# EDGAR Filing Document

**Accession Number:** 0001173420
**File Stem:** 0001171843-25-003649
**Filing Date:** 2025-6
**Character Count:** 296660
**Document Hash:** 4603854a430ebf541c81a6db47d0b268
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-25-003649.hdr.sgml**: 20250604

**ACCESSION NUMBER**: 0001171843-25-003649

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20250603

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250604

**DATE AS OF CHANGE**: 20250603

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NOVAGOLD RESOURCES INC
- **CENTRAL INDEX KEY:** 0001173420
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31913
- **FILM NUMBER:** 251021267

**BUSINESS ADDRESS:**
- **STREET 1:** 201 SOUTH MAIN
- **STREET 2:** SUITE 400
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84111
- **BUSINESS PHONE:** 801-449-9328

**MAIL ADDRESS:**
- **STREET 1:** 201 SOUTH MAIN
- **STREET 2:** SUITE 400
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84111

?xml version='1.0' encoding='ASCII'?

**UNITED STATES** **SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. 20549

**FORM 8-K**

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report : June 3, 2025 (Date of earliest event reported)

**NOVAGOLD RESOURCES INC.** (Exact Name of Registrant as Specified in Its Charter)

British Columbia 001-31913 N/A <br> (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification)

<u>201 South Main, Suite 400, Salt Lake City, Utah 84111</u>

(Address of principal executive offices) (Zip Code)

<u>(801) 639-0511</u>

(Registrant's Telephone Number, Including Area Code)

<u>N/A</u>

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Shares | NG | NYSE American<br> Toronto Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01 Entry into a Material Definitive Agreement**

The information included under Item 2.01 below regarding the Amended and Restated Limited Liability Company Agreement for Donlin Gold LLC and the amended and restated promissory note is incorporated by reference into this Item 1.01.

**Item 2.01 Completion of Acquisition or Disposition of Assets.**

*Closing of Acquisition Pursuant to Membership Interest Purchase Agreement.*

On June 3, 2025, NOVAGOLD Resources Inc. ("NOVAGOLD" or the "Company") and Paulson Advantage Plus Master Ltd. and Paulson Partners LP (together, "Paulson") completed the previously disclosed acquisition (the "Acquisition") of a 50% interest in Donlin Gold LLC ("Donlin Gold") from Barrick Gold Corporation ("Barrick") pursuant to the terms of the membership interest purchase agreement dated April 22, 2025 (the "MIPA") among Barrick Gold U.S. Inc ("Barrick Gold"), Barrick, Paulson, Donlin Gold Holdings LLC, a subsidiary of Paulson ("Donlin Holdings"), and NovaGold Resources Alaska, Inc., a subsidiary of the Company ("NGRA"). NOVAGOLD, through NGRA, acquired an additional 10% interest in Donlin Gold for $200 million, increasing its stake to 60% of Donlin Gold, while Paulson, through Donlin Holdings, acquired the remaining 40% interest for $800 million.

*Amended and Restated Limited Liability Company Agreement for Donlin Gold LLC*

In connection with the closing of the Acquisition, NGRA, Donlin Holdings and Donlin Gold entered into an amended and restated limited liability company agreement (the "A&R LLC Agreement") governing Donlin Gold, pursuant to which the Company and Paulson will have equal governance rights. NGRA had previously entered into a limited liability company agreement with Barrick Gold and Donlin Gold (the "Prior LLC Agreement") dated December 1, 2007, as amended from time to time. Pursuant to the terms of the A&R LLC Agreement, the primary amendments to the Prior LLC Agreement consist of the following:

&nbsp;&nbsp;&nbsp;&nbsp;· The deadlock provision contained in Article XVI of the Prior LLC Agreement has been replaced with a provision for non-binding mediation
 for dispute resolution.

&nbsp;&nbsp;&nbsp;&nbsp;· Consistent with the Prior LLC Agreement, the funding for Donlin Gold will be shared by both parties based on their percentage ownership.
 For example, since NGRA now holds 60% of the membership interests of Donlin Gold, it will have the responsibility to fund 60% of the expenses
 of Donlin Gold. However, regardless of the fact that Paulson holds 40% of Donlin Gold, the intent is for the parties to have equal governance
 rights. This adjustment to the parties' voting interests, as set forth in the A&R LLC Agreement means that (i) NGRA's
 voting percentage interests are defined as its membership interest from time to time less an absolute 10% and (ii) Paulson's voting
 percentage interests are defined as its membership interest from time to time plus an absolute 10%. For this reason, now that NGRA holds
 60% of the membership interests of Donlin Gold, it has a 50% voting interest at Donlin Gold, not 60%.

&nbsp;&nbsp;&nbsp;&nbsp;· The parties agree to manage the operations of Donlin Gold in a manner to avoid adverse tax consequences to the parties, including pursuant
 to Section 4943 of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;· Certain provisions in the Prior LLC Agreement have been deleted or amended as a result of such provisions being outdated or no longer
 relevant due to the current development and permitting status of Donlin Gold.

*Amended and Restated Promissory Note*

Pursuant to the Prior LLC Agreement for Donlin Gold, the Company issued a promissory note in favor of Barrick Gold to repay Barrick out of future mine production cash flow for a portion of Barrick's prior expenditures on the Donlin Gold project.

In connection with the closing of the Acquisition, on June 3, 2025 NGRA and Barrick Gold have amended and restated the promissory note primarily to (i) modify the security package in order to exclude any property held by Donlin Gold or membership interest in Donlin Gold held by NGRA, but ensure it remains secured by NGRA's right, title and interest to proceeds from Donlin Gold and (ii) provide the ability for NGRA to prepay and retire the promissory note for an aggregate of $100 million at any time during the eighteen-month period following the closing of the Acquisition. In connection with the amended and restated promissory note, NGRA has made an irrevocable direction to Donlin Gold to specify that Donlin Gold shall distribute to Barrick Gold, until the promissory note is fully repaid, 85% of the processed products, cash and other assets; and payments of 5% of certain net proceeds specified in the promissory note. As per the amended and restated promissory note, the principal amount owed is $158.9 million.

The material terms of the MIPA and the transaction contemplated thereby were previously reported in Item 1.01 of the Current Report on Form 8-K filed on April 22, 2025 with the U.S. Securities and Exchange Commission (the "SEC"). The foregoing description of the MIPA and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the MIPA, a copy of which was filed with the SEC as Exhibit 2.1 to the Company's Current Report on Form 8-K on April 22, 2025, and is incorporated into this Item 2.01 by reference as Exhibit 2.1.

The foregoing description of the amended and restated promissory note does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the note, a copy of which is filed herewith as Exhibit 10.2 and is incorporated into this Item 2.01 by reference

The foregoing description of the A&R LLC Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the A&R LLC Agreement, a copy of which is filed herewith as Exhibit 10.2 and is incorporated into this Item 2.01 by reference.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

The information included under Item 2.01 above regarding the amended and restated promissory note is incorporated by reference into this Item 2.03.

**Item 7.01 Regulation FD Disclosure.**

On June 3, 2025, the Company issued a press release reporting the closing of the Acquisition, a copy of which is attached hereto as Exhibit 99.1.

The information contained in the press release attached hereto is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| [2.1](https://www.sec.gov/Archives/edgar/data/1173420/000117184325002363/exh_21.htm) | [Membership Interest Purchase Agreement among the Company, Barrick Gold U.S. Inc., Barrick Gold Corporation, Paulson Advantage Plus Master Ltd., Paulson Partners LP, Donlin Gold Holdings LLC, and NovaGold Resources Alaska, Inc. dated April 22, 2025 (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of the Company filed with the SEC on April 22, 2025).](https://www.sec.gov/Archives/edgar/data/1173420/000117184325002363/exh_21.htm) |
| [10.1](exh_101.htm) | [Amended and Restated LLC Operating Agreement dated June 3, 2025 among Donlin Gold Holdings LLC, NovaGold Resources Alaska, Inc. and Donlin Gold LLC](exh_101.htm) |
| [10.2](exh_102.htm) | [Amended and Restated Promissory Note dated June 3, 2025](exh_102.htm) |
| [99.1](exh_991.htm) | **[Press Release of NOVAGOLD dated June 3, 2025 entitled "NOVAGOLD and Paulson Advisers Complete $1 Billion Acquisition of Barrick Mining's 50% Interest in Donlin Gold."](exh_991.htm)** |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: June 3, 2025 | NOVAGOLD RESOURCES INC. | NOVAGOLD RESOURCES INC. |
|  | By: | /s/ *Peter Adamek* |
|  |  | Peter Adamek |
|  |  | Vice President and Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

#### LIMITED LIABILITY COMPANY AGREEMENT<br>OF<br>DONLIN GOLD LLC

#### EFFECTIVE AS OF JUNE 3, 2025
**THE INTERESTS DESCRIBED AND REPRESENTED BY THIS LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS (THE "SECURITIES LAWS") AND MAY BE RESTRICTED SECURITIES AS THAT TERM IS DEFINED IN RULE 144 UNDER THE SECURITIES LAWS. TO THE EXTENT THE INTERESTS CONSTITUTE SECURITIES UNDER THE SECURITIES LAWS, THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR QUALIFICATION UNDER THE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES LAWS, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.**

i

#### **TABLE OF CONTENTS**
<u>Page No.</u>

---

| | |
|:---|:---|
| ARTICLE I DEFINITIONS | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Certain Defined Terms | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Rules of Construction | 9 |
| ARTICLE II REPRESENTATIONS AND WARRANTIES; TITLE TO ASSETS | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Capacity of Members | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Record Title | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Loss of Title | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 No Other Representations and Warranties | 10 |
| ARTICLE III NAME, PURPOSES AND TERM | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 General | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Name | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Purposes | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Limitation | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Effective Date and Term | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Registered Agent; Offices | 11 |
| ARTICLE IV RELATIONSHIP OF THE MEMBERS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 No State-Law Partnership | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Federal Tax Elections and Allocations | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 State Income Tax | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Tax Returns | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Other Business Opportunities | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 Waiver of Right to Partition | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 Transfer of Membership Interests | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 Implied Covenants; No Additional Duties | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 Liabilities; Indemnification | 13 |
| ARTICLE V CONTRIBUTIONS BY MEMBERS | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Members Initial Contributions | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Additional Cash Contributions | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Return of Contributions | 14 |
| ARTICLE VI PERCENTAGE INTERESTS | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Initial Percentage Interests | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Changes in Percentage Interests | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Voluntary Reduction in Percentage Interest | 15 |

---

ii

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Default in Making Contributions | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Elimination of Minority Interest | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Continuing Obligations and Liabilities | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 Grant of Security Interest | 17 |
| ARTICLE VII BOARD | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Organization and Composition | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Decisions | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Meetings | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Action Without Meeting | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 Matters Requiring Special Approval or Unanimous Approval | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 Matters Requiring Majority Approval – Not Subject to Casting Vote | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 Non-Delegable Duties of the Board | 22 |
| ARTICLE VIII GENERAL MANAGER, OTHER OFFICERS AND TECHNICAL COMMITTEE | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 General Manager | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Duties of General Manager | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Officers | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 Technical Committee | 24 |
| ARTICLE IX PROGRAMS AND BUDGETS | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Initial Program and Budget | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Feasibility Study | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 [Intentionally Deleted | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Construction Program and Budget | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Other Programs and Budgets | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Operations Pursuant to Programs and Budgets | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Preliminary Review of Proposed Programs and Budgets | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 Approval of Programs and Budgets and Election to Participate | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 Budget Overruns; Program Changes | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 Emergency or Unexpected Expenditures | 27 |
| ARTICLE X ACCOUNTS AND SETTLEMENTS | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Monthly Statements | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Cash Calls | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Failure to Meet Cash Calls | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Financial Statements | 28 |
| ARTICLE XI DISTRIBUTIONS; DISPOSITION OF PRODUCTION | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Distributions of Processed Products | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Distributions of Cash | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Hedging | 28 |

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iii

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| | |
|:---|:---|
| ARTICLE XII RESIGNATION AND DISSOLUTION | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 Dissolution | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Resignation | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 Liquidation and Termination After Dissolution | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 Non-Compete Covenants | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 Right to Data After Termination | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 Continuing Authority | 30 |
| ARTICLE XIII ACQUISITIONS WITHIN AREA OF INTEREST | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 General | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 Notice to Nonacquiring Member | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 Option Exercised | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 Option Not Exercised | 31 |
| ARTICLE XIV ABANDONMENT AND SURRENDER OF PROPERTIES | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 Surrender or Abandonment of Property | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 Reacquisition | 31 |
| ARTICLE XV TRANSFER OF INTEREST | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 General | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 Limitations on Free Transferability | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 Acquisition Right | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 Exceptions to Acquisition Right | 33 |
| ARTICLE XVI DISPUTES | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 Dispute Resolution | 34 |
| ARTICLE XVII CONFIDENTIALITY | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 General | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 Exceptions | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 Duration of Confidentiality | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4 Technical Disclosure Rules | 35 |
| ARTICLE XVIII GENERAL PROVISIONS | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 Notices | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 Waiver | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 Modification | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 Force Majeure | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 Inspections | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 Rights to Data | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 Governing Law | 38 |

---

iv

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 Further Assurances | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9 Survival of Terms and Conditions | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.10 No Third Party Beneficiaries | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.11 Entire Agreement; Successors and Assigns | 39 |

---

v

#### EXHIBITS

---

| | |
|:---|:---|
| EXHIBIT A PROPERTIES AND AREA OF INTEREST | A-1 |
| EXHIBIT B ACCOUNTING PROCEDURE | B-1 |
| EXHIBIT C TAX MATTERS | C-1 |
| EXHIBIT D NET PROCEEDS CALCULATION | D-1 |
| EXHIBIT E INTENTIONALLY DELETED | E-1 |
| EXHIBIT F INTENTIONALLY DELETED | F-1 |
| EXHIBIT G INTENTIONALLY DELETED | G-1 |
| EXHIBIT H INTENTIONALLY DELETED | H-1 |

---

vi

#### LIMITED LIABILITY COMPANY AGREEMENT<br> OF<br> DONLIN GOLD LLC
THIS LIMITED LIABILITY COMPANY AGREEMENT is made and entered into as of this 3rd day of June, 2025 (the "**Effective Date**"), by and among Donlin Gold LLC, a Delaware limited liability company (the "**Company**"), Donlin Gold Holdings LLC, a Delaware limited liability company ("**Paulson**"), and NovaGold Resources Alaska, Inc., an Alaska corporation ("**NovaGold**").

RECITALS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. NovaGold and Barrick Gold U.S. Inc. (formerly Placer Dome U.S. Inc.) ("**Barrick**") entered into that certain Mining Venture Agreement, effective as of November 13, 2002, as amended by a First Amendment Agreement, effective as of November 30, 2007 ("**Mining Venture Agreement**"), pursuant to which each acquired and held rights and interests in and to certain lands, fixtures, and improvements located in the Kuskokwim Recording District, Alaska, as more particularly described in <u>Part 1</u> of <u>Exhibit A</u>, pursuant to the Lease (defined below), and in <u>Part 2</u> of <u>Exhibit A</u>, pursuant to the Surface Use Agreement (defined below) and in certain permits, licenses, approvals, core, samples, studies, reports, and other data and materials associated with such lands, fixtures, improvements and assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant to a Membership Interest Purchase Agreement dated April 21, 2025 (the "**MIPA**"), Paulson (as to 80%) and NovaGold (as to 20%) have acquired all of Barrick's Membership Interest (as defined in the Barrick-NovaGold LLC Agreement), such that the Percentage Interests (defined below) of Paulson and NovaGold on the date hereof are 40% and 60%, respectively, and on that basis, Paulson and NovaGold have agreed to amend and restate the Barrick-NovaGold LLC Agreement on the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Paulson and NovaGold wish to participate in the further exploration and evaluation, and, if warranted, the development and mining of mineral resources within the Properties (defined below) or any other properties acquired by the Company pursuant to the terms of this Agreement.

#### AGREEMENT
NOW, THEREFORE, in consideration of the covenants and agreements contained herein, Paulson, NovaGold and the Company agree as follows:

#### ARTICLE I<br> DEFINITIONS
**1.1 Certain Defined Terms**. As used herein, the following terms shall have the following meanings (such meanings to be applicable equally to the singular as well as the plural forms of the terms defined and defined verbs to include all verb forms):

"**Accounting Procedure**" means the procedures set forth in <u>Exhibit B</u>.

"**Acquiring Member**" has the meaning set forth in Section 13.2.

"**Act**" means the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, *et seq.*, as it may be amended.

"**Affiliate**" means any Person which directly or indirectly controls, is controlled by, or is under common control with, a Member. For purposes of the preceding sentence, "control" means possession, directly or indirectly, of the power to direct or cause direction of management and policies through ownership of voting securities, contract, voting trust or otherwise.

"**Agreement**" means this Limited Liability Company Agreement, including all amendments and modifications thereof, and all exhibits, which are incorporated herein by this reference.

"**Area of Interest**" means the area specified in <u>Part 5</u> of <u>Exhibit A</u>.

"**Assets**" means the Properties, Products, and all other real and personal property, tangible and intangible, held by the Company (including licenses, permits and other authorizations), and includes any interest in the JV Assets to which an Initial Member holds record title pursuant to Section 2.2(c).

"**Barrick**" has the meaning set forth in the introductory paragraph to this Agreement.

"**Barrick-NovaGold LLC Agreement**" has the meaning set forth in the introductory paragraph to this Agreement.

"**Board**" means the board established under Article VII.

"**Budget**" means a detailed estimate of all costs to be incurred by the Company with respect to a Program and a schedule of cash contributions to be made by the Members with respect to such Program.

"**Business Account**" means the account maintained in accordance with the Accounting Procedure.

"**Business Day**" means any day other than a Saturday, Sunday or statutory holiday in any of Anchorage, Alaska, New York, New York or Vancouver, Canada.

"**Calendar Year**" means a period of twelve (12) consecutive months, beginning on the first day of January and ending on the last day of December.

"**Capital Account**" means the capital account maintained for each Member in accordance with Treas. Reg. § 1.704-1(b)(2)(iv).

"**Certificate of Formation**" means the certificate of formation of the Company as filed with the Secretary of State on November 30, 2007 to be effective December 1, 2007, as amended from time to time.

"**Claim**" means any action, claim, demand, interference, injunction, stay, obligation, grievance, suit, dispute, counterclaim, arbitration or other proceeding, or any order, writ, injunction, judgment or decree.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of future Law.

"**Commencement of Production**" means the day on which a mill or processing plant on the Properties commences the milling, processing, or other beneficiation of Products other than milling, processing or other beneficiation undertaken for mill or facilities start-up testing.

"**Company**" means Donlin Gold LLC, the Delaware limited liability company governed by this Agreement.

"**Consent**" means, as to any Person, any consent, waiver, approval, authorization, exemption, registration, declaration, expiration of waiting period, or filing, by or in respect of such Person.

"**Construction Program and Budget**" means a Program and Budget for the construction of the Project and the placing of the Properties into commercial production.

"**Construction Decision Trigger Date**" means the date that is twelve (12) months from the Effective Date hereof.

"**Continuing Obligations**" means obligations or responsibilities that are reasonably expected to continue or arise after Operations on a particular area of the Properties have ceased or are suspended, such as future monitoring, stabilization, or Environmental Compliance.

"**Deadlock**" has the meaning set forth in Section 16.1(a).

"**Development**" means all preparation for the removal and recovery of Products after the approval of a Feasibility Study, including the construction or installation of a mill or any other improvements to be used for the mining, handling, milling, processing or other beneficiation of Products, but excludes Permitting.

"**Discloser**" has the meaning set forth in Section 17.4.

"**Dollars**" or "**$**" means the official currency of the United States.

"**Effective Date**" has the meaning set forth in the introductory paragraph to this Agreement.

"**Encumbrance**" means (a) any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, deed of trust, title retention, security interest or other encumbrance of any kind securing, or conferring any priority of payment in respect of, any obligation of any Person, including any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or financial effect similar to the granting of security under applicable Law, (b) any lease, sublease, occupancy agreement, easement or covenant granting a right to use or occupancy to any Person, (c) any proxy, power of attorney, voting trust agreement, interest, option, right of first offer, negotiation or refusal or transfer restriction in favor of any Person, and (d) any adverse Claim as to title, possession or use.

"**Environmental Compliance**" means action performed during or after Operations to comply with the requirements of all Environmental Laws or contractual commitments related to reclamation of the Properties or other compliance with Environmental Laws.

"**Environmental Laws**" means Laws aimed at reclamation or restoration of the Properties; abatement of pollution; protection of the environment; protection of wildlife, including endangered species; ensuring public safety from environmental hazards; protection of cultural or historic resources; management, storage or control of hazardous materials and substances; releases or threatened release of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances as wastes into the environment, including ambient air, surface water and groundwater; and all other Laws relating to the manufacturing, processing, distribution, use, treatment, storage, disposal, handling or transport of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

"**Environmental Liabilities**" means any and all Claims, actions, causes of action, damages, losses, liabilities, obligations, penalties, judgments, amounts paid in settlement, assessments, costs, disbursements, or expenses (including attorneys' fees and costs, experts' fees and costs, and consultants' fees and costs) of any kind or of any nature whatsoever that are asserted against the Company or either Member, by any Person other than the other Member, alleging liability (including liability for studies, testing or investigatory costs, cleanup costs, response costs, removal costs, remediation costs, containment costs, restoration costs, corrective action costs, closure costs, reclamation costs, natural resource damages, property damages, business losses, personal injuries, penalties or fines) arising out of, based on or resulting from (a) the presence, release, threatened release, discharge or emission into the environment of any hazardous materials or substances existing or arising on, beneath or above the Properties and/or emanating or migrating and/or threatening to emanate or migrate from the Properties to off-site properties; (b) physical disturbance of the environment on or relating to the Properties; or (c) the violation or alleged violation of any Environmental Laws in connection with the Properties.

"**Exploration**" means all activities directed toward ascertaining the existence, location, quantity, quality or commercial value of deposits of Products.

"**Feasibility Study**" means that certain Donlin Creek Gold Project, Alaska Feasibility Study Update 2, effective October 7, 2011, which was previously adopted by the Board and which provides the design basis for Permitting since its adoption, as referenced and updated by the that certain NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA, effective June 1, 2021, and that certain S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska USA, dated November 30, 2021, or any updated feasibility study adopted by the Company as provided in Section 9.2.

"**General Manager**" means the general manager of the Company designated by the Board in accordance with Section 8.1.

"**Governmental Authority**" means any national, state, municipal, borough, tribal, native, foreign, international, multinational government or jurisdiction (and any political subdivision of any thereof), any governmental or quasi-governmental authority (including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi-governmental powers), any other body exercising or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority, and any official of any of the foregoing.

"**Initial Contribution**" means that capital contribution each Member is deemed to have made pursuant to Section 5.1.

"**Initial Member**" has the meaning set forth in the definition for Member.

"**Initial Program and Budget**" means the Program and Budget adopted for the 2025 Calendar Year pursuant to the Barrick-NovaGold LLC Agreement on December 26, 2024.

"**JV Assets**" means the "*Assets*" as that term is defined in the Mining Venture Agreement.

"**Law**" means all applicable federal, state, provincial, borough, tribal, native and local laws (statutory or common), rules, ordinances, regulations, grants, concessions, franchises, licenses, orders, directives, judgments, decrees, and other governmental restrictions, including permits and other similar requirements, whether legislative, municipal, administrative or judicial in nature, including Environmental Laws.

"**Lease**" means the Restated Exploration and Lode Mining Lease Agreement dated effective May 1, 1995, between Calista Corporation, an Alaska native corporation, and Donlin Creek LLC, a Delaware limited liability company, as amended by that Agreement to Amend Restated Exploration and Lode Mining Lease, effective June 6, 2014, between Calista Corporation and Donlin Gold LLC, and as it may be from time to time amended, and any replacement thereof or substitution therefor.

