Nullagine Gold Project Update

VANCOUVER - Novo Resources Corp. reported on the Beatons Creek conglomerate gold project in Nullagine, Western Australia following its recent exploration update  and previous operational update. Highlights: No lost time injuries to date at the Nullagine Gold Project; Record gold production of 5,064 oz Au for May 2021, realizing revenue of C$10.8 million (A$11.5 million) from the sale of 4,754 oz Au at an average realized gold price of A$2,407; Mining and processing rates continue to increase month-on-month; and May 2021 month-end cash balance of C$45.2 million (excluding fair value of investments of approximately C$204 million).

The lost time injury frequency rate for the past twelve months remains at zero for the Nullagine Gold Project and also for the Company; a significant achievement for a company rapidly growing its workforce and making the transition from explorer to production. Ongoing development of safety and management systems, particular to Novo and its culture, are progressing well with wide acceptance across the Company.

Gold production at the Nullagine Gold Project has increased month-on-month project to date, with a record month of 5,064 ounces poured during May 2021. Gold production is anticipated to continue to increase due to improved throughput rates and recovery in the mill combined with improved grade as higher grade conglomerates at Grant’s Hill are accessed and brought into the mine schedule.

Mill throughput has continued to increase month-on-month. The processing plant is currently operating at an annualized rate of 1.5 mtpa, with demonstrated capacity to achieve a throughput rate of approximately 1.8 mtpa. A total of 124 kt of mineralized material was processed in May, with recovery of 94.5% achieved. This follows a major planned shutdown in April which saw the first reline of the processing plant since acquiring Millennium Minerals Limited in September 2020 (refer to the Company’s news releases dated August 4, 2020, and September 8, 2020). During May 2021, gravity gold accounted for the majority of gold production (61%) versus 39% from carbon-in-leach (CIL), with the processing plant achieving a total recovery of 94.5%. Management is satisfied with processing plant performance, with all key operational metrics within expected parameters and a cohesive and capable operational crew bedded in and operating the facility productively and safely.

Mining productivities have continued to improve as the operation matures, with the operation gradually transitioning from constrained mining areas on ridges to broader benches that allow for larger equipment to operate more productively. Iron Mine Contracting Pty Ltd has been working cooperatively with Novo technical staff to continue to improve operational performance and has demonstrated excellent flexibility in meeting operational equipment and personnel requirements. Mine scheduling has been optimized to allow one of the three current dig fleets to relocate to undertake a planned tailings dam lift expected during the third quarter of 2021.