Dr. Quinton Hennigh reports

NOVO ANNOUNCES FIRST RESULTS FROM OXIDE RESOURCE DRILLING PROGRAM AND DISCUSSES MINING CONCEPT FOR BEATONS CREEK

Novo Resources Corp. has released initial assay results from recent drilling at its Beatons Creek gold project near Nullagine, Western Australia. Novo drilled approximately 9,000 metres in 327 reverse circulation drill holes in late 2014 as part of its program to define a shallow, oxide resource.

Intercepts include one m at 9.09 grams per tonne gold in hole BCRC14-080, one m at 11.32 g/t Au in hole BCRC14-117, three m at 2.79 g/t Au in hole BCRC14-125, four m at 2.27 g/t Au in hole BCRC14-126, two m at 8.12 g/t Au in hole BCRC-145 and three m at 2.59 g/t Au in hole BCRC14-148 (please see reverse circulation drill results table). Importantly, the aforementioned gold intercepts occur in thoroughly oxidized conglomerate horizons (reefs) within 10 m of surface. Reefs display good continuity across the target area indicating they can potentially be mined utilizing simple, inexpensive techniques and with reasonable predictability.

Recent metallurgical work indicates mineralized reef material is potentially amenable to simple, inexpensive gravity processing (please refer to the company's news release dated Dec. 10, 2014). Novo is currently focused on developing a resource comprising such reefs that can be quickly advanced to feasibility and development (please refer to multiple news releases from the latter half of 2014).

"We are extremely pleased with these drill results," commented Dr. Quinton Hennigh, president and chief executive officer of Novo Resources. "Not only are we seeing promising grades, but we can now also see good continuity of shallow, oxidized gold-bearing conglomerates over broad areas. Recent work has also demonstrated the potential for simple, low-cost mining techniques. Couple this with what we now know about the potential to treat this mineralized material utilizing inexpensive gravity recovery, we think we can develop a very cost-effective mining operation at Beatons Creek."

        REVERSE CIRCULATION DRILL RESULTS -- BEATONS CREEK OXIDE RESOURCE DRILLING

                                                      One kg    Three kg   Three kg screen
Hole              From        To        Length     LeachWell   LeachWell    metallic assay
                    (m)       (m)           (m)         (g/t)       (g/t)             (g/t)

BCRC14-001 to -008 awaiting full assay
BCRC14-009          15        16             1          1.17
BCRC14-010 to -012 awaiting full assay
BCRC14-013          36        37             1                      1.00              0.91
BCRC14-014 to -019 awaiting full assay
BCRC14-020          31        33             2          1.68
BCRC14-021          30        32             2          1.00
BCRC14-022 awaiting full         assay
BCRC14-023          32        33             1          2.11
BCRC14-024 to -026 awaiting full assay
BCRC14-027          20        21             1                      2.57
BCRC14-028          24        25             1                      2.40
BCRC14-029 and -030 awaiting full assay
BCRC14-031          28        31             3          1.42
BCRC14-032          26        27             1          1.38
BCRC14-033          30        31             1          1.83
BCRC14-034 and -035 awaiting full assay
BCRC14-036           9        11             2          1.00
BCRC14-037          11        12             1          1.25
BCRC14-038           1         3             2          1.76
BCRC14-039           1         2             1          1.90
BCRC14-040 to -063 awaiting full assay
BCRC14-064           1         2             1          1.54
BCRC14-065           6         7             1          1.71
BCRC14-066 to -072 awaiting full assay
BCRC14-073          13        14             1          1.69
BCRC14-074 to -079 awaiting full assay
BCRC14-080           5         6             1          9.09
BCRC14-081 awaiting full assay
BCRC14-082           9        11             2          1.01
BCRC14-083           1         2             1          3.36
                    16        18             2          1.12
BCRC14-084           0         1             1          0.76
                    15        16             1          0.92
BCRC14-085           8        10             2          1.90
BCRC14-086          10        12             2          1.22
BCRC14-087          12        13             1          2.19
BCRC14-088 to -113 awaiting full assay
BCRC14-114          25        26             1          1.76
BCRC14-115          24        25             1          0.92
BCRC14-116          17        18             1          1.33
BCRC14-117           9        10             1         11.32
BCRC14-118 to -124 awaiting full assay
BCRC14-125           6         9             3          2.79
                    22        23             1          1.31
BCRC14-126           2         6             4          2.27
                    19        21             2          1.29
BCRC14-127 to -138 awaiting full assay
BCRC14-139           4         6             2          3.16
BCRC14-140          15        16             1          1.51
                    19        20             1          1.53
BCRC14-141           0         1             1          1.10
BCRC14-142          14        15             1          1.95
BCRC14-143           7         9             2          2.45
BCRC14-144           4         5             1          1.80
                    22        23             1          4.57
BCRC14-145           7         9             2          8.12
BCRC14-146 and -147 awaiting full assay
BCRC14-148           2         5             3          2.59
                    17        18             1          1.03