"**Majority Approval**" means a simple majority of the total votes entitled to be cast by the Voting Representatives (based on the Members' respective Voting Percentage Interests) present at a meeting of the Board duly called at which a quorum (as determined in accordance with Section 7.3(b)) was present or represented, and shall also include approval by an instrument in writing signed by all representatives on the Board.

"**Mediation**" has the meaning set forth in Section 16.1(a).

"**Member**" means each of Paulson and NovaGold (each an "**Initial Member**") and each Person who or which hereafter acquires a Membership Interest and is admitted as a Member.

"**Membership Interest**" means, with respect to any Member: (a) that Member's status as a Member; (b) that Member's Capital Account and share of the profits, losses, and other items of income, gain, loss, deduction, and credits of, and the right to receive distributions (liquidating or otherwise) from, the Company under the terms of this Agreement; (c) all other rights, benefits and privileges enjoyed by that Member in its capacity as a Member, including that Member's rights to vote, consent and approve those matters described in this Agreement; and (d) all obligations, duties and liabilities imposed on that Member under this Agreement in its capacity as a Member.

"**Mining**" means the mining, extracting, producing, handling, milling or other processing of Products.

"**Mining Venture Agreement**" has the meaning set forth in the introductory paragraph to this Agreement.

"**MIPA**" has the meaning set forth in the introductory paragraph to this Agreement.

"**NEPA**" means the National Environmental Policy Act of 1969, 42 U.S.C. § 4321 *et seq*., as amended.

"**Net Proceeds**" means an amount defined, calculated and paid as provided in <u>Exhibit D</u>, which shall become payable to a resigning Member in accordance with Section 6.5, on the terms and conditions and subject to the limitations set forth in such Section.

"**NI 43-101**" has the meaning set forth in Section 17.4.

"**Notice**" has the meaning set forth in Section 18.1.

"**NovaGold**" has the meaning set forth in the introductory paragraph to this Agreement.

"**Officers**" means the officers of the Company designated by the Board in accordance with Section 8.2.

"**Operations**" means the activities carried out by the Company under this Agreement.

"**Paulson**" has the meaning set forth in the introductory paragraph to this Agreement.

"**Percentage Interest**" means the percentage interest of a Member in certain allocations of profits and losses and other items of income, gain, loss or deduction and certain distributions of cash or property, representing the Membership Interest of a Member in the Company, as such interest may from time to time be adjusted hereunder. Percentage Interests shall be calculated to three decimal places and rounded to two (*e.g.*, 1.519% rounded to 1.52%). Decimals of .005 or more shall be rounded up, decimals of less than .005 shall be rounded down. The initial Percentage Interests of the Members are set forth in Section 6.1.

"**Permitting**" means all actions reasonably necessary to obtain all rights, licenses, approvals, permits, and authorizations reasonably necessary to construct and operate a Project substantially as contemplated by the Feasibility Study.

"**Person**" means a natural person, any general partnership (including a limited liability partnership), limited partnership (including a limited liability limited partnership), limited liability company, corporation, joint venture, trust, business trust, cooperative, association or any foreign trust or foreign business organization.

"**PR**" has the meaning set forth in <u>Exhibit C</u>.

"**Prime Rate**" means the interest rate quoted as "Prime" by J.P. Morgan Chase & Co., New York, at its head office, as said rate may change from day to day (which quoted rate may not be the lowest rate at which such bank loans funds).

"**Processed Products**" means Products that have been delivered by the Company to a refinery, smelter or other processor and subsequently refined, smelted or otherwise treated to produce a mineral product in a form that is commonly sold, including gold bullion and silver bullion. For the avoidance of doubt, "Processed Products" does not include Products in the form of doré bullion.

"**Products**" means all ores, minerals and mineral resources produced from the Properties under this Agreement, and includes Processed Products until such Processed Products are distributed to the Members as provided in Section 11.1.

"**Program**" means a description in reasonable detail of Operations to be conducted and objectives to be accomplished by the Company for a Calendar Year or any longer period.

"**Project**" means a mine or mines and related facilities constructed on the Properties by the Company.

"**Properties**" means those interests in real property (including mineral rights) described in <u>Part 1, Part 2, Part 3</u> and <u>Part 4</u> of <u>Exhibit A</u> together with all other interests in real property (including mineral rights), fixtures and improvements and all easements, rights-of-way, water rights, and all other appurtenances within the Area of Interest which are acquired and held subject to this Agreement.

"**Qualified Person**" has the meaning set forth in NI 43-101, as the same may be modified from time to time.

"**Secretary of State**" means the secretary of state of the State of Delaware.

"**S-K 1300**" means Subpart 1300 of Regulation S-K promulgated by the U.S. Securities and Exchange Commission, as amended from time to time.

"**Special Approval**" means approval by sixty percent (60%) or more of the total votes entitled to be cast by the Voting Representatives (based on the Members' respective Voting Percentage Interests) present at a meeting of the Board duly called at which a quorum (as determined in accordance with Section 7.3(b)) was present or represented, and shall also include approval by an instrument in writing signed by all representatives on the Board.

"**Spot Price**" shall have the following meanings: (a) in the case of refined gold, Spot Price means the London Bullion Market Association P.M. Gold Fix, (b) in the case of refined silver, Spot Price means the London Bullion Market Association Silver Fix, and, (c) in all other cases, Spot Price means the price at which the particular Processed Product could be sold for immediate delivery as specified and published or made available by a source generally accepted and used in the mining industry for such purposes.

"**Surface Use Agreement**" means the Revised and Restated Surface Use Agreement dated effective June 6, 2014, between The Kuskokwim Corporation, an Alaska corporation and Donlin Gold LLC, a Delaware limited liability company, as it may be from time to time amended, and any replacement thereof or substitution therefor.

"**Tax**" means any income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs, capital stock, franchise, withholding, social security, unemployment, disability, property, sales, use, transfer, registration, value added, estimated or other tax, or any other assessment, by any Governmental Authority of any kind whatsoever, including any interest, penalty, or addition thereto, whether or not disputed.

"**Technical Report**" a report prepared, filed and certified in accordance with this Agreement, NI 43-101 and S-K 1300.

"**Transfer**" means to sell, grant, assign, encumber, pledge or otherwise commit or dispose of. With respect to a Membership Interest or any economic interest therein, a Transfer also shall include the transfer of a direct or indirect or beneficial equity interest in a Member if the transfer, either alone or in conjunction with other such transfers made after the transferor first became a Member, results in a change in control of such Member. For purposes hereof, "change in control" means, with respect to a Member: (i) a transfer, directly or indirectly (including by merger), of all or substantially all of the assets of such Member (including a transfer in liquidation of such Member); or (ii) the transfer, directly or indirectly, of at least fifty-one (51%) or more of the voting interests in such Member, whether by sale, merger, consolidation or contract. For purposes hereof, "change in control" does not include a change in control of the ultimate corporate parent of either Member.

"**Treasury Regulations**" or "**Treas. Regs.**" means regulations issued by the United States Department of Treasury under the Code. Any reference herein to a specific section or sections of the Treasury Regulations shall be deemed to include a reference to any corresponding provision of future regulations under the Code.

"**Unanimous Approval**" means the affirmative vote of all votes entitled to be cast by the Voting Representatives present at a meeting of the Board duly called at which a quorum (as determined in accordance with Section 7.3(b)) was present or represented, and shall also include approval by an instrument in writing signed by all representatives on the Board.

"**United States**" means the United States of America and its territories and possessions.

"**Voting Percentage Interest**" means, in respect of a Member, the percentage that is equal to such Member's Participating Interest from time to time, (a) in the case of NovaGold, less an absolute 10% and (b) in the case of Paulson, plus an absolute 10%, it being acknowledged that as of the Effective Date the Voting Percentage Interest of each Member is equal to fifty percent (50%); provided that for so long as NovaGold and Paulson are both Members, NovaGold's Voting Percentage Interest shall not be less than 10% and Paulson's Voting Percentage Interest shall not be more than 90%

"**Voting Representative**" means the representative of a Member on the Board who is entitled to cast all of the votes of such Member, determined as provided in Section 7.2(a).

**1.2 Rules of Construction**. The words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All references herein to articles, sections and exhibits, unless the context requires a different construction, shall be deemed to be references to the articles and sections of this Agreement and the exhibits attached hereto and made a part hereof. In this Agreement, unless a clear contrary intention appears, the word "including" (and with correlative meaning "include") means including, without limiting the generality of any description preceding such term. Words, terms and phrases used, but not specifically defined, in this Agreement shall have the meanings commonly ascribed to such words, terms or phrases. The headings of the various articles and sections of this Agreement are for convenience only and shall not affect the meaning of the terms and conditions of this Agreement. No provision of this Agreement shall be interpreted or construed against any party solely because that party or its legal representative drafted such provision.

#### ARTICLE II<br> REPRESENTATIONS AND WARRANTIES; TITLE TO ASSETS
**2.1 Capacity of Members**. As of the Effective Date, each of the Members represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is an entity duly incorporated or formed and in good standing in its jurisdiction of incorporation or formation and is qualified to do business and is in good standing in those jurisdictions where such qualification is necessary in order to carry out the purposes of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has the capacity to enter into and perform this Agreement and all transactions contemplated herein and that all corporate and other actions required to authorize it to enter into and perform this Agreement have been properly taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it will not breach any other agreement or arrangement by entering into or performing this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Agreement has been duly executed and delivered by it and is valid and binding upon it in accordance with its terms.

**2.2 Record Title**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All right, title and interest in and to the Assets shall be held by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Member or any of its Affiliates at any time holds any legal or beneficial right, title or interest in all or any portion of the JV Assets for any reason, such Member shall hold all of its legal and beneficial right, title and interest in such JV Asset for the sole and exclusive benefit of the Company. The Members shall make all reasonable efforts to effectuate the transfer to the Company of legal and beneficial right, title and interest in and to all JV Assets to the Company under this Section 2.2(c).

**2.3 Loss of Title**. Any failure or loss of title to the Assets, and all costs of defending title, shall be charged to the Business Account.

**2.4 No Other Representations and Warranties**. WITHOUT DEROGATING FROM ANYTHING CONTAINED IN THE MIPA, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN SECTIONS 2.1 AND THE OBLIGATIONS IN RESPECT OF THE JV ASSETS AND THE ASSETS SET FORTH IN SECTION 2.2, THE MEMBERS MAKE NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, AND THERE ARE NO IMPLIED CONDITIONS IN RESPECT OF THE JV ASSETS OR ANY ASSETS, LIABILITIES OR OPERATIONS, INCLUDING WITH RESPECT TO MERCHANTIBILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AND ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES OR CONDITIONS ARE HEREBY EXPRESSLY DISCLAIMED. THE MEMBERS HEREBY ACKNOWLEDGE AND AGREE THAT, EXCEPT TO THE EXTENT SPECIFICALLY SET FORTH IN SECTIONS 2.1 AND 2.2, THE COMPANY HOLDS THE ASSETS ON AN "AS IS, WHERE-IS" BASIS.

#### ARTICLE III<br> NAME, PURPOSES AND TERM
**3.1 General**. The Company has been duly organized pursuant to the Act by the filing of the Certificate of Formation with the Secretary of State. The Members agree that all of their rights with respect to the Company and all of the Operations shall be subject to and governed by this Agreement. To the fullest extent permitted by the Act, this Agreement shall control as to any conflict between this Agreement and the Act or as to any matter provided for in this Agreement that is also provided for in the Act.

**3.2 Name**. The name of the Company shall be Donlin Gold LLC. The General Manager shall accomplish any filings or registration required by applicable statutes where the Company conducts any Operations.

**3.3 Purposes**. The Company is formed for the following purposes and for no others, and shall serve as the exclusive means by which the Members, or either of them, accomplish such purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to conduct Exploration within the Properties and the Area of Interest,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to acquire additional property within the Area of Interest,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to evaluate the possible Development of the Properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to conduct the Permitting necessary or required to construct and operate the Project,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to engage in Development and Mining Operations on the Properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to complete and satisfy all Environmental Compliance obligations and Continuing Obligations affecting the Properties, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to perform any other activity necessary, appropriate, or incidental to any of the foregoing.

**3.4 Limitation**. Unless approved by Unanimous Approval the Operations shall be limited to the purposes described in Section 3.3, and nothing in this Agreement shall be construed to enlarge such purposes.

**3.5 Effective Date and Term**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be effective as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of the Company shall be perpetual, unless earlier terminated pursuant to Section 12.1.

**3.6 Registered Agent; Offices**. The initial registered office and registered agent of the Company shall be as set forth in the Company's Certificate of Formation. The Board may from time to time designate a successor registered office and registered agent and may amend the Certificate of Formation to reflect any such change. The location of the principal place of business of the Company shall be at such location in the United States as the Board shall from time to time select.

#### ARTICLE IV<br> RELATIONSHIP OF THE MEMBERS
**4.1 No State-Law Partnership**. Nothing contained in this Agreement shall be deemed to constitute either Member the partner of the other, or to create any mining, commercial or other partnership (other than a partnership for federal and state tax purposes). Except pursuant to the authority expressly granted herein or as otherwise agreed in writing between the Members, neither Member, solely by virtue of being a Member, shall have any authority to act for the Company or another Member or to assume any obligation or responsibility on behalf of the Company or the other Member.

**4.2 Federal Tax Elections and Allocations**. The Company shall be treated as a partnership for federal income tax purposes. Tax elections and allocations shall be made as set forth in <u>Exhibit C</u>.

**4.3 State Income Tax**. The Members also agree that, to the extent permissible under applicable Law, their relationship shall be treated for state income tax purposes in the same manner as it is for Federal income tax purposes.

**4.4 Tax Returns**. The PR shall prepare and shall file, after approval of the Board and the other Member, any tax returns or other tax forms required.

**4.5 Other Business Opportunities**. Except as expressly provided in this Agreement: (a) each Member shall have the right independently to engage in and receive full benefits from business activities, whether or not competitive with the Operations, without consulting the other; and (b) the doctrines of "corporate opportunity" or "business opportunity" shall not be applied to any other activity, venture, or operation of either Member. Neither Member shall have any obligation to any Member or the Company with respect to any opportunity to acquire any property outside the Area of Interest at any time, or, except as otherwise provided in Section 12.4, within the Area of Interest after the termination of the Company. Unless otherwise agreed in writing, neither Member shall have any obligation to mill, beneficiate or otherwise treat any Products in any facility owned or controlled by such Member.

**4.6 Waiver of Right to Partition**. The Members hereby waive and release all rights of partition, or of sale in lieu thereof, or other division of Assets, including any such rights provided by statute.

**4.7 Transfer of Membership Interests**. Except as otherwise provided in this Agreement, neither Member shall Transfer all or any part of its Membership Interest.

**4.8 Implied Covenants; No Additional Duties**. There are no implied covenants contained in this Agreement other than those of the contractual covenant of good faith and fair dealing. No Member or representative of a Member on the Board shall have any fiduciary or other duties to the Company or the other Member except as specifically provided by this Agreement, and such representatives and the Members' duties and liabilities otherwise existing at law or in equity (including the duty of loyalty and the duty of care) are restricted and eliminated by the provisions of this Agreement to those duties and liabilities specifically set forth in this Agreement. Notwithstanding any contrary provision of this Agreement, in carrying out any duties hereunder, representatives on the Board and the Members shall not be liable to the Company nor to any Member for breach of any duty for the representative's or any such Member's good faith reliance on the provisions of this Agreement, the records of the Company, or such information, opinions, reports or statements presented by the other Member, the General Manager, any other Officer or employee of the Company, or the Board or other committee of the Company, or by any other Person as to matters such Member or the representative reasonably believes are within such other Person's professional or expert competence. The preceding sentence shall in no way limit any Person's right to rely on information to the extent provided in Section 18-406 of the Act.

**4.9 Liabilities; Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Member of the Company shall be personally liable under any judgment of a court, or in any other manner, for any debt, obligation or liability of the Company, whether such liability or obligation arises in contract, tort or otherwise, solely by reason of being a Member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall indemnify, defend and hold harmless each Member and their respective directors, officers, employees, agents and attorneys from and against any and all third party losses, Claims, damages and liabilities arising out of or relating to (i) the Company or the Operations, including Environmental Liabilities and Continuing Obligations, (ii) any Properties assigned to a Member as an objecting Member pursuant to Section 14.1, but only to the extent arising out of or relating to Operations, including Environmental Liabilities and Continuing Obligations, conducted prior to the date of such assignment, and (iii) any reimbursements by one Member to the other Member of any of the foregoing pursuant to Section 6.6, except in any case of clauses (i) through (iii) above to the extent such losses, Claims, damages or liabilities arise out of or result from any conduct described in any of clauses (i) through (iii) of Section 4.9(c) below. In all cases of this Section 4.9(b) and without limiting Section 6.6, indemnification shall be provided only out of and to the extent of the net assets of the Company and no Member shall have any personal liability whatsoever on account thereof. Notwithstanding the foregoing, the Company's indemnification pursuant to this Section 4.9(b) as to third party Claims shall be only with respect to such loss, liability or damage that is not otherwise compensated by insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 4.8, each Member shall indemnify, defend and hold harmless the Company, the other Member and its Affiliates, and its and their respective directors, officers, employees, agents and attorneys from and against any and all losses, Claims, damages and liabilities arising out of or relating to (i) any unauthorized act or any assumption of liability by the indemnifying Member, or any of its directors, officers, employees, agents and attorneys done or undertaken, or apparently done or undertaken, on behalf of the Company or the other Member, except pursuant to the authority expressly granted herein or as otherwise agreed in writing between the Members, (ii) any breach by such Member of any of its representations or warranties set forth in this Agreement or (iii) any breach by such Member of any covenant contained in this Agreement caused by or attributable to such Member's willful misconduct or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PERSON OTHER THAN A MEMBER SHALL HAVE THE RIGHT TO ENFORCE ANY REPRESENTATION OR WARRANTY OF A MEMBER OR THE COMPANY HEREUNDER, OR ANY OBLIGATION OF A MEMBER TO CONTRIBUTE CAPITAL HEREUNDER, TO FUND CONTINUING OBLIGATIONS, TO REIMBURSE OR INDEMNIFY THE OTHER MEMBER HEREUNDER, AND SPECIFICALLY NEITHER THE COMPANY NOR ANY LENDER OR OTHER THIRD PARTY SHALL HAVE ANY SUCH RIGHTS, IT BEING EXPRESSLY UNDERSTOOD THAT THE REPRESENTATIONS AND WARRANTIES, AND THE CONTRIBUTION, REIMBURSEMENT AND INDEMNIFICATION OBLIGATIONS SET FORTH IN ARTICLES II AND XIII AND SECTIONS 5.1, 5.2, 6.4, 6.6, 6.7, 9.9, 9.10, 10.2, 10.3, 12.4 AND 12.5 SHALL BE ENFORCEABLE ONLY BY A MEMBER AGAINST ANOTHER MEMBER (WHICH, NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, ARE IN ALL SUCH CASES FOR THE BENEFIT OF THE MEMBERS). FOR THE AVOIDANCE OF DOUBT, THE COMPANY SHALL BE BOUND BY ARTICLES II AND XIII AND SECTIONS 5.1, 5.2, 6.4, 6.6, 6.7, 9.9, 9.10, 10.2, 10.3, 12.4 AND 12.5, BUT SHALL HAVE NO RIGHT TO ENFORCE THOSE PROVISIONS AGAINST A MEMBER, SUCH RIGHTS BEING EXCLUSIVELY VESTED IN THE MEMBERS. ANY MEMBER MAY BRING A DIRECT ACTION AGAINST ANY OTHER MEMBER WITH RESPECT TO ANY OF ARTICLES II OR XIII OR SECTIONS 5.1, 5.2, 6.4, 6.6, 6.7, 9.9, 9.10, 10.2, 10.3, 12.4 OR 12.5 WITHOUT THE REQUIREMENT TO BRING A DERIVATIVE ACTION OR OTHERWISE SATISFY THE REQUIREMENTS OF SECTIONS 18-1001 THROUGH 18-1004 OF THE ACT OR OTHER SIMILAR REQUIREMENTS.

#### ARTICLE V<br> CONTRIBUTIONS BY MEMBERS
**5.1 Members Initial Contributions**. The Initial Contributions of the Members are deemed to be:

---

| | |
|:---|:---|
| Paulson | $800000000 |
| NovaGold | $1200000000<br>|

---

**5.2 Additional Cash Contributions**. Subject to any election permitted by Section 6.3, the Members shall be obligated to contribute funds in proportion to their respective Percentage Interests to all adopted Programs and Budgets. If a Member fails to contribute to any adopted Program and Budget in at least the amount required to maintain its Percentage Interest equal to or greater than ten percent (10%), Section 6.5 shall apply.

**5.3 Return of Contributions**. No Member shall be entitled to the return of any part of its capital contributions or to be paid interest in respect of either its Capital Account or its capital contributions. No unrepaid capital contribution shall constitute a liability of the Company or any Member. A Member is not required to contribute or to lend cash or property to the Company to enable the Company to return either Member's capital contributions. The provisions of this Section 5.3 shall not limit a Member's rights or obligations under Article XII.

#### ARTICLE VI<br> PERCENTAGE INTERESTS
**6.1 Initial Percentage Interests**. The Members shall have the following initial Percentage Interests:

---

| | |
|:---|:---|
| Paulson | Forty Percent (40%) |
| NovaGold | Sixty Percent (60%) |

---

**6.2 Changes in Percentage Interests**. A Member's Percentage Interest shall be changed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as provided in Section 6.5; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon an election by a Member pursuant to Sections 6.3 and 9.8 to contribute less to an adopted Program and Budget than the percentage reflected by its Percentage Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event of default by a Member in making its agreed-upon contribution to an adopted Program and Budget, followed by an election by the other Member to invoke Section 6.4(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) upon the Transfer by a Member of all or less than all of its Membership Interest in accordance with Article XV; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) upon the issuance of additional Membership Interests in the Company with the unanimous approval of the Members.

**6.3 Voluntary Reduction in Percentage Interest**. A Member may elect, in the manner provided in Section 9.8, to limit its contributions to an adopted Program and Budget as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to some lesser amount than its respective Percentage Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by not contributing any amount to the adopted Program and Budget.

If a Member elects, as permitted by this Section 6.3, to contribute to an adopted Program and Budget some lesser amount than its proportionate share of such Program and Budget based on its Percentage Interest, or not to contribute any amount, and the other Member elects to contribute the shortfall amount, the Percentage Interest of the Member electing to contribute a lesser amount or not at all shall be recalculated at the time of election to equal the result obtained by dividing: (i) the sum of (a) the deemed value of the Member's Initial Contribution under Section 5.1, plus (b) the total of all of the Member's additional contributions, plus (c) the amount, if any, the Member elects to contribute to the adopted Program and Budget; by (ii) the sum of (a), (b) and (c) above for both Members; and then multiplying the result by one hundred. The Percentage Interest of the other Member shall thereupon become the difference between one hundred percent (100%) and the recalculated Percentage Interest.

