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Novo Resources : Nullagine Gold Project Update








Nullagine Gold Project Update

14 June 2022

Cautionary Statement

No Offer or Solicitation

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. It does not purport to contain all of the information that a prospective investor may require and it is not intended to provide any legal, tax or investment advice.

Forward-Looking Statements

This presentation includes certain statements that constitute “forward-looking information” “forward-looking statements” within the meaning of Canadian and United States securities laws (collectively, “forward-lookingstatements“). These statements appear in a number of places in this presentation and include statements regarding the intent of Novo Resources Corp. (“Novo” or the “Company“), or the beliefs or current expectations of the Company’s management. When used in this presentation, words such as “intends”, “expects”, “will be”, “underway”, “targeted”, “planned”, “objective”, “expected”, “potential”, “continue”, “estimated”, “would”, “subject to” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements made herein include, without limitation, statements derived from the technical report titled “Preliminary Economic Assessment on the Beatons Creek Gold Project, Western Australia” dated April 30, 2021 (effective date February 5, 2021) (the “2021 Beatons Creek Technical Report“) prepared by Jason Froud (BSc Hons, Grad Dip (Fin Mkts), MAIG), Andrew Grubb (BE (Mining), FAusIMM), and Ian Glacken (BSc Hons, MSc (Mining Geology), MSc (Geostatistics) PGCert (comp), DIC, FAusIMM(CP), FAIG, CEng, MIMMM) of Optiro Pty Ltd of Perth, Australia, and William George Gosling (BE (Extractive Metallurgy), FAusIMM) of GR Engineering Services, also of Perth, Australia in respect of the Company’s Beatons Creek gold project (the “Beatons Creek Project“), statements relating to planned exploration activities and operational plans anticipated level of production. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements, including, without limitation: risks relating to the receipt of requisite approvals, including timing of receipt of such approvals; the ongoing COVID-19 pandemic and measures intended to prevent its spread; the fluctuating price of gold; success of exploration, development and operations activities including but not limited to the ability to advance exploration efforts at the Company’s exploration assets ; the results of exploration efforts at the Company’s exploration assets; health, safety and environmental risks; uncertainties inherent to economic studies, including the preliminary economic assessment contained in the 2021 Beatons Creek Technical Report; the absence of any pre-feasibility or feasibility level studies for the Beatons Creek Project; variations in the estimation of mineral resources; uncertainty relating to mineral resources; the potential of cost overruns; risks relating to government regulation; the impact of Australian laws regarding foreign investment; access to additional capital; liquidity risk; risks relating to native title and Aboriginal heritage; risks relating to the construction and development of new operations; the availability of adequate infrastructure; the availability of adequate energy sources; seasonality and unanticipated weather conditions; limitations on insurance coverage; the prevalence of competition within the industry; currency exchange rates (such as the United States dollar and the Australian dollar versus the Canadian dollar); risks associated with foreign tax regimes; risks relating to potential litigation; risks relating to the dependence of the Company on outside parties and key management personnel; risks in the event of a potential conflict of interest; as well as those risk identified in the Company’s periodic filings with Canadian securities regulators including, without limitation, those identified in Novo’s management’s discussion and analysis for the three-month period ended March 31, 2022 which is available under the Company’s profile on SEDAR at www.sedar.com. Estimates regarding the anticipated timing, amount and cost of exploration and development activities are based on numerous factors including but not limited to assumptions underlying mineral resource estimates and the realization of such estimates. Capital and development cost estimates are based on extensive research of the Company, recent estimates of development and operating costs and other factors. The forward-looking statements are based largely on current expectations and projections about future events and financial trends affecting the financial condition of the Company’s business. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect and actual results could differ materially from those contemplated in the forward-looking statements. Therefore, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. Forward- looking statements speak only statements made as at June 14, 2022. Except as required by applicable law, the Company assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If the Company updates any one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.

Cautionary Note Concerning Technical Disclosure and U.S. Securities Laws

Nullagine Gold Project Update | June 2022

This presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this presentation have been prepared in accordance with National Instrument 43-101Standards of Disclosure for Mineral Projects (“NI 43-101“). The definitions used in NI 43-101 are incorporated by reference from the Canadian Institute of Mining, Metallurgy, and Petroleum (“CIM“) – Definition Standards adopted by CIM Council on May 10, 2014 (the “CIM Definition Standards“).

The U.S. Securities and Exchange Commission (the “SEC“) adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934, as amended. These amendments became effective February 25, 2019 (the “SEC Modernization Rules“) with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which has been rescinded. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. Investors are cautioned that while the above terms are “substantially similar” to the corresponding CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral resources that the Company may report as “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared mineral resource estimates under the standards adopted under the SEC Modernization Rules. Investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as mineral reserves. Accordingly, investors are cautioned not to assume that any “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” that the Company reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. In accordance with Canadian securities laws, estimates of “inferred mineral resources” cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101. For the above reasons, information contained in this presentation describing the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

Cautionary Statement Regarding Production Decisions

The decision to commence production at the Beatons Creek Project and the intention to produce at other properties have not been 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. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on Novo’s cash flow and future profitability.

