ARIKA RESOURCES LIMITED — Capital/Financing Update 2016

Dec 22, 2016

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ASX RELEASE: 23 DECEMBER 2016

LITHIUM DRILLING COMPLETED AT LAKE COWAN

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Auger Drilling program of 400 sample points completed at the Lake Cowan project, Goldfields, WA

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400 samples logged and samples currently being submitted to laboratory for assessment

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Program designed to vector in towards Bald Hill pegmatites under thin cover to guide RC Drilling program Adjoins near term producing Bald Hill Tantalum-Lithium Operations, owned by Alliance Mineral Assets

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Metalicity Limited (ASX:MCT) (“MCT” or “Company”) is pleased to announce the completion of an Auger drilling program of 100m X 400m targeting the extensions of the Bald Hill Pegmatite Belt under thin cover to guide follow up RC Drilling program, at the Lake Cowan project, Goldfields, WA.

The Lake Cowan Project is located immediately south of the Bald Hill Tantalum Mine owned and operated by Alliance Mineral Assets. Tawana Resources NL (Tawana ASX release 11/7/2016) (Figure 2) have recently acquired an Option over three Exploration Licenses located north of the Bald Hill Tantalum Mine where resource and exploration drilling is underway and more recently (24/10/2016) (Figure 2) acquired an Option over all mineral rights, plant and infrastructure at the Bald Hill Operation (Tawana ASX release 24/10/2016).

During a recent field visit, outcropping pegmatites were observed within the area covered by Metalicity’s tenement applications. The pegmatite belt is interpreted to extend into the company’s tenement area under a shallow veneer of cover material which obscures much of the bedrock in the area, however outcropping pegmatite dikes were identified within an historical costean. Limited historical drilling by Haddington Resources in the area indicated anomalous Lithium in assays from bottom of hole samples (Trautman 2006).

The geology of the area is dominated by Archaean Mt Belches Formation metasedimentary units, intruded by granites and pegmatites. The pegmatites host tin, tantalum and lithium mineralisation. Previous work in the Mount Belches-Bald Hill pegmatite belt focussed on Tantalum and Tin with limited exploration focussed on Lithium, however recent activities focussed on lithium exploration, development and mining and seen the Bald Hill pegmatite belt become one of the emerging lithium operations in Australia.

The Auger drilling program is the first of a systematic sampling and drilling campaign being undertaken by the Company to vector toward pegmatites which exist under thin cover along and within the Bald Hill pegmatite belt. This technique was successfully used to discover several pegmatites under thin cover at the adjoining Bald Hill Tantalum-Lithium project. Samples have been logged and submitted to laboratory for assessment with results reported as they become available.

Managing Director, Matt Gauci, commented:

“Completion of the program marks the first of a systematic sampling and drilling campaign to vector in towards Bald Hill pegmatites which exist under thin cover within the Lake Cowan project. The Bald Hill area is rapidly becoming a prolific and near term producing lithium district and the Company’s project area is very well located along a highly prospective pegmatite belt.”

Metalicity Limited ASX Code: MCT ABN: 92 086 839 992

www.metalicity.com.au 6 Outram Street West Perth WA 6005

Figure 1: Metalicity Lithium Projects

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Source: Metalicity

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Figure 2: Lake Cowan Project area over Regional Geology, showing trend of Mt Belches-Bald Hill Pegmatite Belt extending onto Metalicity tenement E15/1502

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----- Start of picture text ----- Drilling underway----- End of picture text -----

Source: Metalicity

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Figure 3: Geochemical drilling through thin cover

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ENQUIRIES

Investors Media Matt Gauci Michael Vaughan Managing Director Fivemark Partners +61 8 9324 1053 +61 422 602 720 mgauci@metalicity.com.au michael.vaughan@fivemark.com.au

About Metalicity Limited

Metalicity Limited is an Australian mining exploration company with a primary focus on base metals sector and the development of the world class Admiral Bay Zinc Project, located in the north west of Australia. The company is currently undertaking a Pre-Feasibility Study on Admiral Bay. The Company’s secondary focus is the rare metals sector with the addition of several Lithium where drilling has commenced. The Company is supported by an experienced management team as well as institutional, private equity and retail funds.

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