NOVA.L Regulatory News (NOVA)

NOVA RESOURCES LIMITED

("Nova" or the "Company")

New funding

Nova announces that it has successfully secured new investment into the Company of £400,000 0% unsecured convertible loan notes (the "Notes"). The funds raised may only be used for the purposes that are approved by Pearce Global Limited and these include funding the normal working capital expenses of the Company as well as to pursue the Company's investing policy.

The Notes have been subscribed by Pearce Global Investments Limited (the "Noteholder"), a British Virgin Island incorporated company. The principal terms of the Notes are as follows:

· The Notes will be repayable by 31 December 2017 and do not carry a coupon.

· Both the Company and the Noteholder have the right, but not the obligation, at any time to convert part of, or the whole of, the principal amount outstanding under the Notes into new ordinary shares of 1p in the capital of the Company ("Ordinary Shares") at the conversion rate of 1p for each Ordinary Share, subject to the Restriction (as defined below).

· The Noteholder will be issued with 200 million warrants to subscribe for new Ordinary Shares (the "Warrants"), subject to the Restriction (as defined below). The Warrants can be exercised at any time up until 31 December 2018 and at the exercise price of 1p per Ordinary Share.

· The Notes and the Warrants are transferable with the consent of the Company (which consent shall not be unreasonably withheld) and subject to the Restriction (as defined below) being adhered to by a transferee.

Conversion of the Notes in full would result in the issue of 40,000,000 Ordinary Shares and exercise of the Warrants in full would result in the issue of 200,000 Ordinary Shares which, in aggregate, would represent approximately 69.4 per cent. of the enlarged issued Ordinary Share capital of the Company (assuming that no other Ordinary Shares are issued and none of the other warrants already issued by the Company are converted). The Company is not subject to the UK City Code on Takeovers and Mergers. However, the Noteholder has undertaken not to: i) convert the Notes or exercise the Warrants (together, "Conversion") if such would result in the Noteholder owning more than 30 per cent. of the enlarged issued share capital of the Company; and ii) use the rights attached to Ordinary Shares acquired as a result of Conversion to appoint a director of the Company or otherwise seek to gain control of the board of directors of the Company or to exercise undue influence on or otherwise interfere with the management of the Company (the "Restriction").

The Board has been in negotiations with several parties with a view to securing additional funding to provide the Company with sufficient working capital as well as to assist the continued pursuit of its investing policy. Whilst the terms of the Notes could significantly dilute existing shareholders of the Company through a Conversion, the Board considers that this investment will give the Company a meaningful opportunity to pursue its investing policy.

Further to the statement made in the announcement of Nova's results for the year ended 31 December 2012 made on 28 June 2013, the Company confirms that its Mongolian investee company is still in discussions with respect to the renewal of its coal transportation contract. However, no final decision has been reached yet. A further announcement will be made when appropriate.

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