NovaGold Updates Plan to Spin-Out Ambler Project Into NovaCopper; Shareholder Vote to Take Place March 28, 2012

NovaGold Resources Inc. NG provides an update on the previously announced spin-out transaction of NovaCopper Inc., a wholly-owned subsidiary of the Company. NovaCopper holds, through its wholly-owned subsidiary, NovaCopper US Inc., the Company's interest in the Ambler project located in Northwestern Alaska. The Spin-Out will be transacted by way of a statutory plan of arrangement under the Companies Act. Pursuant to the terms of the Arrangement, among other things, 100% of the outstanding common shares of NovaCopper, will be distributed to holders of common shares of NovaGold such that each NovaGold Shareholder of record on the effective date of the Arrangement will receive one NovaCopper Share for every six common shares in the capital of NovaGold held on the effective date. The Company's options, performance share units, and deferred share units and warrants will all be adjusted pursuant to the terms of the Arrangement, the details of which will be more particularly described in the Management Information Circular that will be mailed to NovaGold Securityholders (as defined below). The directors of the Company believe that the creation of two separate public companies, one focused on gold and one focused on the copper-dominant Ambler district, will enhance their respective business operations and provide holders of NovaGold securities with additional investment choices and enhanced flexibility. NovaCopper will be free of any debt to the parent company and will be funded with US$40 million in cash.