NovaGold Q2 2026 Earnings Call - Donlin Gold BFS Nearing Completion, Financing Advisors Selected

Conference Operator: Thank you for standing by. This is the conference operator. Welcome to the NOVAGOLD second quarter 2026 financial results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame. I would now like to turn the conference over to Mélanie Hennessey, Vice President, Corporate Communications. Please go ahead.

Mélanie Hennessey, Vice President, Corporate Communications, NOVAGOLD Resources Inc.: Good morning everyone. We are pleased that you have joined us for NOVAGOLD’s 2026 second quarter webcast and conference call and for an update on the Donlin Gold project. On today’s call, we have NOVAGOLD’s President and CEO, Greg Lang, and Peter Adamek, NOVAGOLD’s Vice President and CFO. At the end of the webcast, we will take questions by phone and by email. Additionally, we will respond to those received throughout the call. I would like to remind you, as stated on slide three, any statements made today may contain forward-looking information such as projections and goals, which are likely to involve the risk detail in our various EDGAR and SEDAR filings and forward-looking disclaimers included in this presentation. With that, I will now turn the presentation over to NOVAGOLD’s President and CEO, Greg Lang. Greg?

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Thank you, Mélanie. Why NOVAGOLD? I think it’s useful to reflect on the value created through the company’s long-term commitment to advancing the Donlin Gold project. Over the past two decades, extensive drill programs have significantly expanded Donlin’s reserves and resources. A key milestone for the company when Electrum and Paulson became major shareholders, a position they hold to this day, fighting for the Donlin Gold project, representing an important step in its development. About a year ago, NOVAGOLD, in partnership with Paulson, acquired Barrick’s interest in the Donlin Gold project. For the first time in 13 years, the company went back to the markets with a Bankable Feasibility Study and repay the promissory note to Barrick. This transaction simplified the ownership structure and unlocked meaningful value for shareholders.

These events, combined with the project’s attributes of scale opportunity, many of our shareholders view NOVAGOLD as an unexpired warrant on an ounce of production. On slide six, the chart illustrates the post-tax net present value, currently over CAD 4,000 an ounce. This reflects the discount rate. This projection underscores the substantial economic potential of the Donlin. As highlighted on slide seven, Donlin Gold is positioned to become one of the biggest, averaging over 1 million ounces a year. Looking at slide eight, Donlin Gold hosts approximately four double the industry average. Project’s scale, grade, and long life. Moving to slide nine, we believe there are significant exploration opportunities pits, as illustrated in the graphic in the upper right-hand corner. These resources cover only 3 kilometers, which is only a small portion of our overall land package. This underscores the substantial potential to increase through further exploration.

Slide 10 outline Donlin Gold current permitting status. The second largest gold producing state in the U.S. Alaska has a well-established regulatory framework, provides a stable and supportive foundation for long-term mining operations. To date, these have been constructive regulatory decisions affirming the state of Alaska in defending the Clean Water Act section at the state level. Oral arguments were heard on June 3rd, we anticipate a decision. The U.S. District Court in Alaska directed the Corps of Engineers and the Bureau of Land Management to supplement the final EIS release. It’s important to remember that the Corps of Engineers and cooperating agencies will review and prepare the draft supplemental EIS, which is anticipated to be published in September. He expressed strong backing for responsible resource development in Alaska, including the Donlin Gold project.

We appreciate his advocacy and look forward to continuing an open and constructive communication with him, with Calista, and TKC, whose roles to Donlin’s success. Their shared commitment to responsible development helps support job creation, long-term economic opportunity, and the preservation of cultural heritage in the YK region, all grounded in deep local knowledge. In May, we released our 2025 sustainability report, which reflects our ongoing commitment to, and broader social responsibilities that are embedded in the project. NovaGold also takes pride in maintaining board oversight and governance. Moving over to slide 14. NovaGold is supported by a seasoned, strengthened by the Donlin Gold project execution team led by Frank Arcese, along with contractors like Fluor, WSP, Worley and Hatch. They all focus on project execution. I will now turn the call over to our CFO, Peter Adamek.

Peter Adamek, Vice President and CFO, NOVAGOLD Resources Inc.: It’s on slide 16. NovaGold reported a fiscal 2026 second quarter net loss of CAD 25.5 million, or CAD 0.06 per share. NovaGold’s net loss during the second quarter decreased by CAD 28.8 million from the comparable prior year period charge recognized in the prior year related to warrants issued under a backstop agreement signed in April 2025, and higher interest income in 2026, partially offset by higher expenditures at Donlin Gold due to ongoing bankable feasibility study activities and higher G&A expenses at NovaGold. The company’s share of Donlin Gold expenses in the second quarter period, due to ongoing 2026 activities by Fluor, WSP, Worley and Hatch to advance the Donlin comparative prior year period. The company’s second quarter 2026 results also reflect NovaGold’s 60% interest in Donlin Gold.

G&A expenses at NovaGold increased comparative to prior year period, primarily due to higher professional fees, share-based compensation and employee compensation. Professional fees were elevated in the second quarter and in the first six months of 2026, but remained generally in line with quarterly cadence expectations. On slide 17, our treasury comprising cash and term deposits decreased by CAD 22.3 million. Donlin Gold’s funding of CAD 16.3 million and NovaGold’s core gain in interest income. Corporate G&A expenditures during the second quarter increased by CAD 2.3 million the prior year period, for reasons discussed on the previous slide. Moving to slide 18, our treasury is CAD 2 million. NovaGold is well-funded, enabling us to complete the Donlin Gold bankable feasibility study in 2027 this year and cover our corporate G&A costs for at least the next 12 months.

