Electrum Strategic Resources acquires units of NovaGold Resources Inc.

    NEW YORK, Jan. 22 /CNW/ - Electrum Strategic Resources LLC ("Electrum")
announced that it has acquired ownership of 46,153,847 units (the "Units") of
NovaGold Resources Inc. ("NovaGold") for the aggregate purchase price of
US$60,000,001.10, representing a subscription price of US$1.30 per Unit, or
approximately CDN$73,476,001.34 and CDN$1.59 per Unit, respectively, based on
the noon rate of exchange on December 31, 2008, as reported by the Bank of
Canada. Each Unit consists of one common share in the capital of the NovaGold
(collectively, the "Shares") and one transferable common share purchase
warrant (collectively, the "Warrants") entitling the holder(s) thereof to
purchase one additional common share (a "Warrant Share") in the capital of the
NovaGold at an exercise price of US$1.50 per Warrant Share at any time on or
before 5:00 p.m. (Toronto time) on the date that is four years from the
closing date. Assuming the completion of the entire amount of the US$75
million private placement announced by NovaGold on January 6, 2009, as a
result of Electrum's acquisition, Electrum owns 46,153,847 Shares,
representing approximately 26.3% of the issued and outstanding Shares, and
owns 46,153,847 Warrants, representing 80% of the Warrants.
    The Units referred to above were acquired from NovaGold and were acquired
for investment purposes and Electrum and/or one or more of its affiliates may,
depending on market and other conditions, increase or decrease its beneficial
ownership of common shares or other securities of the NovaGold whether in the
open market, by privately negotiated agreement or otherwise.

    Electrum Strategic Resources LLC is located at 1370 Avenue of the
Americas, 19th Floor, New York, New York 10019.

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