Novo Resources Reports CAD 3.9 Million H1 Loss, Plans Key Belltopper Drilling

Belltopper Project Advances with Significant Exploration Target

Novo Resources Corp (ASX:NVO, TSX:NVO) is gearing up for a pivotal phase at its Belltopper Gold Project in Victoria, with plans for a 2,500-metre diamond drilling program in the final quarter of 2026. This follows a substantial update to the Belltopper Exploration Target earlier this year, which now estimates between 460,000 and 880,000 ounces of gold across 2.1 to 3.1 million tonnes at grades ranging from 6.7 to 8.9 g/t Au. The Leven Star Reef, a key component of Belltopper, was recently assigned an Inferred Mineral Resource of 87,000 ounces at 3.6 g/t Au, highlighting open mineralisation and potential for expansion.

The Belltopper project sits in the prolific Bendigo Zone, near major gold operations such as Agnico Eagle’s Fosterville mine, and benefits from proximity to established processing infrastructure. Novo’s exploration strategy targets eight high-grade reefs, with drilling expected to test extensions and underexplored historic reefs within the Belltopper Anticline Corridor.

Pilbara Exploration: Maiden Drilling and Tenement Expansion

In Western Australia’s Pilbara region, Novo completed maiden reverse circulation (RC) drilling programs at the Wyloo SE and Cronus prospects during Q2 2026. The Wyloo SE drilling intersected significant antimony and silver mineralisation near surface, including assays of 9 metres at 92 g/t Ag and elevated antimony, confirming a robust hydrothermal system. Complementary soil and rock chip sampling extended the Vera antimony-arsenic anomaly over 600 metres, underpinning further exploration potential.

At Cronus, 23 holes totaling 2,647 metres targeted the Titan Shear Zone and associated structures. While lithological and alteration features were promising, no significant gold intersections were reported, and no immediate follow-up drilling is planned.

Meanwhile, Novo expanded its Toolunga Copper-Gold Project landholding to 2,242 square kilometres, consolidating a strategic position at the intersection of major tectonic boundaries known for IOCG and related mineralisation styles. Three high-priority targets; Lobster, Ironstone Bore, and Mount Minnie; have been identified for follow-up fieldwork and geophysical surveys in H2 2026.

Capital Raising and Financial Position

Financially, Novo reported a net loss after tax of CAD 3.25 million for Q2 2026 and CAD 3.93 million for the first half of 2026, narrowing from losses of CAD 4.23 million and CAD 5.85 million respectively in the prior year periods. Exploration expenditure increased to CAD 2.78 million in Q2 2026, reflecting the ramp-up in drilling activities, compared with CAD 2.13 million in Q2 2025.

Cash and short-term investments rose to CAD 9.58 million as of June 30, 2026, up from CAD 5.98 million a year earlier, supported by two tranches of capital raising completed in March and May 2026. Together, these placements generated gross proceeds of approximately CAD 7.8 million through the issuance of units and CHESS Depository Interests (CDIs) with attached options exercisable at A$0.15 over three years. Novo also repaid A$2.65 million of deferred consideration to IMC Resources during the period, reducing its outstanding liability to approximately A$10 million.

Liquidity and Going Concern Considerations

Despite a working capital deficiency of CAD 1.03 million at June 30, 2026, Novo’s available liquidity; which includes cash, marketable securities, receivables, and gold specimens; stood at CAD 11.17 million, an improvement from CAD 9.85 million at the end of 2025. Management’s cash flow forecasts indicate sufficient funds to meet operational and exploration commitments through at least August 2027, assuming prudent expenditure management and potential asset disposals if necessary. The company’s directors have affirmed the appropriateness of the going concern basis for financial reporting.

Sustainability and Operational Highlights

Operationally, Novo reported one lost time injury during Q2 2026 involving a drill offsider, prompting continued focus on health and safety management systems. The company remains engaged with Indigenous communities across its tenure areas and is advancing heritage access agreements critical for exploration, notably at the Teichman Gold Project in Western Australia.

Environmental stewardship efforts include mine rehabilitation activities and compliance with regulatory requirements across its Australian operations. Novo’s sustainability framework aligns with global standards such as the Global Reporting Initiative and the International Council on Mining and Metals principles.

Exploration Pipeline and Joint Ventures

Beyond Belltopper and Pilbara, Novo is advancing exploration at the Tibooburra Gold Project in New South Wales, where a 2,700-metre RC drilling campaign is planned for H2 2026 targeting high-grade zones at Clone and Pioneer prospects under a farm-in JV with Manhattan Corporation. The John Bull Project farm-in with TechGen Metals lapsed in Q2 2026 due to unmet conditions.

At the Egina Gold Project, Northern Star (formerly De Grey Mining) withdrew from its earn-in agreement, halting the formation of a joint venture. Novo plans to review Northern Star’s exploration data and resume activities in H2 2026. Northern Star retains a 75% interest in the Farno McMahon JV with Novo.

Negotiations for heritage approvals at Teichman are nearing completion, with RC drilling poised to commence upon receipt of access agreements and ministerial approvals.

Outlook and Investor Considerations

Novo Resources is transitioning from extensive exploration groundwork to targeted drilling campaigns designed to define and expand its mineral resources, particularly at Belltopper and in the Pilbara. The upcoming diamond drilling at Belltopper and RC programs at Tibooburra and Teichman represent critical catalysts for the company’s growth trajectory.

Financially, Novo’s ability to maintain exploration momentum while managing working capital pressures will be key, especially given the ongoing repayment obligations related to deferred consideration and the need to convert exploration success into tangible resource upgrades. Investors should watch for assay results from the recent Pilbara drilling and updates on heritage approvals that could unlock further drilling at Teichman.

With a diversified portfolio spanning gold and polymetallic projects across Australia and a strengthened cash position following recent capital raises, Novo is positioned to advance its exploration agenda, though uncertainties inherent in early-stage resource development remain.