**6.4 Default in Making Contributions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Member defaults in making a contribution required by an approved Program and Budget in respect of which as provided in Section 9.8 it has elected, or is deemed to have elected, to contribute, the non-defaulting Member may, in addition to all other rights and remedies available to it, advance the defaulted contribution on behalf of the defaulting Member and treat the same, together with any accrued interest, as a demand loan to the defaulting Member bearing interest from the date of the advance at the rate provided in Section 10.3. The failure to repay the loan upon demand shall be a default. A non-defaulting Member may elect any applicable remedy under Section 6.4(b) or Section 6.7 or any other rights and remedies available to such Member at law or in equity. All such remedies shall be cumulative and, except as otherwise provided here, the election of one or more remedies shall not waive the election of any other remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Member defaults in making a contribution or in repaying a loan as required hereunder, the non-defaulting Member may, on not less than thirty (30) days prior Notice to the defaulting Member of its intention to exercise its rights under this Section 6.4 (b), elect, as its sole and exclusive remedy, with respect to any such default not cured within such thirty (30) day notice period, to have the defaulting Member's Percentage Interest permanently reduced by a percentage equal to the percentage that is calculated as provided in Section 6.3, multiplied by one and one-half (1.5) for the first and second such default and multiplied by two (2.0) for the third and each subsequent such default. For the avoidance of doubt, in calculating the reduction in the Percentage Interest of a defaulting Member pursuant to this Section 6.4(b)(i), if the percentage reduction of the defaulting Member's Percentage Interest under Section 6.3 is five percentage points (5.0%), then, upon election of the non-defaulting Member to exercise its rights under this Section 6.4(b)(i) with respect to the first and second default, the Percentage Interest of the defaulting Member shall be permanently reduced by seven and one-half percentage points (7.5%). Amounts treated as a loan pursuant to Section 6.4(a) and interest thereon shall be included in the calculation of the defaulting Member's reduced Percentage Interest. The non-defaulting Member's Percentage Interest shall, at such time, become the difference between one hundred percent (100%) and the further reduced Percentage Interest. Such reductions shall be effective as of the date of the default.

**6.5 Elimination of Minority Interest**. Each Initial Member covenants to make all contributions necessary to maintain a Percentage Interest of ten percent (10%) or more. If the Percentage Interest of a Member is reduced to less than ten percent (10%), a Member shall be deemed to have resigned from the Company within the context of the operation of Sections 18-306(2) and 18-502(c) of the Act and, as a consequence, shall have its entire Membership Interest cancelled for no consideration as provided in Section 12.2 of this Agreement, *provided* neither the Company nor the other Member shall have any other rights or remedy solely as a result of the resigning Member's failure to maintain a Percentage Interest of ten percent (10%) or more. The Company shall pay the resigning Member a payment equal to five percent (5%) of Net Proceeds thereafter arising, if any; but such resigning Member shall have no right, title or interest in the Assets.

**6.6 Continuing Obligations and Liabilities**. Each Member shall be liable to the other Member to reimburse and pay to such other Member its respective share, based on Percentage Interests, of any and all third party losses, Claims, damages and liabilities arising out of or relating to (a) the Company or the Operations, including Environmental Liabilities and Continuing Obligations, incurred by such other Member, and (b) any Properties assigned to the other Member as an objecting Member pursuant to Section 14.1, but only to the extent arising out of or relating to Operations, including Environmental Liabilities and Continuing Obligations, conducted during the period that such Member held a Membership Interest. The reimbursement obligation of a Member under this Section 6.6 shall apply whether or not any such losses, Claims, damages or liabilities accrue before or after the resignation or deemed resignation of such Member, the Transfer by such Member of all or any portion of its Membership Interest, the dissolution or liquidation of the Company, or any reduction of such Member's Percentage Interest, but in each case only to the extent not indemnified by the Company pursuant to Section 4.9(b), and not to the extent such losses, Claims, damages and liabilities arise out of conduct of the Member requesting reimbursement described in any of clauses (i) through (iii) of Section 4.9(c). For purposes of this Section 6.6, such Member's share of such liability shall be equal to its Percentage Interest at the time such liability was incurred (or as to any such liabilities arising or existing prior to the Effective Date, such Member's initial Percentage Interest). Any resignation or deemed resignation of a Member, any Transfer by such Member or all or any portion of its Membership Interest, or any reduction of a Member's Percentage Interest under this Article VI shall not relieve such Member of its share of any such liability accruing before such resignation, Transfer or reduction. Notwithstanding the foregoing, the provisions of this Section 6.6 shall apply only in the case that the Member requesting reimbursement is finally determined to be personally liable for such losses, Claims, damages or liabilities, and shall not be construed as a waiver or reduction of the limitations under the Act or other applicable Law of the liability of a Member for Company obligations.

**6.7 Grant of Security Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Member hereunder grants to the other a security interest in any interest it holds in the Properties, its Membership Interest, and any accessions thereto and any proceeds and products therefrom, to secure each and every obligation of such Member hereunder. Each Member hereby agrees to execute and deliver and authorizes the other to file and record all deeds of trusts, financing statements, continuation statements or other instruments necessary or desirable to perfect or effectuate the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any foreclosure, transfer in lieu, or other enforcement of rights in the security interests granted in this Section 6.7, notwithstanding any contrary provision in Article XV, the acquiring Person shall, at the election of the remaining Member, automatically be admitted as a Member in the Company without any further action of the defaulting Member; *provided*, that the defaulting Member shall take all action that the non-defaulting Member may reasonably request to effectuate the admission of the transferee as a Member of the Company.

#### ARTICLE VII<br> BOARD
**7.1 Organization and Composition**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Members hereby establish a Board which shall be responsible for the management of the business and affairs of the Company. The Board shall determine overall policies, objectives, procedures, methods and actions of the Company. The Board initially shall consist of four (4) representatives. So long as an Initial Member maintains a Voting Percentage Interest of fifty percent (50%), each such Initial Member shall be entitled to appoint two (2) representatives to the Board; *provided* that in the event that the Voting Percentage Interest of an Initial Member decreases below twenty five percent (25%), such Initial Member shall be entitled to appoint only one representative on the Board and the other Initial Member shall be entitled to appoint three (3) representatives. Each Member may appoint one or more alternates to act in the absence of a regular representative. Any alternate so acting shall be deemed a representative on the Board of the appointing Member. A Member may replace one or more of its representatives or alternate representatives on the Board, by Notice to the other Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) One of the representatives of NovaGold shall serve as Chair of the Board for the term commencing on the Effective Date and ending December 31, 2025. A representative of Paulson shall serve as Chair of the Board for Calendar Year 2026. Thereafter, the position of Chair of the Board shall be held for a period of a Calendar Year alternatively by a representative appointed by NovaGold and then a representative appointed by Paulson.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Chair of the Board shall preside at meetings of the Board. Except with respect to those matters requiring Majority Approval set forth in Section 7.6, the Chair of the Board shall be entitled, in the event of a tie vote on the Board, to cast the deciding vote in any matter which is required to be decided by Majority Approval. For the avoidance of doubt, the entitlement of the Chair to cast a deciding vote as provided in this Section 7.1(c) shall not apply to any matter that must be determined by Special Approval or Unanimous Approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Representatives on the Board shall not be considered managers under the Act in such capacity, but derive all of their right, power and authority from the Members. No Member or representative of a Member on the Board shall have the power or authority in its individual capacity to bind the Company. All documents and instruments executed on behalf of the Company shall be signed by the General Manager or an Officer, employee or agent of the Company to whom the Board has delegated the necessary general or specific authority.

**7.2 Decisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Member, acting through its appointed representatives on the Board shall have the number of votes on all matters presented for decision by the Board equal to such Member's Voting Percentage Interest. All of the votes that the representatives of a Member are entitled to cast at any meeting of the Board shall be cast by the Voting Representative of that Member and no other representative of such Member shall be entitled to vote on any matter. At each meeting of the Board at which more than one representative of a Member is present, the representatives of such Member shall designate one such representative as the Voting Representative. If only one representative of a Member is present at a meeting of the Board, that representative shall be the Voting Representative. For the avoidance of doubt, the Voting Representative of a Member with a fifty percent (50%) Voting Percentage Interest would be entitled to cast fifty (50) votes and the Voting Representative of a Member with a forty-six and 32/100ths (46.32%) Voting Percentage Interest would be entitled to cast forty-six and 32/100ths (46.32) votes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in Section 7.5 or expressly provided in any other Section of this Agreement, all decisions or actions of the Board shall require a Majority Approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The matters and actions set forth in Section 7.5(a) shall require Special Approval of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The matters and actions set forth in Section 7.5(b) shall require Unanimous Approval of the Board.

**7.3 Meetings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board shall meet as required by the Agreement or as otherwise needed, but not less frequently than once each quarter during each Calendar Year. Meetings of the Board shall be held at Anchorage, Alaska or at such other site in the United States as the Board may from time to time determine. The Chair shall give not less than twenty (20) days' prior Notice to the Members of such regular meetings. Additionally, either Member may call a special meeting upon not less than twenty (20) day's prior Notice to the Chair of the Board and the other Member. In case of emergency, reasonable notice of a special meeting shall suffice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There shall be a quorum at any meeting of the Board if at least one representative (whether a regular representative or an alternate representative acting on behalf of a regular representative) of each Member is present. Notwithstanding the foregoing, if at the time scheduled for a meeting a quorum is not present or represented because at least one representative appointed by one of the Members is not in attendance or represented, then (i) the meeting shall be adjourned to the same time and place forty-eight (48) hours later, *provided*, *however*, if such adjournment would fall on a day that is not a Business Day, then the meeting shall be adjourned to the same time and place on the first Business Day following such forty-eight (48) hour period, and (ii) Notice of the adjourned meeting shall be given to both Members and all representatives. If at the first adjourned meeting a quorum is still not present or represented because at least one representative appointed by one of the Members is not in attendance or represented, then (i) the meeting shall be further adjourned to the same time and place forty-eight (48) hours later, *provided*, *however*, if such adjournment would fall on a day that is not a Business Day, then the meeting shall be adjourned to the same time and place on the first Business Day following such forty-eight (48) hour period, (ii) Notice of the further adjourned meeting shall be given to both Members and all representatives, and (iii) at such further adjourned meeting a quorum shall not require the attendance of a representative appointed by the Member whose representative(s) failed to attend the first Board meeting or the first adjourned Board meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Notice of a meeting of the Board shall include an itemized agenda prepared by the Chair of the Board in the case of a regular meeting, or prepared by the Member calling the meeting in the case of a special meeting (including any agenda items requested by the other Members), but any matters may be considered with the consent of both Members. In the case of adjourned meetings due to lack of a quorum, the Board may act only on those items included in the Notice of the meeting to which the adjourned meeting relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Meetings of the Board may be held by means of conference telephone or other communications equipment by means of which all representatives on the Board participating in the meeting can hear each other, and participation in a meeting by such communications equipment shall constitute presence in person at the meeting. Neither Member shall record any of the proceedings of the Board without the express prior written consent of the other Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Chair of the Board shall cause written minutes of all meetings to be prepared and distributed to the Members within fifteen (15) days after the meeting. The Members shall have ten (10) Business Days from the date of receipt of a copy of the minutes to raise objections to the minutes by Notice to the Chair. If no objection to the minutes is made by a Member within such ten (10) Business Day period, such minutes shall be binding on the Members and the Board. If a Member raises objections to the minutes, such Member shall provide in writing a reasonable alternative to the provisions in the minutes distributed by the Chair and the Members shall attempt to revise the minutes, taking into account the objections raised and the alternative provisions proposed. If the Members do not agree on the minutes of the meeting within thirty (30) days after delivery of the Notice from the objecting Member, the minutes of the meeting as prepared by the Chair together with the proposed changes submitted by the objecting Member shall collectively constitute the record of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If personnel employed in operations of the Company are required to attend a Board meeting, reasonable costs incurred in connection with such attendance shall be a Company cost. All other costs of attending and participating in meetings of the Board shall be paid by the Members individually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Experts and advisors of a Member shall be entitled to attend a Board Meeting with representatives of the Member on prior written Notice to the other Member, *provided* such experts and advisors shall be subject to the provisions of Article XVII.

**7.4 Action Without Meeting**. Any action required or permitted to be taken at a meeting of the Board may be taken without a meeting and without prior Notice if the action is evidenced by a written consent describing the action taken, signed by the representative or representatives on the Board having the requisite Percentage Interest to take such action; *provided* that Notice of all actions taken by less than unanimous written consent shall be provided to all representatives of the Board (other than representatives of the Board executing such consent) not later than two (2) Business Days after the taking of such action. Action taken under this Section 7.4 shall be effective when representatives of the Board holding the requisite Percentage Interest have signed the consent, unless the consent specifies a different effective date.

**7.5 Matters Requiring Special Approval or Unanimous Approval**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following matters shall require Special Approval by the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the adoption of a Construction Program and Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to Section 9.10, any variations to an approved Construction Program or Budget resulting in an increase of ten percent (10%) or more in the aggregate costs of such approved Construction Program or Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a decision to institute litigation or arbitration or to settle a dispute with any Person in cases where the amount in controversy exceeds Two Million Dollars ($2,000,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any transaction (including any non-clerical amendment to any existing agreement) between the Company and either Member or an Affiliate of either Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any distribution of cash pursuant to Section 11.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following matters shall require Unanimous Approval by the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any amendment to the Certificate of Formation or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any adoption, approval or recommendation of any plan of complete or partial liquidation, merger, spin-off, or consolidation of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any incurrence of debt by the Company, other than the incurrence of trade debt in the ordinary course or the procurement of any letters of credit required in the ordinary course, in both cases under this proviso, consistent with an approved Program and Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Encumbrance of the Properties or any material Asset, other than (A) liens imposed by a Law or by this Agreement, or (B) arising in the ordinary course of business as contemplated by an approved Program and Budget; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) subject to Law, any filing of a petition or application by the Company relating to bankruptcy, insolvency, readjustment of debt, moratorium on payments or creditors' rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the sale or other disposition of a material portion of the Assets other than in the ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any decision to conduct activities outside of the purposes for which the Company was formed as set forth in Section 3.3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the approval of any material change to the Accounting Procedures as set forth on <u>Exhibit B</u>, the Tax Matters as set forth on <u>Exhibit C</u> or the Net Proceeds calculation as set forth on <u>Exhibit D.</u>

**7.6 Matters Requiring Majority Approval – Not Subject to Casting Vote** . The following matters shall require Majority Approval of the Board, but shall NOT be subject to the ability of the Chair of the Board to break a tie vote as provided in Section 7.1(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [intentionally deleted]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the adoption or amendment of any Program and Budget other than a Construction Program and Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any adoption of an updated Feasibility Study in accordance with Section 9.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any material modification to the Feasibility Study;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the decision of the Board referred to in Section 9.5(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to Sections 9.9 and 9.10, any variances to an approved Program and Budget (other than a Construction Program and Budget) resulting in an increase of ten percent (10%) or more in the aggregate costs of such approved Program and Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any determination to expand operations for the Project where such expansion or suspension would have an aggregate cost in any Calendar Year in excess of Ten Million Dollars ($10,000,000); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the appointment or removal of the General Manager or an Officer of the Company except as otherwise provided herein.

**7.7 Non-Delegable Duties of the Board**. The Board shall have the right to delegate the power and authority for the management of the business and affairs of the Company to the General Manager and to certain other Officers of the Company, except for the following, which shall be non-delegable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) approval of any contract or agreement which commits the Company to expenditures in excess of Two Million Dollars ($2,000,000) in any Calendar Year, except in accordance with an adopted Program and Budget; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any matter which pursuant to the terms of this Agreement expressly requires action by the Board.

#### ARTICLE VIII<br> GENERAL MANAGER, OTHER OFFICERS AND TECHNICAL COMMITTEE
**8.1 General Manager**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Effective Date, the General Manager is Todd Dahlman. In the event of a vacancy following the Effective Date, the Board, by Majority Approval, shall appoint a replacement General Manager of the Company. The General Manager shall be an employee of the Company or a seconded employee of a Member, but shall not be a representative of a Member on the Board. The General Manager shall have responsibility for general management of the day-to-day business and affairs of the Company in accordance with the powers and authority delegated to the General Manager by the Board and this Agreement and subject to the supervision and control of the Board. The General Manager shall have no power or authority to bind the Company except to the extent specifically delegated by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [intentionally deleted]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The General Manager shall serve until his or her resignation, death or removal by Majority Approval of the Board. The General Manager may resign at any time by giving Notice of resignation to the Board. Such resignation shall take effect when the Board, by Majority Approval, has appointed a replacement General Manager. The Board may, with or without cause, remove the General Manager at any time by Majority Approval of the Board, provided that the Board shall remove the General Manager on the written request of any Member or Members holding, in the aggregate, Voting Percentage Interests of not less than 50%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [intentionally deleted]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The General Manager shall not serve as a representative of a Member on the Board.

**8.2 Duties of General Manager**. The General Manager shall have the powers and responsibilities expressly delegated to him or her by the Board. The General Manager shall manage, direct and control the day to day conduct of Operations in a manner consistent with adopted Programs and Budgets. The General Manager shall implement the decisions of the Board. Notwithstanding the foregoing and anything to the contrary in this Agreement, for so long as Paulson and/or its Affiliates are subject to potential adverse tax consequences (whether directly through ownership of a Membership Interest, or indirectly through equity ownership of NovaGold or its Affiliates) under Section 4943 of the Code and its corresponding Treasury Regulations (or any successor or equivalent regulation, collectively, "**Section 4943**") by reason of Paulson's ownership of its Membership Interest, the General Manager shall take (or refrain from taking) and shall cause the Company to take (or refrain from taking) any and all actions as Paulson may from time to time reasonably request in writing (in the manner contemplated by Section 18.1 of this Agreement) as required to ensure that Paulson and its Affiliates remain compliant with Section 4943. Each other party to this Agreement shall, upon request, reasonably cooperate with the General Manager and the Company to ensure compliance with Paulson's reasonable requests pursuant to this Section 8.2.

**8.3 Officers**. In addition to the General Manager, the Board from time to time, by Majority Approval, may appoint such other Officers as the Board deems convenient for the efficient management and operation of the Company. Officers of the Company shall be employees of the Company or seconded employees of the Members or their Affiliates, and shall not serve as representatives of a Member on the Board. Any Officers of the Company shall have the powers and authority delegated to such Officers by the Board or the General Manager. No Officer shall have the power or authority to bind the Company except to the extent specifically delegated by the Board or the General Manager. An Officer shall serve until his or her resignation, death or removal by the Board. Any Officer may resign at any time by giving Notice of resignation to the Board or the General Manager. Such resignation shall take effect when the Notice is received by the Board or the General Manager unless the Notice specifies a later effective date. The Board may, with or without cause, remove any Officer at any time by Majority Approval and shall remove any Officer on the written request of any Member or Members holding, in the aggregate, Voting Percentage Interests of not less than 50%.

**8.4 Technical Committee**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Members hereby establish a Technical Committee which shall act in an advisory capacity only as requested by the Board or the General Manager or otherwise provided in this Agreement. The Technical Committee shall have no authority or power to determine any policies, objectives, procedures, methods and actions of the Company. The Technical Committee initially shall consist of four (4) representatives. So long as an Initial Member maintains a Voting Percentage Interest of fifty percent (50%), each such Initial Member shall be entitled to appoint two (2) representatives to the Technical Committee; *provided* that in the event that the Voting Percentage Interest of an Initial Member decreases below twenty five percent (25%), such Initial Member shall be entitled to appoint only one representative on the Technical Committee and the other Initial Member shall be entitled to appoint three (3) representatives. Each Member may appoint one or more alternates to act in the absence of a regular representative. Any alternate so acting shall be deemed a representative on the Technical Committee of the appointing Member. A Member may replace one or more of its representatives or alternate representatives on the Technical Committee by Notice to the other Members. The representatives of the Members on the Technical Committee shall not serve as representatives of a Member on the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Technical Committee shall assist, as reasonably requested by the General Manager, in the preparation of a Feasibility Study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Chair of the Technical Committee shall be appointed to serve for a term of one Calendar Year each time the Chair of the Board is changed as provided in Section 7.1(b) by the Member whose representative is not the incoming Chair of the Board, *provided*, that NovaGold shall appoint the Chair of Technical Committee to serve until December 31, 2026. The Technical Committee shall meet at such time or times as the Chair of the Technical Committee may determine on not less than ten (10) days' Notice to the members of the Technical Committee.

#### ARTICLE IX<br> PROGRAMS AND BUDGETS
**9.1 Initial Program and Budget**. The Initial Program and Budget, a copy of which has been provided to and reviewed by the Members, shall apply from the Effective Date until December 31, 2025. During such period, unless and until the Initial Program and Budget is amended or replaced in accordance with Section 7.6(b), (i) all cash calls shall be made on the basis of the Initial Program and Budget, and (ii) Operations shall be conducted, expenses shall be incurred, and Assets shall be acquired only pursuant to the Initial Program and Budget.

**9.2 Feasibility Study**. The Board may, by Majority Approval, adopt an updated feasibility study in respect of the Project.

**9.3 [Intentionally Deleted]**.

**9.4 Construction Program and Budget**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any time after the Construction Decision Trigger Date, either Member or the General Manager may propose that the Company construct a mine on the Properties by delivering to the other Member and to the Board a proposed Construction Program and Budget. The Members acknowledge that the Construction Decision Trigger Date may occur before a record of decision and all necessary permits, approvals and authorizations to construct and operate a mine have been issued. Therefore, it is possible that any such record of decision or applicable permits, authorizations or approvals may be successfully challenged by third parties after delivery of the proposed Construction Program and Budget requiring a change in such Construction Program and Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within ninety (90) days following receipt of a proposed Construction Program and Budget the Board will meet to consider the proposal. If at such meeting the Board, by Special Approval, approves the proposed Construction Program and Budget, or some modified version thereof, with or without conditions, the Company shall proceed to implement the finalized Construction Program and Budget. Until the Board has approved a Construction Program and Budget by Special Approval, Operations shall be conducted in accordance with the approved Program and Budget then in effect, or if no such Program and Budget is then in effect, then until a Construction Program and Budget or other Program and Budget is approved by the Board in accordance with this Agreement, unless the Board otherwise determines by Majority Vote:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall conduct Operations and incur expenses necessary to preserve the Assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Operations shall be funded by the Members making additional capital contributions to the Company in proportion to their respective Percentage Interests.

**9.5 Other Programs and Budgets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For all periods not included within the Initial Program and Budget or a Construction Program and Budget, the General Manager shall, on or before October 1 each year, prepare and submit to the Board a proposed Program and Budget for the ensuing Calendar Year. For the avoidance of doubt, such periods include the period prior to the adoption of a Construction Program and Budget, and the period after the completion of a Construction Program and Budget. Each such proposed Program and Budget shall be in a form and degree of detail sufficient to reasonably inform the Board of the proposed actions and costs thereof. Notwithstanding the provisions of this Section 9.5(a), the initial proposed Program and Budget following the completion of the Construction Program and Budget shall cover only the remainder of the Calendar Year in which the Construction Program and Budget ends and the General Manager shall prepare and submit to the Board a proposed Program and Budget for such period no later than twenty (20) days prior to the start of such period. If the General Manager does not prepare or submit a proposed Program or Budget within the time periods specified in this Section 9.5(a), either Member may prepare and submit a proposed Program or Budget to the Board for approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 9.4, unless the Board otherwise determines by Majority Vote, if Board fails to adopt a Program and Budget at a meeting called to consider a proposed Program and Budget at which a quorum is present:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) after the expiration of the current adopted Program and Budget and until a new Program and Budget is adopted by the Board, the Company shall conduct Operations and incur expenses necessary to preserve the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Operations shall be funded by the Members making additional capital contributions to the Company in proportion to their respective Percentage Interests at the time the preceding adopted Program and Budget expired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the General Manager shall promptly prepare and submit to the Board a revised proposed Program and Budget, taking into account any instructions from the Board.

**9.6 Operations Pursuant to Programs and Budgets**. Except as otherwise provided in Section 9.10, Operations shall be conducted, expenses shall be incurred, and Assets shall be acquired only pursuant to adopted Programs and Budgets. Each Program and Budget adopted pursuant to this Agreement shall budget and provide for reasonably anticipated Environmental Compliance expenses for all Operations contemplated under the Program and Budget.

