ARIKA RESOURCES LIMITED — Capital/Financing Update 2016

May 31, 2016

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ASX RELEASE: 1 JUNE 2016

LITHIUM EXPLORATION PROJECTS UPDATE

• Field work well underway at Pilgangoora/Wodgina, Greenbushes and Lake Cowan districts as part of accelerated $1 million lithium exploration program

Key focus is target definition for maiden drilling program at Stannum (Pilgangoora South project)

Management expertise enhanced with the addition of Pip Darvall to the Exploration team

Evaluation of further hard rock and brine lithium projects in Australia, Africa and the Americas

Investment and JV discussions advancing with members of the China Lithium Battery Association

Initial exploration results to be released in coming weeks

Metalicity Limited (“Metalicity” or “the Company”) provides the following update on exploration and business development activities across its lithium project portfolio.

Field exploration in the Pilgangoora, Greenbushes and Lake Cowan lithium districts is well underway with comprehensive sampling and mapping programs across all project areas. This work forms the first phase of the Company’s accelerated $1 million exploration program across its Western Australian lithium projects (see Metalicity ASX announcement on 10 May 2016 for further details). The key focus of this phase is the central outcropping pegmatites at Stannum, which forms part of the Pilgangoora South project (Figure 1). This work is generating drill targets for a maiden drilling program at Stannum planned to commence upon the grant of exploration licences and requisite drilling approvals.

Further, Mr Pip Darvall has been appointed to the Exploration Management team. Mr Darvall has over 20 years working as a geologist across a range of commodities. Most recently, he was Exploration and Resource Geology Manager at Atlas Iron Limited. During this time, he had key responsibility for greenfield exploration, resource definition and tenement management, including lithium project generation.

Metalicity’s internal expertise is complemented by CSA Global geologists Dr Andrew Scogings and Mr Ralphe Porter. Both have significant experience in lithium and other industrial minerals, and are working with Metalicity on project evaluation and generation programs.

Metalicity continues to target value accretive additions to its current portfolio of lithium projects in Australia. Due diligence is progressing on a range of early stage and advanced lithium hard rock projects in Australia and Africa, while a range of lithium brine projects are being considered in North and South America.

In March 2016, Metalicity presented to and subsequently commenced commercial discussions with various members of the China Lithium Battery Association. These discussions are continuing with a range of investment and joint ventures structures being considered for projects in Australia and internationally.

Metalicity Managing Director, Matt Gauci, commented: “We continue to progress our lithium project strategy aggressively. The definition of initial drill targets at Stannum is the key focus of current field exploration. We also continue to assess a range of lithium project acquisition opportunities, and external investment and joint venture proposals.”

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

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

Figure 1: Stannum – hyperspectral data (red) highlighting potential spodumene mineralisation

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Source: Metalicity

ENQUIRIES

Investors

Matt Gauci Managing Director +61 8 9324 1053 mgauci@metalicity.com.au

Media

Michael Vaughan Fivemark Partners +61 422 602 720 michael.vaughan@fivemark.com.au

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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 and references to “Measured, Indicated and Inferred Resources” are to those terms as defined in the JORC Code.

The information in this report that relates to Geology and Exploration Results is based, and fairly reflects, information compiled by Mr Michael Hannington, who is a Member of the Australian Institute of Geoscientists. Mr Hannington is a fulltime employee of Metalicity. Mr Hannington has sufficient experience which is 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 in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hannington consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

All parties have consented to the inclusion of their work for the purposes of this announcement. The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for absolute certainty. Any economic decisions which might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risks.

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