NOVAGOLD Files Second Quarter 2026 Report Advancing Key Donlin Gold Workstreams Up the Value Chain to Build America's Largest Gold Mine

Executive Summary

• NOVAGOLD filed its Q2 2026 financial report, reporting a cash balance of approximately $370.2 million and net Q2 operational cash expenditures of $22.7 million.
• The company provided a material update on the Donlin Gold project’s Bankable Feasibility Study (BFS), highlighting integrated engineering workstreams led by Fluor with technical support from WSP, Worley, and Hatch.
• Regulatory progress advanced with Alaska Supreme Court oral arguments on the Clean Water Act Section 401 Water Quality Certification, while all existing federal and state permits remain in effect.
• Management confirmed the company is fully funded to complete the BFS (targeted for 2027) and exercise its option to prepay the Barrick promissory note later in 2026, with FY 2026 operating expenditure guidance unchanged.

Key Details

• Financial Position & Cash Flows: Cash and term deposits totaled $370.2 million as of May 31, 2026. Net Q2 operational cash expenditures were $22.7 million ($16.3 million for Donlin Gold project, $6.4 million corporate G&A). Reported net loss of $25.5 million ($0.06 EPS). Operating cash used increased $4.8M YoY; investing cash used increased $60.0M YoY (primarily $51.0M lower net redemption of term deposits and $9.5M incremental Donlin funding); financing cash provided decreased $234.1M YoY.
• BFS Engineering Integration: Fluor continues to integrate major work packages with specialist contractors: WSP (on-site power plant), Worley (natural gas pipeline), and Hatch (pressure oxidation circuit and oxygen plant). BFS completion is targeted for 2027.
• Ownership & Funding Structure: NOVAGOLD’s share of Donlin Gold expenditures increased by 10% to 60% effective Q3 2025. The company confirmed it is fully funded to complete the BFS and prepay the Barrick Mining Corporation promissory note later in 2026.
• Regulatory & Legal Status: Oral arguments were held in June 2026 in the Alaska Supreme Court regarding the Clean Water Act Section 401 Water Quality Certification, representing the sole remaining legal challenge to state permits. A decision is pending, but all existing federal and state permits remain in effect.
• Community & Stakeholder Engagement: Conducted regional outreach to 11 Yukon-Kuskokwim communities alongside Calista and TKC. Participated in legislative fly-ins, the Alaska Mining Forum, and U.S. DOI roundtables. Continued support for local cultural, educational, and environmental initiatives.
• 2026 Outlook & Guidance: FY 2026 operating expenditures guidance remains unchanged at approximately $98.5 million ($78.8 million for Donlin Gold, $19.7 million corporate G&A). Additional capital will be raised to support future detailed engineering activities.
• Project Fundamentals: Donlin Gold hosts ~40 million ounces of Measured and Indicated Mineral Resources (560 million tonnes at 2.22 g/t). Projected to produce >1 million ounces annually over a 27-year mine life.