**9.7 Preliminary Review of Proposed Programs and Budgets**. Within twenty (20) days following receipt of a proposed Program and Budget from the General Manager or from a Member as provided in Section 9.5, the Board shall meet to conduct a preliminary review of the proposed Program and Budget. The General Manger shall attend such meeting. Prior to the meeting the General Manger shall promptly respond to all reasonable inquiries from Members for information, data, analyses or other matters concerning the proposed Program and Budget.

**9.8 Approval of Programs and Budgets and Election to Participate**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board shall meet to consider the adoption of proposed Programs and Budgets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to all proposed Programs and Budgets submitted to the Board pursuant to Section 9.5, following the date on which both Members have received the necessary corporate authority to vote on the proposed Program and Budget, but in no event later than December 15; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to a proposed Construction Program and Budget, as provided in Section 9.4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During a Board meeting at which a Program and Budget was adopted, a Member may elect to contribute to such Program and Budget in some lesser amount than its respective Percentage Interest, or may elect not to contribute any amount, in which cases its Percentage Interest shall be recalculated as provided in Article VI. If a Member fails to make such an election at such Board meeting, the Member shall be deemed to have elected to contribute to such Program and Budget in proportion to its respective Percentage Interest as of the beginning of the period covered by the Program and Budget. Each Member shall be deemed to have elected to contribute to the Initial Program and Budget in proportion to its respective Percentage Interest as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Member elects pursuant to Section 9.8(b) not to contribute to an adopted Program and Budget or to contribute in some lesser amount than its respective Percentage Interest, the other Member may, at the same Board meeting at which such election was made, elect to withdraw its votes in favor of the adopted Program and Budget and if such withdrawal results in fewer votes in favor of the Program and Budget than are required to adopt it, to require a new vote on the proposed Program and Budget.

**9.9 Budget Overruns; Program Changes**. The General Manager shall immediately notify the Board of any material departure from an adopted Program and Budget. Overruns of ten percent (10%) or less of the amount of a Budget shall be borne by the Members in proportion to their respective Percentage Interests as of the time the overrun occurs. Subject to Section 9.10, overruns of more than ten percent (10%) of a Budget may only be authorized by the Board as provided in Section 7.5(a) or Section 7.6, as applicable.

**9.10 Emergency or Unexpected Expenditures**. In case of emergency, the General Manager may take any reasonable action he or she deems necessary to protect life, limb or property, to protect the Assets or to comply with Law or government regulation. The General Manager shall promptly notify the Members of the emergency. The cost incurred in responding to the emergency shall be funded by the Members making additional capital contributions to the Company in proportion to their respective Percentage Interests at the time the emergency expenditures are incurred.

#### ARTICLE X<br> ACCOUNTS AND SETTLEMENTS
**10.1 Monthly Statements**. The General Manager shall promptly submit to the Board monthly statements of account reflecting in reasonable detail the charges and credits to the Business Account during the preceding month.

**10.2 Cash Calls**. On the basis of the adopted Program and Budget, the General Manager shall submit to each Member at least fifteen (15) days prior to the end of each month, a billing for estimated cash requirements for the next month. Within ten (10) days after receipt of each billing, each Member shall contribute to the Company as a capital contribution its share of such estimated cash requirements. Time is of the essence for payment of such billings. The General Manager shall at all times maintain a cash balance approximately equal to the rate of disbursement for a period of approximately sixty (60) days. All funds in excess of immediate cash requirements shall be invested in interest-bearing accounts with the Company's bank, for the benefit of the Business Account.

**10.3 Failure to Meet Cash Calls**. Except as provided in Section 9.8, a Member that fails to meet cash calls in the amount and at the times specified in Section 10.2 shall be in default, and the amounts of the defaulted cash call shall bear interest from the date due at an annual rate equal to four percentage points (4%) over the Prime Rate, but in no event shall such rate of interest exceed the maximum permitted by Law. The non-defaulting Member shall have those rights, remedies and elections specified in Section 6.4.

**10.4 Financial Statements**. The Company shall cause to be prepared and delivered to each Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as practicable, and in any event not later than 60 days following the end of each fiscal year of the Company, and, if the fiscal year of a Member is different than that of the Company, of each fiscal year of such Member or within such shorter period of time as may be required by Law, audited financial statements for the Company, together with a report thereon of the auditors of the Company, as selected by the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as practicable after the end of the first three (3) quarters of every fiscal year of the Company and, if the fiscal year of a Member is different than that of the Company, of every fiscal year of such Member, but in any event no later than thirty (30) days after the end of such quarter, statements comparing the financial results of the Company for such quarter and the portion of the current fiscal year then ended with the same periods of the previous fiscal year, together with, to the extent requested by a Member, a review engagement letter from the auditor with respect thereto, to be prepared at the expense of the requesting Member.

#### ARTICLE XI<br> DISTRIBUTIONS; DISPOSITION OF PRODUCTION
**11.1 Distributions of Processed Products**. Unless the Board otherwise determines by Unanimous Approval, the Company shall cause all Products produced for commercial sale from the Properties to be processed to the extent necessary to produce Processed Products. The Company shall distribute to each Member in kind its share of all Processed Products in accordance with such Member's Percentage Interest at the time of such distribution. The General Manager shall give the Members prompt Notice in advance of the delivery date upon which their respective shares of Processed Products will be available for distribution.

**11.2 Distributions of Cash**. Distributions of cash by the Company to the Members must be authorized by the Board by Special Approval. Any authorized distributions of cash shall be made to the Members in accordance with their respective Percentage Interests.

**11.3 Hedging**. Neither Member shall have any obligation to account to the other Member for, nor have any interest or right of participation in any profits or proceeds nor have any obligation to share in any losses from, futures contracts, forward sales, trading in puts, calls, options or any similar hedging, price protection or marketing mechanism employed by the other Member with respect to its proportionate share of any Products produced or to be produced from the Properties.

#### ARTICLE XII<br> RESIGNATION AND DISSOLUTION
**12.1 Dissolution**. The Company shall be dissolved upon the Unanimous Approval of the Board.

**12.2 Resignation**. A Member may elect to resign as a Member of the Company by giving Notice to the other Member of the effective date of the resignation, which shall be the later of (a) the end of the then current Program and Budget period, or (b) at least thirty (30) days after the date of the Notice. Upon such resignation, the Company shall acquire the resigning Member's entire Membership Interest, free and clear of any and all Encumbrances, except those to which both Members have given their written consent after the Effective Date, and such Membership Interest shall be cancelled. The resigning Member shall not receive any distribution upon such resignation or any further consideration from the Company. Any such resignation under this Section 12.2 shall not relieve the resigning Member of its obligations under Section 4.9(c) and Section 6.6 (whether any liability with respect thereto accrues before or after such resignation) arising out of Operations conducted or conditions existing prior to such resignation.

**12.3 Liquidation and Termination After Dissolution**. Upon the dissolution of the Company under Section 12.1, the Board shall appoint in writing one or more liquidators (who may be a Member) who shall have the authority set forth in Section 12.6. The liquidator shall take all action necessary to wind up the activities of the Company, and all costs and expenses incurred in connection with the liquidation and termination of the Company shall be expenses chargeable to the Company. The liquidator may determine which Assets, if any, are to be distributed in kind, and shall sell or otherwise dispose of all other Assets of the Company. All gain or loss with respect to the Assets (including Assets distributed in kind) shall be allocated among the Members in accordance with the applicable provisions of <u>Exhibit C</u>. Should a Member have a deficit balance in its Capital Account (after giving effect to such allocations of gain or loss), the Member shall not be obligated to make a contribution to the Company to restore all or any part of such Capital Account deficit. The Assets of the Company shall first be paid, applied, or distributed in satisfaction of all liabilities of the Company to third parties (or to making reasonable provision for the satisfaction thereof) and then to satisfy any debts, obligations, or liabilities owed to the Members. Thereafter, any remaining cash and all other Assets shall be distributed to the Members in accordance with Section 4.2(b) of <u>Exhibit C</u>. Each Member shall have the right to designate another Person to receive any Assets that otherwise would be distributed in kind to that Member pursuant to this Section 12.3. Upon the completion of the winding up of the Company, the liquidator shall cancel the Certificate of Formation of the Company and take such other actions as may be reasonably necessary to terminate the continued existence of the Company.

**12.4 Non-Compete Covenants**. A Member that resigns from the Company pursuant to Section 12.2 or is deemed to have resigned pursuant to Section 6.5, or a Member that otherwise transfers or forfeits its entire Membership Interest, shall not and its Affiliates shall not directly or indirectly acquire any interest in property within the Area of Interest for 12 months after the effective date of the resignation, forfeiture or transfer. If a resigning, forfeiting or transferring Member, or any Affiliate of the foregoing, breaches this Section 12.4, such Member or Affiliate shall be obligated to offer to convey to the other Member, without cost, any such property or interest so acquired. Such offer shall be made in writing and can be accepted by such other Member at any time within forty-five (45) days after it is received by such other Member.

**12.5 Right to Data After Termination**. After the termination of the Company pursuant to Section 12.3, each Member shall be entitled to copies of all information acquired by the Company before the effective date of termination not previously furnished to it, but a resigning Member, or a Member that forfeits or transfers its entire Membership Interest, shall not be entitled to any such copies after any such resignation, forfeiture or transfer.

**12.6 Continuing Authority**. From and after the dissolution of the Company under Section 12.1, the liquidator shall have the power and authority of the Members, the General Manager and the Board to do all things on behalf of the Company which are reasonably necessary or convenient to: (a) wind up the Operations and the Company, (b) continue to operate the Properties and other Assets of the Company during the winding up of the Operations and the Company and (c) complete any transaction and satisfy any obligation, unfinished or unsatisfied, at the time of such dissolution, if the transaction or obligation arises out of Operations prior to such dissolution. The liquidator shall have the power and authority to grant or receive extensions of time or change the method of payment of an already existing liability or obligation, prosecute and defend actions on behalf of the Company, mortgage Assets, and take any other reasonable action in any matter with respect to the Company or the Operations.

#### ARTICLE XIII<br> ACQUISITIONS WITHIN AREA OF INTEREST
**13.1 General**. Any interest or right to acquire any interest in real property within the Area of Interest acquired during the term of this Agreement by or on behalf of a Member or any Affiliate of a Member shall be subject to the terms and provisions of this Agreement.

**13.2 Notice to Non-acquiring Member**. Within thirty (30) days after the acquisition of any interest or the right to acquire any interest in real property wholly or partially within the Area of Interest by a Member or its Affiliate, the acquiring Member or the Member whose Affiliate acquired such interest (in either case, an "**Acquiring Member**") shall notify the other Member of such acquisition. The Acquiring Member's Notice shall describe in detail the acquisition, the lands and minerals covered thereby, the cost thereof, and the reasons why the Acquiring Member believes that the acquisition of the interest may be in the best interests of the Company. In addition to such Notice, the Acquiring Member shall make any and all information in its possession or control concerning the acquired interest available for inspection by the other Member.

**13.3 Option Exercised**. If, within thirty (30) days after receiving the Acquiring Member's Notice, the other Member notifies the Acquiring Member of its election to participate in the acquired interest, the Acquiring Member or its Affiliate shall convey to the Company (or to the other Member or another Person as mutually agreed by the Members), by special warranty deed, its entire acquired interest (or if to the other Member, a proportionate undivided interest therein based on the Percentage Interests of the Members at such time). If conveyed to the Company, the acquired interest shall become a part of the Properties for all purposes of this Agreement immediately upon the Notice of such other Member's election to participate therein. If conveyed to the Company, the other Member shall promptly contribute to the Company (or if the acquired interest is to be held by the Members or another entity, to the Acquiring Member) its proportionate share, based on its Percentage Interests at such time of the Acquiring Member's actual out-of-pocket acquisition costs. If the acquired interest is conveyed to the Company, then the Company shall reimburse the Acquiring Member the amount of such contribution made by the other Member in respect of such acquired interest.

**13.4 Option Not Exercised**. If the other Member does not give such Notice within the thirty (30) day period set forth in Section 13.3, neither such Member nor the Company shall have any interest in the acquired interest, and the acquired interest shall not be a part of the Properties or otherwise be subject to this Agreement.

#### ARTICLE XIV<br> ABANDONMENT AND SURRENDER OF PROPERTIES
**14.1 Surrender or Abandonment of Property**. The Board may authorize the General Manager to surrender or abandon part or all of the Properties. If the Board authorizes any such surrender or abandonment over the objection of a Member, the Company shall assign to the objecting Member, by quitclaim deed and without cost to the objecting Member, all of the Company's interest in the property to be abandoned or surrendered, and the abandoned or surrendered property shall cease to be part of the Properties and the Company shall have no further right, title or interest therein.

**14.2 Reacquisition**. If any Properties are abandoned or surrendered under the provisions of this Section 14.1, then except as provided in Section 14.1, unless this Agreement is earlier terminated, neither Member nor any Affiliate thereof shall acquire any interest in such former Properties or a right to acquire such former Properties for a period of two (2) years following the date of such abandonment or surrender. If a Member acquires any former Properties in violation of this Section 14.2, the other Member may elect by Notice to the acquiring Member within forty-five (45) days after it has actual notice of such acquisition, to have such former Properties contributed to the Company. After such Notice to contribute the former Properties, the Member that has acquired the former Properties shall convey to the other Member by special warranty deed an interest in such former Properties equal to the Percentage Interest of the other Member at the time and thereafter each Member shall contribute the interest it holds in the former Properties to the Company. In the event such an election is made, the contributed former Properties shall thereafter be treated as Properties, and the costs of acquisition shall be borne solely by the Member that initially acquired an interest in the former Properties. No adjustment to the Members' respective Percentage Interests shall be made as a result of such contribution.

#### ARTICLE XV<br> TRANSFER OF INTEREST
**15.1 General**. A Member shall have the right to Transfer to any third party all or any part of its Membership Interest or any economic interest therein (including its right to receive distributions of cash or property from the Company), solely as provided in this Article XV.

**15.2 Limitations on Free Transferability**. The Transfer right of a Member in Section 15.1 shall be subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Transfer of a Membership Interest or any economic interest therein shall be valid or recognized by the Company unless and until the transferring Member has provided to the other Member Notice of the Transfer, and the transferee, as of the effective date of the Transfer, has committed in writing to be bound by this Agreement to the same extent as the transferring Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Member, without the consent of the other Member, shall make a Transfer which shall cause a termination of the Company's treatment as a partnership for Federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Transfer permitted by this Article XV shall relieve the transferring Member of its share of any liability, whether accruing before or after such Transfer, which arises out of Operations conducted or conditions existing prior to such Transfer, including as provided in Section 6.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As provided in <u>Exhibit C</u>, the transferring Member and the transferee shall bear all tax consequences of the Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of a Transfer of less than all of a Member's Membership Interest, the transferring Member and its transferee shall thereafter act and be treated as one Member, and such Member with the greater Percentage Interest (or if both the transferor and transferee have equal Percentage Interests, the transferor) is hereby appointed the agent and attorney-in-fact of such Member with the lesser Percentage Interest with respect to the exercise of all rights to appoint representatives to the Board, vote, consent, approve or otherwise make any decisions with respect to the management or Operations or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Transfer is the grant of an Encumbrance on a Membership Interest to secure a loan or other indebtedness of a Member, such Encumbrance shall be subordinate to the terms of any security interest securing any obligation of the Company or any obligation of the granting Member to the Company or the other Member to the extent arising out or relating to the Company. The Encumbrance shall provide that in connection with any foreclosure, transfer in lieu, or other enforcement of rights in the security interest, the acquiring third party shall be bound by the terms of this Agreement, including Sections 12.2 and 15.3, and shall acquire only the rights of an assignee of the Membership Interest, and shall not, without the unanimous approval of the remaining Members, be admitted to the Company as a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Member shall enter into any sale or other commitment or agree to dispose of Products or proceeds from the sale of Products by such Member upon distribution to it pursuant to Article XI if such sale or other commitment will create in a third party a security interest in Products or proceeds therefrom prior to any such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If, contrary to Section 15.2(b), a Transfer is made which causes termination of the Company as a partnership for Federal income tax purposes, the transferring Member shall indemnify, defend and hold harmless the other Member and its Affiliates from and against any and all loss, cost, expense or damage arising from such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except with regard to transfers by a Member of all or any part of its Membership Interest to an Affiliate, only United States currency shall be used as consideration for Transfers.

**15.3 Acquisition Right**. Except as otherwise provided in Section 15.4, if a Member desires to Transfer all or any part of its Membership Interest (including a Transfer in connection with the foreclosure or other enforcement of rights under an Encumbrance granted pursuant to Section 15.2(f)), the other Member shall have the right of first refusal to acquire such interests as provided in this Section 15.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Member (or other Person enforcing rights under an Encumbrance granted pursuant to Section 15.2(f)) intending to Transfer all or any part of its Membership Interest subject to this Section 15.3 shall promptly provide Notice the other Member of its intentions. The Notice shall state the price and all other pertinent terms and conditions of the intended Transfer, and shall be accompanied by a copy of the proposed offer or contract for sale (or assignment agreement, in the case of an enforcement on an Encumbrance). The other Member shall have sixty (60) days from the date such Notice is delivered to notify the transferring Member (or other Person providing Notice hereunder) whether it elects to acquire the offered interest at the same price and on the same terms and conditions as set forth in the Notice. If it does so elect, the Transfer shall be consummated promptly after Notice of such election is delivered to the transferring Member (or other Person providing Notice hereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the other Member fails to so elect within the period provided for in Section 15.3(a), the transferring Member (or other Person providing Notice hereunder) shall have sixty (60) days following the expiration of such period to consummate the Transfer to a third party at a price and on terns no less favorable than those offered to the other Member in the Notice required in Section 15.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the transferring Member (or other Person providing Notice hereunder) fails to consummate the Transfer to a third party within the period set forth in Section 15.3(b), the acquisition right of the other Member in such offered interest shall be deemed to be revived. Any subsequent proposal to Transfer such interest shall be conducted in accordance with all of the procedures set forth in this Section 15.3.

**15.4 Exceptions to Acquisition Right**. Section 15.3 shall not apply to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfer by a Member of all or any part of its Membership Interest to an Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) incorporation of a Member, or corporate merger, consolidation, amalgamation or reorganization of a Member by which the surviving entity shall possess substantially all of the stock, or all of the property rights and interests, and be subject to substantially all of the liabilities and obligations of that Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the grant by a Member of an Encumbrance in such Membership Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a sale or other commitment or disposition of Products or proceeds from sale of Products by a Member upon distribution to it pursuant to Article XI.

#### ARTICLE XVI<br> DISPUTES
**16.1 Dispute Resolution**. Except as provided in <u>Exhibit C</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at two successive meetings of the Board, the Members are unable to reach a decision by the required vote regarding any matter referred to in Section 7.5 or Section 7.6 submitted for consideration by the Board at such meetings (a "**Deadlock**"), the Deadlock shall be subject to non-binding mediation (the "**Mediation**") within fifteen (15) Business Days from the date a written request for Mediation is made by any Member and delivered to the Company and the other Members. The Mediation shall take place in New York City, New York and shall be in English. The Mediation shall be conducted before a single mediator to be unanimously agreed upon by the Members. If the Members cannot unanimously agree on the mediator, each Member shall select a mediator, and such mediators shall together unanimously select a neutral mediator who will conduct the mediation. Each Member shall bear the fees and expenses of its mediator, and all the Members shall equally bear the fees and expenses of the final mediator. During the continuation of any Deadlock, the Company shall continue to operate in a manner consistent with its prior practices and this Agreement until such time as such Deadlock is resolved. If the Deadlock involves the approval of a Program and Budget, the Company shall operate its business in accordance with the activities and expenditure levels contemplated in the Program and Budget then in effect until such Deadlock is resolved. For the avoidance of doubt, the Members acknowledge that the outcome of any Mediation completed pursuant to this Section 16.1(a) will not bind the Members in any way to a particular decision or course of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Members irrevocably (i) submit to the exclusive jurisdiction of the federal district court sitting in New York City, New York in any action, suit or proceeding brought by or against such party in connection with, arising from or relating to this Agreement, and (ii) agree that such federal court is the proper venue for any such action, suit or proceeding. Each party hereby waives and further agrees not to assert as a defense in any such suit, action or proceeding any claim that such party is not personally subject to the jurisdiction of such court, that such venue of the suit, action or proceeding is brought in an inconvenient forum or that this Agreement or the subject matter hereof may not be enforced in or by such court. THE MEMBERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT UNDER OR RELATED TO THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In any action at law or in equity to enforce any of the provisions or rights under this Agreement, the unsuccessful party or parties to such litigation, as determined by the court in a final judgment or decree, shall pay to the successful party or parties all costs, expenses and reasonable attorneys' fees incurred by the successful party or parties, including, without limitation, such costs, expenses and fees on any appeals.

#### ARTICLE XVII<br> CONFIDENTIALITY
**17.1 General**. The financial terms of this Agreement and all information obtained in connection with the performance of this Agreement shall be the exclusive property of the Company and, except as provided in Section 17.2, shall not be disclosed to any third party or the public without the prior written consent of the Members, which consent shall not be unreasonably withheld, conditioned or delayed.

**17.2 Exceptions**. The consent required by Section 17.1 shall not apply to a disclosure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to an Affiliate, consultant or advisor that has a bona fide need to be informed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to a contractor or subcontractor for the Project that has a bona fide need to be informed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to any third party to whom the disclosing Member contemplates a Transfer of all or any part of its Membership Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to a Governmental Agency or to the public which the disclosing Member believes in good faith is required by pertinent Law or the applicable rules of any stock exchange.

In any case to which this Section 17.2(b), (c), or (d) is applicable, the disclosing Member shall give Notice to the other Member and, to the extent practical under the circumstances, an opportunity to review the disclosure and provide comments in advance of its release. As to any disclosure pursuant to Section 17.2(b) or (c), only such confidential information as such third party shall have a legitimate business need to know shall be disclosed and such third party shall first agree in writing to protect the confidential information from further disclosure to the same extent as the Members are obligated under this Article XVII.

**17.3 Duration of Confidentiality**. The provisions of this Article XVII shall apply during the term of this Agreement and for two (2) years following termination of this Agreement pursuant to Section 12.1, and shall continue to apply to any Member who resigns, who is deemed to have resigned, who has forfeited its Membership Interest or who Transfers its Membership Interest, for two (2) years following the date of such occurrence.

**17.4 Technical Disclosure Rules**. Where either Member or any Affiliate of either Member (as applicable, the "**Discloser**") is required by National Instrument 43-101 *Standards of Disclosure for Mineral Projects*, as amended from time to time ("**NI 43-101**") or S-K 1300 to file a Technical Report with respect to the Properties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Discloser shall prepare and file or cause to be prepared and filed the Technical Report in accordance with NI 43-101 using a Qualified Person retained by or on behalf of the Discloser, and neither the non-disclosing Member nor its Affiliates shall have any obligation to the Discloser to prepare or provide the Technical Report or any part thereof, or to provide or make available a Qualified Person to the Discloser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Discloser shall not designate the other Member or any associate, Affiliate or employee of or retained by the other Member, or any Qualified Person of the other Member, as the Qualified Person of the Discloser, without the prior written consent of the other Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Discloser shall be responsible for the cost of preparing or providing the Technical Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Discloser's designation of a Qualified Person shall be subject to the other Member's prior written consent, such consent not to be unreasonably withheld, conditioned or delayed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the non-disclosing Member shall be entitled to access to all pertinent information related to that portion of the Technical Report pertaining to the Properties and shall be afforded a reasonable opportunity to review and require changes to that portion of the Technical Report prior to the filing of the Technical Report with applicable regulatory authorities.

