Responsible Mining NovaGold's Approach to Business NovaGold's 2010 Sustainability Report Ten years ago, a small team of geologists laid the foundation for what NovaGold is today, driven by the vision of creating an innovative approach to exploration and development. This vision has evolved into an approach to business that merges our technical, financial, social and environmental responsibilities. NovaGold is committed to upholding the highest environmental and social standards while focusing on delivering the financial growth its shareholders and partners expect. With its unique approach to the mining business, NovaGold strives to be an industry leader for responsible and innovative resource development. The principles of NovaGold's approach: We respect Native Alaskan and First Nation groups and encourage continuous collaboration, so that their relationship with the land and the expertise gained from other mining operations adds value to our plans and processes. We catalyze local and regional economies in the near and long term by identifying and developing resources in a way that considers the long-term impacts and benefits of operations. We strive to reduce the risk of permitting delays by working closely with the appropriate government agencies and maintaining and nurturing collaborative working relationships with our aboriginal and community partners to identify a responsible, critical path for development. We believe long-lasting social and economic benefits can flow to the communities in which we operate. Financial Responsibility NovaGold has a financial responsibility to all of its shareholders, partners and the communities where it operates. We take this responsibility seriously and believe the best way to achieve financial growth for all of our stakeholders is through responsible development. Only by bringing financial growth to shareholders and the communities in which it operates can NovaGold sustain itself as a company, protect the environment and provide benefits to local communities. By mining responsibly and proving to local communities and stakeholders that it brings net benefits, NovaGold builds a strong reputation and ensures its ability to thrive in the industry and region. Engagement and Collaboration The cornerstone of NovaGold’s approach is early engagement and substantive collaboration with partners. NovaGold excels at building positive relationships with local communities at all of its projects. By actively engaging community members through open communication and public meetings, NovaGold elicits feedback and incorporates those suggestions into its mine plans. Early engagement and collaboration with local communities adds value to NovaGold’s projects. Community acceptance increases the probability of project viability. Avoiding delays in the permitting process accelerates project profitability. Decreased opposition and litigation preserves capital and human resources for company-building activities. Extensive due diligence identifies more economical ways to recognize, develop and extract resources. Reputation for collaboration and advancement results in exposure to new business opportunities. Identifying and developing unrealized resources fosters growth of local and regional economies. Social Responsibility Acceptance and support for mining projects must be earned. We approach local communities before beginning exploration work in any area, informing them of our plans and soliciting feedback. This early-stage involvement results in a collaborative working relationship between NovaGold and its stakeholders. NovaGold’s social responsibilities include: Employment. NovaGold hires locally whenever possible. We provide training programs to develop a skilled pool of employees in the local community, reducing the competition for labor that is so prevalent in the mining industry. These skills can then be applied to other projects after the mine closes, providing long-term sustainable benefits to the community and its members. Safety & Health. NovaGold’s success depends on having healthy employees and contractors working in a safe environment. The safety and health of NovaGold employees and of contract employees is equally important to the Company. Continuous Engagement. NovaGold maintains a continuous level of engagement through every stage of project development. We facilitate regular communication with regional and local communities through public meetings, consultations, events and NovaGold-generated newsletters. Respect for Cultural Values. One of the reasons NovaGold has attracted major partners like Barrick, Teck and Rio Tinto is because we know, respect and understand the local communities where we explore and develop. Establishing and maintaining good relationships by respecting and celebrating cultural values is a logical and natural way for us to do business. Sponsorship. NovaGold believes in giving back to local communities by prioritizing corporate donations and sponsorships. We actively support the development of projects and events focused on education, community and youth programs, safety and health. Environmental Responsibility Mining is an extractive industry that impacts the environment. NovaGold’s goal as a concerned and industry-leading organization is to constantly evaluate ways to minimize that impact. One way we do this is through effective collaborations with local communities and First Nation and Native Alaskan groups. NovaGold works only in countries with established environmental standards and regulations, which we strive to exceed.

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