Copper

NovaGold Resources Inc. (AMEX, TSX: NG) announced completion of a Feasibility Study for its world-class gold/silver/ copper project in British Columbia. The study provides information and third party validation establishing project viability essential to secure bank financing. In addition, as mentioned in our note dated October 25, 2006, we believe completion of the Feasibility Study should allow NG to be viewed by the investment community in an entirely new way. The following at minimum should be considered to determine the adequacy of Barrick Gold Corporation’s (NYSE: ABX) revised tender offer of US$16.50 per share. See full report.

NovaGold (AMEX,TSX: NG) announced the formation of a partnership allowing Teck Cominco (NYSE: TCK) to earn a 50% interest in the Galore Creek copper-gold project in British Columbia. It was expected that NovaGold would secure a partner for Galore Creek in 2007. We see the partnership with Teck, one of the industry’s most credible companies, as clear validation of the feasibility of the Galore Creek project and the work of NovaGold’s management team. See full report

NovaGold Resources Inc. (AMEX: NG) recently announced a significant increase in their copper, gold, and silver resources following completion of its 2006 drill season at Galore Creek. This increase is important as it demonstrates both the ability of the company’s exploration team and the likelihood of upgrading the classification of Measured and Indicated resources to Proven and Probable reserves with additional drilling and further study. The company plans to complete a minimum of 15,000 meters of drilling in 2007 at Galore Creek. See full report.

We attended the 2006 Denver Gold Forum. The theme was symbolized by a road sign warning “Mergers Ahead.” This reflected our opinion alerting shareholder’s of the unsupportable tender offer of NovaGold Resources Inc. (AMEX, TSX: NG) by Barrick Gold Corporation (NYSE: ABX). Both company’s presentations are well worth attending and revisiting. We were interested in ABX management’s presentation and specifically the calculation of their acquisition of Placer Dome. We were particularly interested in their inclusion of copper which has not received sufficient attention. See full report.

NovaGold Resources Inc. (AMEX, TSX: NG) is an emerging natural resource company graduating from development stage status to become a high quality, low cost producer starting by late 2006 or early 2007. NG has one of the largest resource bases of any exploration or development stage precious metals company. NG is advancing three of North America's largest undeveloped gold and copper deposits: the Galore Creek gold-silver-copper project, the Donlin Creek gold project in partnership with Placer Dome, the Ambler project in partnership with Rio Tinto, as well as the Company's Nome Operations including: Rock Creek, Big Hurrah and Nome Gold. See full report.