October 22, 2009 - Vancouver, British Columbia - NovaGold Resources Inc.
(NYSE-AMEX, TSX: NG) today provided an update on
litigation pending against the Company.
In August 2008, NovaGold, the Galore Creek Mining Corporation and
certain of its officers and directors were named as defendants in a securities
class action lawsuit filed in the United States District Court for the Southern
District of New York. Similar complaints followed and were filed as a
consolidated lawsuit on December 22, 2008. The plaintiff alleged violations of
the Securities Exchange Act of 1934 and the Securities Act of 1933 on the basis
of alleged misstatements and omissions in various public statements and filings
made from October 25, 2006 through November 23, 2007 concerning NovaGold’s
Galore Creek project, and sought an unspecified amount of damages in an amount
to be proven at trial.
On June 5, 2009, the Court dismissed all of the plaintiff’s claims
under the Securities Act of 1933, dismissed all claims against the Galore Creek
Mining Corporation, and dismissed certain claims against the Company and its
officers and directors under the Securities Exchange Act of 1934. The Company
disputes the claims that remain and intends to contest the action vigorously.
On October 14, 2009, NovaGold and certain of its directors and officers
together with Hatch Ltd., the engineering firm that completed the October 2006
Galore Creek feasibility study, were named as defendants in a purported class
action lawsuit commenced by a Notice of Action filed in the Ontario Superior
Court of Justice in Canada. A Statement of Claim has not yet been filed. The
Notice of Action alleges, among other things, that the defendants made, or were
responsible for, misrepresentations in various public statements and filings
made from October 25, 2006 through January 16, 2008 concerning NovaGold’s
Galore Creek project, and seeks general damages in the amount of $100 million.
NovaGold disputes all of these claims and believes that it has
substantial and meritorious legal and factual defenses, which the Company
intends to pursue vigorously.
About NovaGold
NovaGold is a precious metals company engaged in the exploration and
development of mineral properties in North America. The Company has a portfolio
of mineral properties located in Alaska, USA, and British Columbia, Canada. The
Company’s largest projects are being advanced with major mining companies. The
Donlin Creek project is held by a limited liability company owned equally by
NovaGold and Barrick Gold U.S. Inc. The Galore Creek project is held by a
partnership owned equally by NovaGold and Teck Resources Limited. NovaGold owns
a 100% interest in the Rock Creek, Big Hurrah and Nome Gold deposits in Nome,
Alaska. NovaGold has one of the largest reserve/resource bases of any junior or
mid-tier level producing gold company, and trades on the TSX and NYSE-AMEX
under the symbol NG. More information is available online at www.novagold.net
or by email at info@novagold.net.
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NovaGold Contacts
Don MacDonald
Senior Vice President & CFO
Greg Johnson
Vice President, Strategic Development
Rhylin Bailie
Manager, Corporate & Investor Relations
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain “forward-looking
statements” within the meaning of the United States Private Securities
Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included herein including, without limitation, statements
concerning the merits and possible outcome of pending litigation, are
forward-looking statements. Forward-looking statements involve various risks
and uncertainties. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause actual
results to differ materially from NovaGold’s expectations include the risk
and uncertainties involved in the litigation process, such as the possible
discovery of new evidence or acceptance of unanticipated or novel legal
theories, changes in interpretations of the law due to decisions in other
cases, the inherent difficulty in predicting the decisions of judges and juries
and the possibility of appeals, and other risk and uncertainties disclosed in
NovaGold’s Annual Information Form for the year ended November 30, 2008,
filed with the Canadian securities regulatory authorities, and NovaGold’s
annual report on Form 40-F filed with the United States Securities and Exchange
Commission and in other NovaGold reports and documents filed with applicable
securities regulatory authorities from time to time. NovaGold’s
forward-looking statements reflect the beliefs, opinions and projections of
management on the date the statements are made. NovaGold assumes no obligation
to update the forward-looking statements of management’s beliefs, opinions,
projections or other factors, should they change.
info@novagold.net
Toll free: 866-669-6227 http://www.novagold.net/