HIGHLIGHT

Commenting on this transaction, Mike Spreadborough, Executive Co-Chairman and Acting Chief Executive Officer, said:

"Novo would like to thank the Liatam group for the work they have done on the joint venture and their ongoing support as a major shareholder. We wish them well with their ongoing work at Quartz Hill. This transaction aligns with Novo's strategy to focus on our gold exploration in the Pilbara which includes the Egina JV. It is an exciting time to be in gold exploration with gold at record prices. Notwithstanding this transaction, our shareholders still retain significant exposure to the battery metals space through our Harding Battery Metals Joint Venture with SQM Australia Pty Ltd in the West Pilbara."

VANCOUVER, British Columbia, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Novo Resources Corp. (Novo or the Company) (ASX: NVO) (TSX: NVO) (OTCQX: NSRPF) is pleased to announce that Austroid Australia Pty Ltd, a related entity of Liatam Mining Pty Ltd, has acquired the remaining 20% of the Quartz Hill Joint Venture from Novo as well as Novo's 100% interest in Gold and Silver rights in the Quartz Hill Joint Venture for A$850,000 (CAD $774,000) cash. The Liatam group remains a 6% shareholder in Novo.

Background

On December 15, 2022 the Company's wholly-owned Australian subsidiary, Nullagine Gold Pty Ltd, entered into an agreement with Liatam whereby Liatam was granted the right to earn an 80% interest in battery mineral rights at the Company's Quartz Hill project (Quartz Hill).

Under the terms of that agreement, Liatam was required to spend A$1,500,000 over 24 months in order to complete the earn-in. Novo was to be free carried to the Contribution Date, being the earlier of the date of completion of a bankable feasibility study at Quartz Hill or the date on which Liatam sole funded A$20,000,000 (including the initial A$1,500,000 earn-in amount).

The agreement with Liatam provided that on or around the Contribution Date, Novo had the right to elect to contribute its pro-rata share of expenditure or convert to a royalty equal to 1% of gross lithium sale proceeds or an amount equal to 20% of any royalty owing to the State of Western Australia on gross battery mineral sale proceeds (other than lithium). Liatam was also granted a one-time right pursuant to which Liatam could add lithium rights over Novo's Pilbara tenements of Liatam's choosing (subject to certain exclusions and tenements which were already subject to arrangements with third parties) to the earn-in arrangement and earn-in at an agreed rate. On July 31, 2023, Liatam exercised its right to add lithium rights over additional Novo Pilbara tenements, subsequent to which Liatam added an additional lithium right over another Novo tenement on September 27, 2023. The earn-in was otherwise subject to industry-standard earn-in and joint operation conditions, including coordination of exploration and development activities amongst the parties. Liatam also had the right to terminate the earn-in after spending A$1,750,000. The tenements added by Liatam in July and September 2023 equated to an additional 203 sq km included in the package, and these additional tenements increased the required earn in amount to A $1,750,000 from the initial A$1,500,000.

On December 20, 2023 Liatam exceeded the required earn-in amount to form the 80%/20% unincorporated joint venture, being the Quartz Hill Joint Venture. The Company received A$200,000 (CAD $180,000) and recognized an impairment of exploration and evaluation assets totalling A$1,582,000.

Liatam further invested CAD $1,600,000 (A$1,800,000) in Novo through a private placement subscription for 9,000,000 common shares in the capital of the Company at CAD $0.18 (A$0.20) per share to increase their shareholding in the Company from ~3% to ~6%.

After entering into the agreement with Novo, Liatam transferred the Quartz Hill Joint Venture interests to Austroid Australia Pty Ltd, a related entity.

Austroid Australia Pty Ltd has now obtained the remaining 20% of the Quartz Hill Joint Venture from Novo, and Novo's 100% interest in Gold and Silver rights in the Quartz Hill Joint Venture. Accordingly, the Quartz Hill Joint Venture has now concluded. Despite this sale, the Liatam group remains a ~6% shareholder in the Company.

Harding Battery Metals JV

Notwithstanding this transaction, Novo shareholders continue to retain significant exposure to the battery metals sector through the Harding Battery Metals Joint Venture with SQM Australia Pty Ltd (SQM), a wholly owned subsidiary of Sociedad Química y Minera de Chile S.A.

In December 2023, Novo entered into a tenement sale agreement, joint venture agreement, and coordination agreement with SQM in relation to five of Novo's prospective lithium and nickel exploration tenements (Priority Tenements) in the West Pilbara. SQM paid Novo A$10 million (CAD $8.84 million) for a 75% interest in the Priority Tenements and for an option over additional Pilbara exploration tenements, with Novo retaining a 25% interest, along with 100% ownership of the gold, silver, PGE, copper, lead and zinc mineral rights.

Authorised for release by the Board of Directors.

CONTACT

ABOUT NOVO

Novo is an Australian based gold explorer listed on the ASX and the TSX focused on discovering standalone gold projects with > 1 Moz development potential. Novo is an innovative gold explorer with a significant land package covering approximately 5,500 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.

Novo's key project area is the Egina Gold Camp, where De Grey Mining is farming-in to form a JV at the Becher Project and surrounding tenements through exploration expenditure of A$25 million within 4 years for a 50% interest. The Becher Project has similar geological characteristics as De Grey's 12.7 Moz Hemi Project1. Novo is also advancing gold exploration at Nunyerry North, part of the Croydon JV (Novo 70%: Creasy Group 30%), where 2023 exploration drilling identified significant gold mineralisation. Novo continues to undertake early-stage exploration across its Pilbara tenement portfolio.

Novo has also formed a lithium joint venture with SQM in the Pilbara which provides shareholder exposure to battery metals.

Novo has a significant investment portfolio and a disciplined program in place to identify value accretive opportunities that will build further value for shareholders.

Please refer to Novo's website for further information including the latest corporate presentation.

An Exploration Target as defined in the JORC Code (2012) is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. Accordingly, these figures are not Mineral Resource or Ore Reserve estimates as defined in the JORC Code (2012). The potential quantities and grades referred to above are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. These figures are based on the interpreted continuity of mineralisation and projection into unexplored ground often around historical workings. The Exploration Target has been prepared in accordance with the JORC Code (2012) as detailed in the Company's ASX announcement released on 25 September 2024 (available to view at ). The Company confirms that it is not aware of any new information that material affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed.

1. Refer to De Grey ASX Announcement, Hemi Gold Project Resource Update, dated 21 November 2023 No assurance can be given that a similar (or any) commercially viable mineral deposit will be determined at Novo's Becher Project.

A photo accompanying this announcement is available at