Nova Resources Ltd - Subscription and Issue of Loan Notes

10 February 2012

Nova Resources Limited

("Nova" or the "Company")

Subscription and Issue of Loan Notes

The Company is pleased to announce that it has raised £825,000 by way of a subscription for shares (the "Subscription") with various investors (the "Investors") and from the issue of a convertible unsecured loan note 2015 (the "Notes"). The proceeds of the Notes and Subscription will be used for working capital and to execute Nova's investing policy.

Subscription

The Company has raised £765,000 through a subscription of 10,200,000 new ordinary shares of par value £0.01 each ("Ordinary Shares") in the capital of the Company at the subscription price of £0.075 each (the "Subscription Shares") to the Investors. The Subscription represents 12.7% of the enlarged share capital of the Company at Admission.

Application will be made to the London Stock Exchange (LSE: LSE.L - news) for the Subscription Shares to be admitted to trading on AIM and it is expected that Admission will be effective and trading will commence at 8:00 am on 17 February 2012. Following Admission, the Company will have 80,200,000 Ordinary Shares in issue. Since the Company holds no shares in Treasury, the total number of voting rights in the Company is therefore 80,200,000 and this figure may therefore be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

The Notes

The Company has raised £60,000 from the issue of the Notes. The salient terms of the Notes are as follows:

(a) The holder of the Notes (the "Noteholder") has the right, but not the obligation, to convert the principal amount outstanding to newly issued Ordinary Shares in the capital of the Company at the subscription rate of £0.075 for each Ordinary Share.

(b) There is no interest on the amount outstanding. If all or part of the Notes is not converted by 31 March 2015, Nova shall pay to the Noteholder the principal.

None of the Investors nor Noteholders are related to any director or substantial shareholder of the Company.

If the total value of the Notes are converted, 800,000 Ordinary Shares of par value £0.01 each in the capital of Nova will be issued, which represents 1% of the enlarged issued share capital of Nova. On a fully diluted basis, following conversion of the Notes together with conversion of all outstanding options and warrants, but not including the convertible loan notes that may or may not be issued pursuant to the Investment Facility with Odin Structured Advisory Services LLP announced on 5 January 2012, an additional 37,300,000 shares of par value £0.01 each would be issued, giving a total number of Ordinary Shares in issue of 117,500,000.