NovaGold Announces Offering of Convertible Senior Notes
March 19, 2008 - Vancouver, British Columbia - NovaGold Resources Inc. (AMEX, TSX: NG) today
announced that it is offering approximately US$100 million aggregate principal amount of its convertible senior
notes due 2015 (“Notes”) in the United States and Canada pursuant to a preliminary prospectus supplement to
its base shelf prospectus dated April 16, 2007. NovaGold will grant the underwriter an option to purchase up to
an additional approximately US$15 million of Notes during the period ending 30 days from the closing of the
offering to cover over-allotments, if any.
J.P. Morgan Securities Inc. is the underwriter for the offering.
The Notes will have a semi-annual cash interest coupon to be determined at pricing and will be convertible into
the Company’s common shares at a conversion price to be determined. Subject to the satisfaction of certain
conditions, the Company may, in lieu of delivery of common shares upon conversion of all or a portion of the
Notes, elect to pay cash or a combination of cash and common shares. The Notes will not be redeemable by the
Company prior to maturity, except upon the occurrence of certain changes to the laws governing Canadian
withholding taxes. Holders of the Notes may require the Company to repurchase for cash all or a portion of their
Notes in 2013 at a price equal to 100% of the principal amount of such Notes plus any accrued and unpaid
interest. In addition, if the Company experiences specified types of fundamental changes, it will be required to
offer to repurchase for cash all of the outstanding Notes at a price equal to 100% of the principal amount of the
Notes to be repurchased plus any accrued and unpaid interest.
The net proceeds from the offering will be used to repay the approximately C$16 million currently drawn down
under the Company’s C$30 million short-term credit facility, to fund general exploration and development on the
Company’s projects, and for general corporate purposes.