THE CANADIAN PRESS

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VANCOUVER, B.C. - NovaGold Resources Inc. (TSX:NG) says a proposed Ontario class action lawsuit against the company and certain directors and officers has not yet been filed, and that it disputes all claims.

The Vancouver-based mining company was responding Thursday to shareholder litigation announced last week against the company seeking more than $100 million in damages.

The suit alleges misrepresentation of the true cost of NovaGold's now-stalled Galore Creek copper-gold project in British Columbia.

NovaGold said a statement of claim regarding the "purported class action lawsuit" has not yet been filed.

"NovaGold disputes all of these claims and believes that it has substantial and meritorious legal and factual defenses, which the company intends to pursue vigorously," the company stated.

Law firm Sutts, Strosberg LLP announced the notice of action last week on behalf of all Canadian investors who acquired NovaGold shares from Oct. 25, 2006 to Jan. 16, 2008.

Besides NovaGold, the defendants include the consulting firm that provided a 2006 feasibility study that said the mine could be built for about US$1.8 billion, and several individuals including NovaGold's CEO and directors at the time.

Galore Creek is now a 50-50 joint venture with Teck Resources Ltd (TSX:TCK.B), which became a partner in 2007 when it agreed to share the cost of developing the copper-gold deposit. Teck is not listed as a defendant.

NovaGold said in Oct. 17, 2007, that it expected a "significant" increase to the estimated capital cost of Galore Creek and the following month the project was halted when a review found the project could cost up to $5 billion.

On Jan. 16, 2008, Novagold and Teck announced the appointment of a new management team for Galore Creek.

The allegations are similar to those contained in a prior U.S. shareholder action.

Some of those claims were dismissed in June and NovaGold said it disputes the claims that remain and intends to "contest the action vigorously."

If recognized by the Ontario Superior Court as a class action, any settlement would be made on behalf of investors across Canada who bought NovaGold shares. They don't need to be involved in the litigation process.