ARIKA RESOURCES LIMITED — Capital/Financing Update 2016

Nov 2, 2016

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ASX RELEASE: 3 NOVEMBER 2016

LITHIUM DRILLING TO COMMENCE AT LAKE COWAN

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Exploration to commence at the Lake Cowan Project in the Goldfields Region, WA.

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Initial Target Areas are continuations of major pegmatite belts near Bald Hill Lithium operation. Limited historical drilling indicated anomalous Lithium in assays within Project area. Adjoins near term producing Bald Hill Lithium Operations, owned by Alliance Mineral Assets. Results to be reported as they become available throughout the quarter.

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Metalicity Limited (ASX:MCT) (“MCT” or “Company”) is pleased to announce exploration activities are set to commence at the Lake Cowan Lithium Project after execution of Heritage Agreements with the Ngadju Traditional Owners and subsequent grant of E15/1502 and E15/1503 (Lake Cowan Lithium Project) by the Department of Mines and Petroleum (DMP).

Lake Cowan Lithium Project

The Lake Cowan Lithium Project is located immediately south and east of the Bald Hill Lithium Operations 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 where resource and exploration drilling is underway, and more recently acquired a further Option over 50% of mineral rights, processing plant and infrastructure at the Bald Hill Operation (Tawana ASX release 24/10/2016, Figure 2).

The geology of the area is dominated by Archaean Mt Belches Formation metasedimentary units, intruded by granites and pegmatites. Of main interest is the Mt Belches-Bald Hill pegmatite belt which strikes southwest into Metalicity’s Lake Cowan Project (Figure 2). The continuation of this belt defines an Initial Target Area of approximately 10km in length and 4km in width, representing an extensive and highly prospective opportunity to define lithium mineralisation in this rapidly emerging lithium district.

In this area a shallow veneer of cover material obscures much of the bedrock, but previous drilling for tantalum by Haddington Resources in the area indicated anomalous Lithium and Rubidium in assays from bottom of hole samples (Trautman, 2006), presenting excellent targets for follow up work. Pegmatites have been observed within the Metalicity tenure during visits to the area (see MCT ASX release 17 August 2016).

Metalicity plans to follow up the historic results, and undertake a comprehensive grid of surface and auger geochemical sampling to further refine target areas for subsequent reverse-circulation (RC) drilling.

Managing Director, Matt Gauci, commented:

“The initial target area of 10km x 4km represents an extensive and highly prospective opportunity to define lithium mineralisation under thin cover in this rapidly emerging lithium district, which hosts established infrastructure and a near term lithium production centre at Bald Hill.”

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

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

Figure 1: Metalicity Western Australian 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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Source: Metalicity

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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 projects where drilling has commenced. The Company is supported by n experienced management team as well as institutional, private equity and retail funds.

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. Information in this report relating to Exploration results is based on information compiled by Pip Darvall, a consultant to the Company, who has sufficient experience relevant to the type of activities under consideration to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Darvall is a member of the Australian Institute of Geoscientists, and consents to the inclusion of the information in this announcement in the form and context in which it appears.

References:

Trautman, R. L., 2006, Annual Report for Haddington Project E15/798 for the period 8[th] December 2004 to 7[th] December 2005.

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