VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - NovaGold Resources Inc. ("NovaGold") (TSX:NG)(NYSE Amex:NG) is pleased to highlight commercial terms of the earlier announced Exploration Agreement (the "Agreement") with NANA Regional Corporation, Inc. ("NANA"), its Alaska Native partner. Under the Agreement, NovaGold and NANA consolidated their respective holdings in the Ambler mining district of Northwest Alaska, as described in the press release dated October 20, 2011. Among other things, under the terms of the Agreement:

• Upon a one-time payment of $4 million, NovaGold has the exclusive right to explore and develop the combined Ambler district which, as a result of the Agreement, will total approximately 180,000 hectares.
• NovaGold will have a 100% interest in any mining project subject to NANA's right, exercisable at the time of any construction decision, to purchase between 16% and 25% of any project on the combined property. Alternatively, NANA can elect to retain a 15% Net Proceeds Royalty ("NPR") with respect to the project.
• Should NANA elect to purchase a specified percent interest in the project, it would pay to NovaGold a consideration equal to the specified percentage of the joint venture which NANA elects to acquire multiplied by the difference between all costs incurred by NovaGold in connection with the mining project less, with respect to the first of any such joint ventures, $40 million. The $40 million amount is a one-time deduction for the construction of the first mining operation on the combined property. The consideration will be payable to NovaGold in cash at the time that the parties enter into a joint venture agreement on the specified project. Following the formation of the joint venture, each party would be responsible for its pro-rata share of subsequent funding.
• Should NANA elect to hold a 15% NPR, such royalty would be calculated in accordance with the agreed-upon provisions as to allowable costs deducted from the project's proceeds.
• The above rights to participate would apply to each and every mining operation constructed on the consolidated land holding.
• In addition, NANA is entitled to receive a Net Smelter Returns royalty ranging between 1% and 2.5% from production originating from the combined property with the exact percentage depending on the specific area where the future production originates.
• NANA would also receive annual payments in relation to properties permanently used for access or operations.

"This is a win-win deal for both parties," said Rick Van Nieuwenhuyse, NovaGold's President and CEO. "NovaGold secures 100% interest in any project located in one of the largest and most prospective poly-metallic projects in the world. NANA has an option for participation in the future financial success of any joint venture and access to NovaGold's proven exploration expertise and track record of major economic discoveries without any exposure of risk capital. At the time of a secular bull market in all commodities, both parties are now stakeholders in a significant copper-lead-zinc-silver-gold project located in one of the safest geo-political jurisdictions in the world."

About NovaGold

NovaGold is a precious metals company engaged in the exploration and development of mineral properties in Alaska, U.S.A. and British Columbia, Canada. The Company is focused on advancing its two core properties, Donlin Gold and Galore Creek, with the objective of becoming a low-cost million-ounce-a-year gold producer, and offers superior leverage to gold and copper with one of the largest reserve/resource bases of any junior or mid-tier gold company. NovaGold has a strong track record of expanding deposits through exploration success and forging collaborative partnerships, both with local communities and with major mining companies. The Donlin Gold project in Alaska, one of the world's largest known undeveloped gold deposits, is held by a limited liability company owned equally by wholly-owned subsidiaries of NovaGold and Barrick Gold Corporation. The Galore Creek project in British Columbia, a large copper-gold-silver deposit, is held by a partnership owned equally by wholly-owned subsidiaries of NovaGold and Teck Resources Limited. NovaGold also owns a 100% interest in the high-grade Ambler copper-zinc-gold-silver deposit in northern Alaska and has other earlier-stage exploration properties. NovaGold trades on the TSX and NYSE-AMEX under the symbol NG. More information is available at www.novagold.net or by emailing info@novagold.net.