Our cash expenditures in the second quarter and for the first six months of fiscal 2026 remain generally in line with our 2026 budget, and we remain on track to meet our. To Greg to discuss the second quarter highlights.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Thank you, Peter. I will now review the key highlights and activities from the second quarter. As highlighted on slide 20, Donlin Gold continues and support local programs across the YK region. A key focus, TKC, to strengthen relationships and to support ongoing dialogue. The subsistence community events, with the latest meeting focused on subsistence and the barge communication plan. The Donlin Gold team also participated in several major Alaska industry and legislative events, allowing a broad coalition of trade associations. In parallel, we maintained active engagement with state and federal policymakers on key areas such as permitting, workforce development and infrastructure. To the U.S. Senate campaigns and the YK Regional Health Board to ensure their continued awareness. All of these efforts support Donlin Gold’s long-term objectives of advancing workforce development, strengthening regional economic participation, and progressing the project in a responsible manner.

An accelerating momentum achieved in the second quarter, marked by meaningful progress across all primary work streams. The integration of major work packages and technical work streams with specialist contractors support the Donlin Gold bankable feasibility study. Key updates include infrastructure advancement for the on-site power plant and the natural gas pipeline. Strategic integration, where Fluor is coordinating all specialized contracts with a single consolidated execution framework to improve schedule efficiency and cost accuracy. Operations to bring key components closer to completion, with the targeted completion in 2027. Building on this momentum, Donlin Gold near undeveloped gold deposits. As shown on slide 22, the second quarter of the year has delivered further strengthening the project’s development trajectory. As a result, Donlin is increasingly well-positioned for its next phase of advancement. Donlin Gold is building out the project team in support of the bankable feasibility study.

These activities along the planned Upriver Port and access road corridor, as well as along the proposed natural gas pipeline route. In addition, the company will continue to support permitting activities while maintaining strong engagement with Calista, TKC, local communities and government stakeholders as it advances toward the next stage of project development. Of our long-term shareholders, some of which are shown on slide 23. NOVAGOLD remains committed to responsibly advancing the Donlin Gold project and achieve commitments to the local communities. We extend our sincere appreciation to our shareholders, states’ steadfast trust and support, and we express our deep appreciation to the Donlin Gold team for their dedication and hard work. We look forward to even further progress and more exciting opportunities in the years ahead.

In closing, attributes that distinguish Donlin Gold as a truly unique project is defined by exceptional scale, high-grade open pit mineralization, long life potential, all in a stable jurisdiction, placing it among the select group of world-class gold development projects. With approximately 40 million ounces grading two and a quarter grams per ton, project already has an experienced leadership team and strong collaboration positioned for disciplined advancement and long-term value creation. Operator, we can now open the line for questions.

Conference Operator: One on your telephone keypad. You will hear a tone acknowledging your request. If you’re using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. Webcast viewers may submit questions through the text box on the lower right corner of the webcast screen. The first question comes from Carlos de Alba with Morgan Stanley. Please go ahead.

Carlos de Alba, Analyst, Morgan Stanley: Yeah, thank you. Good morning, everyone. You just mentioned that you expect the second half to see lower levels than in the first half. Is this already in the fourth quarter? That would be my first question.

Peter Adamek, Vice President and CFO, NOVAGOLD Resources Inc.: Yeah, I’m happy to take that. Thank you for the question. It’s related to the transaction transpired at the end of last year, in connection with our increase of the third quarter of this year.

Carlos de Alba, Analyst, Morgan Stanley: All right. Thank you, Peter. Maybe Greg, do you have a sense already of the BFS or it’s too early to tell?

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Thank you for joining the call this morning, Carlos. We’re proceeding well with Fluor, Worley, WSP and Hatch all contributing their information to the study. It’s progressing as we expected. We’ll look for something early.

Carlos de Alba, Analyst, Morgan Stanley: All right. Thank you, Greg. Good luck with everything.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Thanks, Carlos.

Conference Operator: Go ahead. Mélanie, we have another question from the audience. The question comes from Frederick.

Frederick, Analyst/Investor: Greg and Peter. Just one question. Are you able to give us a bit more color on how financing decisions are going for the Don Project?

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Sure, Frederick. Thanks for participating in our call this morning. We’ve been working the team at Paulson on selecting financial advisors for the project, and we anticipate making an announcement in regard in the coming weeks. It’s moving ahead.

Frederick, Analyst/Investor: Okay, great. Thank you very much.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Of course.

Conference Operator: Estimate for development of the mine.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: I think I’ll break it down into two pieces. I think the first one is the timing. I think as we’ve mentioned, that’s of a year out, we will, included in the study will be an execution plan, and we’ll be able to prepare a path forward for Donlin project in conjunction with the completion of the feasibility study. That’s moving ahead. The timeline on financing, as I mentioned earlier, we’ve engaged financial advisors and we’ll be updating.

Conference Operator: Great. The second question is from Mr. Fritz. Could you comment on the expected timeline regarding the Alaska Supreme Court decision on the water quality certification? In particular, whether this potentially remain.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Right. Yeah, I think it’s important to remember that there were three cases before Alaska Supreme Court agencies. The final case is regarding the 401 certification. Brief oral arguments were made. Alaska takes about a year to issue a ruling. At this stage, it’s also important to remember that our permits remain in force. Thinking, no, they do not, and I would expect that they will be resolved sometime probably when the feasibility study is made.

Conference Operator: Great. I believe that your side. No, we don’t have any more audio questions. This concludes the question and answer session. I would like to turn the conference back over to Greg for closing remarks.

Greg Lang, President and CEO, NOVAGOLD Resources Inc.: Thank you for taking the time to join the Q call for NOVAGOLD. Thank you.

Peter Adamek, Vice President and CFO, NOVAGOLD Resources Inc.: Thank you.

Conference Operator: This brings to a close this conference.