On December 15, 2016, NOVAGOLD RESOURCES INC. (the “Company”), its wholly-owned subsidiary, NovaGold USA, Inc. (“NGUSA”), and David L. Deisley, the Company’s Executive Vice President and General Counsel, entered into an amendment (the “Amendment”) to Mr. Deisley’s employment agreements dated September 4, 2012. In the Amendment, Mr. Deisley, the Company and NGUSA agree that Mr. Deisley’s work schedule will be reduced to 75% of full-time effective January 1, 2017. The Amendment also reduces Mr. Deisley’s annual salary and annual incentive potential by 25% effective January 1, 2017. Mr. Deisley’s annual salary as of January 1, 2017 will be $355,350, which represents 75% of his full-time salary. If Mr. Deisley returns to a full-time schedule to the terms of the Amendment, his annual salary and annual incentive potential shall be reinstated to their full-time amounts commencing upon his return to a full-time schedule. Mr. Deisley’s annual salary under a full-time schedule would be $473,800 as of January 1, 2017.

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