ARIKA RESOURCES LIMITED — Capital/Financing Update 2015

Mar 16, 2015

Attention ASX Company Announcement Platform

Lodgement of Q&A Insight

ASX Announcement:

==> picture [221 x 55] intentionally omitted <==

Interview with Managing Director, PLD Corporation

In this interview, Matt Gauci (Managing Director) of PLD Corporation (ASX: PLD) provides an update on the company’s decision to acquire the Admiral Bay Zinc Project in Western Australia.

Key highlights from the interview include:

• Acquiring one of the world’s largest zinc projects to produce a high quality concentrate

• at a time when zinc is heading into a supply shortage

• Securing A$10 million funding from two of the world’s leading mining finance

• companies to develop Admiral Bay

• A$50 million invested into the project to date with a further A$10 million investment

• planned to complete resource upgrade and pre-feasibility studies

• Operating from a world-class jurisdiction with a high quality team from a large pool of

• talent to deliver project success

Record of interview:

Q: Why did PLD decide to proceed with the acquisition of Admiral Bay - what were the main reasons?

• A: Matt Gauci: Admiral Bay is one of the world's largest undeveloped zinc deposits and we will be developing it as two of the largest zinc projects in the world are coming to the end of their life in 2015. High grade and large tonnage zinc deposits in the order of magnitude like Admiral Bay are very rare, particularly in worldclass jurisdictions like Western Australia. The opportunity to acquire it at a relatively inexpensive price occurred after the previous owner spent over A$30 million on the evaluation of Admiral Bay at a time when the global zinc market was well supplied. In the end, they entered into administration and subsequently liquidation primarily as a result of their other high cost projects. In terms of deposit profile, the Admiral Bay mineralisation is very consistent along an 18km strike, contains a number of high grade deposits within the Mineral Resource Estimate (MRE), and together with the Exploration Target Range (ETR), is ranked among one of the world’s largest. From the work completed to date, the metallurgical profile is excellent, with production being projected as a coarse grained high quality concentrate that may sell at a premium to market

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate

==> picture [195 x 50] intentionally omitted <==

prices. From an economic perspective, previous work outlined Admiral Bay as having the potential to operate at the low end of the cost curve. Furthermore and very importantly, the project is located in a world-class jurisdiction of Western Australia with good access to skilled labour, quality infrastructure and a first world mining act. Finally, the support PLD has received from new, credible, mining focussed investors including RCF, will enable us to complete the acquisition and move towards the next phase of planned development. With an acquisition price of A$0.5 million cash plus various deferred payments, we believe acquiring Admiral Bay is in the best interest of our shareholders as the zinc market moves into deficit.

Q: Where did PLD secure the funds for the acquisition and planned development of Admiral Bay?

• A: Matt Gauci: PLD has been in discussion with a number of investors and potential partners for three months. Both incoming investors understand the value proposition available and hence moved to secure a cornerstone position by providing finance of approximately A$10 million, 90% of which is non-dilutive to shareholders. RCF is one of the world's leading mining finance companies with around US$2 billion under management from RCF Fund VI. Importantly, we welcome RCF as the company's largest shareholder who hold about 10% of PLD, while about 90% of the remaining funding has been secured in a non-dilutive manner to shareholders via the sale of a 1.5% Net Smelter Royalty (NSR) over the project’s life. To have attracted an investor of the credibility of RCF is testimony to the enormous potential of the project, the market, the deal structure and the team. There is no shortage of interest from various investors and end-users who we have engaged with and we look forward to further discussions as we continue to develop Admiral Bay. However, we are now fully funded for this current phase of development.

Q: What are the plans for the development of Admiral Bay?

