NovaGold to Sell NovaGreenPower for $40 Million

VANCOUVER, BRITISH COLUMBIA, Jul 31 (MARKET WIRE) --
NovaGold Resources Inc. (TSX: NG)(AMEX: NG) today announced that it has
reached a binding agreement to sell 100% of its NovaGreenPower subsidiary
for up to $40 million to AltaGas Ltd., a Calgary based energy
infrastructure company. NovaGreenPower owns several development-stage
run-of-river hydroelectric projects located in northwest British Columbia.

The transaction is expected to close later today, with payment to
NovaGold of $35 million on closing and an additional $5 million subject
to completion of certain conditions by February 15, 2009. NovaGold
acquired the NovaGreenPower hydroelectric assets in 2006. The carrying
value to NovaGold of the assets being sold, along with transaction costs,
is approximately $6 million. Canaccord Adams acted as financial advisor
to NovaGold for this transaction.

"NovaGold's strategy is to focus our financial and management resources
on the advancement of our core mining projects: Donlin Creek, Galore
Creek and Rock Creek," said Rick Van Nieuwenhuyse, President & CEO of
NovaGold. "The sale of NovaGreenPower is consistent with the strategy to
realize the value of our non-core assets for NovaGold shareholders. We
believe AltaGas has the resources and expertise to develop Forrest Kerr
and the other hydroelectric projects owned by NovaGreenPower. AltaGas'
focus on rapidly advancing these projects will facilitate the timely
development of power transmission infrastructure that will support future
power requirements of the Galore Creek copper-gold-silver mine as well as
the communities of northwest British Columbia."

Like NovaGold, AltaGas is committed to community engagement and
developing projects in a responsible manner that brings real benefits to
local communities and First Nations group. AltaGas is committed to
upholding the First Nations Agreements in place for the Forrest Kerr
project, and will continue to work with local First Nations groups as the
projects progress.

Recognizing the strength of NovaGold's renewable energy team, AltaGas has
retained the NovaGreenPower team, including Doug Brown, Acting President
of NovaGreenPower and VP Business Development of NovaGold, and Dan
Woznow, VP Operations of NovaGreenPower. NovaGold would like to thank
Doug Brown, Dan Woznow and the other members of the NovaGreenPower team
for their contributions to the Company and wish them well in their
transition to AltaGas.

About NovaGold

NovaGold is a precious metals company engaged in the exploration and
development of mineral properties in Alaska and Western Canada.
Production is scheduled for 2008 at the 100%-owned Nome Operations in
Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold deposits.
NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the
world's largest gold deposits, with Barrick Gold (50%). The Company also
owns 50% of the Galore Creek copper-gold-silver project in British
Columbia with Teck Cominco (50%). Also in Alaska, NovaGold is earning a
51% interest as manager of the high-grade Ambler copper-zinc-silver-gold
project in partnership with Rio Tinto. NovaGold has one of the largest
resource bases of any exploration or development-stage precious metals
company. NovaGold trades on the TSX and AMEX under the symbol NG. More
information is available online at www.novagold.net or by e-mail at
info@novagold.net.

Cautionary Note Concerning 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, the anticipated timing for
final close of the NovaGreenPower sale and the anticipated disbursement
of proceeds 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.
NovaGold's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are
made, and NovaGold does not assume any obligation to update
forward-looking statements if circumstances or management's beliefs,
expectations or opinions should change except as required by law. For the
reasons set forth above, investors should not place undue reliance on
forward-looking statements. Important factors that could cause actual
results to differ materially from NovaGold's expectations are disclosed
in NovaGold's Annual Information Form for the year ended November 30,
2007, filed with the Canadian securities regulatory authorities,
NovaGold's annual report on Form 40-F filed with the United States
Securities and Exchange Commission, and other information released by
NovaGold from time to time and filed with the appropriate regulatory
agencies.

Contacts:
NovaGold Resources Inc.
Greg Johnson
Vice President, Strategic Development
(604) 669-6227 or 1-866-669-6227

NovaGold Resources Inc.
Rhylin Bailie
Manager, Corporate & Investor Relations
(604) 669-6227 or 1-866-669-6227
Email: info@novagold.net
Website: www.novagold.net

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