Novo Receives Final Regulatory Approvals and Provides an Operational Update From Beatons Creek

Novo Resources Corp. (“ Novo ” or the “ Company ”) (TSX: NVO & NVO.WT; OTCQX: NSRPF) is pleased to announce all regulatory approvals have now been received and provide an operational update from its 100% controlled Beatons Creek gold project (“ Beatons Creek ”) and Nullagine processing facility (“ Golden Eagle Mill ”).

Highlights:

Development at Beatons Creek and refurbishment at the Golden Eagle Mill continue to progress safely, on schedule and within budget. Recent key events and milestones include:

• All regulatory approvals have now been received from the Western Australian Department of Mines, Industry Regulation, and Safety (“ DMIRS ”) and Department of Water and Environmental Regulation (“ DWER ”) to allow commissioning of Beatons Creek material and deposition of Beatons Creek tailings product into the Golden Eagle Mill’s tailings storage facility. The Project is now advancing towards commercial production, with plant commissioning activities currently underway ( see figure 1 below );
• Iron Mine Contracting Pty Ltd (“ IMCPL ”) continue to ramp up excavation activities at Beatons Creek, with all major equipment now mobilized to site and all crews fully manned. Mobilization of a larger Komatsu PC1250 excavator occurred earlier this week ( see figure 2 below );
• Rivet Mining Services Pty Ltd (“ Rivet ”) has been named as the Company’s preferred haulage contractor for transportation of material from Beatons creek to the ROM pad at the Golden Eagle Mill, and crusher feed contractor to maintain the ROM pad and feed the crusher. An interim arrangement has been operating throughout January which will phase out as Rivet mobilize their plant and equipment;
• GR Engineering Services (“ GRES ”), Duratec Limited (“ Duratec ”), and Northfields WA Pty Ltd (“ Northfields ”) plant refurbishment scopes of work are now effectively complete. All tanks have been fully refurbished, key new gravity circuit componentry has been installed and all concreting works are complete. The plant has now entered the commissioning phase. Refurbishment works have been completed ahead of time and well within budget.
• Site personnel (including contractors) now total 128.

Please see the Company’s news release dated December 17, 2020 for the Company’s previous operational update.

Development activities at Beatons Creek:

• IMCPL and Edwards Earthmoving Pty Ltd continue with project establishment and development works ( see figure 3 below );
• IMCPL continue the equipment and personnel ramp up to site, with the fleet now comprised of : 3 x D10 dozers, 1 x Komatsu PC1250 excavator, 2 x Komatsu PC850 excavators, 3 x Cat 777 trucks, 6 x Cat 745 trucks and ancillary grading, water cart and service truck support equipment ( see figure 4 below );
• Rivet have been named as the Company’s preferred contractor for crusher feed and haulage of ore between Beatons Creek and the Golden Eagle Mill. Importantly, Rivet were the incumbent contractor at site prior to the period of care and maintenance, bringing a wealth of local operating knowledge to the project. Rivet also bring intelligent MT Data systems to the project with fatigue monitoring systems ensuring operator and public safety, in addition to speed monitoring systems ensuring haulage speeds are managed through the early phase of the project that requires haulage through the town of Nullagine;
• Phase 2 grade control reverse circulation drilling has recommenced at Beatons Creek following completion of the initial grade control drilling program. The first four months of mill feed are now covered by grade control drilling, with ongoing works aimed at extending coverage over a longer period of time.
• Contractor maintenance and administration facilities have been installed at Beatons Creek. ( see figure 5 below ).

Refurbishment works on the Golden Eagle Mill:

Plant refurbishment:

• The GRES scope is now complete, with GRES personnel demobilizing from site later this week. Variances to the scope resulted in a superior outcome to the original plan and impressively this was completed within the budgeted cost;
• Key componentry has returned from refurbishment in Perth has all been reinstalled on schedule;
• The refurbishment of all 9 tanks, agitators, inter-tank screens, carbon transfer pumps and launders is now complete;
• Gravity circuit components have all been installed, pipework completed and powered up ahead of commissioning ( see figure 6 and figure 7 below );
• Processing plant laboratory componentry has been refurbished and recommissioned and is now fully operational and manned ahead of plant commissioning;
• Novo has completed refurbishment works on the crusher feed bin, crusher and crusher stockpile feeders with the complete dry plant area ready for commissioning;
• Commissioning is now underway, with initial material feed to primarily consist of low grade stocks from historical mining conducted by Millennium Minerals and the balance of the 2016 Beatons Creek bulk sampling stockpile ( see figure 8 and figure 9 below ).

Civil works:

• Northfields’ scope has now been completed, with mining drilling and workshop pads complete along with foundations laid for the upgraded Acacia gold-recovery reactor unit, new elution tank footings in the gold room and repairs to existing bunding and retainment walls that will allow for excellent housekeeping and fluids containment around the plant.

“Operations proceeded according to plan throughout the holiday season and January and we thank all Novo employees and contractors for their contributions over this time,” commented Novo CEO and director, Rob Humphryson. “Despite severe weather conditions, works have proceeded beyond expectation and we thank our plant refurbishment contracting partners for delivering us a plant that met the brief of being safe, reliable, and suitable for processing Beatons Creek material. With all regulatory approvals now to hand, we turn our focus to commissioning the processing plant and advancing Beatons Creek towards production.”

Tuscarora Project Update

The Company is also pleased to announce that American Pacific Mining Corp. (“ American Pacific ”) has completed its earn-in and now owns a 100% interest in the Tuscarora gold project (“ Tuscarora ”) in Nevada, USA. Novo retains a 0.5% net smelter returns royalty over Tuscarora which American Pacific can repurchase for US$500,000 at any time. Please see the Company’s news release dated November 6, 2017 for further details.

Dr. Quinton Hennigh (P.Geo.) is the qualified person pursuant to NI 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is President, Chairman, and a director of Novo.

About Novo Resources Corp.

Novo is advancing its flagship Beatons Creek gold project to production while exploring and developing its highly prospective land package covering approximately 14,000 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. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”
Quinton Hennigh
President and Chairman

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the successful progress of grade control drilling, and that Novo’s board of directors will make the decision to commence full-scale production at Beatons Creek. Forward-looking 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, the successful completion of grade control drilling works, and customary risks of the resource industry.

PDFs accompanying this announcement are available at:

http://ml.globenewswire.com/Resource/Download/8606a7e1-babc-4c01-aec8-07e3682a718e

http://ml.globenewswire.com/Resource/Download/0a47b823-7704-4197-9216-201c505d4d67

http://ml.globenewswire.com/Resource/Download/69238a89-73dd-4a3e-9d2b-63ccdcf80431

http://ml.globenewswire.com/Resource/Download/b82d6b65-77b0-4714-a4f2-ea785fafad1e

http://ml.globenewswire.com/Resource/Download/345c1948-0e91-4601-95c2-0d42ec1dde9b

http://ml.globenewswire.com/Resource/Download/962f089c-bd80-49d8-8bdf-fdb9ff5c4832

http://ml.globenewswire.com/Resource/Download/24cf7518-695d-4510-94d2-108a01f88c58

http://ml.globenewswire.com/Resource/Download/5430e306-9035-45ae-8764-70ce46deec66

http://ml.globenewswire.com/Resource/Download/fe082235-c714-4f99-a046-ad15f900d17e