ARIKA RESOURCES LIMITED - AGM Information 2016

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A return-driven resource developer

AGM Presentation

November 2016

Important notices

Disclaimer and Forward Looking Statements

This presentation is not a prospectus nor an offer of securities for subscription or sale in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Metalicity Limited and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities. The information contained in this presentation has been prepared in good faith by Metalicity Limited. However, no representation or warranty, express or implied, is made as to the completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, Metalicity Limited, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use of, or reliance on, anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of Metalicity Limited, but these are not intended to be forecasts, forward looking statements, or statements about future matters for the purposes of the Corporations Act (Cth, Australia) or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Metalicity Limited’s actual results, performance or achievements to differ from those referred to in this presentation to occur as contemplated. The presentation contains only a synopsis of more detailed information to be published in relation to the matters described in this document and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or incurring by you of additional liability. Recipients of this presentation should conduct their own investigation, evaluation and analysis of the business, data and property described in this document. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and you should satisfy yourself in relation to such matters.

Competent Person Statement

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Information contained in this announcement has been presented in accordance with the JORC Code and references to “Measured, Indicated and Inferred Resources” are to those terms as defined in the JORC Code. The information in this report that relates to Geology and Exploration Results is based, and fairly reflects, information compiled by Mr Michael Hannington, who is a Member of the Australian Institute of Geoscientists. Mr Hannington is a full-time employee of Metalicity. Mr Hannington has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hannington consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. All parties have consented to the inclusion of their work for the purposes of this announcement. The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for absolute certainty. Any economic decisions which might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risks.

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We are driven by return on capital

Discovery, development and acquisition our key focus.

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All assets are in the premium mining jurisdiction of Western Australia. Primary asset is the world class Admiral Bay zinc-lead project. Secondary asset(s) are highly prospective Pilbara lithium tenure. All project acquisitions at very low cost to shareholders. Well funded for a range of work programs.

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Corporate snapshot

Capital structure
Issued share capital (MCT)	454.0 mil
Options	78.6 mil
Share price (15 Nov 2016)	A$0.057
Market capitalisation (undiluted)	A$25.9 mil
Cash (30 Sep 2016)	A$4 mil
Debt (30 Sep 2016)	A$0 mil
Average daily traded volume	0.90 mil
Major shareholders
Founders	~15%
Management and Associates	~12%
Shanghai Metals	9.4%

Metalicity share price

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Analyst coverage

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Zinc: chronic supply shortage driving prices

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Source: Macquarie Research, March 2016 (Wood Mac, CRU, LME, ILZSG)

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Admiral Bay highlights

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100% Metalicity ownership with fully uncommitted offtake.

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Located in the Canning Basin of Western Australia, approximately 140km south of Broome.

Close proximity to excellent power, water, road and port infrastructure solutions.

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Updated Inferred Mineral Resource Estimate (MRE) of 170 Mt at 7.5% ZnEq1

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In-situ contained metal of 7.0 Mt zinc, 4.6 Mt lead and 137 Moz silver
Delineated on granted MLs and EL
Exploration Target Range (ETR)[2] , exclusive of MRE, of 160 – 210 Mt at 7.2-7.8% ZnEq.

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Further district-wide resource scale potential.

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Targeting a multi-decade operation of world class zinc-lead scale and low operating cost.

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Scoping Study completed by SRK Consulting (July 2016) confirmed the project’s potential.

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Pre-Feasibility Study underway and partner discussions progressing.

1 See Metalicity ASX release on 4/07/2016; ZnEq = Zn + 0.97 Pb + 0.03 Ag (Table 1: Zinc Equivalence Parameters)
2 Note that the potential quantities and grades are conceptual in nature, that there has been insufficient exploration to estimate Mineral Resources and that it is uncertain whether further exploration will result in the estimation of Mineral Resources.