#### ARTICLE XVIII<br> GENERAL PROVISIONS
**18.1 Notices**. All notices and other required communications (each a "**Notice**") to the Members, the Board or the Company shall be in writing, and shall be given (i) by personal delivery or (ii) facsimile transmission, or (iii) by registered or certified mail return receipt requested, to the following addresses:

If to Paulson:

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| | |
|:---|:---|
| Donlin Gold Holdings LLC | Donlin Gold Holdings LLC |
| c/o Paulson & Co. Inc. | c/o Paulson & Co. Inc. |
| 15 Exchange Place, Suite 802 | 15 Exchange Place, Suite 802 |
| Jersey City, NJ 07302 | Jersey City, NJ 07302 |
| Attention: | Michael Waldorf |
| Email: | [redacted] |
| with a copy to: | with a copy to: |
| McCarthy Tétrault LLP | McCarthy Tétrault LLP |
| Suite 2400, 745 Thurlow Street | Suite 2400, 745 Thurlow Street |
| Vancouver, BC V6E 0C5 | Vancouver, BC V6E 0C5 |
| Attention: | Roger Taplin |
| Email: | [redacted] |

---

If to NovaGold:<br>

---

| | |
|:---|:---|
| NovaGold Resources Inc. | NovaGold Resources Inc. |
| 201 South Main Street | 201 South Main Street |
| Suite 400 | Suite 400 |
| Salt Lake City, UT 84111 | Salt Lake City, UT 84111 |
| Attention: | Ben Machlis, VP & General Counsel |
| Email: | [redacted] |
| with a copy to: | with a copy to: |
| Dorsey & Whitney LLP | Dorsey & Whitney LLP |
| Columbia Center, 701 Fifth Avenue, Suite 6100 | Columbia Center, 701 Fifth Avenue, Suite 6100 |
| Seattle, WA 98104 | Seattle, WA 98104 |
| Attention: | Kimberley Anderson |
| Email: | [redacted] |

---

If to the Company:<br>

At the Company's regular place of business <br> Attention: General Manager <br> Email: [redacted]

with a copy to each of the Members at the address specified above.

If to the Board: to all of the representatives of the Members on the Board, at the addresses specified above for the Members.

All Notices shall be effective and shall be deemed delivered (a) if by personal delivery or electronic transmission on the date of delivery if delivered during normal business hours on a Business Day, and, if not delivered during normal business hours on a Business Day, on the next Business Day following delivery and (b) if solely by mail on the next Business Day after actual receipt. A Member or representative on the Board may change its address by Notice to the other Member.

**18.2 Waiver**. The failure of a Member or the Company to insist on the strict performance of any provision of this Agreement or to exercise any right, power or remedy upon a breach hereof shall not constitute a waiver of any provision of this Agreement or limit the Member's or the Company's right thereafter to enforce any provision or exercise any right.

**18.3 Modification**. No modification of this Agreement shall be valid unless made in writing and duly executed by all of the Members.

**18.4 Force Majeure**. Except for any obligation to make payments when due hereunder, the obligations of a Member shall be suspended to the extent and for the period that performance is prevented by any cause, whether foreseeable or unforeseeable, beyond its reasonable control, including, labor disputes (however arising and whether or not employee demands are reasonable or within the power of the Member to grant); acts of God; Laws, regulations, orders, proclamations, instructions or requests of any Governmental Authority; judgments or orders of any court; inability to obtain on reasonably acceptable terms any public or private license, permit or other authorization; curtailment or suspension of activities to remedy or avoid an actual or alleged, present or prospective violation of Environmental Laws; acts of war or terrorism or conditions arising out of or attributable to war or terrorism, whether declared or undeclared; riot, civil strife, insurrection, insurgency or rebellion; fire, explosion, earthquake, storm, flood, sink holes, drought, hurricane, tsunami or other adverse weather condition; delay or failure by suppliers or transporters of materials, parts, supplies, services or equipment or by contractors' or subcontractors' shortage of, or inability to obtain, labor, transportation, materials, machinery, equipment, supplies, utilities or services; accidents; breakdown of equipment, machinery or facilities; or any other cause whether similar or dissimilar to the foregoing. The affected Member shall promptly give Notice to the other Member of the suspension of performance, stating therein the nature of the suspension, the reasons therefor, and the expected duration thereof. The affected Member shall resume performance as soon as reasonably possible. During the period of suspension, the obligations of the Members to advance funds pursuant to Section 10.2 shall be reduced as necessary due to the Force Majeure event, but not below levels required to maintain current Operations.

**18.5 Inspections**. At all reasonable times the Members through their employees, consultants, advisors, and agents shall be entitled, at their sole risk and expense, and subject to the Company's reasonable safety regulations, to inspect the Properties, the other Assets and Operations, *provided* that any such inspection shall not unreasonably interfere with Operations.

**18.6 Rights to Data**. At all reasonable times the Members, at their expense, through their employees, consultants, advisors and agents shall be entitled to access to, and the right to inspect and copy all maps, drill logs, core tests, reports, surveys, assays, analyses, production reports, operations, technical, accounting, tax and financial records, and other information acquired in Operations or relating to the Properties, including historic information.

**18.7 Governing Law**. This Agreement shall be governed by and interpreted in accordance with the Laws of the State of Delaware, except for its rules pertaining to conflicts of laws.

**18.8 Further Assurances**. Each Member agrees to take from time to time such actions and execute such additional instruments as may be reasonably necessary or convenient to implement and carry out the intent and purpose of this Agreement. The Members agree that upon the proposal of a Construction Program and Budget pursuant to Section 9.4 of this Agreement, the Members will work in good faith so as to avoid adverse tax consequences to each Member, including, but not limited to, those contemplated by Section 8.2 of this Agreement, resulting from the commencement of mining operations. Each Member agrees that it shall not unreasonably delay a positive construction decision solely because of such potential adverse tax consequence; provided, however, that nothing in this Section 18.8 shall in any way limit or modify the direction in Section 8.2 of this Agreement regarding Section 4943.

**18.9 Survival of Terms and Conditions**. The following Sections shall survive the dissolution, liquidation and termination of the Company, any Transfer of a Membership Interest or other interest in the Company to the full extent necessary for their enforcement and the protection of the Member in whose favor they run: Sections 2.2, 2.4, 4.5, 4.8, 4.9, 6.4, 6.5, 6.6, 6.7, 10.3, 12.2, 12.3, 12.4, 12.5, 12.6 and 16.1, and Articles XVII and XVIII.

**18.10 No Third Party Beneficiaries**. Except as specifically provided in Sections 4.9 and 15.2(h), this Agreement is for the sole benefit of the Members, and no other Person, including any creditor of any Member, is intended to be a beneficiary of this Agreement or shall have any rights hereunder.

**18.11 Entire Agreement; Successors and Assigns**. This Agreement, together with the Exhibits hereto, contains the entire understanding of the Members and the Company with respect to the Company and supersedes all prior agreements and understandings relating to the subject matter hereof. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Members and the Company. In the event of any conflict between this Agreement and any Exhibit attached hereto, the terms of this Agreement shall be controlling.

[Signatures on Next Page]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

---

| |
|:---|
| DONLIN GOLD LLC |
| By: *<u>/s/ Todd Dahlman</u>* |
| Its: <u>General Manager</u> |
| DONLIN GOLD HOLDINGS LLC |
| By: *<u>/s/ Michael Waldorf</u>* |
| Its: <u>Authorized Signatory</u> |
| NOVAGOLD RESOURCES ALASKA, INC. |
| By: *<u>/s/ Peter Adamek</u>* |
| Its: Vice President and Treasurer |

---

#### EXHIBIT A<br>TO<br>DONLIN GOLD LLC AGREEMENT

#### PROPERTIES AND AREA OF INTEREST
[redacted]

#### EXHIBIT B<br>TO<br>DONLIN GOLD LLC AGREEMENT

#### ACCOUNTING PROCEDURE
The financial and accounting procedures to be followed by the General Manager, the Company, and the Members under the Agreement are set forth in this Exhibit B. References in this Accounting Procedure to Sections and Articles are to Sections and Articles of this Accounting Procedure unless it is expressly stated that they are references to Sections and Articles of the Agreement.

#### ARTICLE 1<br> GENERAL PROVISIONS
1.1 <u>Definitions</u>

In this Accounting Procedure the definitions set forth in the Agreement shall apply, and in addition thereto the following terms shall have of following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Abandonment**" means Operations that comprise the closing, decommissioning, dismantling and removal of foundations, structures and equipment and the remediation and restoration of the associated lands and sites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Associated Support Costs**" means the cost for such items as office space, secretarial support, personal computers and similar support costs which are required to support an individual in an office environment insofar as those costs pertain to the Project. These costs relate to an individual's regular home office location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Direct Charges**" means those incremental costs incurred by a Member with respect to services provided to the Company pursuant to an agreement between such Member and Company that has been approved in accordance with Section 7.5(a)(viii) of the Agreement, that the Company shall pay to a Member to the extent set forth in Article 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Expatriate Costs**" or "**Relocation Costs**" means those costs incurred by a Member as a result of assignment and relocation to (and not from) the Project of an employee of that Member or its Affiliate, and that have been approved in an adopted Program and Budget and includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) applicable labor costs charged under Section 2.1 of this Accounting Procedure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) costs incurred as a result of that Member's internal policies relating to relocation of employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) overhead charged under Section 3.3(b) of this Accounting Procedure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) income tax equalization, where applicable, but only at actual amounts paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**GAAP**" means generally accepted accounting principles in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Overhead**" has the meaning set forth in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Seconded Employees**" has the meaning set for in Section 2.1(a).

1.2 <u>General</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties acknowledge that: (a) all accounting procedures for the Company shall be made in accordance with GAAP, and (b) all provisions and procedures set out in this Accounting Procedure shall be applied in a manner to be consistent with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The General Manager shall cause the Company to maintain one or more separate bank accounts for the payment of all expenses and the deposit of all cash receipts for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Costs of reasonably anticipated Environmental Compliance which, on a Program basis, shall be determined by the Board and shall be based on amounts sufficient to establish a fund, which through successive contributions during the life of the Company, will pay for ongoing Environmental Compliance conducted during Operations and which will aggregate the reasonably anticipated costs of mine closure, post-Operations Environmental Compliance and Continuing Obligations. The General Manager shall invest such amounts on behalf of the Members as provided in Section 10.2 of the Agreement.

1.3 <u>Business Account Statements</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The General Manager shall prepare statements and bill the Members as provided in <u>Article X</u> of the Agreement. Payment of any such billings by any Member, shall not prejudice such Member's right to protest or question the correctness thereof for a period not to exceed twenty-four (24) months following the Calendar Year during which such billings were received by the Member. All written exceptions to and claims upon the Company for incorrect charges, billings or statements shall be made upon the Company within such twenty-four (24) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The General Manager shall report all expenditures in US Dollars. Transactions in other currencies will be recorded in terms of US Dollar equivalents and will be reported in the same. In converting or translating currencies, in accounting for advances in different currencies, and in any other currency transactions arising out of or relating to Project operations, it is the intent of the Members that no Member shall experience an exchange gain or loss at the expense of or to the benefit of the other Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, within the period referred to in Section 1.3(a), a Member or the Company establishes that an error in the Business Account existing in the period questioned or protested also existed previous to the period, the Company shall adjust the Business Account retroactively to the inception of the error or to such point in time as agreed upon provided that in no event shall such adjustment exceed the time period required to maintain financial records pursuant to the Code. The adjustments and supporting data shall be subject to the Member's right to audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The provisions of this Section 3 shall not prevent adjustments resulting from third person contract cost reallocations and adjustments due to audits conducted by Governmental Authorities, which extend beyond such period.

1.4 <u>Records</u>

The General Manager shall cause the Company to maintain a Business Account which shall contain detailed and comprehensive cost accounting records in accordance with this Accounting Procedure, including general ledgers, supporting and subsidiary journals, invoices, checks and other customary documentation, sufficient to provide a record of revenues and expenditures and periodic statements of financial position and the results of operations for managerial, tax, regulatory or other financial reporting purposes. Such records shall be retained for the duration of the period allowed the Members for audit or the period necessary to comply with tax or other regulatory requirements. The records shall reflect all obligations, advances and credits of the Members. The General Manager shall develop detailed procedures and reporting formats, as approved by the Board to support this Accounting Procedure.

1.5 <u>Approvals</u>

Except where otherwise indicated, where approval by the Board is required in this Accounting Procedure, it shall mean Majority Approval, which approval shall then be binding on all Members and the General Manager.

#### ARTICLE 2<br> DIRECT CHARGES
A Member may invoice the Company for Direct Charges and the Company shall pay the Members for the following:

2.1 <u>Labor</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Salaries and wages of any employees of the Members or Affiliates of the Members seconded to the Company, regardless of physical location, while performing tasks assigned by the Company, whether engaged full time or part time for the Project in accordance with an agreement between the relevant Member or its Affiliate and the Company that has been approved in accordance with Section 7.5(a)(vi) of the Agreement ("**Seconded Employees**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Costs of holiday, vacation, sickness and disability benefits and other customary allowances paid to Seconded Employees. Costs pursuant to this subsection may be charged by a percentage assessment on the amount of salaries and wages charged to the Business Account pursuant to this Accounting Procedure. The rate shall be based on the Members' cost experience from the preceding year's actual cost experience or the current year's cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Cost of housing allowances, location allowances and other customary allowances paid to or paid on behalf of Seconded Employees based on actual cost pursuant to the provisions of this Accounting Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Salaries and wages of Seconded Employees may include a variable portion of employee remuneration where applicable. The variable pay program may include provisions for "performance pay" dependent on personal, team, departmental or corporate performance. Charges to the Business Account may be made annually or monthly on an as-paid, actual basis, or by a percentage assessment basis on the salaries and wages charged to the Business Account. If a percentage assessment is used, the percentage shall be based on a Member's or its Affiliates' prior year's cost experience and the method used by the Member or its Affiliates shall be reasonable and clearly documented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Costs of providing earned or compensatory time off to Seconded Employees under the provisions of this Accounting Procedure, in accordance with the normal practices of the applicable Member or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Salaries, wages and benefits of Seconded Employees may be charged on a per diem rate based on the actual cost of salaries, wages, customary allowances employee benefits as provided for pursuant to the provisions of this Accounting Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Associated Support Costs for employees of the Members or Affiliates of the Members on temporary assignment or temporary secondment to the Company and engaged in Project operations including transit time to or from or within the Properties or any other location at which Operations are conducted. Costs charged to the Business Account under this Section 2.1(g) shall be charged on a percentage assessment basis or a per diem basis as approved from time to time by Special Approval.

2.2 <u>Employee Benefits</u>

Costs chargeable under this Section 2.2 shall be for the following employee benefits for Seconded Employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Payments made by the Members or their Affiliates pursuant to assessments imposed by government authority such as unemployment insurance, Workers' Compensation, Canada Pension, or other payments of like nature that are applicable to the Members' or their Affiliates' salaries and wages charged to the Business Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Established benefit plans which are made available to all employees on a regular basis. Such benefit plans may include employees' group life insurance, hospitalization, medical, dental, company pension, retirement (excluding early retirement and severance incentives), stock purchase, savings, bonus, and other benefit plans of a like nature. The cost of such plans may be borne entirely by the Members or their Affiliates or jointly by the Members or their Affiliates and the employees; however, only the Members' or their Affiliates' share of these costs is chargeable to the Business Account. Unless otherwise approved by Special Approval, the Members shall charge the actual cost of such plans to a maximum of sixty (60%) percent of salaries and wages charged pursuant to Section 2.1 of this Accounting Procedure. For purposes of this limitation, stock based compensation shall be annualized based on the term of the related stock option.

Costs pursuant to this Section shall be charged on a percentage assessment applied to the amount of salaries and wages charged to the Business Account. The percentage assessment shall be based on the Members' or their Affiliates' actual cost experience, from either the preceding year's actual cost experience or the current year's cost. Such rates shall exclude the Members' or their Affiliates' cost of administering such plans. In determining actual cost experience, any dividends or refunds received which are applicable to insurance or annuity policies shall be used to reduce the cost of such policies.

2.3 <u>Travel and Moving</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All costs of personnel transfers and personal expenses in connection with Seconded Employees. Such costs shall include transportation of the Seconded Employee, spouse and dependents, and their personal and household effects, and all other relocation costs in accordance with each Member's or each Affiliate's normal reimbursement policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any temporary relocation cost or cost of business travel and personal expenses for Seconded Employees shall be in accordance with the normal reimbursement policy of the applicable Member or Affiliate.

2.4 <u>Services</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Costs of using a Member's or its Affiliates' owned or leased facilities and equipment shall be charged on a usage basis at rates not exceeding commercial or competitive rates available in the immediate area for available like facilities and equipment, commensurate with the costs of ownership and operation thereof, including depreciation and interest on the depreciated investment or a fair monthly rental in lieu thereof. The annual rate on investment shall not exceed the Prime Rate plus one (1%) percent, determined at the beginning of each Calendar Year. If commercial or competitive rates are not available due to remoteness of location or unique specialized equipment, the rates shall be negotiated or established and approved in accordance with Section 7.5(a)(vi) of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Costs of processing and interpreting technical data from Operations for the benefit of the Membership.

2.5 <u>Expatriate or Relocation Costs</u>

Expatriate Costs or Relocation Costs relating to a Seconded Employee shall be chargeable to the Business Account at that Member's or its Affiliate's actual cost. Such costs shall be based on an all inclusive rate comprised of salary, benefits, and any other direct costs for that Member or its applicable Affiliate.

2.6 <u>Recruitment, Training and Safety</u>

Costs of the Members' or their Affiliates' specific technical, operational, safety and environmental training required for the primary benefit of carrying out the Operations, shall be charged to the Business Account. Such training costs shall include but shall not be limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cost of training Seconded Employees, either through courses or on the job, except for training of replacement employees where such replacements are for the primary benefit of a Member or its Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Cost of safety articles such as, but not limited to, safety clothing, safety boots, safety glasses, safety kits, safety awards and safety dinners, as required by the relevant Laws or Government Authorities, or industry association recommendations or the Member's or its Affiliate's corporate policy for the Seconded Employees.

2.7 <u>Abandonment and Reclamation</u>

All costs resulting from payments made for termination, severance or other similar settlements as a consequence of Abandonment operations or the Project shutdown to Seconded Employees who cannot reasonably be relocated within the Members' or their Affiliates' other operations. The settlement costs incurred in respect of each such employee shall be charged to the Company in the proportion that such employee's services in the Project operations bears to the total service of that employee with a Member, the Member's Affiliates or the Member's predecessor.

2.8 <u>Other Expenditures</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any other expenditures not covered by or dealt with in the foregoing provisions of this Article 2, and which are of direct benefit to the Project and are incurred by a Member in the necessary and proper conduct of the Operations pursuant to an agreement between such Member and the Company that has been approved in accordance with Section 7.5(a)(vi) of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except where expressly provided for herein, no charge shall be made for any interest or financing charges incurred by a Member.

#### ARTICLE 3<br> OVERHEAD CHARGES
3.1 <u>Interpretation</u>

In this Article 3, "**Overhead**" means all costs of a Member that are related to the services provided to the Company other than Direct Charges.

3.2 <u>Overhead</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Principles</u>: The Members agree the following principles shall govern the determination of Overhead rates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Members shall not profit or take a loss from services provided to the Membership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Overhead shall never include Direct Charges, as the Company shall not be billed twice for the same service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Standard costs may be used in calculations of Overhead, provided that such standard costs are a reasonable
estimate of actual costs for the relevant item or service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Overheads cannot be clearly identified or measured otherwise they would be charged directly; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Overhead rates shall be compared against similar organizations in similar projects. For example, whenever
possible, mining shall be compared against mining as the capital expenditure profiles, manpower structure and training systems will be
different from other industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Costs to be Included in Overhead Rates</u>: Overhead is intended to cover the costs, other than Direct Charges of a Member's employees who are not located at the Company's offices or at the Properties and who are providing supervisory, consultative and control functions as well as general research, technical knowledge and general experience for the benefit of Operations, unless approval has been obtained to direct charge such employees salaries and wages pursuant to Section 2.1 of this Accounting Procedure. Overhead may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Information Services</u> – Corporate systems/processes/functional leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Controllers</u> – Corporate systems/ processes/ functional leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Internal Audit</u> – Internal control services audits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>External Audit, Commodity & Property Tax</u> – Company tax recoveries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Risk Management</u> – Company insurance placement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Communications</u> – Company external communications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Office Facilities</u> – Office space for indirect personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <u>Supply Chain</u> – Corporate systems/processes/functional leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) <u>Environment, Health & Safety</u> – Corporate systems/processes/functional leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Human Resources</u> – Corporate systems/processes/functional leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) <u>Legal</u> – Corporate systems/processes/functional leadership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) <u>Marketing</u> – Corporate systems/processes/functional leadership.

The cost and expenses of services from outside sources in connection with matters of taxation, legal and any other matters before or involving Governmental Authorities shall be considered as covered by the Overhead rates provided for in this Article 3 unless such costs and expenses are approved in accordance with Section 7.5(a)(vi) of the Agreement as a Direct Charge to the Membership.

Neither Member will charge as a Direct Charge any amount in respect of services provided by its officers, unless any such officer is providing services to the Company on a substantially full-time basis pursuant to an agreement approved in accordance with Section 7.5(a)(vi) of the Agreement.

3.3 <u>Overhead Rates – Member</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For each Member's employee chargeable to the Operations in accordance with Section 2.1 of this Accounting Procedure, that Member may charge an amount in respect of Overhead on each of those salaries and benefits to cover the Member's personnel costs such as payroll, human resources, Member-specific training, etc. at the rate of ten percent (10%) of such salaries and benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For each Member's Affiliate Expatriate chargeable to the Operations in accordance with Sections 2.1 and 2.5 of this Accounting Procedure, that Member may charge an amount in respect of Overhead on each of those salaries and benefits to cover the Member's personnel costs such as payroll, human resources, Member-specific training, etc. at the rate of ten percent (10%) of such salaries and benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The specific Overhead rates provided for in this Section 3.3 shall apply until the commercial production from the Properties is reached after which the rates outlined in Section 3.3 shall no longer apply. Six months prior to the commencement of such commercial production the Members shall negotiate, in good faith and acting reasonably and, where applicable, based on the principles in Section 3.2(a), the rates that shall apply for Operations occurring after commercial production. Thereafter the Overhead rates provided in this Section 3.3 shall be reviewed every year in association with the Annual Budget and any changes to the Overhead rates shall be subject to Special Approval. As Overhead rates are adjusted the new rates shall be attached to this Accounting Procedure.

EXECUTION COPY

#### EXHIBIT C<br> TO<br> DONLIN GOLD LLC AGREEMENT

#### TAX MATTERS
1.<br> EFFECT OF THIS EXHIBIT

This Exhibit shall govern the relationship of the Members and the Company with respect to tax matters and the other matters addressed herein. Except as otherwise indicated, capitalized terms used in this Exhibit shall have the meanings given to them in the Agreement. In the event of a conflict between this Exhibit and the other provisions of the Agreement, the terms of this Exhibit shall control.

