ARIKA RESOURCES LIMITED — Capital/Financing Update 2017

Feb 13, 2017

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ASX RELEASE: 14 FEBRUARY 2017

COBALT EXPLORATION ACCELERATED AT KYARRA

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Extensive cobalt anomalies identified over a 25km strike at the Kyarra Cobalt Project Significant surface samples up to 6,400ppm cobalt and anomalous drill intersections including 2m at 612ppm Large land holding of 645km[2] of tenements covering a significant portion of the Yerrida Basin Analogous mineralisation model to the Zambian Copper belt Desktop and field work accelerated with drilling planned for March Quarter upon grant of the tenements

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Metalicity Limited (ASX:MCT) (“Metalicity” or “Company”) is pleased to report that it has identified extensive surface and near surface cobalt anomalies over an initial strike extent of 25km from a desktop review of historical work at the company’s 100% owned Kyarra Cobalt Project, located in the Yerrida Basin, WA.

The Kyarra Cobalt Project (E51/1755, E51/1756 and E53/1894) lies within the Proterozoic Yerrida Basin on the northern margin of the Yilgarn Craton. Widespread cobalt anomalism exists across the Yerrida basin in historic surface rock chip samples, rotary air blast (RAB) drilling, and in diamond core drilling (Figure 1).

Within the E51/1756 tenement of the Kyarra Cobalt Project, anomalous historical results have been reported including up to 0.64% Co from surface samples and 2m at 612 ppm Co from drilling, across an initial strike extent of approximately 25km. The extent of the anomalism highlights the potential for a significant cobalt mineralising system. Exploration efforts have been accelerated focussing on this high priority target area. With sampling and drilling planned for the March Quarter upon grant of the tenements.

The proposed exploration model is interpreted to have numerous similarities to the mineralisation model of the significant copper-cobalt deposits of the Zambian Copper Belt. The units of interest in E51/1756 are carbonaceous and calcareous, pyritic shales and siltstones of the Maraloou Formation as these reducing horizons are ideal traps for metal bearing brines.

The Kyarra Cobalt project is well located in terms of access and infrastructure for exploration and mining. The project is located on the Goldfields Highway 40km west of Wiluna, 10km west of the Tabac Cobalt-Gold project and the Paroo Station Mine and Camp (Care and Maintenance) in the Northern Goldfields region of WA. The three tenement applications give Metalicity a dominant land holding in this newly identified cobalt district in the Yerrida Basin.

Metalicity Managing Director, Matt Gauci, commented:

“The extensive cobalt anomalism identified from initial work on the Kyarra Cobalt Project over an initial 25km strike extent represents a compelling target area for follow up field work and drill testing, which is planned for the March Quarter upon grant of the tenements.

The existing high sovereign risk supply of cobalt and lithium-ion batteries driven demand, means Metalicity is highly leveraged to exploration success at Kyarra. The project is also complementary with our portfolio of lithium and graphite projects also located in WA”.

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

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

Figure 1: Kyarra Project Tenure over regional geology showing 25km target area within E51/1756

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Regional Geology

The Yerrida Basin is a northwest-southeast trending sedimentary basin dominated by weakly metamorphosed, flat-lying to shallowly dipping sediments and basaltic lavas.

The Yerrida Group has a composite thickness of up to 6km, and has been subdivided into two Subgroups related to two different tectonic settings. The Windplain Subgroup is an early, shallow water, sag-basin succession dominated by siliciclastic and evaporitic sediments. Overlain by arenaceous, argillaceous and mafic volcanic rocks of the Mooloogool Subgroup. Only the Juderina Formation of the Windplain Subgroup, and Maraloou Formation of the Mooloogool Subgroup have been documented within the Project area. A significant volume of basalts and dolerites of the Killara Formation outcrop to the northeast. The entire package is relatively undeformed and has undergone low grade metamorphism.

In the south of the Project area Juderina Formation siliciclastics and minor stromatolitic rocks of the Finlayson and Bubble Well Members respectively, dip shallowly north. They are overlain to the north by Maraloou Formation argillaceous, dolomitic limestone and siltstone. The Maraloou Formation also includes significant thicknesses of sulfidic black shales at its base that outcrop poorly but have been encountered in drilling.

These rocks are unconformably overlain by Earaheedy Basin sediments, which in the tenement area are represented by units of the Yelma Formation. Including laminated dolomitic siltstone and shale, dolomites, stromatolites and cherts.

Mineralisation

The Yerrida Basin sedimentary package also contains a number of the key elements necessary for SEDEX style base metal mineralisation, including evaporites, siliciclastics, hydrocarbons and basin bounding faults. Extensive exploration activities were completed in the late 1980’s and 1990’s focussed on discovery of base metal deposits using this model. Cobalt anomalism was identified at the time but not focussed on.

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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 and precious 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

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 has been compiled from historic data by Pip Darvall, a consultant to Metalicity Ltd, who 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 by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Darvall consents to the inclusion of the data in the form and context in which it appears.

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