🧾 What This Document Is

This is a news release attached to NOVAGOLD's quarterly financial report (Form 8-K). It's not just dry numbers—it's a progress update on their massive Donlin Gold mining project in Alaska. The company is showing investors how it's spending money and moving forward now that it's fully in the development phase.

🏢 What The Company Does

👉 In simple terms, NOVAGOLD is a developer, not a miner. They don't have a producing mine yet. Their entire focus is on building one giant gold mine called Donlin Gold in Alaska. Think of them as the project's architect and financial backer, working with partners and contractors to get it ready for construction. They own 60% of the project, with the other 40% owned by Paulson & Co.

💰 Financial Highlights: The Quarter in Numbers

Even though they aren't producing gold yet, their bank account is the key number to watch.

• 💰 Cash is King: They ended the quarter with a very strong $392.5 million in cash and term deposits. This is their war chest to fund the project's next phase.
• 📉 Quarterly Loss: They reported a net loss of $15.4 million ($0.04 per share). This is normal for a development-stage company spending money to build an asset, not earn revenue.
• 💸 Spending Rate: They burned through $20.8 million in cash during the quarter. The majority ($15.5 million) went directly to the Donlin Gold project, with the rest ($5.3 million) for corporate costs.
• 💵 Recent Cash Injection: They recently raised about $294 million (net) from a private placement (selling shares to investors), which is why their cash balance is so high now.

Why it matters: Their high cash balance means they are "well-financed" to advance the project without immediate financial pressure. It's a sign of stability for a company that isn't making money yet.

🚀 Key Moves: Building the Team and The Plan

This quarter was all about locking in the experts and starting the master plan.

• 📋 The Master Plan Launched: They officially started work on the Bankable Feasibility Study (BFS). This is the detailed blueprint that proves the mine is technically sound and financially profitable. It's expected to be finished in 2027.
• 👷 Hired the General Contractor: They appointed Fluor Corporation as the lead engineering firm to manage and integrate all the technical work for the BFS.
• 🔧 Hired the Specialists: They awarded key contracts to WSP, Worley, and Hatch for critical components: the on-site power plant, the natural gas pipeline, and the ore-processing circuit.

Why it matters: You can't build a mega-mine without a detailed plan and a top-tier team. Assembling these contractors is a major step from "idea" toward "actual construction."

🔌 Energy Strategy: A Potential Game-Changer

A huge part of a mine's cost is energy. They're exploring a potentially major upgrade.

• ⛽ New Partnership: Donlin Gold signed a non-binding letter of intent with Glenfarne Alaska LNG. They will explore using natural gas from the proposed Alaska LNG pipeline to power the mine.
• 💡 Potential Benefit: Switching to natural gas could lower operating costs and improve the project's overall economics compared to other power sources.

Why it matters: If this works out, it could make the mine cheaper to run for decades, significantly boosting its profitability. It's a strategic move to lock in long-term energy advantages.

📜 Legal & Regulatory: The Permitting Dance

The project's permits are its license to operate, and there's an ongoing process.

• ⚖️ State Permit Challenge: The only remaining legal challenge is to a state water permit. An oral argument is scheduled for April 8, 2026.
• 📋 Federal Supplement: A court directed a supplement to the federal environmental analysis. This process is underway, with a draft expected in September 2026 and a final supplement by mid-2027. The existing permits remain in place during this.

Why it matters: While there is one court case and a supplemental study, the filing stresses that the project's core permits are secure. This process is a normal, if lengthy, part of large-scale mining development.

👥 Community & Government Relations: The Social License

Mining companies can't operate without local support. NOVAGOLD emphasizes this heavily.

• 🤝 Active Engagement: They detailed extensive outreach in Alaska, including meetings with state legislators, community town halls, and involvement with Native corporations.
• 🎓 Supporting the Region: They sponsor many local programs in education, sports, and culture, like the "Donlin Gold Classic" basketball tournament and youth Olympics.

Why it matters: Building and maintaining strong relationships with communities and governments is critical for long-term project stability and is a key part of responsible development.

🔮 What's Next: The 2026 Roadmap

Their goals for the coming year are clear and focused on the BFS.

• 🎯 #1 Goal: Advance the BFS engineering and technical workstreams to complete the study in 2027.
• 🔍 Explore & Expand: Continue exploration work to find more gold on their vast property.
• 💰 Manage the Treasury: Use their strong cash position to fund all activities, including an option to prepay a promissory note to Barrick.
• 📅 Watch Date: They expect to review the BFS schedule and budget by mid-2026 and update guidance if needed.

⚖️ Big Picture: Strengths & Risks

• 👍 Strengths:
  • Tier-One Asset: A massive, high-grade gold deposit with a long mine life.
  • Fully Financed: Strong cash position to fund near-term development.
  • Expert Team: Has assembled top-tier engineering contractors.
• ⚠️ Risks:
  • It's Still a Plan: The project is not a mine yet; it's a development project with future technical, financial, and permitting hurdles.
  • Capital Intensive: Building it will require massive future financing.
  • Market Dependent: The project's ultimate value depends on the future price of gold.

🧠 The Analogy

Building the Donlin Gold mine is like planning to construct a massive, new international airport from scratch. NOVAGOLD is the development company that owns the land and the vision. They just hired the architect (Fluor) and specialized sub-contractors for the runways, terminals, and power plant. They are now spending millions on the detailed blueprints and engineering studies (the BFS). They have a huge pile of cash to pay for this planning phase, but the even bigger challenge—securing billions in loans to actually break ground—is still a few years away.

📇 Key Contacts & People

• Gregory A. Lang, President and CEO
• Mélanie Hennessey, Vice President, Corporate Communications
• Frank Gagnon, Manager, Investor Relations
• Phone: 604-669-6227 or 1-866-669-6227
• Email: [email protected]
• Website: www.novagold.com

🧩 Final Takeaway

NOVAGOLD is using its strong cash position to aggressively advance the master plan (BFS) for its giant Donlin Gold mine, hiring top contractors and exploring key cost-saving strategies like a natural gas partnership. The next major milestone is completing that blueprint in 2027.