The Company cautions that its declaration of commercial production at the Beatons Creek Project effective October 1, 2021 only indicates that the Beatons Creek Project was operating at anticipated and sustainable levels and it does not indicate that economic results will be realized.

Technical Information

Dr. Quinton Hennigh, the Company’s non-executiveco-chairman and a director, is the qualified person, as defined in NI 43-101, who has reviewed, approved and verified the technical content of this presentation, except for technical information included on slides 11-12. Dr. Simon Dominy, FAusIMM (CP) FAIG (RPGeo) and a technical advisor to Novo, is the qualified person, as defined in NI 43-101, who has reviewed, approved and verified the technical content on slides 11-12. All technical information related to the Beatons Creek Project is based on the 2021 Beatons Creek Technical Report which is available under Novo’s profile on SEDAR at www.sedar.com.

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Acknowledgement of Country

We acknowledge the Traditional Owners of the land upon we operate; the Palyku, Nyamal, Kariyarra, Ngarluma, Yinhawangka, Yindjibarndi, Yaburara and Mardudhunera, Puutu Kunti Kurrama people, the Pinikura peoples, and the Dja Dja Wurrung people.

We recognise their unique cultural heritage, beliefs

and connection to these lands, waters and

communities.

We pay our respects to all members of these

Indigenous communities, and to Elders past, present and emerging. We also recognise the importance of continued protection and preservation of cultural, spiritual and knowledge practices.

As we value treating all people with respect, we are

committed to building successful and mutually

beneficial relationships with the Traditional Owners

throughout our area of operations.

Nullagine Gold Project Update | June 2022

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Explorer, Developer, Producer

  • WA-basedand focused minerals explorer, developer and producer transforming high-value resources that are ESG aligned
  • Developing Beatons Creek gold project (“Beatons Creek“) into a consistent 100 koz/year operation through Phase Two mining of the Fresh mineral resource, subject to approvals1 and final investment decision (“FID“)
  • Extending Nullagine gold project (“NGP“) beyond Beatons Creek, through potential for mineral resource definition of Mosquito Creek Oxide and Sulphide mineralization
  • Strong exploration upside through 11,000 sq km Pilbara landholding, highly-prospective for gold and battery metals
  • Aggressive exploration program with drilling of priority targets Becher
    (gold) and Purdy’s North (nickel) in Q3 2022
  • Mechanical sorting to transform low grade, ‘nuggety’ deposits or deposits distant from Golden Eagle processing facility (“Golden Eagle Plant“), with current focus on the Comet Well project
  • Defined, long-term strategy to become a ~250 koz/year gold producer through existing operations, exploration and other opportunities
  • Cash balance of ~C$77.5 million2, ~C$68 million2 in investments, and C$51.4 million2 debt
    1. Phase Two of operations, which includes mining of the Beatons Creek Fresh mineral resource, is subject to receipt of

Nullagine Gold Project Update | June 2022

requisite approvals from relevant Western Australian regulatory authorities, including the Western Australian Department of

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Mines, Industry Regulation and Safety (“DMIRS“), the Western Australian Department of Water and Environmental

Regulation (“DWER“), and the Western Australian Environmental Protection Authority (“EPA“). Phase Two is also subject to a Novo FID. 2. Refer to slide 17.

High-Quality Infrastructure Supporting Operations

Golden Eagle

Plant

Water

Buildings &

Village

Logistics

  • 1.5 Mtpa nameplate capacity (operating at 1.8 Mtpa) conventional gold gravity/CIL processing facility
  • 4MW SAG mill
  • On-sitelaboratory
  • 10MW power station
  • Fully permitted TSF
  • Facility able to process mechanical sorter products

Significant wet season in 2020/2021 has filled dormant pits and recharged extensive existing bore fields

230 room camp and admin offices

Nullagine is a 2-hour drive north of the major iron ore mining centre of Newman, with a full-service airport with multiple daily flights ex-Perth

Nullagine Gold Project Update | June 2022

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This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Novo Resources Corp. published this content on 14 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 June 2022 21:52:09 UTC.

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Sales 2022 117 M
91,0 M
91,0 M
Net income 2022

Net Debt 2022

P/E ratio 2022
Yield 2022
Capitalization 172 M
134 M
134 M
Capi. / Sales 2022 1,47x
Capi. / Sales 2023 0,89x
Nbr of Employees 113
Free-Float 77,3%

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