounces and 38.38 million
ounces respectively (541 million tonnes at an average grade of
approximately 2.2 grams per tonne). See the Feasibility Study for
further information. 
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,
2012, 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. 
Cautionary Note to United States Investors 
This press release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ
from the requirements of U.S. securities laws. Unless otherwise
indicated, all resource and reserve estimates included in this press
release have been prepared in accordance with National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and
the Canadian Institute of Mining, Metallurgy, and Petroleum
Definition Standards on Mineral Resources and Mineral Reserves. NI
43-101 is a rule developed by the Canadian Securities Administrators
which establishes standards for all public disclosure an issuer makes
of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission ("SEC"), and resource and reserve information contained
herein may not be comparable to similar information disclosed by U.S.
companies. In particular, and without limiting the generality of the
foregoing, the term "resource" does not equate to the term
"reserves". Under U.S. standards, mineralization may not be
classified as a "reserve" unless the determination has been made that
the mineralization could be economically and legally produced or
extracted at the time the reserve determination is made.
The SEC's disclosure standards normally do not permit the inclusion
of information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits that
do not constitute "reserves" by U.S. standards in documents filed
with the SEC. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted
into reserves. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces" in
a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures. The
requirements of NI 43-101 for identification of "reserves" are also
not the same as those of the SEC, and reserves reported by NOVAGOLD
in compliance with NI 43-101 may not qualify as "reserves" under SEC
standards. Accordingly, information concerning mineral deposits set
forth herein may not be comparable with information made public by
companies that report in accordance with U.S. standards. 
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
 
 
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