ARIKA RESOURCES LIMITED — AGM Information 2018

Nov 22, 2018

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Metalicity Limited 6 Outram Street West Perth WA 6005 Ph: + 61 8 9324 1053 Fax: +61 8 9324 3366 Web: www.metalicity.com.au

ASX Code: MCT

23 November 2018

ASX Compliance Pty Ltd Level 40, Central Park, 152-158 St Georges Terrace Perth WA 6000

2018 AGM Chairman’s Address

In my Address last year I talked about the progress we had made with our Admiral Bay Project and the exciting complimentary zinc assets we were in the process of acquiring in the Lennard Shelf area of the Kimberly in WA.

Although we were and are very satisfied with the technical progress we have made with defining the Admiral Bay Project the next step in its development clearly has to be to upgrade the information on the orebody. In our discussions with a number of international groups it became clear that the best option for Metalicity to raise the funds to do this work and to progress this project, would be to obtain funding from the North American capital markets. We looked at several options, including a possible dual listing for Metalicity. However, in the end, it was decided that the best would be to list our zinc assets as a standalone company on the Toronto Stock Exchange.

The best part of the year since making that decision has been taken up working towards that end. First, we established a 100% owned Canadian subsidiary, Kimberly Mining Limited and transferred ownership of all of our zinc assets to that company. Kimberly Mining has a board comprising both Metalicity directors and independent Canadian directors and has a full time President/CEO based in Toronto.

As we announced on 16[th] October this year, Kimberly Mining successfully raised just over C$2 million dollars from seed investors both here in Australia and in North America. These funds were used in part to repay Metalicity its costs incurred to date in working towards this listing and the balance will be used to cover the remaining costs of Kimberly Mining leading up to the listing.

It was initially proposed that the listing would take place before the end of this year. However, with the softening of the market, particularly in recent months, the decision has now been made to postpone that to Q1 next year.

Currently Metalicity owns a 99.99% interest in Kimberly Mining. Post the listing it is projected that will reduce to around 40% and in payment for its divestment, Metalicity will receive up to C$12 million to be paid over the next 2 years, including the C$500,000 already received.

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Metalicity Limited 6 Outram Street West Perth WA 6005 Ph: + 61 8 9324 1053 Fax: +61 8 9324 3366 Web: www.metalicity.com.au

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With the impending divestment of our zinc assets we have taken the opportunity to review the company’s ongoing strategy both geographically and with respect to its preferred commodities.

Consistent with our previously stated interest in “Battery Metals” we have decided to narrow the direction of our efforts onto Nickel and Copper. We believe both of these metals will see sustained long term increasing demand as the move globally towards replacing internal combustion engines with electric motors increases exponentially.

For the time being at least, we also decided there was nowhere better to focus our efforts than WA. It is an area we know well. In that regard you will have seen our recent announcements regarding options we have obtained over some exciting ground in the Fraser Range of the Albany Fraser Belt and the exploration applications we have made in the Paterson Province of the Pilbara Region.

So in summary, whilst we will be concentrating in the near term on completing the Kimberly Mining listing on the TSXV, our focus over the next year will be on building a project pipeline here in WA.

I might just also mention that we firmly believe that the current softness of commodity prices and the lack of solid interest by investors in the junior resources sector will only be short term. The demand for battery metals and for copper for electric motors is clearly set to grow at an ever increasing pace and Metalicity is aiming to be part of that growth.

To conclude I would like to thank Matt and his team for their solid efforts this year and to thank my fellow directors for their support. But I cannot finish without also thanking our loyal shareholders. It has not been a great year for the junior resource sector in the markets and we appreciate you all for staying with us.

Thank you

Andrew Daley

Non-Executive Chairman

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