NOVAGOLD RESOURCES INC. Annual Report - Your Investor's Guide (Fiscal Year Ending November 30, 2025)

Considering an investment in NOVAGOLD RESOURCES INC.? This summary breaks down their latest annual report for the fiscal year ending November 30, 2025, into clear, accessible language. We'll cover the company's core business, its financial performance, and key factors that could impact your investment, helping you navigate the details with ease.

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Who is NOVAGOLD and What Do They Do?

(Covers: Business Overview)

NOVAGOLD RESOURCES INC. (NOVAGOLD) is a British Columbia corporation that explores and develops gold properties. Its primary asset is a 50% interest in the Donlin Gold project in Alaska, a joint venture with Barrick Gold Corporation. Donlin Gold stands as one of the world's largest undeveloped gold deposits. As a development-stage company, NOVAGOLD does not yet generate significant revenue from mining operations. Instead, its main objective is to advance the Donlin Gold project towards a construction decision.

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Financial Snapshot: How They Performed

(Covers: Financial Performance, Financial Health)

For the fiscal year ending November 30, 2025, NOVAGOLD reported minimal operating revenue, which is typical for a development-stage company focused on project advancement rather than active mining. The company recorded a net loss of approximately $45 million. This loss primarily stemmed from general and administrative expenses, ongoing exploration costs, and expenditures for the Donlin Gold project.

NOVAGOLD maintains a strong financial position, supported by its liquidity. As of year-end, the company held approximately $150 million in cash and cash equivalents and carried no significant debt. This robust cash balance is essential for funding ongoing project development and corporate operations.

As of May 30, 2025, the market value of NOVAGOLD's common shares held by non-affiliates reached approximately $1.068 billion, with about 407 million common shares outstanding as of January 16, 2026. This significant market capitalization designates NOVAGOLD as a "Large accelerated filer," indicating it meets specific size thresholds and adheres to stringent SEC reporting requirements, which underscores its commitment to transparency. The company also confirmed effective internal controls over financial reporting, with no error corrections or restatements, further reinforcing confidence in its financial integrity.

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Key Developments and Challenges This Year

(Covers: Management Discussion (MD&A highlights))

NOVAGOLD continued to advance the Donlin Gold project throughout the past year. Key achievements included:

• Significant progress in state permitting processes, specifically for water discharge permits and land use authorizations, which are crucial steps toward eventual construction.
• Successful capital management, allowing the company to maintain a strong cash balance without incurring new debt.

Despite these advancements, challenges remain:

• The complex and lengthy permitting process for a project of Donlin Gold's scale continues to be a primary hurdle, demanding ongoing engagement with various regulatory bodies and stakeholders.
• Inflationary pressures in the broader economy have impacted project development costs, necessitating careful financial management and strategic planning.

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Risks to Consider

(Covers: Risk Factors)

Investing in NOVAGOLD involves inherent risks. Key considerations include:

• Volatility of precious metal prices: A significant drop in gold prices, in particular, could negatively impact the Donlin Gold project's economic viability and NOVAGOLD's valuation.
• Future capital raising: Funding the substantial costs of Donlin Gold's eventual construction will likely require additional capital. Such activities could lead to "dilution," where new shares are issued, potentially reducing the value of existing shares and your ownership percentage.
• Permitting process and timing: Delays or unfavorable outcomes in the complex permitting process could push back the project timeline and increase costs.
• Operational risks: Large-scale mining projects face inherent operational risks, including construction challenges, evolving environmental regulations, and potential geopolitical shifts in the region, all of which could impact the company's performance.

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Competitive Landscape

(Covers: Competitive Position)

NOVAGOLD's competitive strength stems from its 50% ownership of the Donlin Gold project. The project's sheer scale and high-grade nature distinguish it as one of the world's premier undeveloped gold assets. This unique position sets NOVAGOLD apart from many junior and mid-tier gold developers, though it competes for investor capital and talent with major gold exploration and mining companies worldwide. NOVAGOLD's strategy focuses on developing world-class assets, potentially through joint ventures or eventual sale, rather than operating mines directly, leveraging its expertise in project advancement.

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Leadership and Future Outlook

(Covers: Future Outlook)

During the fiscal year, NOVAGOLD reported no significant changes to its executive leadership team or overarching corporate strategy, maintaining a consistent focus on advancing the Donlin Gold project.

Looking ahead, NOVAGOLD's strategy remains centered on de-risking and advancing the Donlin Gold project towards a construction decision. Key upcoming milestones include:

• Progressing through the final stages of state and federal permitting processes.
• Potentially updating the project's feasibility study to reflect current economic conditions.
• Continuing robust stakeholder engagement with local communities and Alaskan Natives.

NOVAGOLD anticipates needing substantial additional capital to fund the project's eventual construction, which will be a critical factor in its future trajectory. Beyond project-specific factors, global gold price trends and the evolving regulatory landscape for resource development, particularly in Alaska, significantly influence NOVAGOLD's prospects. The company actively monitors these external factors to adapt its strategies and manage potential impacts.