NOVAGOLD Increases Bought-Deal Financing to US$300 Million: A Strategic Move for Long-Term Growth

Corp. has announced a significant expansion of its previously disclosed bought-deal financing, increasing the total gross proceeds to US$300 million. This move reflects strong investor confidence and underscores the company’s commitment to advancing one of the world’s most significant undeveloped gold assets—the Donlin Gold Project in Alaska. The financing marks an important milestone in NOVAGOLD’s long-term strategy to maintain a robust balance sheet while progressing technical, environmental, and partnership-related initiatives.

Overview of the Increased Bought-Deal Financing

The upsized financing involves the issuance of common shares at a fixed price per share, arranged through a syndicate of underwriters. Originally announced at a lower amount, the offering was increased due to strong demand from institutional investors, demonstrating market confidence in NOVAGOLD’s asset quality and long-term vision.

The transaction is expected to close in late January 2026, subject to customary regulatory approvals, including stock exchange clearance. Upon completion, NOVAGOLD will significantly enhance its liquidity position, ensuring sufficient capital to fund corporate activities for several years without the immediate need for additional equity dilution.

Strategic Importance of the US$300 Million Financing

This financing is not merely a capital-raising exercise; it represents a strategic decision aligned with NOVAGOLD’s disciplined, long-term approach to value creation. By strengthening its treasury, the company positions itself to:

• Advance technical studies and engineering work at Donlin Gold
• Support permitting, environmental, and community engagement activities
• Maintain flexibility amid fluctuating gold markets
• Preserve shareholder value by avoiding short-term, high-cost funding options

In a capital-intensive industry such as mining, having a strong balance sheet is often the difference between progress and stagnation. This financing gives NOVAGOLD the financial resilience needed to navigate complex development timelines.

Donlin Gold Project: One of the World’s Largest Undeveloped Gold Assets

The Donlin Gold Project, located in Alaska, is widely regarded as one of the largest undeveloped gold deposits globally. It hosts an estimated multi-million-ounce gold resource, with a long projected mine life and strong production potential. NOVAGOLD holds a 50% interest in the project, with the remaining interest held by a major global mining partner.

The project has already completed extensive feasibility studies and environmental reviews. However, like many large-scale mining developments, it requires careful planning, stakeholder engagement, and substantial capital before construction can begin. The newly raised funds will allow NOVAGOLD to continue advancing these preparatory steps at a measured and responsible pace.

Technical and Engineering Advancements

A portion of the financing proceeds is expected to be allocated toward updated engineering studies, optimization work, and the evaluation of new technologies. These efforts aim to improve operational efficiency, reduce environmental impact, and enhance overall project economics.

As mining technology evolves, companies that invest early in innovation often gain a competitive advantage. NOVAGOLD’s ability to fund such work internally is a testament to its forward-looking strategy.

Environmental Stewardship and Community Engagement

Environmental responsibility and strong relationships with local communities are central to the Donlin Gold Project. The company continues to engage with Alaska Native corporations, local communities, and regulatory bodies to ensure the project meets high environmental and social standards.

Funding from the bought-deal financing will support ongoing environmental monitoring, permitting compliance, and community programs. These efforts are essential not only for regulatory approval but also for building long-term trust with stakeholders.

Market Conditions and Investor Confidence

The successful upsizing of the financing reflects favorable market conditions for high-quality gold assets. Gold continues to be viewed as a strategic store of value, particularly in times of economic uncertainty, inflationary pressure, and geopolitical tension.

Investors are increasingly selective, favoring companies with tier-one assets, strong governance, and prudent financial management. NOVAGOLD’s ability to attract substantial institutional interest highlights its position within this preferred category.

Gold’s Role in a Diversified Investment Portfolio

Gold has long played a critical role in diversified portfolios, offering protection against currency fluctuations and macroeconomic volatility. Large, long-life gold projects such as Donlin are especially attractive because they offer leverage to gold prices over extended periods.

By securing funding during a period of strong investor interest, NOVAGOLD reduces future financing risk and enhances its ability to benefit from favorable gold market dynamics.

Financial Impact and Shareholder Considerations

While equity financings inevitably involve dilution, the company has emphasized that this transaction was carefully structured to balance capital needs with shareholder interests. The fixed-price offering provides transparency, and the increased size reduces the likelihood of near-term follow-on financings.

Management has consistently communicated its intention to raise capital opportunistically, rather than reactively. This approach allows the company to negotiate from a position of strength and align financing decisions with long-term value creation.

Balance Sheet Strength and Liquidity Outlook

Following the completion of the US$300 million financing, NOVAGOLD is expected to hold one of the strongest balance sheets among pre-production gold developers. This liquidity provides a multi-year funding runway, enabling the company to:

• Operate without short-term financing pressure
• Respond strategically to market opportunities
• Support discussions with partners and regulators from a position of financial stability

Governance, Transparency, and Long-Term Vision

NOVAGOLD has built a reputation for strong corporate governance and transparent communication. The company regularly updates investors on project milestones, financial status, and strategic priorities.

The decision to increase the bought-deal financing aligns with this transparent approach. By clearly articulating the use of proceeds and the rationale behind the financing, management reinforces investor trust and credibility.

Alignment with Sustainable Development Principles

Modern mining projects are increasingly evaluated through the lens of sustainability. NOVAGOLD has emphasized its commitment to responsible development, environmental protection, and social engagement.

Capital from the financing will support initiatives designed to minimize environmental impact and maximize long-term benefits for local communities. This alignment with global sustainability expectations enhances the project’s long-term viability.

Industry Context: Financing Trends in the Mining Sector

The mining industry has seen a shift toward disciplined capital allocation in recent years. Investors favor companies that avoid excessive debt and prioritize balance sheet strength. Bought-deal financings, when executed under favorable conditions, are viewed as an efficient way to raise capital while maintaining flexibility.

NOVAGOLD’s transaction stands out due to its size and timing. By securing US$300 million in a single financing, the company reduces execution risk and demonstrates its ability to access capital markets at scale.

Outlook and Next Steps

Looking ahead, NOVAGOLD is well positioned to continue advancing the Donlin Gold Project while monitoring market conditions and regulatory developments. The company has stated that it does not intend to rush development but will proceed methodically, ensuring that all technical, environmental, and social considerations are addressed.

With a strengthened treasury, experienced management team, and a world-class asset, NOVAGOLD enters the next phase of its journey with renewed momentum and confidence.

Conclusion: A Transformational Financing for NOVAGOLD

The increase of NOVAGOLD’s bought-deal financing to US$300 million represents a transformational moment for the company. It highlights strong investor confidence, reinforces financial stability, and provides the resources needed to responsibly advance one of the world’s most significant gold development projects.

For shareholders and stakeholders alike, this financing underscores NOVAGOLD’s commitment to long-term value creation, disciplined financial management, and sustainable development. As the global gold market continues to evolve, the company is now better equipped than ever to navigate challenges and seize opportunities ahead.

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