Mr. Michael Spreadborough reports

NOVO TO ACQUIRE REMAINING 50% INTERESTS IN BELLTOPPER GOLD PROJECT, VICTORIA, AUSTRALIA

Novo Resources Corp. has entered into agreements whereby it will become sole owner of the Belltopper gold project in the Bendigo region of Victoria, Australia, through the acquisition of residual 50-per-cent joint venture interests in the Queens project from Kalamazoo Resources and the Malmsbury project from GBM Resources. The acquisition of the residual interests in Belltopper is subject to receipt of approval from the Toronto Stock Exchange, and receipt of written consents and approval from the Victorian Department of Jobs, Precincts and Regions.

Summary:

• Novo to acquire remaining 50-per-cent interests in the adjacent Queens and Malmsbury gold joint ventures in Victoria, Australia;
• As a result, Novo will have sole ownership of the Belltopper gold project in the prolific Bendigo tectonic zone of Australia's Victorian goldfields;
• Consolidation of Belltopper will provide Novo with a central, strategic position in the region located approximately 50 kilometres south-southwest from Agnico Eagle's high-grade Fosterville gold mine;
• Novo has identified a strong pipeline of developing gold targets at Belltopper supported by an abundant network of historic and newly discovered high-grade gold reefs;
• Multiple high-grade gold targets identified at Belltopper within a priority corridor of alteration that hosts a mineralized porphyritic intrusive at its core;
• Evidence for numerous gold mineralization styles including structurally controlled Epizonal gold (potentially analogous with Fosterville) in addition to potentially intrusion-related gold (IRG);
• Additional opportunities to test for mineralization beneath tertiary basalt cover -- blind basement targets;
• Currently integrating regional-scale through to target-scale datasets to enable smarter drill targeting of the wider gold system and its associated higher-grade zones by diamond drilling in 2023;
• Novo to pay $750,000 (Australian) cash and issue 2,088,554 common shares (with a contractual 12-month hold period) to Kalamazoo Resources worth approximately $750,000 (Australian) for its 50-per-cent joint venture interest in the Queens project;
• Novo to pay $1-million (Australian) cash and issue 4,037,872 common shares (with a contractual 12-month hold period) and 2,018,936 common share purchase warrants to GBM Resources worth approximately $1.6-million (Australian) for its 50-per-cent joint venture interest in the Malmsbury project, with each warrant entitling GBM to purchase one additional common share of the company at a price of 60 cents for a period of 24 months from the date of issuance.

Mike Spreadborough, Novo's executive co-chairman, acting chief executive officer and a director, said: "Consolidation of Belltopper will give Novo a central and strategic position in the prolific Bendigo tectonic zone of Australia's Victorian goldfields.

"Diamond drilling planned in 2023 will test remaining high-priority mapping targets at Belltopper, in addition to developing high-grade shoot potential on the Leven Star reef and key significant results from the diamond drilling campaign completed in 2022. We would like to thank our joint venture partners, GBM and Kalamazoo, for their support and we look forward to advancing the consolidated Belltopper project."

Consolidation of Belltopper will give Novo a strategic position in the prolific Bendigo tectonic zone of Australia's Victorian goldfields that has historically produced in excess of 60 million ounces of gold from alluvial and hard rock. Mineralization throughout the Bendigo tectonic zone is not necessarily representative of mineralization throughout Belltopper.

Malmsbury project

Novo acquired an initial 50-per-cent interest in retention licence 65871, which comprises the Malmsbury gold project, from GBM in May, 2021, and has since been incurring farm-in expenditures with the goal of earning an additional 10-per-cent interest in Malmsbury by May, 2025.

Novo has agreed to pay $1-million (Australian) and issue 4,037,872 common shares and 2,018,936 transferable warrants to GBM for its residual 50-per-cent interest in Malmsbury, with each warrant entitling GBM to purchase one additional common share of the company at a price of 60 Canadian cents for a period of 24 months from the date of issuance. All of the GBM securities will be subject to a statutory hold period expiring four months and one day following their date of issuance, along with an additional contractual hold period expiring 12 months from their date of issuance. Immediately subsequent to the issuance of the GBM securities and securities to be issued to Kalamazoo (refer below), GBM will hold a 1.5-per-cent undiluted interest in Novo.

In addition, the previously agreed 2.5-per-cent maximum net smelter return (NSR) royalty has been retained by GBM. Malmsbury is potentially encumbered by certain pre-existing royalties for which GBM has indemnified Novo.

Queens project

Novo acquired an initial 50-per-cent interest in exploration licence 7112, which comprises the Queens gold project, from Kalamazoo in March, 2021, and has since been incurring farm-in expenditures with the goal of earning an additional 20-per-cent interest in Queens by March, 2026.

Novo has agreed to pay $750,000 (Australian) and issue 2,088,554 common shares to Kalamazoo for its 50-per-cent interest in Queens on an encumbrance-free basis. The royalty previously held by Kalamazoo has been terminated in conjunction with this acquisition. All of the Kalamazoo securities will be subject to a statutory hold period expiring four months and one day following their date of issuance, along with an additional contractual hold period expiring 12 months from their date of issuance. Immediately subsequent to the issuance of the Kalamazoo securities and the GBM securities (refer above), Kalamazoo will hold a 1-per-cent undiluted interest in Novo (inclusive of Novo shares currently held by Kalamazoo).

Exploration plan

The company is now focusing on the prospectivity of the consolidated Belltopper area, integrating regional-scale through target-scale datasets (including geophysics with mapping, structural studies, geochemistry and legacy mining data) into 3-D target modelling. Emphasis will be placed on structural characterization of mineralized features to understand local plunge components for targeted follow-up drilling and testing of the regional plunge component for Belltopper.

A second phase of drilling that aims to build on 2022 success and additionally test remaining and developing high-priority mapping and geophysical targets is planned in H2 2023. Systematic soil geochemistry, mapping and rock chip sampling programs are also expected to recommence in H2 2023.

Qualified person statement

Dr. Christopher Doyle (MAIG) 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. Doyle is Novo's exploration manager -- Victoria and project generation.

About Novo Resources Corp.

Novo explores and develops its prospective land package covering approximately 10,500 square kilometres in the Pilbara region of Western Australia, along with the 22-square-kilometre Belltopper project in the Bendigo tectonic zone of Victoria, Australia. In addition to the company's primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its stakeholders.

We seek Safe Harbor.