Novo receives $2.8M (Aust.) in placement commitments

Executive Summary

• Novo Resources Corp. has received firm commitments for approximately A$8.2 million (CAD $7.9 million) through a placement of units and CHESS depository interests (CDIs) to institutional, professional, and sophisticated investors.
• The financing is structured in two tranches: Tranche 1 (~$6.2M AUD) is settling on March 3, 2026, while Tranche 2 (~$2.0M AUD) is subject to shareholder approval at a general meeting expected in May 2026.
• Proceeds will primarily fund planned drilling and reconnaissance activities across priority projects in Western Australia (Wyloo, Balla Balla, Teichman) and Victoria (Belltopper) starting in Q2 2026, along with general working capital.

Key Details

• Financing Structure & Proceeds:
  • Total Commitments: ~CAD $7.9 million (~AUD $8.2 million).
  • Tranche 1: ~8.8 million units and ~50.2 million CDIs for aggregate proceeds of ~CAD $6.0 million (~AUD $6.2 million).
  • Tranche 2: ~8.0 million units and ~10.9 million CDIs for aggregate proceeds of ~CAD $1.9 million (~AUD $2.0 million). Subject to shareholder approval.
  • Price: 10 Canadian cents per unit; 10.5 Australian cents per CDI.
  • Settlement: Tranche 1 settlement intended for March 3, 2026. Trading resumes on ASX from market open on the release date.
  • Hold Period: Four-month hold period for all shares, warrants, and CDIs from the date of closing. CDIs cannot be converted into shares until four months have elapsed.
• Instrument Terms:
  • Units: Each common share issued in Canada is part of a unit consisting of one share and one-half of one share purchase warrant.
  • Warrants: Exercisable for three years from issue at a price of 15 cents per share.
  • Options (CDI Participants): Participants outside Canada receive one option to acquire a CDI for every two CDIs subscribed (free-attaching).
  • Option Terms: Exercise price of 15 Australian cents; expires three years from the date of issue of Tranche 1 options. Subject to ASX quotation requirements.
• Investor Participation:
  • Northern Star Ltd.: Committed to participate up to its pro rata holding (~9%).
  • Director: A director has also committed to participate.
  • Lead Managers: Canaccord Genuity (Australia) Ltd. and Alpine Capital Pty. Ltd.
• Use of Proceeds:
  • Execute and complete planned drilling and reconnaissance activities across priority projects throughout 2026.
  • General working capital purposes.
• Operational Updates & Drilling Plans:
  • Wyloo: Proposed 1,500-meter reverse circulation (RC) drill program (pending heritage approval). Focus on high-grade vein array with rock chip assays: 0.93 g/t Au, 482 g/t Ag, 1.29% Sb, 2.62% Cu, 9.7% Pb, 15.95% Zn.
  • Balla Balla: Planned 6,000-meter aircore (AC) drill program to expand on a previously completed 5,996-meter AC program delineating a large polymetallic geochemical anomaly.
  • Teichman: Planned 2,000-meter RC drill program (pending heritage approval). Focus on two >1km strike shear zones. Historical high-grade returns: 77.5 g/t Au (Pride NNE), 51.4 g/t Au (Pride N), 30.3 g/t Au (Teichman), 38.3 g/t Au (Mountain Maid).
  • Belltopper: Drill program planned for second half 2026 to confirm the 2026 exploration target. Located ~60 km south of Agnico Eagle's Fosterville gold mine in the Bendigo tectonic zone.
  • Egina: Northern Star Resources continues exploration at Egina farm-in/joint venture tenements south of the Hemi gold project.
  • San Cristobal: Novo continues to receive strong annual dividends from its unlisted investment in the San Cristobal mine.
• Corporate Structure & Projects:
  • Egina Gold Camp: Northern Star farming in to form a JV at the Becher project and surrounding tenements via $25M AUD exploration expenditure for a 50% interest. Becher has similar geology to Northern Star's 13.6M oz Hemi project.
  • Croydon JV: Novo (70%)/Creasy Group (30%) advancing exploration at Teichman.
  • Lithium JV: Formed with SQM in the Pilbara.
  • New Projects: Added TechGen John Bull gold project (NSW) and Manhattan Corp. Ltd. Tibooburra gold project (NSW).
  • Toolunga Project: Landholding consolidation in the Onslow district, WA.

Notable Quotes

• "The company is delighted to welcome new shareholders and appreciates the continued support of existing shareholders."
• "Novo believes, given the strong silver price and investment performance, maintaining this investment at this time is the best approach to maximizing shareholder value."