Nova Minerals Ltd: Secures Prepayment Funding Facility

Melbourne, Australia - Nova Minerals Ltd. (ASX:NVA) (FRA:QM3) (OTCMKTS:NVAAF) is pleased to announce it has executed an agreement with Collins St Asset Management Pty Ltd ('CSVF' or 'Investor'), for an investment of A$2 million (with an additional loan of up to A$4 million subject to terms agreed upon by the parties) ('Funding Agreement'). The initial funding commitment will be provided within seven days. CSVF's A$2 million investment will be provided by way of a prepayment which is repayable by the Company within 120 days, or otherwise is convertible to shares or repayable in accordance with the terms set out below. Concurrently, CSVF will convert all of its NVAO options, the proceeds of which will be used, along with Nova's current cash, to expedite exploration and the Estelle Gold Camp.

NVA Executive Chairman, Mr. Avi Kimelman said: "During 2020, Nova's intent and strategy is to continue its systematic exploration approach to seek to significantly increase the current 2.5Moz resource and simultaneously move the Korbel prospect to feasibility stage during the course of 2020 on the path to production.

Furthermore, we look forward to assay results in due course for hole KBDH-002 (542.1m) which appears to contain the same mineralisation that was encountered in the 2.5Moz Inferred Resource and remains open at depth as announced on 25 May 2020 with further results expected.

Collins St Asset Management is already a significant shareholder of Nova Minerals, and we could not have asked for a better partner. Collins St Asset Management were ranked amongst the top 5 Australian equity fund managers of their type in 2019 by both Morningstar and Mercer. Of all the many facilities and direct equity offers made to us, this was the least dilutive and the most beneficial for shareholders.

On a separate note, Nova Minerals' investment in Torian Resources (ASX:TNR) is up approximately 800% from initial investment with exciting drill results pending at its Mt Stirling Gold Project. The Nova Minerals Board and management will continue to make calculated decisions in the best interest of its shareholders over the long term; the Torian investment and this prepayment placement being examples of this focus."

Key Terms of Funding Facility between Nova Minerals Ltd. (ASX:NVA) and Collins St Asset Management Pty Ltd ATF Collins St Value Fund (CSVF):

- A$2,000,000 to be made available immediately, which will be deemed to constitute a prepayment facility with a face value of $2,200,000 repayable or convertible to shares in accordance with the terms below. Funds to be applied to advance the Company's current drilling programs.

- An additional prepayment facility of up to A$4,000,000 may be made available subject to terms agreed upon by the parties.

- Nova Minerals has the right to repay the face value of the loan at any time within 120 days, provided that the minimum repayment amount is not less than $550,000 on each occasion ("Repayment Period").

- If Nova Minerals has not repaid the loan within the Repayment Period:

o The Investor will have the right to convert all or some of the outstanding face value of the loan to Nova Minerals' shares at an issue price per share of $0.07 (subject to shareholder approval if required).

o If the Investor does not exercise the right above, the parties have agreed to seek to negotiate an alternative repayment option. However, in the absence of an agreement, any amount of the outstanding face value not converted will be increased by 5% and will be repaid by the Company in equal monthly instalments over a period of 6 months through the issue of Nova Minerals' shares at an issue price which is the lower of: (a) $0.07; or (b) a 20% discount to the lowest 5 day VWAP (for any period of 5 consecutive days, but excluding days where there are no trades of the ordinary shares of the Company) during the immediately preceding month (in each case subject to shareholder approval, if required).

- In consideration of CSVF's entry into the arrangement, the Company will issue CSVF 4,300,000 shares and 18,000,000 options with an expiry date of two years and an exercise price of $0.07. These shares and options will be issued without shareholder approval under ASX Listing Rule 7.1.

- The prepayment facility otherwise contains terms which are typical to similar financing arrangements including: anti-dilution provisions in the event of bonus issues; rights of first refusal to participate in future financing up to 25%; warranties and undertakings by the Company which limit further financing and other significant or material corporate action subject to exceptions; typical events of default (including liquidity events) which may accelerate repayment or conversion rights if triggered and result in default interest; and provisions which require cash payments in the event that issues on conversion would result in a breach of takeovers laws.

About Nova Minerals Ltd:

Nova Minerals Ltd. (ASX:NVA) (FRA:QM3) is an ASX-listed minerals explorer focused on lithium, gold and mineral exploration in Canada, Alaska and Australia.

The company plans to create shareholder value through two-pronged strategy:

- Capitalise on the growing demand for energy storage and the resulting demand for lithium, cobalt and nickel by fast-tracking exploration and development activities in our North American assets with particular focus on our flagship lithium project and prospective Chip-Loy Nickel Cobalt Sulphides project.

- Diversification by gaining exposure to base and precious metals through our farm-in JV at our district scale Estelle gold copper silver project and our Northern Australian gold exploration assets.

Source:

Nova Minerals Ltd.

Contact:

Nova Minerals Ltd. P: +61-3-9614-0600 F: +61-3-9614-0550 WWW: novaminerals.com.au