• A: Matt Gauci: We have drafted an indicative 24 month plan targeting a resource upgrade and Pre-Feasibility Study (PFS). The resource upgrade will involve building a geological model, re-assaying existing drill core to apply modern QA techniques, application of new geophysics techniques for continuity and targeting, deployment of advanced directional drilling techniques focussing on higher grade deposits within the MRE and modern drilling techniques targeting the ETR. Overall, we are aiming to increase the grade by some 10% and lift the tonnages by at least 30-50%. Further hydrological, geotechnical, mining, metallurgical, infrastructure and baseline studies will also be undertaken. We will be working through a new PFS and will be aiming to have that complete in 2016. At PFS completion, we will evaluate various Definitive Feasibility Study (DFS) options and funding scenarios included but not limited to working with a global partner in base metals. We fundamentally believe in the opportunity to become involved with a project supplying around 5% of the world's zinc supply, in a safe jurisdiction, at the low end of the cost curve for 20+ years, will be a very

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate

==> picture [195 x 50] intentionally omitted <==

attractive investment opportunity for future partners. That said, the financial capabilities of our new investors will assist greatly and provide us with more options to create value at that time.

Q: The Admiral Bay deposit sits at considerable depth - how does this compare to other projects globally and how will this impact development plans?

• A: Matt Gauci: It is misguiding to refer to the depth as an impediment to developing Admiral Bay. There are more than 25 large underground projects worldwide in other commodities which are deeper and technically more challenging, with 2 in the same geological terrain as Admiral Bay. At this stage, we do not see any technical or capital flaws for its development, given the depth. The challenge, based on historical work, is to improve the capital intensity. We will be working to extend the resource, lift the grade, increase the volumes and ultimately mine life, so as to amortise capital over a period of greater than 20+ years. The project has had A$50 million invested in it and with a further A$10-A$20m million spent in a positive zinc market for a new PFS to meet the capital intensity challenge towards a DFS, we believe we will add enormous value to the project and for our shareholders.

Q: Are there potential social, environmental, community or native title concerns around the Admiral Bay project?

• A: Matt Gauci: There are no major concerns but there are always challenges. The company will be looking to to work through baseline social, environmental, and community studies for future development. The Kimberley region is one of the world’s great natural environments and the company takes its responsibility seriously. The project is located on vacant crown land in a relatively benign part of the Kimberley region, 150km south east of Broome. There are a number of native title agreements currently in place and we look forward to working through these during the PFS.

Q: How does PLD see a management team being built around Admiral Bay?

• A: Matt Gauci: There is a large pool of talent in the resources industry in Western Australia where wages and conditions have balanced out to become somewhat more in line with industry standards. Evidence suggests wages and contractor rates have decreased 25% compared to a couple of years ago. We anticipate building a small multi-skilled team including a Project Manager, Exploration Manager and Sustainability Manager, while still having access to a wide range of specialist expertise via our technical consultants CSA Global.

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate

==> picture [195 x 50] intentionally omitted <==

Q: How have other factors such as input costs and foreign exchange influenced the decision to acquire Admiral Bay?

A: Matt Gauci: While capital input costs have deflated by around 25% across the resources sector, the quality and quantity of contractors and capital have both increased significantly. This should be a huge advantage when faced with building the company at this stage of the cycle. As with many other manufacturers and resource companies based in Australia, the recent devaluation of the Australian dollar has also had a significantly positive impact on the project’s valuation and development. We do not anticipate any significant inflation of the Australian dollar to the US dollar in the near future and this will have a positive impact on the economics of the project.

Q: What are PLD’s plans for the Rocky Gully project in Western Australia?

A: Matt Gauci: Rocky Gully represents a large footprint of targets in one of the more highly prospective and exciting mineral exploration terrains in the world at the moment, thanks largely to the discovery and development of the Nova Nickel Copper Deposit. We currently hold around 1,200km[2] of tenements and have built a systematic well defined exploration process involving geological, geochemical and geophysical techniques to progress the numerous targets at Rocky Gully, for Nova-type Nickel deposits. The focus of initial exploration will be targeting 8 of the 20 odd bedrock EM Conductor identified at Rocky Gully with geological and geochemical evaluation before ground Electromagnetic (EM) surveys and drilling with the aim of discovering Nova-type Nickel-Copper deposits.

Q: Where does PLD foresee the zinc and nickel lead market heading?

