Novo Resources Corp. (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to advise that it has closed the second and final tranche of its previously announced sale of 15 million shares of New Found Gold Corp.¹. In the second tranche, Novo sold a total of 6.75 million escrowed New Found shares to a corporation controlled by Eric Sprott at C$8.45 per share for gross proceeds of approximately C$57.0 million. Inclusive of the gross proceeds raised from the sale of 8.25 million New Found shares sold to Sprott at C$8.35 per share in the first tranche¹, gross proceeds of approximately C$125.9 million have been raised from the Transaction.

Novo’s consolidated unaudited cash position is currently approximately C$126.4 million. After-tax proceeds from the Transaction will continue to be used to provide Novo with the flexibility to aggressively advance its exploration programs across the Pilbara and Victoria, Australia, while expediting a feasibility study on the Fresh component of the Company’s Beatons Creek project in Nullagine, Western Australia².

Sprott Resource Lending Corp., Novo’s senior secured lender, waived any event of default which was triggered by Novo’s recent operational pause at its Beatons Creek project in Western Australia³ in anticipation of full repayment of the US$40 million (currently approximately C$51.4 million) senior secured credit facility in August 2022 subsequent to completion of the Transaction. Novo will use the net proceeds from Tranche 2, in part, to repay the Credit Facility in full and will provide an update once repayment has been made leaving Novo free of long-term debt.

Update on Beatons Creek Fresh Approval

The Company also advises that the Western Australian Environmental Protection Authority’s decision to not assess the Company’s submission regarding the Fresh mineralization component of Beatons Creek⁴ has been appealed by a local proponent who is seeking to address a limited number of questions relating to potential impacts to groundwater in the Nullagine area. The Company has all technical information readily available to confidently address these questions and is preparing a response to this appeal and expects to resolve it in due course. Importantly, in the case of an appeal against a decision by the EPA to not assess a proposal, the original decision not to assess stands until the appeal is determined. As such, the Company will continue to engage with the Western Australian Department of Mines, Industry Regulation and Safety to seek approval to mine the Beatons Creek Fresh mineral resource and expects to make a final investment decision post receipt of results of the feasibility study³.

QP STATEMENT

Dr. Quinton Hennigh (P.Geo.) is the qualified person, as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects, responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is the non-executive co-chairman and a director of Novo.

ABOUT NOVO

Novo operates its flagship Beatons Creek project while exploring and developing its prospective land package covering approximately 11,000 square kilometres in the Pilbara region of Western Australia. In addition to the Company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders.