Nome Operations Nome Operations comprises three projects located near the town of Nome, Alaska: Rock Creek, Big Hurrah and Nome Gold. NovaGold holds title to mining claims covering approximately 5,700 hectares (14,000 acres), with additional land holdings bringing NovaGold’s total property to more than 36,000 hectares (89,000 acres). With an original acquisition price of just over US$5 million, Nome Operations has consistently contributed $1 to $3 million in annual cash flow from its sand-and-gravel and land business. 2009 Achievements Maintained project infrastructure and investment Completed significant improvements to water management systems and plant design The Rock Creek and Big Hurrah projects will be the first modern, open-pit “hardrock” mines on the Seward Peninsula, an area with significant historical production in excess of 10 million ounces from alluvial gold deposits. Rock Creek sits along the Bering Sea on the southern shore of the Seward Peninsula. Located only 12 kilometers (7 miles) from the town of Nome, Alaska, the project has brought significant benefits to Nome and surrounding communities through direct employment and training opportunities as well as service-related businesses. Nome has a relatively dry climate, easily accessible terrain and some of the best infrastructure in the State of Alaska, with roads providing year-round access to the Rock Creek property. The Rock Creek mine has been designed as a 7,000 tonnes-per-day conventional open-pit year-round operation, expected to produce approximately 100,000 ounces of gold per year once in operation. Construction at Rock Creek commenced in the summer of 2006. Testing of the crushing circuit was initiated in October 2007. Commissioning start-up and systems testing began in September 2008 but was subsequently suspended in November in light of market conditions at the time, with rising costs, falling gold prices, extreme market volatility and a seize up of the equity and debt financing markets. Those factors combined with unanticipated mechanical issues with the crusher resulted in NovaGold placing the project on care and maintenance to protect the infrastructure and investment at the property while a comprehensive assessment is completed. A small team of mining professionals remains at site to complete the project assessment and ensure the project remains in compliance with all environmental regulations. As a result of unusually high winter precipitation during 2007/2008, the project experienced difficulties with storm water discharges during spring runoff. NovaGold worked closely with regulators to resolve these issues and has collaborated with engineers and regulators to complete a revised water management plan for the project. NovaGold believes that the Rock Creek mine and surrounding properties continue to hold significant value. While NovaGold does not plan to recommence the start-up process at Rock Creek in the near term, the Rock Creek mine is largely constructed and will likely require minimal investment to restart commissioning and commence production. With an identified reserve base to support four years of production and the expectation that additional resources will extend the mine life, Rock Creek has the potential to produce significant cash flow at current gold prices. Whether NovaGold decides to sell the project, recommence start-up activities on its own or bring in a partner, Rock Creek has the potential to bring significant value to NovaGold shareholders. Exploration In 2008, the exploration program at Rock Creek focused on expanding the known mineralization to expand the overall resource and potentially extend the project’s mine life. NovaGold successfully expanded the Rock Creek deposit by 24%, bringing total Nome Operations project resources to nearly 3 million ounces, inclusive of reserves. An updated feasibility study is being completed as part of the project review, and NovaGold anticipates that a majority of the new resources will convert to reserves.

Exploration and operations assessment underway