Beatons Creek Fresh Feasibility Study Update

HIGHLIGHTS

• A feasibility study for mining of the Beatons Creek gold project (“Beatons Creek”) Fresh mineral resource (“Feasibility Study”) is underway, with completion targeted by mid-Q4 2022
• Metallurgical and geotechnical diamond drilling programs have been completed, with assaying and metallurgical test work underway and due for completion by the end of July 2022
• Phase one of a mineral resource definition reverse circulation (“RC”) drilling program will be completed by the end of June 2022. Results received to May 31, 2022 include significant, high-grade intercepts (> 40 gram-metres gold) of:
  • 3.5 m at 43.62 g/t gold from 47 m in GHF0526
  • 5.5 m at 16.02 g/t gold from 30 m in GHF0269
  • 1.5 m at 48.84 g/t gold from 42.5 m in GHF0500
  • 4.5 m at 15.23 g/t gold from 47.5 m in GHF0523
  • 2 m at 28.14 g/t gold from 75.5 m in GHF0200
  • 3 m at 18.5 g/t gold from 72.5 m in GHF0181
  • 3 m at 17.85 g/t gold from 39 m in GHF0014
  • 1.5 m at 31.29 g/t gold from 43.5 m in GHF0498
  • 2.5 m at 17.66 g/t gold from 41.5 m in GHF0490
  • 2.5 m at 16.16 g/t gold from 82 m in GHF0216
  • 3 m at 15.3 g/t gold from 61.5 m in GHF0554
• Mineral resource definition drilling to date has confirmed the high-grade nature, strong continuity, and thickness of the Fresh mineralized material
• Commencement of Phase Two mining of the Beatons Creek Fresh deposit is subject to receipt of approvals from various Western Australian regulatory departments1.

VANCOUVER, British Columbia, June 14, 2022 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to provide an update on the Feasibility Study and key initial results from the ongoing resource definition drilling program.

“The Fresh component of Beatons Creek accounts for approximately 65% of the global Beatons Creek mineral resource estimate and is integral to Novo’s operational success. With mining of the Oxide mineral resource nearing completion1,2, we have shifted our focus on the ground to complete key exploration and development activities for Phase Two Fresh operations at Beatons Creek. Importantly, our resource definition drill program has already delivered excellent, near-surface results which confirm the high-grade nature of the Fresh mineral resource and supports Novo’s plans to accelerate the Feasibility Study, while working with Western Australian regulatory departments to obtain requisite approvals,” commented Mr. Michael Spreadborough, Executive Co-Chairman, acting Chief Executive Officer and a director of Novo.

BEATONS CREEK STATUS

Operations will be paused at Beatons Creek, with a controlled and phased wind-down of operational activities through Q3 2022, as outlined in the Company’s news release dated June 14, 20221. Commencement of Phase Two mining of the Fresh mineral resource at Beatons Creek, is subject to receipt of approvals from various Western Australian regulatory departments and the successful completion of the Feasibility Study, including a final investment decision by Novo’s board of directors1.

BEATONS CREEK RESOURCE DEFINITION DRILLING

Building upon recent knowledge gained during mining activities completed at the Grant’s Hill deposit, which forms part of Beatons Creek, Novo has been undertaking 20 m by 20 m resource definition RC drilling across key areas at Grant’s Hill, which contains the majority of the known Fresh mineralization3.

This drill program commenced at the end of October 2021, with the Company accelerating drilling in January 2022 through three RC drill rigs. At the end of May 2022, approximately 31,700 m (397 holes), with an average depth of 80 m per hole, were drilled into the Grant’s Hill project area.

Drilling at Grant's Hill has been systemically trending in a north-westerly direction from the Oxide open pit boundary, testing the extent of the known mineralization (‘lodes’) identified in the previously released mineral resource estimate3. Whilst the natural topography and landscape has presented some challenges, the drill coverage was designed to test as many lodes as possible (Figures 1 & 2 below). To date, drilling programs have achieved good spatial coverage reaching up to 400 m in width and 600 m in length. These drill programs have been targeting known lodes including the M0, M1, M2 and M3, with the primary focus targeting the well-endowed M1 and M2 lodes.

https://www.globenewswire.com/NewsRoom/AttachmentNg/e3717933-4cef-4c3c-a735-56506d81764a
(Figure1:Grant’sHill Fresh mineral resource definition RC drilling)

To gain further confidence in the lodes, a 30,400 sq m area was drilled at a 10 m by 10 m spacing immediately adjacent to the recently mined Grant’s Hill pit. This drilling comprised 73 holes for 5,080 m drilled, in addition to the already drilled 20 m by 20 m pattern (Figure 2 below).

Figures 3, 4 and 5 illustrate the lodes intersected by recent resource definition drilling, along with drilling results received to date. Results are encouraging, indicating that the principal M1 and M2 lodes remain open and continuous along plunge. These results also confirm the thickness and tenor of the mineralization intercepted in prior drilling programs. Refer to Table 1 for a list of all significant intervals greater than 0.5 g/t gold.

BEATONS CREEK RESOURCE EXTENSION DRILLING

Significance of the resource definition results allows Novo to plan for the next phases of drilling, extending drill coverage in a north-westerly direction with an expectation to grow the current mineral resource estimate3 (“MRE”) (Figure 2 below shows priority 1 to priority 4 phases). The next stage of resource extension drilling will be targeting areas of existing sparse drilling information and planned drilling aims to increase resource confidence, through the upgrade of current inferred mineral resources3 and unclassified mineralization. The resource extension drilling program will be completed in a staged approach, targeting higher-priority areas in the first instance and progressing to lower priority areas to potentially grow the inferred mineral resource3 and inform further studies and life-of-mine planning.

