Labaton Sucharow LLP Secures C$28 Million Settlement Against NovaGold Resources Inc.

NEW YORK (February 16, 2010) — Labaton Sucharow LLP announced today that NovaGold Resources Inc. ("NovaGold") has agreed to a C$28 million cash settlement of the class action lawsuit arising from allegations that investors were misled about the economic feasibility of Novagold’s largest mining project, Galore Creek. The New Orleans Employees’ Retirement System is the Lead Plaintiff in the lawsuit.

The complaint alleges that, between October 25, 2005 and November 26, 2006, NovaGold violated federal securities laws by disseminating a series of materially false and misleading statements relating to the accuracy and reliability of an independent study regarding the economic feasibility of its largest mining project, Galore Creek. The complaint alleges that internal cost estimates were more than double the costs stated in the report, prompting NovaGold to shut down the mine.

This settlement resolves the claims of all of NovaGold’s shareholders who purchased shares on the American Stock Exchange and Toronto Stock Exchange, pending approval of the U.S. Federal Court for the Southern District of New York and the Canadian courts presiding over class actions pending in that country. Shareholders are represented by Sutts, Strosberg LLP in the Canadian actions.

Joseph Fonti, a partner at Labaton Sucharow LLP who oversees the litigation, stated "we are very pleased with this result. Lead Plaintiff’s aggressive prosecution of this matter has resulted in an exceptional global resolution in little over a year from the filing of the Lead Plaintiff’s consolidated complaint. The size and expedience of this result is a testament to the significant impact institutional investors like New Orleans have in shareholder litigation."

The New Orleans Employees’ Retirement System is represented by the law firm of Labaton Sucharow LLP. Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country’s premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for over 45 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com