2.<br> PARTNERSHIP REPRESENTATIVE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designation of Partnership Representative. NovaGold shall be designated the partnership representative ("<u>PR</u>") as defined in Section 6223 of the Code and, following the approval of the Board and Paulson, shall be responsible for, make elections for, and prepare and file any federal and state tax returns or other required tax forms for the Company. The PR and the other Member shall use reasonable best efforts to comply with the responsibilities outlined in this Article II and in Sections 6221 through 6241 of the Code (including any Treasury Regulations promulgated thereunder) and in doing so shall incur no liability to any other party. The PR shall also designate the "designated individual" as described in Treasury Regulation Section 301.6223-1(b)(3)(ii). Upon the mutual agreement of the Members, the PR shall cause to be made the election described in Section 6226 of the Code (so that the Company does not become liable for any "imputed underpayment" under Section 6225 of the Code), to take any actions needed to effect the election, and to take any other actions as are reasonably necessary or appropriate to maintain, to the extent reasonably feasible, the allocation of Taxes (including interest and penalties, if any, with respect to such Taxes) among the Members (including former Members) with respect to the income of the Company, and cost of contesting any Company adjustments, as would have been borne by each Member if the Company had been eligible to elect, and had elected, out of the partnership audit provisions of Sections 6221 through 6241 of the Code pursuant to Section 6221(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notice. Each Member shall furnish the PR with such information as the PR may reasonably request to permit the PR to file tax returns on behalf of the Company. The PR shall keep each Member informed of all administrative and judicial proceedings for the adjustment at the partnership level of partnership items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Inconsistent Treatment of Tax Item. Each Member agrees not to treat, on any tax return or in any claim for a refund, any item of income, gain, loss, deduction or credit in a manner inconsistent with the treatment of such item by the Company. Notwithstanding the preceding sentence, each Member shall notify the PR if its treatment of any partnership item on its federal income tax return is inconsistent with the treatment of that item on the partnership return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Extensions of Limitation Periods. The PR shall not enter into any extension of the period of limitations as provided under Section 6235 of the Code without first giving reasonable advance notice to the other Member and obtaining approval of the Board and each Member of such intended action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Tax Audit. Each Member hereby agrees that, while it is a Member and after it ceases being a Member, it shall provide such information and take such other actions as may be reasonably requested by the PR (i) in connection with an audit, including, without limitation, amending prior year returns and providing evidence thereof to the Company, providing information to the Company regarding their prior year returns, and reimbursing the Company for their portion of taxes (including interest and penalties) paid by the Company regarding prior year returns, and (ii) to enable the Company to make elections and/or computations in connection therewith. The PR, after approval by the other Member, shall be authorized to act for, and its decisions as such shall be final and binding upon, the Company and each Member (including any person who ceases being a Member). References to the "PR" herein shall be deemed to include any "designated individual" under such audit rules. All expenses incurred in connection with any such audit, investigation, settlement, review or other tax matter shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Requests for Administrative Adjustments. The PR, with the approval of the other Member, may file a request for administrative adjustment on behalf of the Company pursuant to Section 6227 of the Code, if the PR determines such administrative adjustment request is beneficial or necessary to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Settlements. The PR shall not bind the other Member to a settlement agreement with a Governmental Authority regarding any tax audit. without first obtaining the written consent of any such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Fees and Expenses. The PR shall not engage legal counsel, certified public accountants, or others on behalf of the Company without the prior consent of the Board. Either Member may engage legal counsel, certified public accountants, or others in its own behalf and at its sole cost and expense. Any reasonable item of expense, including but not limited to fees and expenses for legal counsel, certified public accountants, and others which the PR incurs (after proper consent by the Board as provided above) in connection with any audit, assessment, litigation, or other proceeding regarding any partnership item, shall constitute proper charges to the Business Account and shall be borne by the Company and funded by capital contributions by the Members as any other item which constitutes a direct charge to the Business Account pursuant to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Survival. The provisions of the foregoing paragraphs, including but not limited to the obligation to fund fees and expenses contained in Paragraph 2(j), shall survive the termination of the Company or the termination of either Member's interest in the Company and shall remain binding on the Members for a period of time necessary to resolve with the Internal Revenue Service or the Department of the Justice any and all matters regarding the federal income taxation of the Company for the applicable taxable year(s).

3.<br> TAX ELECTIONS AND ALLOCATIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company Election. It is understood and agreed that the Members intend to create a partnership for United States federal and state income tax purposes, and, unless otherwise agreed to hereafter by both Members, no Member shall take any action to change the status of the Company as a partnership under Treas. Reg. § 1.7701-3 or similar provision of state law. It is understood and agreed that the Members intend to create a partnership for federal and state income tax purposes only. After approval by the Board pursuant to Section 4.4 of the Agreement, the PR shall cause to be filed with the appropriate office of the Internal Revenue Service a partnership income tax return for the Company. The Members recognize that the Company may be subject to state income tax statutes. After approval by the Board pursuant to Section 4.4 of the Agreement, the PR shall cause to be filed with the appropriate offices of the state agencies any required partnership state income tax returns. Each Member agrees to furnish to the PR any information it may have relating to itself and its Affiliates, the Company or the Operations as shall be required for proper preparation of such returns. The PR shall use its best efforts to furnish to the other Member for its review and comment a copy of each proposed income tax return (and access to supporting data and records) at least fifteen (15) Business Days prior to the date the return is filed to the extent reasonably feasible. Without limiting the generality of the foregoing sentence, the PR shall use its best efforts to provide to the other Member the proposed final IRS Form 1065 (including all schedules and access to supporting data and records) for any taxable year on or before the June 15 immediately following the end of such taxable year. The PR shall promptly (and, in any event, within 30 days) provide to the other Member all information in its possession or control (which may be reasonable estimates) reasonably requested by such other Member for purposes of calculating estimated tax payments and preparing tax return extensions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Tax Elections. The Company shall make the following elections for purposes of all partnership income tax returns:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. To use the accrual method of accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. To use as its taxable year the year required by the provisions at Section 706(b)(1) of the Code and the Treasury Regulations thereunder which the Members agree shall initially be the year ending November 30. In this connection, Paulson represents that its taxable year is the year ending December 31 and NovaGold represents that its taxable year is the year ending November 30;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Unless the Members unanimously agree otherwise, to deduct currently all development expenses to the extent possible under Section 616 of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Unless the Members unanimously agree otherwise, to compute the allowance for depreciation in respect of all depreciable Assets using the maximum accelerated tax depreciation method and the shortest life permissible or, at the election of the PR, using the units of production method of depreciation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. To treat advance royalties as deductions from gross income for the year paid or accrued to the extent permitted by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. An election under Section 754 of the Code, and the Company will adjust the basis of property of the Company under Section 754 of the Code in accordance with the election; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. To amortize over the shortest permissible period all organizational expenditures and business start-up expenses under Sections 195 and 709 of the Code.

Any other election required or permitted to be made by the Company under the Code or any state tax law shall be made as determined by the Board.

Each Member shall elect under Section 617(a) of the Code to deduct currently all exploration expenses. Each Member reserves the right to capitalize its share of development and/or exploration expenses of the Company in accordance with Section 59(e) of the Code, provided that a Member's election to capitalize all or any portion of such expenses shall not affect the Member's Capital Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Allocations to Members. Allocations for Capital Account purposes shall be in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Except as otherwise provided in this Paragraph 3.c, all items of income and gain shall be allocated to the Members in accordance with their Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Except as provided in Subparagraph 3.c.iii, below, gain or loss on the sale of a depreciable or depletable asset shall be allocated so that, to the extent possible, the net amount reflected in the Members' Capital Account with respect to such property (taking into account the cost of such property, depreciation, amortization, depletion or other cost recovery deductions and gain or loss) most closely reflects the Members' Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Gains and losses on the sale of all or substantially all the Assets of the Company shall be allocated so that, to the extent possible, the Members' resulting Capital Account balances are in the same ratio as their relative Percentage Interests ("<u>Balance Capital Accounts</u>") after taking into account such sale. In making the allocations under this <u>Subparagraph 3.c.iii</u>, to the extent necessary to Balance Capital Accounts, gain and loss shall be calculated on an asset-by-asset basis, and any property contributed by a Member shall be treated as a separate asset from the property contributed by or created with funds contributed by the other Member. If the Company does not have sufficient items of gain and loss to Balance Capital Accounts, the liquidator may take other actions, as it determines are reasonably appropriate, to Balance Capital Accounts, including reallocating items among the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Members acknowledge that expenses and deductions allocable under the preceding provisions of this <u>Paragraph 3.3</u> may be required to be capitalized into production under Section 263A of the Code. With respect to such capitalized expenses or deductions, the allocation of gross income on the sale of production shall be adjusted, in any reasonable manner consistently applied by the PR, so that the same net amount (subject possibly to timing differences) is reflected in the Capital Accounts as if such expenses or deductions were instead deductible and allocated pursuant to the preceding provisions of this <u>Paragraph 3.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Any recapture of exploration expenses under Section 617(b)(1)(A) of the Code, and any disallowance of depletion under Section 617(b)(1)(B) of the Code, shall be borne by the Members in the same manner as the related exploration expenses were allocated to, or claimed by, them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. If the Members' Percentage Interests change during any taxable year of the Company, the distributive share of items of income, gain, loss and deduction of each Member shall be determined in any manner (1) permitted by Section 706 of the Code, and (2) agreed by both Members. If the Members cannot agree on a method, the method shall be determined by the PR in consultation with the Company's tax advisers, with preference given to the interim closing-of-the-books method except where application of that method would result in undue administrative expense in relationship to the amount of the items to be allocated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. "<u>Nonrecourse deductions</u>," as defined by Treas. Reg. § 1.704-2(b)(1) shall be allocated between the Members in proportion to their Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Regulatory Allocations. Notwithstanding the provisions of <u>Paragraph 3.3</u> to the contrary, the following special allocations shall be given effect for purposes of maintaining the Members' Capital Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. If either Member unexpectedly receives any adjustments, allocations, or distributions described in Treas. Reg. § 1.704-1(b)(2)(ii)(d)(4), § 1.704-1(b)(2)(ii)(d)(5) or § 1.704-1(b)(2)(ii)(d)(6), which result in a deficit Capital Account balance, items of income and gain shall be specially allocated to each such Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, the Capital Account deficit of such Member as quickly as possible. For the purposes of this <u>Subparagraph 3.4(a)</u>, each Member's Capital Account balance shall be increased by the sum of (i) the amount such Member is obligated to restore pursuant to any provision of the Agreement, and (ii) the amount such Member is deemed to be obligated to restore pursuant to the penultimate sentences of Treas. Reg. §§ 1.704-2(g)(1) and 1.704-2(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. If there is a net decrease in partnership minimum gain for a taxable year of the Company, each Member shall be allocated items of income and gain for that year equal to that Member's share of the net decrease in partnership minimum gain, all in accordance with Treas. Reg. § 1.704-2(f). If, during a taxable year of the Company, there is a net decrease in partner nonrecourse debt minimum gain, any Member with a share of that partner nonrecourse debt minimum gain as of the beginning of the year shall be allocated items of income and gain for the year (and, if necessary, for succeeding years) equal to that partner's share of the net decrease in partner nonrecourse debt minimum gain, all in accordance with Treas. Reg. § 1.704¬2(i)(4). Pursuant to Treas. Reg. § 1.704-2(i)(1), deductions attributable to "partner nonrecourse liability" shall be allocated to the Member that bears the economic risk of loss for such liability (or is treated as bearing such risk).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. If the allocation of deductions to either Member would cause such Member to have a deficit Capital Account balance at the end of any taxable year of the Company (after all other allocations provided for in this <u>Article III</u> have been made and after giving effect to the adjustments described in <u>Subparagraph 3.4(a)</u>), such deductions shall instead be allocated to the other Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Items of Company loss, deduction and expenditures described in Section 705(a)(2)(B) of the Code which are attributable to any nonrecourse debt of the Company and are characterized as partner nonrecourse deductions under Treas. Reg. § 1.704-2(i) shall be allocated to the Members' Capital Accounts in accordance with said Treas. Reg. § 1.704-2(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. To the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Section 734(b) or 743(b) of the Code is required pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m)(2) or § 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of a distribution to a Member in complete liquidation of its Membership Interest, the amount of such adjustment to Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Members in accordance with their interests in the Company in the event Treas. Reg. § 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom such distribution was made in the event Treas. Reg. § 1.704-1(b)(2)(iv)(m)(4) applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Curative Allocations. The allocations set forth in <u>Paragraph 3(d)</u> (the "<u>Regulatory Allocations</u>") are intended to comply with certain requirements of the Treasury Regulations. It is the intent of the Members that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of income, gain, loss or deduction pursuant to this Paragraph. Therefore, notwithstanding any other provisions of this <u>Article III</u> (other than the Regulatory Allocations), the PR shall, in a manner approved by the Board, make such offsetting special allocations of income, gain, loss or deduction in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not part of the Agreement and all items were allocated pursuant to <u>Paragraph 3(c)</u> without regard to <u>Paragraph 3(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Tax Allocations. Except as otherwise provided in this <u>Paragraph 3(f)</u>, items of taxable income, deduction, gain and loss shall be allocated in the same manner as the corresponding item is allocated for book purposes under <u>Paragraphs 3(c)</u>, <u>3(d)</u> and <u>3(e)</u> of the corresponding item determined for Capital Account purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Recapture of tax deductions arising out of a disposition of property shall, to the extent consistent with the allocations for tax purposes of the gain or amount realized giving rise to such recapture, be allocated to the Members in the same proportions as the recaptured deductions were originally allocated or claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. To the extent required by Section 704(c) of the Code, income, gain, loss, and deduction (including depreciation, depletion and amortization) with respect to property contributed to the Company by a Member and with respect to property revalued in accordance with Treas. Reg. § 1.704-1(b)(2)(iv)(f) (collectively referred to as "<u>Adjusted Properties</u>") shall be allocated between the Members so as to take account of the variation between the adjusted tax basis of the Adjusted Property to the Company and its fair market value at the time of contribution or revaluation in accordance with the provisions of Sections 704(b) and 704(c) of the Code and Treas. Reg. § 1.704-3(b)(1). Any income, gain, loss or deduction attributable to an Adjusted Property (exclusive of such items allocated to eliminate the difference between the adjusted tax basis and the fair market value in accordance with the preceding sentence) shall be allocated in the same manner as such gain or loss would be allocated under <u>Paragraph 3(c)</u>. To the extent that allocations of tax items are required pursuant to Section 704(c) of the Code to be made other than in accordance with the allocations under <u>Paragraphs 3(c)</u>, <u>3(d)</u> and <u>3(e)</u> of the corresponding items for Capital Account purposes, this <u>Paragraph 3(f)(ii)</u> shall be made in accordance with the method available under Treas. Reg. § 1.704-3 which most closely approximates the allocations set forth in <u>Paragraphs 3(c)</u>, <u>3(d)</u> and <u>3(e)</u>, as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Depletion deductions with respect to contributed property shall be determined without regard to any portion of the property's basis that is attributable to precontribution expenditures by NovaGold that were capitalized under Code Sections 616(b), 59(e) and 291(b). Deductions attributable to precontribution expenditures by NovaGold shall be calculated under such Code Sections as if NovaGold continued to own the depletable property to which such deductions are attributable, and such deductions shall be reported by the Company and shall be allocated solely to NovaGold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Members understand the allocations of tax items set forth in this <u>Paragraph 3(f)</u>, and agree to report consistently with such allocations for federal and state tax purposes.

4.<br> CAPITAL ACCOUNTS; LIQUIDATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Capital Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Capital Account balance of each Member as of the Effective Date shall be equal to such Member's Initial Contribution as set out in Section 5.1 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Capital Account of a Member shall be increased by (i) the amount of money contributed by the Member to the Company, (ii) the fair market value of property contributed by the Member to the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under Code Section 752) and (iii) allocations to the Member under <u>Paragraphs 3(c)</u>, <u>3(d)</u> and <u>3(e)</u> of Company income and gain (or items thereof), including income and gain exempt from tax; and shall be decreased by (iv) the amount of money distributed to the Member by the Company, (v) the fair market value of property distributed to the Member by the Company (net of liabilities secured by such distributed property and that the Member is considered to assume or take subject to under Code Section 752), (vi) allocations to the Member under <u>Paragraphs 3(c)</u>, <u>3(d)</u> and <u>3(e)</u> of expenditures of the Company not deductible in computing its taxable income and not properly chargeable to a Capital Account, and (vii) allocations of Company loss and deduction (or items thereof), excluding items described in (vi) above and percentage depletion to the extent it exceeds the adjusted tax basis of the depletable property to which it is attributable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In the event that the Capital Accounts of the Members are computed with reference to the book value of any Asset which differs from the adjusted tax basis of such Asset, then the Capital Accounts shall be adjusted for depreciation, depletion, amortization and gain or loss as computed for book purposes with respect to such Asset in accordance with Treas. Reg. § 1.704-1(b)(2)(iv)(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. In the event any interest in the Company is transferred in accordance with the terms of the Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest, except as provided in Treas. Reg. § 1.704-1(b)(2)(iv)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. In the event property, other than money, is distributed to a Member, the Capital Accounts of the Members shall be adjusted to reflect the manner in which the unrealized income, gain, loss and deduction inherent in such property (that has not been reflected in the Capital Accounts previously) would be allocated among the Members if there was a taxable disposition of such property for the fair market value of such property (taking Section 7701(g) of the Code into account) on the date of distribution. For this purpose the fair market value of the property shall be determined as set forth in <u>Paragraph 4(b)(i)</u> below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. For purposes of maintaining the Capital Accounts, the Company's deductions with respect to contributed property in each year for (i) depletion, (ii) deferred development expenditures under Section 616(b) attributable to pre-contribution expenditures, (iii) amortization under Section 291(b) attributable to pre-contribution expenditures, and (iv) amortization under Section 59(e) attributable to pre-contribution expenditures shall be the amount of the corresponding item determined for tax purposes pursuant to <u>Subparagraph 3.6(c)</u> multiplied by the ratio of (A) the book value at which the contributed property is recorded in the Capital Accounts to (B) the adjusted tax basis of the contributed property (including basis resulting from capitalization of pre-contribution development expenditures under Sections 616(b), 291(b), and 59(e)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The foregoing provisions, and the other provisions of the Agreement relating to the maintenance of Capital Accounts and the allocations of income, gain, loss, deduction and credit, are intended to comply with Treas. Reg. § 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Treasury Regulation. In the event the Board shall determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are computed in order to comply with such Treasury Regulation, the Board may make such modification, provided that it is not likely to have a material effect on the amount distributable to either Member upon liquidation of the Company pursuant to <u>Paragraph 4(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. If the Members so agree, upon the occurrence of an event described in Treas. Reg. § 1.704-1(b)(2)(iv)(f)(5), the Capital Accounts shall be restated in accordance with Treas. Reg. § 1.704-1(b)(2)(iv)(f) to reflect the manner in which unrealized income, gain, loss or deduction inherent in the assets of the Company (that has not been reflected in the Capital Accounts previously) would be allocated among the Members if there were a taxable disposition of such assets for their fair market values, as determined in accordance with <u>Subparagraph 4.2(a)</u>. For purposes of <u>Paragraph 3.3</u>, a Member shall be treated as contributing the portion of the book value of any property that is credited to the Member's Capital Account pursuant to the preceding sentence. Following a revaluation pursuant to this <u>Subparagraph 4.1(h)</u>, the Members' shares of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to property that has been revalued pursuant to this <u>Subparagraph 4.1(h)</u> shall be determined in accordance with the principles of Code Section 704(c) as applied pursuant to <u>Subparagraph 3.6(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Liquidation. In the event the Company is dissolved pursuant to <u>Section 12.3</u> of the Agreement then, notwithstanding any other provision of the Agreement to the contrary, the following steps shall be taken (after taking into account any transfers of Capital Accounts pursuant to <u>Sections 5.2</u>, <u>6.4</u>, or <u>6.5</u> of the Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Capital Accounts of the Members shall be adjusted to reflect any gain or loss which would be realized by the Company and allocated to the Members pursuant to the provisions of <u>Article III</u> of this <u>Exhibit C</u> if the Assets had been sold at their fair market value at the time of liquidation. The fair market value of the Assets shall be determined by agreement of both Members provided, however, that in the event that the Members fail to agree on the fair market value of any Asset, its fair market value shall be determined by a nationally recognized independent engineering firm or other qualified independent party approved by both Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. After making the foregoing adjustments and/or contributions, and after taking into account all allocations under <u>Article III</u>, including <u>Subparagraph 3.c.iii</u> and giving effect to all sales or distributions of production through the date of the final distribution, all remaining Assets shall be distributed to the Members in accordance with the balances in their Capital Accounts. Unless otherwise expressly agreed by both Members, with respect to any asset distributed in kind, each Member shall receive an undivided interest in such Asset in equal to the Member's Percentage Interest at the time of distribution. Assets distributed to the Members shall be deemed to have a fair market value equal to the value assigned to them pursuant to <u>Subparagraph 4(b)(i)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. All distributions to the Members in respect of their Capital Accounts shall be made in accordance with the time requirements of Treas. Reg. §§ l.704-1(b)(2)(ii)(b)(2) and (3).

5.<br> DISPUTE RESOLUTION

If the Members are unable to reach agreement on any tax related matter subject to approval or agreement of the Members, before application of section 16.1 of the Agreement, any such disputed tax matter shall be promptly referred to an independent, unrelated accounting or law firm of national reputation in the United States approved by the Board (the "Unrelated Firm"). The Unrelated Firm shall be directed to render a written report on the unresolved disputed tax matter as promptly as practicable and to resolve only those tax matters in dispute and the resolution of the dispute by the Unrelated Firm shall be final and binding on the parties; provided that if such dispute is not resolved within 180 days of the referral, section 16.1 of the Agreement shall control. The fees and expenses of the Unrelated Firm shall be borne by the Company.

EXECUTION COPY

#### EXHIBIT D<br>TO<br>DONLIN GOLD LLC AGREEMENT

#### NET PROCEEDS CALCULATION
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Determination of Net Proceeds**. "**Net Proceeds**" means the amount calculated by deducting from the gross revenues realized (or deemed to be realized) from the sale (or deemed sale) of Products, such costs and expenses (both of an operating and capital nature) attributable to Exploration, Development, Mining, and the marketing of Products as would be deductible under generally accepted accounting principles and practices consistently applied as employed by the Company, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All costs and expenses of replacing, expanding, modifying, altering or changing from time to time the mining, milling and processing facilities. Costs and expenses of improvements (such as haulage ways or mill facilities) that are also used in connection with workings other than the Properties shall be charged to the Properties only in the proportion that their use in connection with the Properties bears to their total use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Ad valorem real property and unsecured personal property taxes, and all taxes, other than income taxes, applicable to Mining on the Properties, including without limitation all state mining taxes, sales taxes, severance taxes, royalties, license fees and governmental levies of a similar nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Allowance for overhead in accordance with <u>Section 3</u> of the Accounting Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All expenses incurred relative to the sale of Products, including an allowance for commissions at rates which are normal and customary in the industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All amounts payable to the remaining Member during Mining pursuant to any applicable operating or similar agreement in force with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The actual cost of investment prior to beginning of Mining which shall include all expenditures for Exploration and Development of the Properties incurred by the non-resigning Member subsequent to the resigning Member acquiring a Net Proceeds interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Interest on monies borrowed or advanced for costs and expenses, at an annual rate equal to two percentage points (2%) above the Prime Rate, but in no event in excess of the maximum permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) An allowance for reasonable working capital and inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Costs of funding Environmental Compliance as provided in the Accounting Procedure, to the extent not otherwise deducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Actual costs of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Rental, royalty, production, and purchase payments.

It is intended that the remaining Member shall recoup from net cash flow all of its contributions for Exploration, Development, Mining, and marketing Products before any Net Proceeds are distributed to any Person holding the right to receive a payment of Net Proceeds pursuant to Section 6.5 of the Agreement. No deduction shall be made for income taxes, depreciation, amortization or depletion. If in any year after the beginning of Mining of the Properties an operating loss relative thereto is incurred, the amount thereof shall be considered as and be included with outstanding costs and expenses and carried forward in determining Net Proceeds for subsequent periods. If Products are processed by the remaining Member, or are sold to an Affiliate of the remaining Member, then, for purposes of calculating Net Proceeds, such Products shall be deemed conclusively to have been sold at a price equal to fair market value to arm's length purchasers FOB the Properties, and Net Proceeds relative thereto shall be calculated without reference to any profits or losses attributable to smelting or refining.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Payment of Net Proceeds**. Payments of Net Proceeds shall commence in the Calendar Year next following the Calendar Year in which Net Proceeds are first realized, and shall be made 45 days following the end of each calendar quarter during which Net Proceeds are realized, and shall be subject to adjustment, if required, at the end of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Definitions**. All capitalized words and terms used herein have the same meaning as in the Agreement to which this <u>Exhibit D</u> is attached.