The drilling program will continue for the remainder of CY2022 and into H1 2023 and is expected to define the updated extent of the Beatons Creek Fresh mineral resource.

https://www.globenewswire.com/NewsRoom/AttachmentNg/5a7d935f-859b-4ff8-97f4-b3ed6c33c78a
(Figure2: Plan view of Beatons Creek Fresh mineral resource definition and extension programs)

https://www.globenewswire.com/NewsRoom/AttachmentNg/25076229-f329-4cf8-a438-01c89f2556e2
(Figure 3: Section view A-A’ Beatons Creek Fresh mineral resource definition and extension programs)

https://www.globenewswire.com/NewsRoom/AttachmentNg/357b2b53-6d7e-4ee8-8056-841777933a61
(Figure 4: Section view B-B’ Beatons Creek Fresh mineral resource definition and extension programs)

https://www.globenewswire.com/NewsRoom/AttachmentNg/41ffd4cb-c8dd-43d9-b8a8-acb43f5a2207
(Figure5: Section view C-C’ Beatons Creek Fresh mineral resource definition and extension programs)

BEATONSCREEK FRESH FEASIBILITY STUDY

The results from the resource definition and extension drilling program will inform an update to the MRE for Beatons Creek, with the upgraded MRE providing the foundation for the Feasibility Study.

Data collection and analysis programs are underway to better define parameters for:

• Metallurgical recoveries and an optimization of the Golden Eagle processing facility (“Golden Eagle Plant”)
• Geotechnical, hydrogeological and hydrological conditions to be encountered in the open pits
• Geochemical properties of the various materials being mined to ensure they are appropriately managed during and post-mining operations at Beatons Creek
  

Other key studies which have also commenced, include:

• Updated Beatons Creek mine and waste dump designs incorporating management of any potential for acid mine drainage and mine closure commitments
• Improved understanding of the metallurgical performance of the Beatons Creek Fresh mineralized material though the Golden Eagle Plant and optimum throughput rates, as previously reported4
• Definition of an economic provision for additional tailings storage capacity to accommodate processing of Beatons Creek Fresh mineralized material
• Determining the suitability of current Beatons Creek infrastructure required to support mining and processing of the Fresh mineralized material, including consideration of renewable energy options for power generation and/or supply
• Mining and processing schedules
• Capital and operating cost estimates and life-of-mine cash flow forecasts
• Development of an economic mine plan and the reporting of a mineral reserve estimate in a National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report
  

SAMPLE PREPARATION, ASSAYING AND QUALITY ASSURANCE/QUALITY CONTROL

The widths of intercepts reported are approximate true width given vertical RC holes and relatively flat lying lodes. All samples are collected as 0.5 m RC composites. Samples are split in half (c. 8 kg) at the rig and one half selected at random and submitted to the Beatons Creek on-site Intertek laboratory. Samples are dried for 24 hours. They are then fed through a Smart Crusher, where they are reduced to P90 -3 mm and 2.5 kg split off for assay. The 2.5 kg sub-sample is placed into five PhotonAssay™ pots. The pots are shipped to the Intertek laboratory in Perth where they are assayed in total by PhotonAssay™. PhotonAssay™ is a non-destructive method, based on technology that measures gold concentration via X-ray excitation to produce gamma rays. Intertek PhotonAssay™ is NATA accredited (3244) via ISO/IEC 17025 (2017) for method PA W0002. Drill program design, quality assurance/quality control and interpretation of results is performed by qualified persons employing quality control (“QC”) analysis consistent with industry best practices. PhotonAssay™ certified CRMs and blanks are included at a rate of 1 in 25 samples for QC purposes by the Company. Intertek undertakes its own QC, the results of which are provided to Novo. Approximately 2% of PhotonAssay™ samples are umpire assayed by screen fire assay. Novo does not know of any factors of drilling or sampling that could materially affect the accuracy or reliability of the assay data disclosed.

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

QP STATEMENT

Dr. Simon Dominy FAusIMM (CP) FAIG (RPGeo) is the qualified person, as defined under NI 43-101, responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Dominy is a Technical Advisor to Novo.

CAUTIONARY STATEMENT

The decision by the Company to produce at Beatons Creek 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 mineable 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 October 1, 20215 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

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.

Shareholders and Canadian media are to contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com.

Australian media are to contact Cameron Gilenko (Citadel-MAGNUS) at 0466 984 953.

On Behalf of the Board of Directors,

Novo Resources Corp.

“Michael Spreadborough”

Michael Spreadborough

Executive Co-Chairman and Acting CEO

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, that the Feasibility Study will be completed in mid-Q4 2022, that assaying and metallurgical testwork will be completed in Q3 2022, that mineral resource definition and extension drilling programs will further expand the Beatons Creek Fresh mineral resource and will continue for the remainder of CY2022 and H1 2023, and that extending drill coverage in a north-westerly direction will potentially grow the mineral resource. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the resource industry and the risk factors identified in Novo’s management’s discussion and analysis for the three-month period ended March 31, 2022, which is available under Novo’s profile on SEDAR at www.sedar.com. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, Novo assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If Novo updates any forward-looking statement(s), no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.

Table 1: Significant intercepts for all drilling during the Fresh mining stage. The table is generated by calculating the average grade for each drill hole intersection constrained by the modelled M1 and M2 lodes, and a 0.5 g/t gold intersection grade cut-off for reporting. All holes are drilled on tenement M46/11 and with co-ordinates related to reference system GDA94, Zone 51.