Dr. Quinton Hennigh reports

NOVO EXTENDS THE GOLD SPEC SHOOT AT ITS BLUE SPEC GOLD-ANTIMONY PROJECT, WESTERN AUSTRALIA

Novo Resources Corp. has released new assay results from its 100-per-cent-controlled Blue Spec gold-antimony project in Western Australia. All holes discussed in this news release were drilled using either a truck-mounted or track-mounted reverse circulation drill and targeted areas around the Gold Spec high-grade shoot, areas between the Blue Spec and Gold Spec high-grade shoots, and a wildcat target called Pros Spec located approximately 11 kilometres east of the Blue Spec mine.

Expansion of Gold Spec

Hole 16BSDH033, a south-oriented hole drilled at minus 70 degrees, encountered 35.9 grams per tonne gold over four metres, including a narrower high-grade interval of 138.4 grams per tonne gold over one metre at a depth of approximately 20 metres below and east of the bottom of the Gold Spec high-grade shoot (please refer to the attached table of significant drill results). Repeat assays returned 41.7 grams per tonne gold and 161.5 grams per tonne gold from the longer and shorter intervals, respectively. True width of the vein is estimated at approximately 30 per cent to 35 per cent of the reported drill intercept length.

             SIGNIFICANT DRILL RESULTS FROM GOLD SPEC DEPOSIT                             

Hole No.         From         To     Length         Au    Au repeat        Sb 
                   (m)        (m)        (m)      (g/t)        (g/t)       (%)

16BSDH033       358.0      362.0        4.0       35.9         41.7      0.12  
Including       359.0      360.0        1.0      138.4        161.5      0.02  
16BSDH038       385.0      419.0       34.0        2.5          2.5      0.72  
Including       405.0      417.0       12.0        5.2          5.2      1.96  
Including       405.0      408.0        3.0        6.6          6.8      0.44  
Including       409.0      410.0        1.0        3.5          N/A     18.12 
Including       411.0      414.0        3.0        6.6          N/A      0.35

The high-grade intercept in 16BSDH033 is similar to one in historic hole BSD0002 (situated 45 metres above and west), which graded 254 grams per tonne gold over 0.7 metre. The robust intercept in 16BSDH033 suggests that a possible explanation for the lack of a significant gold intercept in nearby hole 16BSDH028 (please see the company's press release dated Nov. 29, 2016) might be that the latter hole simply failed to pierce the targeted vein.

Hole 16BSDH038, a south-oriented hole drilled at minus 72 degrees, encountered 5.2 grams per tonne gold and 1.96 per cent antimony over 12 metres at a depth of approximately 20 metres below hole 16BSDH034 (please see the company's press release dated Nov. 29, 2016) and fully 70 metres below the known deposit. A high-grade antimony intercept of 18.12 per cent antimony over one metre is included within this longer interval. Given that holes immediately above 16BSDH038 do not contain such high-grade antimony, Novo thinks that a new gold-antimony zone is developing at depth, potentially similar to that at the Blue Spec deposit approximately 1.4 kilometres east. Further drilling is required to verify this possibility.

"We are very pleased to see the Gold Spec high-grade shoot continue to expand," commented Dr. Quinton Hennigh, president, chief executive officer and a director of Novo Resources. "The very high-grade antimony present in hole 16BSDH038 appears to be similar to that found in the high-grade Blue Spec shoot and may be telling us a new system is coming together at depth. We look forward to drill testing this possibility in 2017."

Pros Spec discovery

Five wildcat holes targeted an area called Pros Spec approximately 11 kilometres east of the Blue Spec mine. The easternmost of these holes, 16PSDH001, a north-oriented hole drilled at minus 65 degrees, encountered one gram per tonne gold over 54 metres (hole ended in mineralization), including a higher-grade interval of 3.5 grams per tonne gold over six metres.

   SIGNIFICANT DRILL RESULTS FROM PROS SPEC HOLE 16PSDH001  
             
Hole No.        From        To       Length        Au       As 
                  (m)       (m)          (m)     (g/t)      (%)

16PSDH001        0.0      54.0         54.0       1.0     0.18  
Including       45.0      51.0          6.0       3.5     0.74  

Stockwork quartz veins and elevated arsenic values accompany mineralization, a style resembling that in gold deposits at Golden Gate, an area encompassing several open-pit mines operated by Millennium Minerals Ltd. located about two kilometres east of Pros Spec.

The other four holes drilled at Pros Spec, all situated west of 16PSDH001, encountered isolated one-to-three-metre intervals of anomalous gold grading 0.1 gram per tonne to 0.4 gram per tonne. Mineralization is open to the east of hole 16PSDH001, and, over the next few weeks, Novo plans to undertake field exploration looking for extensions of this newly discovered zone.

Between Blue Spec and Gold Spec

Five holes drilled on 50-metre spacing, each south-oriented and drilled at minus 60 degrees, tested the Blue Spec shear zone in areas between the Gold Spec and Blue Spec high-grade shoots.

• Hole 16BSDH020, collared 300 metres east of Gold Spec, encountered three grams per tonne gold over one metre at approximately 150 metres vertical depth.
• Hole 16BSDH019, collared 50 metres east of 16BSDH020, encountered 0.4 gram per tonne gold over four metres at approximately 230 metres vertical depth.
• Hole 16BSDH017, collared 50 metres east of 16BSDH019, encountered 0.8 gram per tonne gold over two metres at approximately 210 metres vertical depth.
• Hole 16BSDH018, collared 50 metres east of 16BSDH017, encountered 2.9 grams per tonne gold over one metre at approximately 130 metres vertical depth. A 48-metre-long zone of elevated antimony (202 parts per million) was also encountered starting at a downhole depth of 211 metres.
• Hole 16BSDH014, collared 50 metres east of 16BSDH017, did not encounter significant gold values, but did intercept a 55-metre-long zone of elevated antimony (230 parts per million) starting at a downhole depth of 192 metres.

Although these five holes did not encounter economic gold mineralization, elevated gold and antimony intercepts indicate ore-bearing fluids exploited the shear zone in this area. The long intervals of elevated antimony in holes 16BSDH014 and 16BSDH018 are similar to what is observed around the periphery of the high-grade Blue Spec deposit and may indicate the presence of a nearby mineralized zone. Blue Spec is 450 metres east of 16BSDH014. Novo thinks potential remains to discover blind shoots in this area.

Novo will continue to announce results from the Blue Spec drill campaign as they become available over the next few weeks.

Reverse circulation samples were submitted to Genalysis Laboratory in Perth, Australia. All samples were analyzed utilizing a 50-gram pulp subjected to fire assay with an atomic absorption finish. Overlimit samples (greater than 10 grams per tonne gold) were reanalyzed by fire assay with a gravimetric finish. Antimony was analyzed by ICP-MS following three-acid digestion.

Dr. Quinton Hennigh, PhD, PGeo, is the qualified person pursuant to National Instrument 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is president, chief executive officer and a director of Novo Resources.

About Novo Resources

Indirect subsidiaries of Novo hold a 100-per-cent interest in the Beatons Creek gold project, a 70-per-cent interest in properties surrounding Beatons Creek and Marble Bar, a 100-per-cent interest in the Blue Spec gold-antimony project, as well as options covering approximately 400 square kilometres over the Mosquito Creek basin, all in the Pilbara region in Western Australia. Novo also controls a 100-per-cent interest in approximately two square kilometres covering much of the Tuscarora gold-silver vein district in Nevada.

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