Mr. Quinton Hennigh reports

MECHANICAL SORTING TESTS RESULT IN SIGNIFICANT UPGRADES AT NOVO'S BEATON'S CREEK PROJECT

Novo Resources Corp. has recently conducted laboratory-scale mechanical sorting tests on Beaton's Creek bulk sample material at Steinert Global's Bibra Lake and Canning Vale testing facilities in Perth, Western Australia. Initial test results are discussed in this news release.

Highlights

Nuggety gold occurring in Beaton's Creek conglomerates is finer grained (generally subone millimetre) than gold at Novo's Egina and Karratha projects (generally over one mm). Nonetheless, initial laboratory-scale tests indicate an upgrade of gold into significantly reduced mass is achievable.

Test work was conducted on a 2.8-tonne split of crushed (minus 50 mm) and screened Beaton's Creek bulk sample material. Analyses conducted as part of this sorting test work generated a calculated head grade of 5.72 grams per tonne Au for the bulk sample. The vast majority of gold reported to mechanically sorted concentrates in each of the three size fractions tested (please refer to attached summary). An impressive 90.2 per cent of gold was recovered in 54.5 per cent of the mass of the plus 18/minus 50 mm fraction, 68.8 per cent of gold was recovered in 42.4 per cent of the mass of the plus six/minus 18 mm fraction, and 95.5 per cent of gold was recovered in 20.3 per cent of the mass of the plus 2.3/minus six mm fraction. Material finer than 2.3 mm, comprising 17 per cent of the total mass of the bulk sample, was not tested due to excessive dust issues. Novo believes such material is treatable by means of gravity concentration.

Test results are considered indicative, and Novo and Steinert see additional opportunity to optimize sorting conditions and parameters that may result in further efficiencies. Nevertheless, these tests indicate robust potential for upgrading nuggety conglomerate gold mineralization, and perhaps, a broader spectrum of gold mineralization types.

A second 2.8-tonne split of the same bulk sample material has been delivered to TOMRA Sorting Pty. Ltd.'s mechanical sorting test facility in Castle Hill, New South Wales, where it will soon undergo similar testing utilizing various TOMRA mechanical sorters.

 
  
    SUMMARY OF MECHANICAL SORTING TEST RESULTS 
   FROM A 2.8-TONNE BEATON'S CREEK BULK SAMPLE
 
Starting material               Sorted fractions   

+18-50 mm  50.4%          % mass accepted: 54.5% 
                          % gold accepted: 90.2% 
                             
                          % mass rejected: 45.5% 
                          % gold rejected: 9.8% 
                                               
+6-18mm    26.2%          % mass accepted: 42.4% 
                          % gold accepted: 68.8% 
                          % mass rejected: 57.6% 
                          % gold rejected: 31.2% 
                                               
+2.3-6mm    6.4%          % mass accepted: 20.3% 
                          % gold accepted: 95.5% 
                          % mass rejected: 79.7% 
                          % gold rejected: 4.5% 
                                               
-2.3       17.0%                        Unsorted       

"We are highly encouraged by these initial results," commented Rob Humphryson, chief executive officer and director of Novo Resources. "We are already fully confident about the outcome of Egina mechanical sorting test work which demonstrated excellent recoveries into very small concentrates. Our Beaton's Creek test work is more investigative in nature owing to the finer gold grain size, so to achieve such levels of upgrade in first phase testing is remarkable. Test work is being developed and supervised by Novo staff specializing in mining engineering, metallurgical processing and importantly, our geology team. This means those people engaged in exploration are fully aware of the profound impact that mechanical sorting potentially imparts on the economic viability of our prospects. Mechanical sorting test work is likely to become an integral part of future exploration and economic modelling as we hopefully progress each of our projects towards production should the economic viability and technical feasibility of the project be established. This is particularly true given our natural advantage of being able to source abundant bulk sample material from outcropping deposits within our projects."

Description of test work

A total of approximately 5.6 tonnes of costean-sourced material collected during the bulk sampling program conducted at Beaton's Creek in 2018 (see the company's news release dated Dec. 13, 2018) was crushed and screened at Bureau Veritas's laboratories in Perth, Western Australia. Sample material was then screened to 2.3 to 6.0 mm, 6.0 to 18.0 mm and 18.0 to 50.0 mm, the same size fractions used during Egina test work (see the company's news release dated Dec. 17, 2019). Half of this material, approximately 2.8 tonnes, was delivered to Steinert Global's Bibra Lake and Canning Vale testing facilities in Perth, Western Australia, and the other half sent to TOMRA Sorting Pty. Ltd.'s mechanical sorting test facility in Castle Hill, New South Wales, for test work beginning in late January, 2020. Subsamples of the latter will be forwarded for testing in Germany to be conducted in late February, 2020.

Utilizing small hand-sorted batches of Beaton's Creek material, Steinert personnel configured suitable scanning methodologies to determine that which is most efficient at identifying gold particles. Nuggety Egina bulk material responded well to EM (electromagnetic separation, based upon material conductivity), however, nuggety Beaton's Creek material was found to respond best to XRT (X-ray tomography, based upon atomic density of gold-bearing material). To analyze gold in sample material and concentrates, Novo subjected numerous 500-gram splits to the Chrysos PhotonAssay technique conducted by MinAnalytical Laboratories in Perth, Western Australia.

Further testing is being planned to further optimize recovery and reduce concentrate sizes as well as enhance productivity. Novo is considering whether subsequent testing will be conducted in the laboratory or by larger scale field testing. A decision will be made once all testing has been completed during the first quarter of 2020.

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

About Novo Resources Corp.

Novo's focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 13,000 square km with varying ownership interests.

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