Mr. Craig Nelmes of De Grey reports

DE GREY MINING LTD. ANNOUNCES INCREASED INVESTMENT IN NOVO RESOURCES CORP.

On June 28, 2023, De Grey Mining Ltd. acquired 35,223,670 common shares in the capital of Novo Resources Corp. pursuant to settlement of a non-brokered private placement transaction.

Pursuant to the private placement, Novo Resources issued to De Grey an aggregate of 35,223,670 common shares at a price of approximately 25.5 cents per common share for aggregate gross proceeds of approximately $8.97-million/$10-million (Australian).

Prior to the closing of the financing, De Grey owned, directly or indirectly, or exercised control or direction over 50,116 common shares. The 50,116 common shares held by De Grey represented approximately 0.001 per cent of the total number of issued and outstanding common shares on a non-diluted basis, prior to the financing.

After the completion of the financing, De Grey now owns, directly or indirectly, or exercises control or direction over, 35,273,786 common shares. The 35,273,786 common shares now held by De Grey represent approximately 11.6 per cent of the total number of issued and outstanding common shares on a non-diluted basis, resulting in an approximate 11.599 per cent change to De Grey's common share holdings on a non-diluted basis.

De Grey's acquisition of common shares pursuant to the financing was made for investment purposes. In accordance with applicable securities laws, De Grey may, from time to time and at any time, evaluate its investment in Novo Resources and acquire additional shares and/or other equity, debt or other securities or instruments of Novo Resources in the open market, pursuant to the participation right granted by Novo Resources to De Grey or otherwise, and reserves the right to dispose of any or all of its securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the securities, the whole depending on market conditions, the business and prospects of Novo Resources and other relevant factors.

Pursuant to the terms of the subscription agreement entered into between De Grey and Novo Resources for the common shares issued under the financing, commencing on Dec. 28, 2023, and subject to De Grey maintaining at least a 12.5-per-cent undiluted interest in Novo Resources at all times, De Grey has a one-time right to nominate a director to the board of directors of Novo Resources. However, if Novo Resources has not received a formal listing decision letter from Australian Securities Exchange Ltd. regarding its proposed dual listing by Dec. 28, 2023, the nomination threshold will decrease to 10 per cent.

The subscription agreement also grants De Grey the right to participate in any financing of Novo Resources conducted in conjunction with an Australian Stock Exchange listing such that De Grey holds up to a maximum undiluted post-financing interest of 12.5 per cent of Novo Resources.

De Grey and Novo Resources entered into a binding heads of agreement dated June 21, 2023 (HOA), that identifies the material terms of the proposed Egina joint venture pursuant to which De Grey will spend up to $25-million (Australian) on exploration of Novo Resources' Becher gold project and adjacent tenements. The HOA was conditional upon closing of the financing within 10 business days from the execution of the HOA.

A copy of the early warning report filed in connection with this matter is available under Novo Resources profile on SEDAR.

We seek Safe Harbor.