Novo Resources Corporation: Provides Update On Exploration

Blue Spec Drilling

Novo currently has a truck-mounted reverse circulation ("RC") drill and a diamond core drill operating at its 100% controlled Blue Spec high-grade gold project, Western Australia. To date, seven RC holes have been completed and three RC precollar holes have been drilled (please refer to Figure 1 below for a long section showing locations of drill holes). One of the three precollar holes, 16BSDH004, has been extended to its targeted depth by diamond core drilling. Coring will extend the other two precollar holes, 16BSDH002 and 16BSDH003, next. Samples from all recent holes will be submitted to Genalysis Laboratory in Perth for assay within a week.

The diamond core tail from hole 16BSDH004 intersected the eastern edge of the Blue Spec zone at a vertical depth of approximately 440 m. Upon entering the Blue Spec shear zone, quartz vein with abundant stibnite, an antimony sulfide, was encountered over a 1.5 m interval of core. Several spots of visible gold up to 2 mm are evident within the stibnite (please see Figure 2 below). Quartz veining with variable amounts of pyrite continue approximately 3 m beyond the stibnite-rich intercept.

Hole 16BSDH004 is important because it suggests the high grade Blue Spec zone plunges at about 45 degrees to the east as Novo's model predicts. The nearest historic drill hole, BSD034 located approximately 50 m west, intersected 44.0 gpt Au over a core length of 1.1 m. Historic hole BSD0027, approximately 90 m above 16BSDH004, intersected 62.7 gpt Au over a core length of 1.2 m.

RC holes 16BSDH001, 16BSDH005, and 16BSDH006 tested areas west of the Blue Spec deposit at depths up to about 250 m. Each hole encountered quartz vein material and variable amounts of associated sulfide mineralization over hole lengths of 1-3 m. Similarly, RC holes 16BSDH007, 16BSDH008, and 16BSDH009 tested areas east of the Blue Spec deposit to depths up to about 220 m. Each successfully intersected the Blue Spec shear zone with variable amounts of quartz veining and associated sulfides.

RC hole 16BSDH010 is the first hole drilled in the vicinity of the Gold Spec deposit. At a vertical depth of approximately 200 m along the eastern margin of the deposit, this hole encountered two meters of quartz vein material with sulfide mineralization including stibnite. The nearest historic drill hole, GSI007 located approximately 20 m west, encountered 20.1 gpt Au over a down hole length of 2 m.

Precollar hole 16BSDH002 targets the Blue Spec deposit immediately below mine workings in an area where there is a gap in drilling. Precollar hole 16BSDH003 is targeted to test the Blue Spec shear zone at a depth of approximately 350 m below holes 16BSDH001, 16BSDH005, and 16BSDH006. Core tails of both 16BSDH002 and 16BSDH003 will be completed over the next few days.

"We are pleased to see mineralization in recently completed drill holes at our Blue Spec gold project," commented Dr. Quinton Hennigh, President, CEO and a director of Novo Resources Corp. "It appears both the Blue Spec and Gold Spec deposits are open to expansion. We are also seeing evidence mineralization persists along the Blue Spec shear zone between these deposits and east of Blue Spec. We eagerly await results from these drill holes and completion of further holes testing this exciting high-grade gold system."

Drill holes discussed above are part of a 25,000 meter drill program Novo discussed in the Company's news release dated September 30, 2016. Assays from these drill holes will be released when available.

Tuscarora Drilling

Novo recently completed a 4,775 foot (1,455 m) reverse circulation drill program at its 100% controlled Tuscarora gold project in Nevada. Eight holes tested the Navajo vein extension, a one km long pediment-covered vein target situated along the south-southeast extension of the Navajo vein, the most prolific past-producing vein in the Tuscarora mining district (please see figure 3 below).

In the Company's news release dated September 13, 2016, Novo announced first assay results from this program including an intercept of 143.5 gpt Au over 1.5 m in hole 16TSRC-002. New results include 21.50 gpt Au over 1.5 m in hole 16TSRC-006 and 1.72 gpt Au over 35.1 m including 7.37 gpt Au over 3.1 m in hole 16TSRC-010.

Results for new drill holes are summarized below and in a nearby table.

• --Hole 16TSRC-003 appears to have overshot the vein and passed through alluvium above the projected trace of the vein. Nonetheless, this hole encountered several significant gold intercepts including 0.96 gpt Au over 16.8 m.

• --Hole 16TSRC-004, drilled from the same pad as 16TSRC-003, intersected 5.20 gpt Au over 1.5 m across the Navajo vein extension in a position immediately below the alluvium-bedrock interface.

• --Hole 16TSRC-005, similar to hole 16TSRC-003, appears to have overshot the targeted vein. Nonetheless, this hole encountered two significant gold intercepts including 0.89 gpt Au over 7.6 m.

• --Hole 16TSRC-006, the southern most hole, encountered 21.50 gpt Au over 1.5 m.

• --Holes 16TSRC-007 and 16TSRC-009 were lost in bad ground conditions and hole 16TSRC-008 deviated below the targeted vein.

• --Hole 16TSRC-010, drilled from the same pad as 16TSRC-005, encountered 1.72 gpt Au over 35.1 m including a vein interval of 7.37 gpt Au over 3.1 m.

"We are pleased with first round drill results from Tuscarora," commented Dr. Hennigh. "Due to significant coarse gold in this system, we plan to reanalyze significant gold intercepts using bulk cyanide leach. We expect results from these analyses to be available within a few weeks."

Drill samples were submitted to Inspectorate Laboratory in Reno, Nevada. All samples were analyzed by 30 g fire assay with an atomic absorption finish. Overlimit samples (>10 gpt Au) were re-analyzed by fire assay with a gravimetric finish. Due to the coarse nature of gold particles, significant gold-bearing intervals will subsequently be analyzed using bulk cyanide leach.

Mt. Hayes Option Extension

Novo is also pleased to announce that it has extended its option on the Mt. Hayes property by two years by paying AUD $50,000 in cash and by issuing 195,365 common shares to Red Dog Prospecting Pty Ltd. (please see the Company's news release dated April 14, 2016 for further details). The shares will be subject to trading restrictions expiring on April 7, 2017.

Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is President, CEO and a director of Novo Resources Corp.

About Novo Resources Corp.

Novo's focus is to evaluate, acquire and explore gold properties. Indirect subsidiaries of Novo hold a 100% interest in the Beatons Creek gold project, a 70% interest in properties surrounding Beatons Creek and Marble Bar, a 100% interest in the Blue Spec gold-antimony project, and options covering approximately 400 square km over the Mosquito Creek Basin, all in the Pilbara region, Western Australia. Novo also controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au-Ag vein district, Nevada. 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

CEO and President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to the expected receipt of results from various exploration and testing activities. 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, customary risks of the mineral resource exploration industry as well as Novo having sufficient cash to fund the planned drilling and other exploration activities.

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(Figure 1: Long section through the Blue Spec and Gold Spec deposits showing historic drill intercepts and the locations of Novo's recent drill intercepts.)

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(Figure 2: Diamond core from hole 16BSDH004. Left, stibnite-rich quartz vein with a 1 mm visible gold grain. Right, nearly massive fine grained stibnite intergrown with a 2 mm bleb of native gold.)

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(Figure 3: Plan view of drilling along the Navajo vein extension at Tuscarora. Collars of historic drill holes are shown as well as drill traces of Novo's recent RC holes.)

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