ARIKA RESOURCES LIMITED — Capital/Financing Update 2016

Oct 11, 2016

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ASX RELEASE: 12 OCTOBER 2016

LITHIUM DRILLING TO COMMENCE AT PILGANGOORA SOUTH

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Drilling is set to commence in November at the Pilgangoora South Project in the Pilbara Region, WA

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Significant outcropping pegmatites over 1.5km strike extent identified at the Stannum prospect

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Mapping and sampling returned results up to 2.45% Li2O at Stannum with spodumene reported at surface Adjoins world-class Wodgina Tantalum-Lithium Operations, owned by Mineral Resources Limited Drilling results to be reported as they become available throughout the coming months

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Metalicity Limited (ASX:MCT) (“MCT” or “Company”) is pleased to announce drilling at the Pilgangoora South Lithium project is imminent after completion of Standard Heritage Agreements with the Traditional Owners and subsequent grant of E45/4677 (Stannum) by the Department of Mines and Petroleum (DMP).

A Program of Work (POW) application has been submitted and once approved will allow drilling activity to commence, expected in November 2016.

The Company’s Pilgangoora South Project comprises more than 143km[2] of tenure in the world-class Wodgina/Pilgangoora district, host to the Pilgangoora Lithium Project of Pilbara Minerals (128.6Mt @ 1.22% Li2O), Altura Mining Limited (39.2Mt @ 1.02% Li 2O) and the Wodgina Lithium/Tantalum Project recently purchased by Mineral Resources Limited.

To date, two key prospects have been identified and prioritised for drilling by Metalicity at Pilgangoora South being the Stannum and Turner River North prospects (Figure 1). An analysis of hyperspectral data at Stannum identified a number of priority areas (Figure 2) which were followed up by detailed mapping. Five key pegmatites with the potential to host rare metal mineralisation were identified (Figure 3).

The POW application submitted is for a 1,500m reverse circulation (RC) drilling program at Stannum designed to test the lithium potential of three northern pegmatites, Vun, Duus and Tria, (Figure 3) and determine the source of the spodumene previously observed (see MCT ASX announcement 4 August 2016). Vertically oriented RC drill holes will allow investigation of the subsurface expression of the ‘stacked’ flat-lying pegmatite bodies previously observed in mapping; and follow up the lithium anomalism previously noted across the tenement area in rock chip sampling (see MCT ASX announcements 30 March 2016, and 4 August 2016).

The Stannum prospect is well located, approximately 120km south of Port Hedland via the Great Northern Highway. Stannum is also adjacent to Mineral Resources’ Wodgina operations which includes a 387 bed camp, 13MW gas fired power station, mineral processing assets and significant water rights and infrastructure.

Metalicity Managing Director, Matt Gauci, commented: “We expect to be drilling our highest priority lithium target at Pilgangoora South by November. The project is ideally located close to existing infrastructure plus a number of proposed downstream lithium processing facilities.”

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

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

Figure 1: East Pilbara Pegmatite Corridor, showing Metalicity Pilgangoora South Tenements adjoining Pilgangoora and Wodgina Projects

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(Mineral Resources Limited)
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Source: Metalicity

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Figure 2: Hyperspectral Mapping identification of priority areas at Stannum

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Figure 3: Major Outcropping Pegmatites at Stannum – proposed drilling will test Vun, Duus and Tria bodies.

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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 where early stage exploration has commenced. The Company is supported by a management team with 300+ years collective experience in the resources sector 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 Explorati on results is based on information compiled by Dr Marcus Sweetapple, a consultant to the Company, who has sufficient experience 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 by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Sweetapple is a member of the Australian Institute of Geoscientists, and consents to the inclusion of the data in the form and context in which it appears.

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