Mr. Michael Spreadborough reports

MECHANICAL SORTING PROGRAM UPDATE

Novo Resources Corp. has provided an update on its mechanical sorting program.

Phase 2 trial

The phase 2 mechanical sorting trial has been completed, with samples from Comet Well, Purdy's Reward and Egina processed through the sorter which was assembled adjacent to the Golden Eagle processing plant at the Nullagine gold project.

The phase 2 trials represent a culmination of four years of test work conducted by Novo to determine the amenability of mechanical sorting across its 11,000 square kilometres of Pilbara tenure in Western Australia.

The phase 2 trial involved 33 samples, primarily from the Comet Well and Purdy's Reward tenements, which were processed though the sorter. The Comet Well and Purdy's Reward samples were taken from areas peripheral to the main mineralized zone representing lower-grade tenor material and contained approximately 145 tonnes of bulk sample material. Concentrates from each sample were collected in their entirety and the tails or rejects stream was subsampled and sent for assay via Chrysos photonassay.

The phase 2 trial confirmed that the mass pull to concentrate averaged 1.05 per cent for lower-grade tenor material, which aligns with previously collected results from higher-grade lab-scale test work. Preliminary phase 2 results are outlined in the attached table.

Phase 3 trial

Following completion of the phase 2 trial, the sorter was scheduled to be transported to Comet Well for the phase 3 trial, which is designed to process up to 20,000 tonnes of potentially mineralized material from the Comet Well and Purdy's Reward projects.

Detailed project planning has confirmed that the expected cost of the phase 3 trial has significantly increased from earlier estimates. Work completed as part of the project plan development confirms the nuggety nature of the Comet Well and Purdy's Reward mineralization and the difficulty in confirming gold inventory. The use of the sorter to complete processing of a test parcel of potentially mineralized material remains the most appropriate means of determining potential gold deposition and project economics, and it is expected that the phase 3 trial will assist with establishing a modest mineral inventory for the Comet Well and Purdy's Reward projects.

Following the production pause at Beatons Creek and requirement to direct immediate attention toward development of the fresh mineral resource, along with exploration across high-potential Pilbara-wide targets in the short to medium term, the Novo board of directors has made the decision to defer the phase 3 trial at Comet Well until the first half of calendar year 2023. Novo's sorter project team has been reassigned to assist with the Beatons Creek fresh feasibility study.

Novo is dedicated to prioritizing resources to deliver key workstreams at the Beatons Creek fresh mineral resource, including completion of the feasibility study, upgrading the current fresh mineral resource, and continued resource and extensional drilling to expand potential for life-of-mine operations. Additionally, Novo is also focused on aggressively advancing the high-potential exploration targets at Becher for gold in the Egina district and at Purdy's North for nickel in the West Pilbara district.

Commenting on the mechanical sorting update, executive co-chairman, acting chief executive officer and director Mike Spreadborough said: "While we are disappointed to defer the phase 3 trial at Comet Well, all work to date shows that innovative use of sorting technology for the Comet Well and Purdy's Reward projects is expected to generate positive results. Our immediate focus is on delivering shareholder value through the plan we outlined for phase 2 operations at Beatons Creek.

"We have a very busy second half planned and once we complete those various workstreams, we will reconsider the timing of the phase 3 trial at Comet Well and make a decision on the path forward."

Sample preparation, assaying and quality assurance/quality control

Concentrate samples from the sorter were collected in their entirety. The tails or rejects stream was subsampled at regular intervals manually. This was achieved by placing a container through the full width of the sample stream as it transferred by gravity from one conveyor belt to another. A composite of approximately 20 kilograms from the rejects stream was collected across the sample run. All samples and subsamples were then weighed (wet), recorded and submitted for transport to Intertek's mineral laboratory in Maddington, Western Australia.

On sample receipt at Intertek Maddington, all samples and subsamples were dried for 24 hours. They were then fed through a smart crusher, where their material particle size was reduced to P90 minus three millimetres. The crushed concentrate and reject samples were then placed into Chrysos photonassay pots. The pots were then assayed in their entirety by Chrysos photonassay. Chrysos photonassay is a non-destructive method, based on technology that measures gold concentration via X-ray excitation to produce gamma rays. Intertek Chrysos photonassay is NATA accredited (3244) via ISO/IEC 17025 (2017) for method PA W0002. Program design, quality assurance/quality control and interpretation of results is performed by qualified persons employing quality control analysis consistent with industry best practices. Chrysos photonassay certified CRMs (certified reference materials) and blanks are included at a rate of one in 40 samples for QC purposes by Intertek, the results of which are provided to Novo. Novo does not know of any factors of sampling that could materially affect the accuracy or reliability of the assay data disclosed.

All data were verified without limitation by a qualified person by reviewing analytical procedures undertaken.

QP statement

Dr. Quinton Hennigh (PGeo) 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.

Cautionary statement

The decision by the company to produce at the Beatons Creek project was not based on a feasibility study of mineral reserves demonstrating economic and technical viability and, as a result, there is an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially minable deposit. Production has not achieved forecast to date. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the company's cash flow and future profitability.

The company cautions that its declaration of commercial production effective Oct. 1, 2021, only indicates that Beatons Creek was operating at anticipated and sustainable levels and it does not indicate that economic results will be realized.

About Novo Resources Corp.

Novo operates its flagship Beatons Creek gold 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.

We seek Safe Harbor.