All samples analyzed utilizing a one-kilogram LeachWell technique will be reanalyzed
utilizing a three kg LeachWell and three kg metallic screen assay.

Due to the very large size of reverse circulation drill samples, laboratory preparation has been exceedingly slow. Novo has been working with Genalysis Laboratories on a way to quicken this process. The solution has been to take a one-kilogram split of drill cuttings and analyze them using the LeachWell technique, an accelerated CN leach (six-hour leach time). Most of the results reported in the nearby table were determined by this method. Samples containing appreciable gold are then subjected to the full analytic protocol and analyzed utilizing a three kg split subjected to the LeachWell technique (24-hour leach time). A second three kg split is subjected to screen metallic fire assay. Conducting the latter two analyses on large, three kg splits is critical to adequately quantify gold content in the highly nuggety mineralized material from Beatons Creek. Turnaround time has improved in recent weeks, and further results should be available shortly.

Mining concept

Novo has begun to evaluate cost-effective mining techniques for its upcoming feasibility study of shallow, oxidized, gold-bearing conglomerates. Conventional mining requires drilling and blasting, both of which contribute much to overall mining costs. Recent earthworks conducted as part of Novo's drilling and trenching program have provided valuable insight into the behaviour of rock at Beatons Creek. Due to the soft, heavily weathered nature of these rocks and the tendency for matrix material to break away from boulder clasts, it appears that drilling and blasting will not be required. This could prove to be a significant cost savings.

Due to the hilly topography at Beatons Creek, it is envisioned that overburden material can be disposed of in low areas adjacent to mining sites. This will eliminate the need to haul waste material, another potential savings to overall mining costs.

Using simple equipment such as an excavator with a flat-edged bucket, gold-bearing conglomerates can be selectively mined thus reducing dilution and, thus, helping maintain higher grades. Costs of this type of mining are anticipated to be low.

Novo is planning to seek permits to undertake mining of small-scale benches as part of its feasibility-level work. By doing so, the company hopes to gather further information needed to evaluate the effectiveness of these mining techniques as well as their costs. This work is expected to take place in April once all assay results have returned.

Deep drill hole update

Core from a recently completed deep drill hole has been logged, sawn and sampled (please refer to the company's news release dated Dec. 10, 2014, for further details). Assays from this hole are expected over the next couple weeks.

Quality assurance/quality control

Reverse circulation drilling discussed in this news release was conducted under the supervision of Dr. Quinton Hennigh, Novo's chief executive officer, president and director. Drill samples were submitted to Genalysis Laboratories, Perth, Western Australia, for analysis. Sample weights range from approximately 15 to 20 kg. A one kg split was taken from each drill sample and subjected to the LeachWell technique, an accelerated CN leach (six-hour leach time). Most of the analyses reported in the table accompanying this news release were analyzed by this method; however, a few samples from holes BCRC14-013, BCRC14-027 and BCRC14-028 were analyzed utilizing a three kg split subjected to the LeachWell technique (24-hour leach time). One sample from hole BCRC14-013 was also analyzed by screen metallic assay on a three kg split. Due to the nugget nature of gold mineralization at Beatons Creek, all gold-bearing samples from this drill program will ultimately be analyzed utilizing a three kg split by the LeachWell technique and by utilizing a three kg split by screen fire assay. Results from the latter two types of analysis are expected to demonstrate acceptable sample variability and thus will be used for resource modelling.

Dr. Quinton Hennigh, the company's chief executive officer, president and director, a qualified person as defined by National Instrument 43-101, has approved the technical contents of this news release.

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