Rick Van Nieuwenhuyse (President & CEO) presented at the NovaGold SGM re: NovaCopper spin-out. Over 99% of the votes cast were in favour of the spin-out.
3. Forward Looking Statement
This presentation includes certain Forward-Looking Statements and Forward-Looking Information (collectively, “forward-looking statements”)
within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, included herein including, without limitation, statements relating to the spin-out of NovaCopper,
program objectives and future plans for the project, 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 are set forth principally under the slides pertaining to the spin out of NovaCopper and the Ambler preliminary economic
assessment, 2012 program objectives and plans going forward, and elsewhere in this presentation, and 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 price of precious base metals; 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 and NovaCopper’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 resources; 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
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; 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,
2011, filed with the Canadian securities regulatory authorities, 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. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. NovaGold and
NovaCopper assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they
change, except as required by law.
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7. Arctic Deposit:
Preliminary Economic Assessment Results1
• Filed on May 10, 2011, Arctic PEA calls for 4,000 tpd underground operation
• LOM production: 1.7B lb Cu, 2B lb Zn, 291M lb PB, 266,000 Oz Au, 22M Oz Ag
• Annual Production of 67 M lb Cu and 80 M lb Zn + Precious Metal credits
• 25-year mine life at long-term metal prices2
• Modest capital costs: US$262 million startup, US$134 million sustaining
• Low operating costs: US$99.32/tonne milled, cash cost US$0.89/lb copper (net of by-products)
• Base case using long-term metal prices at an 8% discount2:
– Pre-tax NPV of $718M with IRR of 30%
– Post-tax NPV of $505M with IRR of 25%
• Current metal prices at timing of PEA3:
– Post-tax NPV of approximately $1.6B with IRR of 50%
– The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic conditions applied to them that would enable them to be
categorized as mineral resources. There is no certainty that the PEA will ever be realized. Mineral
resources that are not mineral reserves do not have demonstrated economic viability.
Arctic is one VMS Deposit in a “String of Pearls” that is 100 km long
1) NovaGold Resources Inc. NI 43-101 Preliminary Economic Assessment Ambler Project May 9, 2011 Qualified Person(s) Russ White, P.Geo., SRK Consulting & Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting
2) Cu = $2.50/lb, Zn = $1.05/lb, Pb = $1.00/lb, Au = $1,100/oz and Ag = $20/oz
3) Cu = $4.31/lb, Zn= $1.20/lb, Pb = $1.20/lb, Au = $1,425/oz and Ag = $36/oz – May 9, 2011
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9. Bornite: Project History
• 1940’s: Rhiney Berg prospecting for
Uranium
• 1957: Rhiney Berg options copper find
to Kennecott Copper; 7 DHs
• 1962: No. 1 orebody discovered:
DH RC-34: 20m @ 24% Cu
• 1964: 1,075’ shaft sunk to high grade
• 1965: Bornite shaft floods and the focus
turns to Arctic VMS discovery
• 1986: Bornite conveyed to NANA
• 2011: NANA-NovaCopper deal
completed combining land packages to
cooperatively develop the UKMP
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10. Bornite Deposit
2011 Verification Drilling
RC11-183: 26.3m at 6.73% Cu
RC11-181: 122m at 2.27 % Cu
RC11-184: 31.9m at 5.41% Cu
RC11-182: 93.2m at 2.14 % Cu
Holes in DecDec2011 PR
Holes in 14, 8 Press
Rel
Holes in Nov 10, 2011 PR South Reef
Target
RC11-186: 153.1m at 1.39 % Cu
RC11-185: 121.3m at 1.39 % Cu
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11. Bornite Deposit
New Discovery of South Reef Zone
RC11-194: 111m at 2.64% Cu
Including 11.8 m at 7.5% Cu
Holes inin Dec 8 Press PR
Holes Dec 14, 2011 Rel
Holes in Nov 10, 2011 PRRel
Holes in Nov 10 Press
South Reef
RC11-187: 178m at 4.01% Cu
Including 34.7 m at 12.0% Cu
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12. Bornite Deposit
Cross Section A-A’ (RC11-187)
Historic Deposit South Reef
RC11-185: 81.5m @ 1.64% Cu
and 39.8m @ 0.89% Cu
RC11-187: 178 m @4.01% Cu
Including 35m @ 12.0% Cu
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14. NovaCopper Plans for 2012
Next Steps
Record date for voting – February 24, 2012
Shareholders meeting – March 28, 2012
• Spinout NovaCopper on 6:1 ratio with US$40M in cash
• Expect NovaCopper to be listed on TSX and NYSE-AMEX and trading by
end of H1-2012
• Bornite deposit 43-101 Resource estimate expected Q2-2012
• 2012 planned drilling campaign (15,000 to 20,000 m) with four drills
• Advance engineering and environmental baseline studies
• Work cooperatively with the State, Villages, NANA and the Region on the
Ambler Road to Resources Project
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15. Taikuu! Please visit www.novacopper.com or
www.nana.com for more information
A NANA-NovaCopper Partnership to Develop
the Ambler Mining district
17. NovaGold Share Capitalization
Issued and Options Warrants Fully diluted1
outstanding1 outstanding
278.0M 12.9M 37.9M 328.9M
Major Shareholders2
The Electrum Group LLC
Paulson & Co., Inc.
Tradewinds Global Investors
Aletheia Research and Management
Baupost Group
1) Post February 2012 Equity Offering. Fully diluted share count excludes convertible notes
2) Percentage holdings from ThompsonOne, last updated 2/29/12
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18. Resource Estimate for Arctic Deposit
Tonna
Classification Grade Contained Metal
ge
Cu Zn Pb Ag Au Cu Zn Pb Ag Au
(kt)
(%) (%) (%) (gpt) (gpt) (Mlb) (Mlb) (Mlb) (koz) (koz)
Indicated Mineral
16,845 4.14% 6.02% 0.94% 59.62 0.83 1,538 2,237 350 32,289 447
Resource
Inferred Mineral
12,087 3.53% 4.94% 0.79% 48.04 0.67 940 1,317 212 18,667 260
Resource
Notes:
1 - Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the
Mineral Resources will be converted into Mineral Reserves.
2 - Resources stated as contained within a potentially economically minable underground shapes above a US$75.00/t NSR cut-off
3 - NSR calculation is based on assumed metal prices of US$2.50/lb for copper, US$1,000/oz for gold, US$16.00/oz for silver, US$1.00/lb for
zinc and US$1.00/lb. for lead. A mining cost of US$45.00/t and combined processing and G&A costs of US$31.00 were assumed to form the
basis for the resource NSR cut-off determination. Note these metal prices and operating costs may differ from those used for the cash flow
model.
4 - NovaGold Resources Inc. NI 43-101 Preliminary Economic Assessment Ambler Project May 9, 2011 Qualified Person(s) Russ White,
P.Geo., SRK Consulting & Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting
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19. Technical Reports & Qualified Persons
Project Qualified Person(s) Most Recent Disclosure & Filing Date
Ambler Russ White, P.Geo., SRK Consulting NI 43-101 Preliminary Economic Assessment,
Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting Ambler Project – May 9, 2011
Kevin Francis, R.M. SME., Vice President Resources of NovaGold and a qualified person as defined by
NI 43-101, has reviewed and accepts responsibility for the technical information contained within this
presentation.
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