NovaGold Resources

NovaGold Resources Inc.NovaGold Resources Inc. (AMEX: NG) is a company that we think is poised for a significant market re-valuation from current levels...See Presentation

NovaGold and Teck have selected a new management team to advance Galore Creek. Teck has committed an additional $140 million to complete its earn in to 50%.We believe that this demonstrates that both companies place value on the opportunity and are aligned in their focus to advance the Galore Creek project as quickly as possible. See full report.

NovaGold Resources Inc. (AMEX: NG) and Teck Cominco Ltd. (NYSE: TCK) placed the Galore Creek project in British Columbia on hold until construction costs are brought into balance with conservative long-term copper metal price assumptions. NovaGold’s share price closed down about 50% on the announcement. See full report.

NovaGold Resources Inc. (AMEX: NG) reported drill results at Donlin Creek that we believe could be some of the most exceptionaldrill results of any mining company in 2007. The release represents the results of 156,000 meters of drilling completed over nearly two full years.See full report.

We recently visited NovaGold’s Rock Creek Project in Nome, Alaska. While the anticipated production of 100,000 to 125,000 is dwarfed by the Company’s Galore Creek Projects, the Nome Gold District is very impressive. Approximately 10 million ounces of gold have been extracted from the beaches of Nome and placers across the Seward Peninsula since 1900. Rock Creek is the second hard rock mine (Big Hurrah being the first) in the area. See full report.

We recently joined NovaGold Resources (AMEX: NG) and Teck Cominco (NYSE: TCK) for the 2007 analyst day at their jointly owned Galore Creek project in northwestern British Columbia. This was our third visit to Galore Creek in three years and the progress is nothing short of amazing. The scope of the project has even attracted videographers from the Discovery Channel for their Extreme Engineering series. See full report.

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.

NovaGold Resources Inc. (AMEX: NG) reported receiving an additional installment of drill results on Barrick Gold Corporation’s(NYSE: ABX) 2006 drill program at the Donlin Creek project in Alaska. Barrick released the first 45,000 meters of the 82,000 meter 2006 drill program. NovaGold anticipates receiving the balance of the results by the end of March. Despite the aggressive 2006 drill program we believe that the extent of the deposits at Donlin Creek and the eventual proportions of the eventual pit design are preliminary. We anticipate additional expansion of the pit outline, depth, and number of containedounces of gold. See full report.

NovaGold Resources Inc. (AMEX: NG) announced Friday that it had received its Environmental Assessment Certificate from the Province of British Columbia necessary for construction, operation, and closure of its Galore Creek project. An Environmental Assessment Certificate in Canada is similar to an Environmental Impact Statement in the US. This is a major milestone for the company and a significant reduction in risk for the project which should result in an increased valuation by the market. See full report.

Barrick Gold Corporation (NYSE: ABX) announced it has accepted 13.2 million common shares, representing 12.3% of NovaGold Resource Inc.’s (AMEX,TSX: NG) fully diluted common stock. ABX subsequently extended its tender offer at US$16.00 per share to December 6, 2006. This is the sixth extension of its all-cash tender offer, initiated on July 24, 2006 at a price of US$14.50 per share. See full report .

We retain our Buy recommendation for shares of NovaGold Resources Inc. (AMEX, TSX: NG) and 12-month price target of US$27 per share. We maintain our opinion that the tender offer by Barrick Gold Corporation (NYSE: ABX) at US$16 per share is unsupportable. We also believe the manner in which the tender offer for NG has been conducted demonstrates hostility toward NG shareholders and NG management’s efforts to create value. We see the number of shares to be acquired as a nuisance, much in the same manner as we view ABX’s acquisition of Pioneer Metals Corporation’s (TSX: PSM), a matter that should be settled at some point in the future. See full report .

We offered our opinion that Barrick Gold Corporation’s (NYSE: ABX) tender offer of US$14.50 per share for NovaGold Resources Inc. (AMEX, TSX: NG) was unsupportable in our Special Report dated August 10, 2006. Now that NG has received a bankable-Feasibility Study on its Galore Creek project and initiated construction of its Rock Creek project in Nome, we find the revised tender offer of US$16.00 per share to be even more unsupportable. See full report.

Barrick Gold Corporation (NYSE: ABX) announced the fourth extension of its tender offer for NovaGold Resources Inc.(AMEX, TSX: NG). This time the tender offer was increased to US$16.00 per share from US$14.50 per share. Given the trading range of NG’s stock since the tender offer on July 24, 2006, we see the increase as simply offering to buy shares at market. The increased tender offer price remains below the average closing price of NG’s stock since the tender offer of about $16.35 per share. The new expiry is November 7, 2006. See full report.