NovaGold Closes US$20 Million Bridge Loan Convertible at C$12/Share

NovaGold Resources Inc. announced that it has obtained a secured bridge loan in the amount of US$20 million from Auramet Trading, LLC. Auramet, based in Fort Lee, New Jersey, is a leading merchant banking and advisory firm specializing in the global resource sector. The proceeds of the Loan will be used by NovaGold for general corporate purposes.

The Loan matures on December 29, 2008 and will bear interest at a rate of 12% per annum or approximately 3% for the term of the Loan. Auramet has the right to convert the principal amount of the Loan into common shares of NovaGold at a price of C$12.00 per common share. NovaGold has also issued to Auramet warrants to purchase 750,000 common shares of NovaGold at an exercise price based on the TSX 5 day volume weighted price of C$7.18 per share, at any time before September 25, 2010. As security for the Loan, NovaGold have granted to Auramet a security interest in the Rock Creek mine, a pledge of securities in certain material subsidiaries and guarantees.

“This bridge loan is a precursor to a long term credit line based on multi-year cash flows from Rock Creek that is in negotiation, with assistance from Auramet, by NovaGold with several international banks,” said Don MacDonald, CFO of NovaGold. “The Auramet Loan should provide time for the Rock Creek mine to progress through the start up process. We are pleased that based on the quality of the Company’s assets, we are able to access financing at competitive rates during a period of such unprecedented market turbulence.”

NovaGold is a precious metals company focused on exploration, development and mining, with mineral properties in Alaska and Western Canada. Gold production has started at the 100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the world’s largest gold deposits, with Barrick Gold (50%). The Company also owns 50% of the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco (50%). NovaGold has one of the largest resource bases of any junior or mid-tier level producing gold company. NovaGold trades on the TSX and AMEX under the symbol NG. More information is available online at www.novagold.net or by e-mail at info@novagold.net.