#### EXHIBIT E<br>TO<br>DONLIN GOLD LLC AGREEMENT
[intentionally deleted]

#### EXHIBIT F<br>TO<br>DONLIN GOLD LLC AGREEMENT
[intentionally deleted]

#### EXHIBIT G<br>TO<br>DONLIN GOLD LLC AGREEMENT
[intentionally deleted]

#### EXHIBIT H<br> TO<br> DONLIN GOLD LLC AGREEMENT<br>
[intentionally deleted]

## Exhibit 10.2

**Exhibit 10.2**

***Execution Version***

**THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, ANY APPLICABLE STATE SECURITIES LAWS, OR THE LAWS OF ANY OTHER JURISDICTION. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT IN RESPECT OF SUCH NOTE OR (B) AN OPINION OF INDEPENDENT COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.**

#### SECOND AMENDED AND RESTATED<br> SECURED PROMISSORY NOTE

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| | |
|:---|:---|
| US$158,915,757.99 | June 3, 2025 |

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FOR VALUE RECEIVED, **NOVAGOLD RESOURCES ALASKA, INC.,** an Alaska corporation ("*Maker*"), promises to pay to the order of **BARRICK GOLD U.S. INC. (formerly Placer Dome U.S. Inc.)**, a California corporation ("*Holder*"), in the manner hereinafter specified, the principal sum of one hundred fifty-eight million, nine hundred fifteen thousand, seven hundred fifty-seven Dollars and ninety-nine cents ($**158,915,757.99**) (the "*Principal Amount*"), together with Interest thereon (as defined in paragraph 2 below) from the date hereof until the date paid in full at the rate hereinafter provided. This Second Amended and Restated Secured Promissory Note (as amended, supplemented, amended and restated, or otherwise modified from time to time, the "*Note*") amends and restates the Amended and Restated Secured Promissory Note, dated December 1, 2007 (the "*Existing Note*"), delivered in accordance with Section 6.7(a) of the Limited Liability Company Agreement of Donlin Gold LLC (formerly known as Donlin Creek LLC) effective as of December l, 2007, by and among Donlin Gold LLC (formerly known as Donlin Creek LLC), a Delaware limited liability company (the "*Company*"), Maker and Holder (as amended by Amendment No. 1 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of January 13, 2010, as further amended by Amendment No. 2 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of July 15, 2010, as further amended by Amendment No. 3 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of June 1, 2011, as may be further amended, amended and restated, supplemented, replaced or otherwise modified from time to time, the "*LLC Agreement*"). This Note is delivered in connection with the Membership Interest Purchase Agreement, dated as of April 22, 2025, among, *inter alios*, the Maker and the Holder.

For the purposes of this Note, unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:

"*Affiliate*" means any Person which directly or indirectly Controls, is Controlled by, or is under common Control with, a Member.

"*Assets*" means the Properties, Products, and all other real and personal property, tangible and intangible, held by the Company.

"*Calendar Year*" means a period of twelve (12) consecutive months, beginning on the first day of January and ending on the last day of December.

"*Change of Control*" of a Person (the "subject person") means the consummation of any transaction or event, including any consolidation, arrangement, amalgamation or merger or any issue, Transfer or acquisition of securities, the result of which is that any other Person or group of other Persons acting jointly or in concert for purposes of such transaction acquires Control of the subject person and, for this purpose, any Person or group of Persons, acting jointly or in concert, who becomes the beneficial owner, directly or indirectly, of more than 50% of the votes attached to the voting securities of the subject person will be deemed to have acquired Control of the subject person.

"*Claim*" means any action, claim, demand, interference, injunction, stay, obligation, grievance, suit, dispute, counterclaim, arbitration or other proceeding, or any order, writ, injunction, judgment or decree.

"*Control*" means, in respect of a particular Person, the possession, whether by contract, ownership of securities, or otherwise, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

"*Debt*" of any Person means with respect to such Person and its subsidiaries on a consolidated basis but without duplication, all amounts that would be characterized on a Person's balance sheet as indebtedness in accordance with GAAP, including, for greater certainty, whether or not characterized as indebtedness in accordance with GAAP, the aggregate of the following amounts, at the date of determination: (a) all obligations of such Persons for borrowed money, including without limitation amounts owed under any bond, note, debenture or other similar instrument; (b) all obligations of such Persons issued or assumed for the deferred purchase price of property or services; (c) all capital lease obligations of such Persons; (d) all obligations of such Persons created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Persons (whether or not the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (e) any royalty, stream, participation or production interest, or any agreements that are similar to a royalty, stream, participation or production interest agreement, in each case in respect of any of the Properties; (f) all reimbursement obligations, contingent or otherwise, of such Persons under acceptance, letter of credit and similar facilities; (g) all obligations of such Persons to purchase, redeem, retire, defease or otherwise acquire for value any partnership or shareholder or other equity interests of such Persons (for greater certainty, not including obligations with respect to unexercised options and rights of first refusal and where conditions precedent to the obligations have not occurred); and (h) all obligations of the type referred to in <u>clauses (a)</u> through <u>(g)</u> above of any other Person, the payment of which such Person or any of its subsidiaries has guaranteed or for which such Person or any of its subsidiaries is responsible or liable; *provided* that the obligations referred to in <u>clauses (a)</u> through <u>(f)</u> exclude trade accounts payable and accrued liabilities arising in the ordinary course.

"*Deposit Account*" means a demand, time, savings, passbook, or similar account maintained with a bank or financial institution, or any allocated or unallocated bullion account for the holding of metals or any interest therein, whether in cash or kind, maintained with any depository or financial institution.

"*Dollars*" or "$" means the official currency of the United States.

"*Encumbrance*" means (a) any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, deed of trust, title retention, security interest or other encumbrance of any kind securing, or conferring any priority of payment in respect of, any obligation of any Person, including any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or financial effect similar to the granting of security under applicable Law, (b) any lease, sublease, occupancy agreement, easement or covenant granting a right to use or occupancy to any Person, (c) any proxy, power of attorney, voting trust agreement, interest, option, right of first offer, negotiation or refusal or transfer restriction in favor of any Person, and (d) any adverse Claim as to title, possession or use.

"*Environmental Laws*" means Laws aimed at reclamation or restoration of the Properties; abatement of pollution; protection of the environment; protection of wildlife, including endangered species; ensuring public safety from environmental hazards; protection of cultural or historic resources; management, storage or control of hazardous materials and substances; releases or threatened release of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances as wastes into the environment, including ambient air, surface water and groundwater; and all other Laws relating to the manufacturing, processing, distribution, use, treatment, storage, disposal, handling or transport of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

"*Exploration*" means all activities directed toward ascertaining the existence, location, quantity, quality or commercial value of deposits of Products.

"*GAAP*" means generally accepted accounting principles in the United States.

"*Governmental Body*" means any domestic or foreign (a) federal, provincial, state, municipal, local or other government, (b) governmental or quasi-governmental authority of any nature, including any governmental ministry, agency, branch, department, court, commission, board, tribunal, bureau or instrumentality, (c) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, regulatory or tax authority or power of any nature, or (d) securities regulatory authority or stock exchange; but shall exclude any Alaskan Native Corporations established under the Alaska Native Claims Settlement Act.

"*Law*" means all applicable federal, state, provincial, borough, tribal, native and local laws (statutory or common), rules, ordinances, regulations, grants, concessions, franchises, licenses, orders, directives, judgments, decrees, and other governmental restrictions, including permits and other similar requirements, whether legislative, municipal, administrative or judicial in nature, including Environmental Laws.

"*Member*" means each Person which holds a membership interest and is admitted as a member of the Company.

"*Net Proceeds*" means an amount defined, calculated and paid as provided in <u>Exhibit D</u> hereto.

"*Operations*" means the activities carried out by the Company.

"*Percentage Interest*" means the percentage interest of a Member in certain allocations of profits and losses and other items of income, gain, loss or deduction and certain distributions of cash or property, representing the membership interest of a Member in the Company, as such interest may from time to time be adjusted hereunder.

"*Permitted Encumbrance*" means all Encumbrances in favor of Holder.

"*Person*" means a natural person, any general partnership (including a limited liability partnership), limited partnership (including a limited liability limited partnership), limited liability company, corporation, joint venture, trust, business trust, cooperative, association or any foreign trust or foreign business organization.

"*Processed Products*" means all Products that have been refined, smelted or otherwise treated to produce a mineral product in a form that is commonly sold, including gold bullion and silver bullion.

"*Products*" means all bullion, doré, ores, minerals and mineral resources produced from the Properties.

"*Properties*" means all interests in real property, fixtures and improvements and all easements, rights-of-way, water rights, and all other appurtenances which are acquired and held by the Company.

"*Spot Price*" shall have the following meanings: (a) in the case of refined gold, Spot Price means the London Bullion Market Association P.M. Gold Fix, (b) in the case of refined silver, Spot Price means the London Bullion Market Association Silver Fix, and, (c) in all other cases, Spot Price means the price at which the particular Processed Product could be sold for immediate delivery as specified and published or made available by a source generally accepted and used in the mining industry for such purposes as determined by Holder, acting reasonably.

"*Tax*" means any income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs, capital stock, franchise, withholding, social security, unemployment, disability, property, sales, use, transfer, registration, value added, estimated or other tax, or any other assessment, by any Governmental Body of any kind whatsoever, including any interest, penalty, or addition thereto, whether or not disputed.

"*Transfer*" means to sell, transfer, assign, convey, dispose or otherwise grant a right, title or interest (including expropriation or other transfer required or imposed by law or any Governmental Body), whether voluntary or involuntary.

1. *Payment*. Subject to the provisions of <u>paragraph 3</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as Maker holds a Percentage Interest in the Company of ten percent (10%) or more, (i) eighty-five
percent (85%) of the Processed Products that otherwise would be distributable to Maker pursuant to the LLC Agreement or otherwise by virtue
of its interest in the Company or the assets thereof (the "*Product Payments* "), and (ii) eighty-five percent (85%) of
cash or other Assets that otherwise would be distributable to Maker pursuant to the LLC Agreement or otherwise by virtue of its interest
in the Company or the assets thereof (the "*Asset Payments*" and together with the Product Payments, the "*Payments* "),
shall be distributed directly to Holder as a payment hereunder (and shall be treated as a distribution to Maker followed by the payment
by Maker to Holder), until the Principal Amount plus Interest (as defined below) thereon (collectively the "*Amount Payable* ")
is paid in full. The amount by which each Product Payment will reduce the Amount Payable shall be equal to the amount determined by multiplying
the quantity (measured in ounces) of Processed Products distributed to Holder by the Spot Price of such Processed Product on the day of
such distribution. The amount by which any Asset Payments will reduce the Amount Payable shall be the amount in Dollars of any cash plus
the fair market value of the other Assets comprising the Asset Payments determined by Holder, acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that Maker is deemed to have resigned from the Company or Maker's Percentage Interest
in the Company falls below ten percent (10%) such that Maker no longer has an entitlement to the distributions referred to in <u>clause (a)</u> of this <u>paragraph 1</u> or the economic equivalent thereof, Maker shall instruct the Company to pay five percent (5%) of Net
Proceeds directly to Holder, until the Amount Payable is paid in full.

Any and all Payments and any and all payments of Net Proceeds will be calculated in Dollars. For greater certainty, it is acknowledged that Maker shall not be obligated to satisfy the Amount Payable or any Default Interest except from Payments and Net Proceeds, as applicable, as provided in <u>paragraph 1</u>, subject to the rights of Holder under <u>paragraphs 7 and 8</u>. All payments received shall be applied <u>first</u> towards the payment of Interest accrued hereunder and <u>second</u> towards the repayment of the Principal Amount hereunder.

2. *Interest*. **T**he Principal Amount outstanding from time to time shall bear interest at a rate equal to the Prime Rate plus two percentage points (2%) (the "*Interest*" or the "*Interest Rate*"). Interest shall be calculated on the basis of a year of 360 days and the actual number of days elapsed and shall be compounded semi-annually on the last Business Day of June and December, respectively. "*Prime Rate*" means the interest rate quoted as "*Prime*" by J.P. Morgan Chase & Co., New York, at its head office as said rate may change from day to day (which quoted rate may not be the lowest rate at which such bank loans funds).

3. *Prepayment.* Maker may prepay all or any portion of the Principal Amount from time to time without penalty, *provided* that any prepayment of the Principal Amount shall be accompanied by all Interest then accrued, if any, on the Principal Amount so prepaid and *provided, further,* that any such prepayment of the Principal Amount shall be applied to discharge payments of the Amount Payable in the inverse order in which any payments thereon would otherwise become due. The prepayment of all or any portion of the Principal Amount, together with accrued but unpaid Interest therein, shall be in Dollars. Any amounts prepaid under this Note may not be reborrowed. Notwithstanding the foregoing, Maker may prepay this Note in full on or before December 2, 2026 in an amount equal to $100,000,000 (one hundred million Dollars) in full satisfaction of all amounts outstanding under this Note as of the date of such prepayment, provided that if Maker does not prepay this Note in full on or before December 2, 2026 in an amount equal to $100,000,000 (one hundred million Dollars), all amounts due under this Note shall remain outstanding and payable in accordance with this Note without regard to the above referenced reduction in amounts hereunder.

4. *Security.* Maker's obligations pursuant to this Note shall be secured by (a) an amended and restated security agreement, dated of even date herewith, in the form of <u>Exhibit A</u> attached hereto in respect of, *inter alia*, Maker's interest in the Payments, Net Proceeds and in any Deposit Account into which Payments or Net Proceeds are paid (as amended, supplemented, amended and restated, replaced, or otherwise modified from time to time, the *"Security Agreement"),* (b) a financing statement necessary or required to be filed in order to perfect the security interest in, *inter alia*, the Payments and Net Proceeds, dated of even date herewith, in the form of <u>Exhibit B</u> attached hereto (the "*Financing Statement*"), and (c) upon the opening of any Deposit Account into which Payments or Net Proceeds are paid, one or more account control agreements in respect thereof (as amended, supplemented, amended and restated, or otherwise modified from time to time, the "*Account Control Agreements*"). For clarity, the security interest over Maker's accounts granted in the Security Agreement (i) applies only to accounts of Maker into which Payments and Net Proceeds from Company are made and not to any other Deposit Accounts of Maker and (ii) does not in any way alter the Company's obligation to make Payments and Net Proceeds directly to Holder in connection with the terms of this Note or otherwise. Collectively, the Security Agreement, the Financing Statement and any Account Control Agreement shall be referred to herein as the "*Security Documents*".

5. *Representations and Warranties.* Maker hereby represents and warrants to Holder as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Maker is a corporation duly organized, validly existing and in good standing under the laws of the State
of Alaska;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance of this Note by Maker, and of the Security Documents by Maker,
have been authorized by all necessary company action of Maker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Note and the Security Documents constitute legal, valid and binding obligations of Maker, enforceable
in accordance with their respective terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Maker has and had, at the time granted, the corporate power, right and authority to grant to Holder a
first priority security interest in the Payments, Net Proceeds, any Deposit Account into which Payments are paid and the proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery by Maker of this Note and the Security Documents, including the grant by Maker
to Holder of a first priority security interest in the Payments, Net Proceeds, any Deposit Account into which Payments or Net Proceeds
are paid and the proceeds thereof, will not violate, or constitute a default under, or result in the creation or imposition of any lien
(other than pursuant to the Security Documents) upon any of the property or assets of the Maker pursuant to the terms of the LLC Agreement
or any other organizational or formative document of the Company, any contract, agreement or other obligation to which Maker is a party
or under which Maker's property or assets are subject), nor will such action result in any violation of the provisions of any applicable
Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The distribution provisions in the Company's organizational, formative and limited liability company
operating documents contain distribution provisions and Net Proceeds calculation mechanics which are the same as those set forth in the
LLC Agreement in effect prior to the Holder ceasing to be a Member (the "*Original LLC Agreement* "). There has been no
amendment, restatement or replacement of the Original LLC Agreement that would directly or indirectly alter the ability of the Company
to make, delay the quantum or timing of, or adversely impact the right of the Holder to receive, the distributions to be made directly
to the Holder in accordance with the terms of the Original LLC Agreement.

6. *Covenants*. Except as the Holder may otherwise consent in writing, from the date hereof until the Amount Payable is paid in full in accordance with the terms of this Note, the Maker hereby covenants and agrees with the Holder that it shall on its own behalf, and shall cause the Company to, as applicable, do the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintain its existence under the Laws of the State of Alaska and cause the Company to maintain its existence
under the Laws of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) duly and punctually pay, perform and satisfy when due, and cause the Company to duly and punctually pay,
perform and satisfy when due, all of its obligations in respect of Debt (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) within ten (10) Business Days following (i) the end of each Calendar Year and (ii) upon Holder's
written request, the end of any of the first three calendar quarters, deliver to Holder a certificate in the form attached as <u>Exhibit C</u> hereto signed by an officer of the Maker certifying its compliance with the obligations under this <u>paragraph 6</u> and certifying
that no breach of the covenants contained in this <u>paragraph 6</u> has occurred in the immediately preceding quarter or is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cause Company to diligently maintain, use, manage, operate and repair each of the Assets in a prudent
and business-like manner and in keeping with a commercially reasonable standard having regard to the size, age, location and use thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cause Company to keep insured with financially sound and reputable insurance companies all of the Assets
in amounts and against losses or damages, including property damage and public liability, on a basis consistent with sound mining practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) cause Company to maintain all licences, permits, registrations, qualifications and approvals necessary
to own the Assets and to carry on its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) pay, and cause the Company to pay, on or before the due date for payment thereof, all Taxes imposed upon
it and upon its properties (including the Properties), provided that each such Person may withhold or contest the payment of any such
Taxes if (i) it is acting diligently and in good faith; (ii) none of the Person's interest in the Company or the Company's
interest in the Properties is liable to be sold or forfeited as a consequence of such non-payment or contestation; and (iii) adequate
reserves have been established and maintained therefor in accordance with U.S. GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) warrant and defend and cause the Company to warrant and defend the Company's title to the Assets
and every part thereof against the claims of all Persons whomsoever other than the holders of Permitted Encumbrances and shall discharge
in a timely manner all Encumbrances against the Assets from time to time other than Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not, and cause the Company not to, in each case without the Holder's prior written consent which
may be exercised in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) create, incur, assume or suffer to exist, any Debt other than the obligations under this Note and except
as may be incurred by a reasonably prudent person solely for the purpose Development and Mining (as each such term is defined in <u>Exhibit D</u> hereto) in the ordinary course of the Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create, incur, assume or suffer to exist any Encumbrance on any of their respective property or on any
of the Assets, other than (A) Permitted Encumbrances or (B) Encumbrances solely for the purpose of securing indebtedness incurred pursuant
to <u>clause (i)(i)</u> of this <u>paragraph 6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the final paragraph of this <u>paragraph 6</u>, agree to, or enter into, any agreement, arrangement
or other transaction with any Person that would cause, or otherwise support, allow or permit to occur (A) a Transfer, in whole or in part,
of any of the Properties other than a Permitted Encumbrance, or (B) a Change of Control of the Maker or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to the final subparagraph of this <u>paragraph 6</u>, complete any transaction whereby all or
substantially all of its assets would become the property of another Person, or otherwise merge, reorganize, amalgamate or consolidate
with any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) subject to the final subparagraph of this <u>paragraph 6</u>, issue any securities, membership interests
or ownership interests or allow any of its securities, membership interests or ownership interests to be redeemed or Transferred, directly
or indirectly, to any Person where the effect of any such issuance or Transfer would result in a dilution or reduction of the Maker's
interest in the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) dissolve, liquidate or wind-up or take any steps or proceedings in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) subject to the final subparagraph of this <u>paragraph 6</u>, sell, assign, transfer or otherwise dispose
of any right, title or interest in any material portion of its assets or any of the Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) make, advance or provide loans, funds or other financial assistance to any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) enter into any transaction including for the purchase, sale, lease or exchange of any property, the rendering
or receipt of any services or to pay operating, construction or management fees with any of its Affiliates, or with any Affiliate of any
of its partners, shareholders or unitholders, except (a) a transaction which is upon fair and reasonable arms-length market terms and
then only following the prior written approval of Holder, and (b) a transaction for the sale or disposition by the Company in the ordinary
course of business and in accordance with sound mining practice of tangible personal property that is obsolete, no longer useful for its
intended purpose or being replaced in the ordinary course of business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) (a) modify or amend its organizational, formative documents or the LLC Agreement in any manner (i) that
alters the distribution provisions or entitlements to Net Proceeds contained in the Original LLC Agreement, or (ii) that otherwise relates
to or impacts the obligation of the Company to make Payments or payments of Net Proceeds directly to Holder, the rights of Maker to receive
Payments or Net Proceeds in the circumstances described therein or any related definitions or any related calculation or valuation mechanics
or (b) fail to maintain its qualification or good standing in any jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) pay all Payments, Net Proceeds or other distributions from the Company not paid directly to Holder in accordance with this Note to a Deposit Account subject to a deposit account control agreement in favor of Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) ensure that all Product and Processed Product and any proceeds thereof that are not otherwise used for Mining (as defined in <u>Exhibit D</u> hereto) on the Properties from which the Products and Processed Products were mined are used only for distributions to the Members until such time as this Note is repaid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) provide prompt written notice to Holder of the commencement of Mining (as defined in <u>Exhibit D</u> hereto) operations on the Properties comprising the Company's gold project in Alaska. For greater certainty, Mining (as defined in <u>Exhibit D</u> hereto) operations shall be deemed to have commenced on the first date on which the Maker receives any distribution of cash or Processed Products from the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) prior to the commencement of Mining (as defined in <u>Exhibit D</u> hereto) operations, provide written notice to Holder no later than fifteen (15) days after (i) any distribution, whether in cash or kind, is made by the Company to its Members, shareholders or owners, however designated, and (ii) any change in Maker's proportionate membership interest in the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) after the commencement of Mining (as defined in <u>Exhibit D</u> hereto) operations, provide to Holder, no later than eighteen (18) days after the end of each March, June, September and December of each Calendar Year, for the most recently completed calendar quarter, a report setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a summary of all Processed Product produced by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the distributions, whether in cash or kind, made by the Company to its Members, shareholders or owners,
however designated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Maker's share of the distributions described in <u>clause (b)</u> of <u>paragraph 1</u> (inclusive
of the portion of such distributions paid to Holder pursuant to this Note);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) where distributions to which Maker is entitled are other than in kind, details of such distribution including
the calculation of Maker's share of such distributions (inclusive of the portion of such distributions paid to Barrick pursuant
to this Note);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent <u>clause (b)</u> of <u>paragraph 1</u> is applicable, a detailed calculation of the Net
Proceeds of the Company for the calendar quarter determined with reference to the criteria set out in <u>Exhibit D</u> hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) confirmation of the Maker's proportionate membership interest in the Company as at the first and
last day of the quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) promptly upon request of Holder (acting reasonably), provide any information requested with respect to Development and Mining (each as defined in <u>Exhibit D</u> hereto) of the Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) provide prompt written notice to Holder of the occurrence of (i) an Event of Default or (ii) any event or condition that would constitute an Event of Default but for satisfaction of any condition subsequent required to make the event or condition an Event of Default, including giving of any notice, passage of time, or both; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) upon not less than five (5) days' prior written request from the Holder, duly authorized representatives of the Holder (which may include representatives of the Holder's auditors) shall be entitled, at the Holder's cost and expense, to inspect and audit the books of account, records and supporting materials ("*Records*") of Maker and to make and take away copies of such Records, and shall be granted the opportunity to discuss issues raised by its audit with the Maker's accountants, for the purposes of confirming any payments made to Maker pursuant to this Note or otherwise confirming the rights and obligations of Holder and Maker hereunder.

