Novagold Resources Inc.

Novagold Resources Inc. is a junior gold exploration company headquartered in Salt Lake City, United States, operating primarily in USA. The company's portfolio consists of 1 development project. Key assets include Donlin Gold. The business model is centered on the advancement of a significant, development-stage asset through a 50/50 legally structured partnership with another major industry participant. The company's operational approach is not focused on production but on systematic de-risking through extensive technical studies, engineering, and a multi-year permitting process. A key characteristic of the operational model is its reliance on joint funding from its partner to cover all expenditures, including drilling programs, environmental analysis, and community engagement initiatives. This collaborative structure allows for shared technical oversight and financial risk during the pre-development phase. All significant decisions related to the venture require the unanimous approval of both partners, ensuring strategic alignment on key milestones and capital commitments. The company's competitive position is derived from its singular focus on bringing a large-scale, long-life asset to a construction decision by navigating complex regulatory frameworks and securing necessary social and legal licenses to operate. This specialized model differs from that of diversified producers, concentrating all corporate effort and capital on a single, high-potential development opportunity rather than a portfolio of operating assets.

The corporate strategy is exclusively focused on advancing a core development asset toward a final investment decision. Strategic priorities are executed through targeted spending on key value-driving activities, including comprehensive drilling programs, detailed engineering studies, and ongoing environmental analysis. A central pillar of the strategy involves navigating a complex, multi-jurisdictional permitting process, which has included securing major federal and state authorizations and now involves defending these permits against active legal appeals. The long-term objective is to successfully conclude all permitting and legal matters to fully de-risk the asset for development. The capital allocation approach is defined by a joint-funding agreement with its partner, where both parties contribute equally to an approved annual budget designed to meet specific technical and regulatory milestones. Management's approach involves close collaboration with its partner on all significant decisions, ensuring a unified direction for the venture. The strategy does not currently encompass operational diversification or acquisitive growth, but rather a disciplined, single-asset advancement plan aimed at unlocking value through methodical progression through the final stages of permitting and feasibility.

The organization's sustainability efforts are integrated into its core asset advancement activities, with a significant focus on environmental stewardship and community engagement. A primary component of its social strategy involves managing long-term relationships with Indigenous stakeholders through mineral and surface land lease agreements, which form the basis for project access and local partnership. Environmental management is demonstrated through the active funding of reclamation and remediation obligations for historical exploration sites, including the decommissioning of camps and drill pads, with liabilities estimated and accreted over time. The company is navigating a complex environmental regulatory landscape, having secured key authorizations under major environmental statutes and now actively managing legal challenges related to these permits. This involves a dedicated focus on ensuring all environmental and permitting activities meet or exceed regulatory requirements. Community relations are a distinct area of expenditure, indicating a formal program for engagement with local populations. The entity's approach to sustainability is therefore practical and embedded in the permitting and de-risking process required to advance its principal asset.

The corporate structure is defined by its 50% ownership interest in a limited liability company, formed on December 1, 2007, in partnership with Barrick Gold U.S. Inc. to hold and advance a key development-stage asset. This entity, Donlin Gold LLC, operates under a joint governance model where all significant decisions require unanimous approval from a board with equal representation from both parent companies. The registrant holds its interest through a wholly-owned subsidiary, NOVAGOLD Resources Alaska, Inc. The LLC is entirely dependent on its two parent organizations for funding, with both partners contributing capital to finance approved work programs and budgets. The foundational relationship is governed by a Limited Liability Company Agreement dated December 1, 2007, which has been subsequently modified by amendments in 2010 and 2011 to adjust the terms of the partnership. Another wholly-owned subsidiary, NovaGold USA, Inc., is also part of the corporate structure, as evidenced by its role in executive employment agreements. This structure effectively creates a single-purpose vehicle for a major asset, sharing costs and risks with a strategic partner.