Novo Resources : Q2 MD&A 2022

NOVO RESOURCES CORP.

(TSX: NVO; OTCQX: NSRPF)

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2022

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MANAGEMENT'S DISCUSSION AND ANALYSIS

The following management's discussion and analysis ("MD&A") of the results of operations and financial condition of Novo Resources Corp. (the "Company" or "Novo"), prepared as of August 15, 2022, should be read in conjunction with the condensed interim consolidated financial statements of Novo for the six months ended June 30, 2022 (the "Q2 Financial Statements") and accompanying notes thereto. The Q2 Financial Statements are prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). This MD&A includes the results of the Company's subsidiaries, Novo Resources (USA) Corp., Conglomerate Gold Exploration (B.V.I.) Ltd., Karratha Gold Exploration (B.V.I.) Ltd., Conglomerate Gold Exploration Pty. Ltd., Nullagine Gold Pty. Ltd., Beatons Creek Gold Pty. Ltd., Grant's Hill Gold Pty. Ltd., Karratha Gold Pty. Ltd., Rocklea Gold Pty. Ltd., Meentheena Gold Pty. Ltd., Farno-McMahon Pty. Ltd., and Millennium Minerals Pty. Ltd. ("Millennium").

In this MD&A:

"H1 2023" means the six months ending June 30, 2023.

"Fiscal 2022" means the fiscal year ending December 31, 2022. "Q1 2022" means the three-month period ended March 31, 2022. "Q2 2022" means the three-month period ended June 30, 2022. "H1 2022" means the six-month period ended June 30, 2022.

"Q3 2022" means the three-month period ending September 30, 2022. "Fiscal 2021" means the fiscal year ended December 31, 2021.

"Q1 2021" means the three-month period ended March 31, 2021. "Q2 2021" means the three-month period ended June 30, 2021.

All amounts are expressed in Canadian dollars unless otherwise stated, and all values are rounded to the nearest thousand dollars ($'000), unless otherwise noted. Additional information relating to the Company, including the Company's annual information form for the year ended December 31, 2021, is available under the Company's profile on SEDAR at www.sedar.com.

Certain non-IFRS financial performance measures are included in this MD&A. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide readers with an improved ability to evaluate the Company's underlying performance and compare its results to other companies. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS financial performance measures included in this MD&A are average realized price, total cash costs, all-in sustaining costs ("AISC"), earnings before interest, taxes, depreciation and amortization ("EBITDA"),

MANAGEMENT'S DISCUSSION AND ANALYSIS	2
SECOND QUARTER 2022

free cash flow, adjusted earnings and adjusted basic and diluted earnings per share, available liquidity, working capital, and Credit Facility (as defined below) adjusted working capital. Refer to the Non-IFRSMeasures section for further details and reconciliations of such non-IFRS measures.

Dr. Quinton Hennigh (P.Geo.) is the qualified person, as defined under National Instrument 43-101Standards of Disclosure for Mineral Projects ("NI 43-101"), responsible for, and having reviewed and approved, the technical information contained in this MD&A unless indicated otherwise. Dr. Hennigh is the non-executiveco-chairman and a director of Novo.

MANAGEMENT'S DISCUSSION AND ANALYSIS	3
SECOND QUARTER 2022

TABLE OF CONTENTS
OVERVIEW OF NOVO .................................................................................................................................................................	7
SIGNIFICANT BUSINESS DEVELOPMENTS & OUTLOOK .................................................................................................	7
SUSTAINABILITY........................................................................................................................................................................	19
OPERATING RESULTS .............................................................................................................................................................	21
FINANCIAL RESULTS................................................................................................................................................................	22
LIQUIDITY AND CAPITAL RESOURCES ...............................................................................................................................	28
SELECTED FINANCIAL INFORMATION ................................................................................................................................	29
SUMMARY OF QUARTERLY RESULTS ................................................................................................................................	29
CASH RESOURCES AND GOING CONCERN .....................................................................................................................	30
CONTRACTUAL OBLIGATIONS ..............................................................................................................................................	30
OFF-BALANCESHEET TRANSACTIONS .............................................................................................................................	30
CONTINGENCIES.......................................................................................................................................................................	31
CRITICAL ACCOUNTING ESTIMATES ..................................................................................................................................	31
INTERNAL CONTROLS OVER FINANCIAL REPORTING ..................................................................................................	35
OUTSTANDING SHARE DATA ................................................................................................................................................	36
NON-IFRSMEASURES .............................................................................................................................................................	36
CAUTION ON FORWARD-LOOKINGINFORMATION .........................................................................................................	41
RISKS RELATED TO THE COMPANY....................................................................................................................................	42

MANAGEMENT'S DISCUSSION AND ANALYSIS	4
SECOND QUARTER 2022

FINANCIAL AND OPERATING HIGHLIGHTS

1

Second Quarter 2022 Summary

• No lost time injuries were recorded at the Beatons Creek gold project in the Nullagine region of Western Australia (the "Beatons Creek Project") or across the Company's exploration properties through Q2 2022.
• Exploration efforts continued through Q2 2022, with HQ drilling at the Genie target at the Nullagine gold project ("NGP") and RC drilling at the Malmsbury Project in Victoria.
• Regional exploration focussed on Ni-Cu targets across the Andover intrusive complex at Purdy's North and orogenic gold targets at the Egina project.
• Production to pause at the Beatons Creek Project and the Golden Eagle processing facility
  ("Golden Eagle Plant"), with mining of the Oxide mineral resource ending in Q3 2022 followed by a phased wind-down of operational activities finishing by the end of October 20222.
• 398,830 tonnes of mineralized material were processed through the Company's Golden Eagle
  Plant, which represented a significant increase from 366,301 tonnes in Q2 2021 and a minor increase from 394,382 tonnes in Q1 2022.
• Average head grade was 1.02 g/t Au, which represented a decrease from 1.30 g/t Au in Q2 2021 and 1.15 g/t Au in Q1 2022.
• Gold recoveries averaged 93.48%, which was in line with recoveries of 93.65% achieved during Q1 2021 but a notable increase from recoveries of 91.40% achieved in Q1 2022.
• 12,610 ounces of gold were produced, which represented a decrease in gold production from 14,890 ounces in Q2 2021 subsequent to the Company's inaugural gold pour in February 20213 and from 13,378 ounces in Q1 2022.
• Revenue of $29.7 million was generated from the sale of 12,378 ounces of gold at an average realized price1 of $2,400 / A$2,635 / US$1,880, which represented a slight decrease from revenue of $31.7 million in Q2 2021 and revenue of $31.9 million in Q1 2022.
• EBITDA1 was $(3.5) million, and adjusted EBITDA1 was $(21.8) million.
• Adjusted earnings1 (losses) of $(37.1) million or $(0.15) per share compared to adjusted earnings / (losses)1 of $(19.2) million or $(0.08) per share in Q2 2021 and $(13.6) million or $(0.06) per share in Q1 2022.

1 Refer to Non-IFRS Measures on page 36 below.

2 Refer to the Company's news release dated June 14, 2022.

3 Refer to the Company's news release dated February 16, 2021.

MANAGEMENT'S DISCUSSION AND ANALYSIS	5
SECOND QUARTER 2022