Notwithstanding <u>clause (i)</u> of this <u>paragraph 6</u>, the Maker may, and may cause the Company to, take the actions set forth in <u>clauses (i)(iii)</u>, <u>(i)(iv)</u>, <u>(i)(v)</u>, and <u>(i)(vii)</u> of this <u>paragraph 6</u>, *provided* that prior notice of any such action is provided to Holder and the counterparty (or counterparties) to any such transaction agrees (A) to be jointly and severally liable, together with the Maker, for all amounts due and payable from time to time pursuant to this Note, and (B) to be bound by the covenants, conditions and agreements in favor of Holder under this Note.

7. *Events of Default; Right to Cure.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The occurrence of any one or more of the following events and its continuation beyond any applicable cure
period shall constitute an "*Event of Default*" under this Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any (A) action by Maker or the Company to limit or eliminate any one or more of the Payments or the payment
to Holder of any Net Proceeds (or any modification to the manner in which Net Proceeds is calculated), or (B) failure by Maker to pay
to Holder any Payments or payment of Net Proceeds made to Maker that otherwise was due and owing to Holder, or (C) failure by Maker to
pay when due any Amount Payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any failure of Maker to execute any one or more of the Security Documents and such failure is not cured
by Maker within thirty (30) days after written notice thereof is given by Holder to Maker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any representation or warranty made by Maker herein, in any Security Document or in any report, certificate
or other document furnished pursuant to or in connection with this Note shall prove to have been incorrect or misleading in any material
respect on and as of the date made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any failure by Maker to observe or perform any covenant, condition or agreement contained in <u>clauses (a)</u>, <u>(b)</u>, <u>(g)</u>, <u>(i)</u> or <u>(p)</u> of <u>paragraph 6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Maker or the Company shall fail to observe or perform any covenant, condition or agreement contained
in this Note or any other Security Document (other than those specified in <u>clause (a)(i)</u> or <u>clause (a)(iv)</u> of this <u>paragraph 7</u>), and such failure shall continue unremedied for a period of 30 days after the earlier of (x) notice thereof from the Holder
to the Maker and (y) the date the Maker had actual knowledge of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) An involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of Maker or the Company or their respective debts, or of a substantial part of their respective
assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Maker or the Company or for a substantial
part of their assets and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Maker or the Company shall (i) voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter
in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in <u>clause (vii)</u> of this <u>paragraph 7</u>, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for Maker or the Company or for a substantial part of their respective assets,
(iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Maker or the Company shall become unable, admit in writing its inability or fail generally (for greater
certainty, not on an individual basis) to pay its debts as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) One or more judgments for the payment of money in an aggregate amount in excess of $1,000,000 shall be
rendered against Maker, the Company or any combination thereof and the same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or
levy upon any assets of Maker or the Company to enforce any such judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Any property or assets of Maker or the Company or any part thereof having an aggregate fair market value
in excess of $1,000,000 are seized or otherwise attached by anyone pursuant to any legal process or other means, including, without limitation,
distress, execution or any other step or proceeding with similar effect and such attachment, step or other proceeding shall continue in
effect and not be released, discharged or stayed within the lesser of 30 days and the period of time prescribed under applicable Laws
for the completion of the sale of or realization against the assets subject to such seizure or attachment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) If, other than as a result of an act or omission of Holder, (i) the validity or enforceability of this
Note or any Security Document shall at any time be contested by Maker, (ii) Maker shall deny that it has any or any further liability
or obligation under this Note or any Security Document, or (iii) at any time it shall be unlawful or impossible for Maker or the Company
to perform any of its obligations under this Note or any Security Document, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Any provision of this Note or any Security Document, at any time after its execution and delivery and
for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Payment Amounts, shall cease
to be in full force and effect; or Maker, the Company or any other Person shall contest in any manner the validity or enforceability of
any provision of this Note or any Security Documents; or Maker or the Company shall deny that it has any or further liability or obligation
under this Note or any Security Document, as applicable, or shall purport to revoke, terminate or rescind any provision of this note or
any Security Document; or any lien securing the Payment Amount shall, in whole or in part, cease to be or fail to be a perfected lien
having first priority (subject only to such other liens permitted to have priority over it pursuant to the Security Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of the occurrence of an Event of Default (other than an event described in <u>clauses (a)(vi)</u>, <u>(a)(vii)</u> or <u>(a)(viii)</u> of this <u>paragraph 7</u>) and its continuation beyond any applicable cure period and so long as
such Event of Default continues, (i) any outstanding Amount Payable shall bear penalty interest of two percentage points (2%) above the
Interest Rate, calculated from the date of such Event of Default until the date such Amount Payable is paid in full, (ii) the Holder may
declare all amounts outstanding under this Note to be immediately due and payable to the Holder, all without presentment, demand, protest,
notice of dishonor or any other demand or notice whatsoever, all of which are expressly hereby waived by the Maker, and (iii) Holder,
in addition to any other remedies that may be available to it, shall have the right to exercise any one or more of its rights under any
or all of the Security Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of the occurrence of an Event of Default described in <u>clauses (a)(vi)</u>, <u>(a)(vii)</u> or <u>(a)(viii)</u> of this <u>paragraph 7</u>, (i) any outstanding Amount Payable shall bear penalty interest of two percentage points
(2%) above the Interest Rate ()"*Default Interest* "), calculated from the date of such Event of Default until the date
such Amount Payable is paid in full, (ii) all amounts outstanding under this Note shall automatically become due and payable to the Holder,
all without presentment, demand, protest, notice of dishonor or any other demand or notice whatsoever, all of which are expressly hereby
waived by the Maker, and (iii) Holder, in addition to any other remedies that may be available to it, shall have the right to exercise
any one or more of its rights under any or all of the Security Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the outstanding amounts under this Note becoming due and payable pursuant to this <u>paragraph 7</u>,
the Holder may commence such legal action or proceedings as the Holder, in its sole discretion, may deem necessary to protect and enforce
its rights hereunder and under the Security Documents.

8. *Costs and Expenses.* Maker hereby agrees to pay actual reasonable attorneys' fees of Holder and all other reasonable costs and expenses of Holder incurred in the enforcement of this Note, the Security Documents, and the collection of amounts due hereunder, whether such enforcement or collection is by court action or otherwise.

9. *Governing Law and Jurisdiction.* This Note shall be governed as to validity, interpretation, construction, effect and in all other respects by the laws and decisions of the State of Alaska without giving effect to Alaska, conflicts of law principles. Maker, and any endorsers, sureties and guarantors, agree that the federal and state courts located in Anchorage, Alaska shall have exclusive subject matter jurisdiction to entertain any action brought to enforce or collect upon this Note and, by execution hereof, voluntarily submit to the exclusive jurisdiction of such courts. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, CLAIM OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.

10. *Waivers by Maker.* Maker, and any endorsers, sureties and guarantors, of this Note jointly and severally waive demand for payment, presentment for payment, notice of nonpayment or dishonour, protest and notice of protest, and agree to any extension of time of payment or partial payments before, at, or after maturity. No renewal or extension of this Note, no release or surrender of any security for this Note, no release of any person liable hereon, no delay in the enforcement hereof, and no delay or omission in exercising any right or power hereunder, shall affect the liability of Maker. No delay or omission by Holder in exercising any power or right hereunder shall impair such right or power or be construed to be a waiver thereof, nor shall any single or partial exercise of any power or right hereunder preclude any or full exercise thereof or the exercise of any other right or power. Each legal bolder hereof shall have and may exercise all the rights and powers given to Holder herein.

11. *Notices*. All notices and other communications required or permitted hereunder shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by electronic mail to the addresses specified below. Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent to an email address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return email or other written acknowledgement), *provided*, that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient. Any party hereto may change its address for notices and other communications hereunder by notice to the other parties hereto.

Maker:

NOVAGOLD RESOURCES ALASKA, INC.

c/o NovaGold Resources Inc.<br> 201 South Main Street, Suite 400

Salt Lake City, Utah 84111

Attention: Ben Machlis; Tricia Pannier<br> Email: [redacted]

Holder:

BARRICK GOLD U.S. INC.

c/o Barrick Gold of North America, Inc.<br> 310 S. Main Street, Suite 1150<br> Salt Lake City, Utah 84101

Attention: Michael McCarthy, General Counsel (North America)<br> Email: [redacted]

With a copy (which shall not constitute notice) to:<br> Barrick Mining Corporation<br> Brookfield Place<br> TD Canada Trust Tower<br> 161 Bay Street, Suite 3700<br> P.O. Box 212<br> Toronto, Canada M5J 2S1

Attention: General Counsel<br> Email: [redacted]

12. *Amendment.* Any term of this Note may be amended only if agreed to in writing by Maker and Holder.

13. *Parties in Interest; Assignment.* This Note shall be binding upon and enure to the benefit of Maker and Holder and their respective successors and assigns. Neither Maker nor Holder may assign this Note or its rights and interests herein to any person without the express written consent of the other.

14. *Counterparts; Execution and Delivery by Facsimile.* A copy of this Note manually executed by Maker hereto and transmitted to Holder by facsimile or other electronic means shall have the same effect for delivery purposes as the delivery of a manually executed copy to the recipient.

15. *Holder's Rights Cumulative.* The rights or remedies of Holder as provided in this Note and the Security Documents are cumulative and concurrent, and may be pursued singly, successively or together against Maker, and any other funds, property or security held by Holder for payment hereof or otherwise is at the absolute discretion of Holder.

16. *Time of the Essence.* Maker agrees that time is of the essence in the performance and payment of all obligations under the terms of this Note.

17. *Amendment and Restatement.* The Maker and the Holder acknowledge and agree that as of the date hereof (i) the provisions of the Existing Note are amended, modified and restated in their entirety on the terms and conditions and in the form of this Note and, as so amended, modified and restated, are ratified and confirmed; and (ii) the Amount Payable (as that term is defined in the Existing Note) and any other amounts outstanding under the Existing Note prior to the date hereof shall continue to be outstanding under this Note as evidence of the same underlying indebtedness and shall be deemed to be the Amount Payable owing by the Maker to the Holder under this Note and all rights, obligations and indebtedness which have arisen and remain outstanding under the Existing Note as of the date hereof shall, subject only to the effect of the amendments and modifications to the Existing Note effected by this Note, continue in full force and effect as rights, obligations and indebtedness under this Note, all in accordance with and subject to the provisions herein set forth.

#### [Remainder of Page Left Blank]

IN WITNESS WHEREOF, Maker has executed and caused this Note to be issued as of the date first above written.

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| | | |
|:---|:---|:---|
| **Witness:** |  | **NOVAGOLD RESOURCES ALASKA, INC.** |
| */s/ Tricia Pannier* | By: | */s/ Peter Adamek* |
| Tricia Pannier | Title: | Vice President and Treasurer |

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Signature Page – Note

***Execution Version***

#### Exhibit A<br> Security Agreement
**[see attached]**

#### Exhibit B<br> financing statement
**[see attached]**

#### Exhibit C<br> form of compliance certificate
Date:

Barrick Gold U.S. Inc., as Holder<br> c/o Barrick Gold of North America Inc.<br> 310 S. Main Street, Suite 1150<br> Salt Lake City, Utah 84101

Attention: Michael McCarthy, General Counsel (North America) <br> Email: [redacted]

Dear Sirs/Mesdames:

Re: NovaGold Resources Alaska, Inc. (the "*Maker*") <br> [Calendar Quarter, Calendar Year] ended _________________.

I, ________________________, in my capacity as ____________________________ of the Maker, hereby certify on behalf of the Maker and without personal liability that:

1. I am familiar with and have examined the provisions of the Second Amended and Restated Secured Promissory
Note, made June 3, 2025, by the Maker (as amended, restated, supplemented and otherwise modified from time to time the "*Note* ")
and have made such reasonable investigations of corporate records and reasonable inquiries of other officers and senior personnel of the
Maker as are sufficient to enable me to make informed statements herein.

2. Based on the foregoing and as of the date of this certificate, the Maker is in compliance with the obligations
in Section 6 of the Note.

3. Based on the foregoing, no breach of the covenants in Section 6 of the Note occurred in the immediately preceding
quarter or, as of the date of this certificate, is continuing.

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| |
|:---|
| Yours truly, |
| **NOVAGOLD RESOURCES ALASKA, INC.** |
| by ___________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: |
| &nbsp;&nbsp;&nbsp;&nbsp;Title: |

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#### Exhibit D<br> Determination of net proceeds
1. *Net Proceeds*. For purposes of the Note to which this Exhibit D is attached, "*Net Proceeds*" means the amount calculated by deducting from the gross revenues realized (or deemed to be realized) from the sale (or deemed sale) of Products, such costs and expenses (both of an operating and capital nature) attributable to Exploration, Development, Mining, and the marketing of Products as would be deductible under GAAP and practices consistently applied as employed by the Company, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All costs and expenses of replacing, expanding, modifying, altering or changing from time to time the
mining, milling and processing facilities. Costs and expenses of improvements (such as haulage ways or mill facilities) that are also
used in connection with workings other than the Properties shall be charged to the Properties only in the proportion that their use in
connection with the Properties bears to their total use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Ad valorem real property and unsecured personal property taxes, and all taxes, other than income taxes,
applicable to Mining on the Properties, including without limitation all state mining taxes, sales taxes, severance taxes, royalties,
license fees and governmental levies of a similar nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Allowance for overhead in accordance with the Accounting Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All expenses incurred relative to the sale of Products, including an allowance for commissions at rates
which are normal and customary in the industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All amounts payable to the remaining Member during Mining pursuant to any applicable operating or similar
agreement in force with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The actual cost of investment prior to beginning of Mining which shall include all expenditures for Exploration
and Development of the Properties incurred by the nonresigning Member subsequent to the resigning Member acquiring a Net Proceeds interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Interest on monies borrowed or advanced for costs and expenses, at an annual rate equal to two percentage
points (2%) above the Prime Rate, but in no event in excess of the maximum permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) An allowance for reasonable working capital and inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Costs of funding Environmental Compliance as provided in the Accounting Procedure, to the extent not otherwise
deducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Actual costs of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Rental, royalty, production, and purchase payments.

It is intended that the remaining Member shall recoup from net cash flow all of its contributions for Exploration, Development, Mining, and marketing Products before any Net Proceeds are distributed to any Person holding the right to receive a payment of Net Proceeds. No deduction shall be made for income taxes, depreciation, amortization or depletion. If in any year after the beginning of Mining of the Properties an operating loss relative thereto is incurred, the amount thereof shall be considered as and be included with outstanding costs and expenses and carried forward in determining Net Proceeds for subsequent periods. If Products are processed by the remaining Member, or are sold to an Affiliate of the remaining Member, then, for purposes of calculating Net Proceeds, such Products shall be deemed conclusively to have been sold at a price equal to fair market value to arm's length purchasers FOB (as defined in Incoterms 2020) the Properties, and Net Proceeds relative thereto shall be calculated without reference to any profits or losses attributable to smelting or refining.

2. *Payment of Net Proceeds*. Payments of Net Proceeds shall commence in the Calendar Year next following the Calendar Year in which Net Proceeds are first realized, and shall be made 45 days following the end of each calendar quarter during which Net Proceeds are realized, and shall be subject to adjustment, if required, at the end of each Calendar Year.

3. *Definitions*. For purposes of this Exhibit D, the following terms shall have the meanings set out below. All other capitalized words and terms used herein but not defined above shall have the same meaning as in the Note to which this Exhibit D is attached.

"*Accounting Procedure*" shall mean the accounting procedure set forth in Exhibit B to the Limited Liability Company Agreement of the Company effective as of December l, 2007, by and among the Company, Maker and Holder, as amended by Amendment No. 1 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of January 13, 2010, as further amended by Amendment No. 2 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of July 15, 2010, as further amended by Amendment No. 3 to Limited Liability Company Agreement of Donlin Creek LLC, dated as of June 1, 2011, without regard or reference to any further amendment, amendment and restatement or replacement thereof, or such other Accounting Procedures as may be approved by Holder in writing from time to time.

"*Development*" means all preparation for the removal and recovery of Products after the approval of a feasibility or other study adopted by the Company, including the construction or installation of a mill or any other improvements to be used for the mining, handling, milling, processing or other beneficiation of Products, but excludes permitting.

"*Environmental Compliance*" means action performed during or after Operations to comply with the requirements of all Environmental Laws or contractual commitments related to reclamation of the Properties or other compliance with Environmental Laws.

"*Exploration*" means all activities directed toward ascertaining the existence, location, quantity, quality or commercial value of deposits of Products.

"*Mining*" means the mining, extracting, producing, handling, milling or other processing of Products.

------

## Exhibit 99.1

**Exhibit 99.1**

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![](logo.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![](header.jpg) |

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**NOVAGOLD AND PAULSON ADVISERS COMPLETE** 

**$1 BILLION ACQUISITION OF BARRICK MINING'S 50% INTEREST IN DONLIN GOLD**

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| | |
|:---|:---|
| Ø | **Paulson Advisers acquires a 40% ownership interest in Donlin Gold** |

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| | |
|:---|:---|
| ⮚ | **NOVAGOLD increases ownership interest in Donlin Gold from 50% to 60%** |

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| | |
|:---|:---|
| ⮚ | **Financial public offering and concurrent private placement raised sufficient funding for NOVAGOLD's acquisition and for the Donlin Gold Feasibility Study update** |

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*All amounts are in U.S. dollars unless otherwise stated*

**June 3, 2025 – Vancouver, British Columbia – NOVAGOLD RESOURCES INC.** ("NOVAGOLD") (NYSE American, TSX: NG) and **Paulson Advisers LLC** ("Paulson") are pleased to announce the successful closing of their previously disclosed acquisition of Barrick Mining Corporation's ("Barrick's") 50% interest in the Donlin Gold project, establishing new ownership of Donlin Gold LLC to advance the Donlin Gold project in Alaska.

At closing, NOVAGOLD acquired an additional 10% in Donlin Gold LLC for $200 million — increasing its stake to 60% — while Paulson secured a 40% interest in Donlin Gold LLC for $800 million. NOVAGOLD and Paulson entered into a new limited liability company agreement governing Donlin Gold with equal governance rights.

"Today we completed the successful and strategic Donlin Gold transaction through a strong collaborative effort between NOVAGOLD, Paulson, and Barrick since announcing the transaction on April 22, 2025," said Greg Lang, NOVAGOLD's President and CEO. "This constitutes a truly transformational transaction and an exciting new chapter for Donlin Gold as we advance one of the best and most jurisdictionally attractive gold development projects in the world. We look forward to providing updates on the key milestones in the coming months, starting with our revamped and determined efforts regarding the Feasibility Study workstream."

As of March 1, 2025, pro forma the upsized public offering and private placement which closed on May 9, 2025, NOVAGOLD had $327M to fund the acquisition of the additional 10% stake in Donlin Gold LLC and the Company's share of ongoing activities at Donlin. NOVAGOLD has opted not to prepay the outstanding debt owed to Barrick in connection with the Donlin Gold project for $90 million upon closing, but it retains the option to prepay the outstanding debt for $100 million within 18 months from closing, when the option expires. If that option is not exercised, the debt, currently valued at $158.9 million as of June 3, 2025, will remain outstanding, substantially in accordance with its existing terms (U.S. prime plus 2% compounded semi-annually).

In coordination with Paulson, a strategic review of the Donlin Gold 2025 budget ($43 million on a 100% basis) will be completed while advancing the following activities:

Ø Commencing the workstream to update the Feasibility Study<sup>1</sup>, including assembling a specially dedicated team to advance these efforts;

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| | |
|:---|:---|
| ⮚ | Executing the 2025 drill program focused on the conversion and expansion of reserves and resources, with both partners committed to exploring for new resources along strike and to depth in future campaigns; |

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<sup>1</sup> The updated Feasibility Study/Technical Report will be compliant with NI 43-101 and S-K 1300.

Ø Advancing the technical work and engineering designs;

⮚ Supporting state permitting efforts and maintaining existing federal and state permits in good standing, including government affairs engagement with federal and state representatives; and

Ø Collaborating on ongoing stakeholder outreach and investment initiatives in Alaska.

**About NOVAGOLD**

NOVAGOLD is a precious metals company focused on the development of the Donlin Gold project. Located in Alaska, one of the safest mining jurisdictions in the world, the Donlin Gold project is regarded as one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world.

**About Paulson**

Paulson is a private global investment management advisory firm based in Palm Beach, Florida.

**NOVAGOLD Contacts:**

Mélanie Hennessey

Vice President, Corporate Communications 604-669-6227 or 1-866-669-6227

Frank Gagnon

Manager, Investor Relations

778-990-0299 or 1-866-669-6227

**Paulson Contact:**

Michael McKeon

mmckeon@actumllc.com

**Cautionary Note Regarding Forward-Looking Statements**

*This media release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the anticipated benefits of the transaction with Paulson, NOVAGOLD's anticipated expenditures and anticipated plans for the new partnership and Donlin following the completion of the transaction, statements regarding the permitting, potential development, exploration, construction and operation of Donlin Gold and statements relating to NOVAGOLD's future operating and financial performance and production estimates. Such information is intended to assist readers in understanding NOVAGOLD's current expectations and plans relating to the future. Such information may not be appropriate for other purposes. Forward-looking statements are frequently, but not always, identified by words such as "expects", "continue", "ongoing", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", "would" or "should" occur or be achieved. Forward-looking statements are necessarily based on several opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements include statements regarding plans for and anticipated timing a new feasibility study on the Donlin Gold project; plans for and anticipated timing of a strategic review of Donlin Gold's 2025 budget our goals and planned activities for 2025; anticipated timing of milestone and project updates; ongoing support provided to key stakeholders including Native Corporation partners; Donlin Gold's continued support for the state and federal permitting process; sufficiency of working capital; the potential development and construction of the Donlin Gold project; the timing and ability for the Donlin Gold project to hit critical milestones; the ability for the Tier One gold development project to hit the anticipated projections; the sufficiency of funds to continue to advance development of Donlin Gold, including to a construction decision; perceived merit of properties; mineral reserve and mineral resource estimates; Donlin Gold's ability to secure the permits needed to construct and operate the Donlin Gold project in a timely manner, if at all; legal challenges to Donlin Gold's existing permits and the timing of decisions in those challenges; plans to continue to advance the Donlin Gold project safely, socially responsibly and to sustainably generate value for our stakeholders; continued cooperation between the owners of Donlin Gold LLC to advance the project; NOVAGOLD's ability to deliver on its strategy with the Donlin Gold project; the success of the strategic mine plan for the Donlin Gold project; the success of the Donlin Gold community relations plan; the anticipated outcome of exploration drilling at the Donlin Gold project and the timing thereof; the completion of test work and modeling and the timing thereof. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not historical facts but instead represent the expectations of NOVAGOLD management's estimates and projections regarding future events or circumstances on the date the statements are made. Important factors that could cause actual results to differ materially from expectations include failure to satisfy or waive the closing conditions to the transaction; the need to obtain additional permits and governmental approvals; the timing and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to complete an updated feasibility study and to explore and develop properties and availability of financing in the debt and capital markets; disease pandemics; uncertainties involved in the interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and exploration successes; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States or Canada; the need for continued cooperation between the owners of Donlin Gold LLC to advance the project; the need for cooperation of government agencies and Native groups in the development and operation of properties; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, disease pandemics, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases, which could include significant increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; whether or when a positive construction decision will be made regarding the Donlin Gold project; and other risks and uncertainties disclosed in NOVAGOLD's most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained by visiting NOVAGOLD's website at www.novagold.com, or the SEC's website at www.sec.gov, or on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.*