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A globally significant zinc resource

Admiral Bay Resource Estimate

Major zinc development projects globally

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||||||||||
|---|---|---|---|---|---|---|---|---|
|Resource cont. metal|Resource grade|
|Classification|Tonnes (mt)|Zn (%)|Pb (%)|Ag (g/t)|Zneq (%)|[1]|(Zn + Pb only (mt))|(Zn + Pb (%))|
|30.0|20.0%|
|Inferred|170.0|4.1|2.7|25|7.5|
|25.0|
|Cont. Zn + Pb (mt)|
|15.0%|
|Zn + Pb grade (%)|
|3.0% Zneq cut-off grade|20.0|
|Contained metal = 7Mt zinc, 4.6Mt lead, 137Moz silver|15.0|10.0%|
|Exploration Target Range|[2]|
|10.0|
|—|Exploration target estimate based on 3% Zn+Pb cut-off grade|5.0%|
|—|5.0|
|160-210Mt at 4.5-4.6% Zn, 2.2-2.1% Pb and 25g/t Ag|
|—|
|Contained metal = 7.2-9.6Mt Zn, 3.5-4.3Mt Pb, 128-169Moz Ag|0.0|0.0%|
|—|
|18km targeted strike extent|
|1|See Metalicity ASX release on 4/07/2016; Zneq = Zn + 0.97 Pb + 0.03 Ag (Table 1: Zinc Equivalence Parameters)|
|2|Note that the potential quantities and grades are conceptual in nature, that there has been insufficient exploration to estimate|
|Mineral Resources and that it is uncertain whether further exploration will result in the estimation of Mineral Resources.|

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2 Note that the potential quantities and grades are conceptual in nature, that there has been insufficient exploration to estimate Mineral Resources and that it is uncertain whether further exploration will result in the estimation of Mineral Resources.

Source: Various company reports and releases

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Admiral Bay Fly-through

Please see: http://www.metalicity.com.au/projects/admiral-bay

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Lithium: massive demand driving prices

Advancement in Li-ion battery technology for typical base model electric vehicles (EVs)

Source: NEDO, Goldman Sachs Global Investment Research

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Prospective lithium portfolio

Approximately 2,500km[2] of exploration licence applications.

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Largest specific landholding for lithium in Western Australia.

Low cost/risk entry into lithium exploration sector.

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Acquired via a specific spodumene targeting model.
Drilling programs are being progressed for all projects. Key tenements in world class hard rock lithium districts:

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Pilbara (Pilgangoora and Wodgina)
South West (Greenbushes)
Goldfields (Lake Cowan)

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Pilbara hotspot

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Largest specific landholding for lithium in the Wodgina/Pilgangoora district (790km[2] ).

Greenstone belt pegmatites in the region are known to host large scale lithium (spodumene) and tantalum resources:
Pilgangoora lithium projects: 128.6Mt at 1.22% Li2O (Pilbara Minerals Limited) and 39.2Mt at 1.02% Li2O (Altura Mining Limited)
Wodgina lithium operations (Mineral Resources Limited)

Metalicity’s tenements are predominantly:

Within the main pegmatite target corridor
Abutting existing world class lithium deposits
Strategically located adjacent to infrastructure

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Stannum: extensions to Wodgina

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Re-processing of historical Hyperspectral data:

Distinct mineral zoning within the pegmatites

Strong prospectivity over a mapped surface strike of approximately 3km X 0.5km.

Comparable with dimensions of Pilbara Minerals’ Pilgangoora deposit located around 25km northeast.
Comparable with dimensions to Mineral Resources’ Wodgina deposit located 5km northeast.
Drilling underway:
Initial 1,600m RC program at central pegmatites
Planned 3,000m RC program at other pegmatites

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Results of Hyperspectral Assessment over 5.5km
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Spodumene sample

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Pegmatites mapped at surface over 3km by 0.5km

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Turner River: extensions to Pilgangoora

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Turner River adjoins Pilgangoora deposits to the south.
Exploring for the prospective extensions to the world class Pilgangoora deposits to the south:
Fertile granites provide source rocks for the lithium-rich pegmatites
Terrain typically eroded, exposing pegmatites, however
Low lying areas such as Turner River: this cover material obscures pegmatites

First pass field surveys identified indications of pegmatites under this cover in local water bores.

Sampling and drilling planned across a 10km X 4km target area upon grant of this tenement (expected March Q 2017).

Plentiful on tenement water observed for future operations.

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Pilgangoora
(Pilbara Minerals)
128.6Mt @1.22% Li2O
Pilgangoora
(Altura Mining)
39.2Mt @1.02% Li2O
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