ARIKA RESOURCES LIMITED — Capital/Financing Update 2017

Aug 20, 2017

ASX RELEASE: 21 AUGUST 2017

MULTIPLE HIGH GRADE ZINC TARGETS AT NAPIER RANGE

First pass field work completed at Napier Range to evaluate geology and project infrastructure.

Suite of check surface samples have been collected and submitted for assaying, results pending.

• Appointment of Lennard Shelf expert consultants from CSA Global to assist Metalicity with technical evaluations and to generate further high priority exploration targets.

• The Napier Range Zinc Project contains a near surface JORC 2012 Inferred Mineral Resource Estimate (MRE) of 750Kt at 13.6% ZnEq and an Exploration Target Range (ETR) of 1-4Mt at 10-15% ZnEq

• Multiple drill-ready high grade targets have now been identified from field and desktop studies.

• Napier Range may represent a high grade low capital and near term producing zinc project, which complements the development of the large scale long life Admiral Bay Zinc Deposit.

Due diligence ongoing at the Napier Range and Emanuel Range Zinc Projects during the option period.

Metalicity Limited (ASX:MCT) (“MCT” or “Company”) is pleased to advise that a first pass field work program has been completed at the high grade Napier Range Zinc Project located in the Kimberley Region, WA, as part of the Company’s current due diligence process ((See ASX: MCT 27/7/17, Figure 1).

The first pass field work program confirmed a number of favourable factors including:

• Easy access off the Gibb River Rd, approximately 100km from Derby, WA, where infrastructure including an export port, an experienced labour force and contracting groups are available to support an exploration program and subsequent development activities.

• Existing access tracks requiring only minor maintenance to enable access to the majority of exploration target areas identified across the granted mining leases (See ASX: MCT 27/7/17), Figure 2.

• Numerous gossans visible at surface across the project area (e.g. Figure 3), indicating extensive mineralising fluid-flow system in the area. Six check rock chip samples were collected and are currently being assayed.

• Gossans were observed within massive and bedded dolomites, stromatolitic dolomites, and Neptunian dikes in the southern parts of the Project area (Carpentaria and Chedda Cliffs Gossans, Figure 2).

• Historic diamond core from drilling campaigns undertaken between 1978 and 2007 is stored within a separate general purpose lease and available for review. The core has been well catalogued and the vast majority kept under cover inside a locked core shed. (Figure 4).

*The Exploration Target Ranges (ETR) stated above are conceptual in nature and the potential quantities and grades are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource Estimate outside that known at Wagon Pass, and it is uncertain whether further exploration will result in the estimation of additional Mineral Resources.

Napier Range Zinc Project

The Napier Range Zinc Project may represent a high grade, low capital and near term producing zinc project opportunity, to complement the development of the Company’s large scale long life Admiral Bay Zinc Project, located in the adjoining Canning Basin of the Kimberley Region, WA, Figure 1.

The Napier Range Zinc Project consists of 2 granted mining licenses, an exploration license application and a granted general purpose license. It includes the Wagon Pass deposit, with a JORC 2012 Inferred Mineral Resource Estimate of 750Kt at 5.8% Zn, 7.2% Pb, 54g/t Ag (13.6% ZnEq) and an adjoining ETR of 100Kt-200Kt at 10%-13% ZnEq. The Company is targeting additional multiple occurrences of 0.5-1Mt size, resulting in a global ETR at Napier Range of 1-4 Mt @ 10-15% ZnEq (See ASX: MCT 27/7/17).

In the Napier Range Zinc Project area, the Lennard Shelf Devonian carbonate complex rests unconformably on Proterozoic basement. Zinc-lead-silver mineralisation occurs within fore-reef and reefal slope carbonate rocks, mostly related to two stratigraphic levels: in dolomitised siltstones and limestones of the Lower Napier Formation, and at the upper levels, in limestones of the Upper Napier Formation.

The Napier Range is part of the Late Devonian (370 million years old) limestone reef complex that formed along the southwest margin of the Kimberley block and extends today for over 300 km from the Kimberley coast near Derby to south of Hall Creek. The limestones are host to a world-class zinc-lead-silver mining district from which several rich deposits have been mined (for example, Cadjebut, Pillara, Kapok).

Figure 1: Location of the Option Agreement Tenements

==> picture [438 x 118] intentionally omitted <==

==> picture [438 x 117] intentionally omitted <==

==> picture [438 x 117] intentionally omitted <==

Source: Metalicity

Figure 2: Exploration Target areas, existing and proposed drilling, and major gossan locations at Napier Range.

==> picture [450 x 130] intentionally omitted <==

==> picture [450 x 130] intentionally omitted <==

==> picture [450 x 387] intentionally omitted <==

----- Start of picture text ----- Carpentaria GossanChedda Cliffs Gossan----- End of picture text -----

Source: Metalicity

Figure 3: Gossanous dolomite outcropping south of the Wagon Pass deposit.

Source: Metalicity

Figure 4: A portion of the historic core stored at the Napier Range Project. The remainder is stacked in racks and secured inside the adjacent shed

==> picture [488 x 366] intentionally omitted <==

Source: Metalicity

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 where early stage exploration has commenced. The Company is supported by a management team with 300+ years collective experience in the resources sector and strong shareholder base of institutional and sophisticated investors.

Competent Person Statement – Exploration Results and Exploration Target Range

Information in this report that relates to Exploration results and Exploration Target Range (ETR) has been reviewed by Dr. Simon Dorling, who is a member of the Australian Institute of Geoscientists. Dr. Dorling is a consultant to Metalicity, and 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. Dorling consents to the inclusion of the data in the form and context in which it appears.