A: Matt Gauci: Zinc is the fourth most used metal in the world behind iron ore, copper and aluminium. There are no apparent substitutes for zinc in galvanising steel and no seemingly dominant industry player that can quickly and significantly increase product to market to increase market share. There has been a significant dearth of exploration in the zinc sector for decades and hence a supply shortage is unfolding. For this reason, we concur with most leading analysts, that there will be upward pressure on the zinc price towards the $3,000-$4,000/t range in the 2015-2020 period. Equilibrium will inevitably return at some stage in the future, although projects that operate at the low end of the cost curve for a significant period of time usually have access to more options for capital. We believe Admiral Bay fulfils this proposition. Nickel has historically suffered from the significant supply of Nickel-laterite out of South East Asia to feed the Nickel pig iron industry in China as a substitute for conventional nickel in stainless steel, however the recent ban on Indonesian exports has removed some of this product and has given prices a boost. We concur with most leading analysts that the ban will take some time to work its way through the market and hence see $15,000$20,000/t Nickel as price range in the 2015-202 period. Importantly, Nova-type deposits operate at the low

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate

==> picture [195 x 50] intentionally omitted <==

end of the cost curve and hence are considered cycle proof, while clearly the discovery of these type of deposits generates almost unprecedented market interest and re-rating.

Q: What is the process and timing to completion of the acquisition of the projects?

A: Matt Gauci: The Company will be working through regulatory steps to completion of the acquisition over the coming 3 months. As announced, these include approval of the vendors for the sale of the projects (including court approval for the sale of Kagara’s asset), approval of PLD shareholders to acquire the projects, change in nature and scale of the business and ultimately re-compliance with Chapters 1 and 2 of the ASX Listing Rules. We have announced an indicative budget and timetable to completion of the acquisition and do not see any major changes to this at this stage. Our management and advisors have significant experience with this process and look forward to completion on time and budget. We will soon be issuing a Notice of Meeting for the shareholders to approve the acquisition with various other resolutions which will include a change in company name. We have initially announced the potential of producing a prospectus for a related capital raising, and this is a standard requirement under ASX Listing Rules, however, given we have recently undertaken a $10m capital raising to fund development of our projects, we may not have to raise additional capital as part of the process. That said, clearly we have had significant interest from a number of brokers, investors and partners after announcing the acquisition and capital raising, and we will evaluate this interest on a case by case basis as we proceed through this process. Any updates to the timetable and process will be announced as soon as they are material.

----- End -----

Further information:

PLD Corporation

Matt Gauci

Managing Director

T: +61 8 417 417 907

Investor Relations

David Tasker

Professional Public Relations (PPR)

T: +61 8 9388 0944

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate

==> picture [195 x 50] intentionally omitted <==

E: david.tasker@ppr.com.au

Important Notice:

PPR has taken care in the provision of assistance to compile and publish this information on behalf of PLD Corporation in good faith and as agent of PLD Corporation for the purpose of providing the information to the ASX and those to whom it is published by the ASX. PPR makes no warranties as to the accuracy of any facts or representations contained in the information, and has relied upon information provided to it in publishing this material to the ASX. PPR does not accept any responsibility for any opinions expressed in the information or material. PPR is not a financial adviser and this information and material is not financial or other advice of any type whatsoever. Subject to any terms implied or imposed by law and which cannot be excluded, PPR is not responsible for any reliance, loss, damage, cost or expense incurred by any reliance upon this information and material or by acting upon it or for any error, omission or misrepresentation conveyed. This information is general only and does not take into account any individual objectives of investors. PPR encourages the reader to read the full ASX announcements published by PLD Corporation. Professional advice should be taken before making investment decisions.

Forward-Looking Statements:

Q&A Insights includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond PLD Corporation’s control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding PLD Corporation’s future expectations. Readers can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause PLD Corporation’s actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements).

These factors include, but are not limited to, the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for zinc and lead materials; fluctuations in exchange rates between the US Dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of PLD Corporation’s suppliers, service providers and partners to fulfil their obligations under construction, supply and other agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions.

Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information. The information concerning production targets in this announcement are not intended to be forecasts. They are internally generated goals set by the board of directors of PLD. The ability of the company to achieve these targets will be largely determined by the company’s ability to secure adequate funding, implement mining plans, resolve logistical issues associated with mining and enter into off take arrangements with reputable third parties.

PLD confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Exploration Results in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

ASX Announcement: 10 March 2015 – Q&A Insight PLD Corporate