ARIKA RESOURCES LIMITED — Capital/Financing Update 2016

Jun 19, 2016

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ASX RELEASE: 20 JUNE 2016

ADMIRAL BAY PROJECT ACQUISITION UPDATE

Metalicity Limited (“Metalicity” or “the Company”) advises that it has completed commercial negotiations with Kagara Limited (in Liquidation) (“Kagara”) and has signed a Deed of Release and Termination covering all potential future payments and obligations relating to the acquisition of the Admiral Bay Zinc Project (“Admiral Bay”).

The Deed of Release and Termination extinguishes all potential future payments and obligations owed to Kagara by Metalicity. In consideration, the Company has agreed to make payment to Kagara of A$750,000 cash and 23 million fully paid ordinary shares in Metalicity.

Utilising the closing share price of Metalicity on Friday 17 June 2016 (A$0.08 per share), this brings the final sum paid by Metalicity for its 100% interest in Admiral Bay to approx. A$3.09 million (excluding interest).

Metalicity’s Managing Director, Matt Gauci, commented:

“We are pleased to finalise the acquisition of the Admiral Bay Zinc Project. Discussions with various industry participants had suggested an unencumbered project was preferable for any potential future joint venture partner and we have now achieved that. Metalicity controls a 100% unencumbered interest in approx. 6.3 million tonnes of contained zinc equivalent metal for the total sum of just over A$3 million. The Company is progressing a new Mineral Resource Estimate and Scoping Study on Admiral Bay, both due in mid-2016.”

Background

On 15 September 2015, Metalicity completed a Sale and Purchase Agreement with Kagara for its 100% interest in the Admiral Bay Zinc Project for an initial cash payment of A$500,000. Concurrently, the Company completed a Royalty Deed, Milestone Payment Deed and Convertible Note Deed (“the Deeds”). The Deeds potential future payments to Kagara totalled approximately A$6.5 million (excluding convertible note interest).

The Milestone Payment Deed also required Metalicity to incur minimum expenditure on the Admiral Bay Zinc Project of approximately A$5 million over a three-year period. Metalicity had the option of paying Kagara a further A$1 million to extinguish this obligation.

On 20 June 2016, the Company signed a Deed of Release and Termination that will terminate the Deeds and all potential future payments and obligations owed under them.

ENQUIRIES

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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

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

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