ARIKA RESOURCES LIMITED — Capital/Financing Update 2018

Dec 19, 2018

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ASX RELEASE: 20 DECEMBER 2018

A$1.5M INJECTION FOR PATERSON COPPER EXPLORATION

• Metalicity has signed binding agreements for the receipt of ~A$1.5M to further exploration of its recently secured copper exploration projects on the Paterson Province of the Pilbara Region, WA.

• Metalicity recently signed a binding agreement with Sociedad Quimica y Minera de Chile SA (SQM) for the 100% sale of its Pilbara Lithium project, for a total sum of USD$1M (A$1.35M) and a Net Smelter Royalty (NSR) of 1% from all products produced.

• Metalicity recently signed a binding agreement with Great Western Exploration for the 100% sale of its Yerrida Cobalt project, for the total sum of $50,000 in cash and $120,000 in shares based on GTE Price of 0.6c on the day of the transaction. (See ASX:GTE 13/12/18).

• The ~A$1.5M is in addition to the anticipated receipts from the sale of the zinc assets with Kimberley Mining Limited (KML) which will potentially deliver up to C$32.5M cash/shares to Metalicity (up to C$12.5M cash and retaining 25M shares valued at C$20M) anticipated for Quarter 1, 2019.

• The company retains a significant interest in the lithium and cobalt exploration sector via the NSR, equity positions in explorers as well as 100% owned tenements adjoining the Bald Hill Lithium operations owned and operated by Tawana Resources NL (ASX:TAW).

• Exploration has already commenced in the Paterson for copper including compilation of a geological information system (GIS), a regional framework study and target definition of areas of interest for future exploration seeking copper mineralisation.

Metalicity Limited (ASX:MCT) (“ MCT ” or “ Company ”) is pleased to report that is has received a A$1.5M injection to pursue its Paterson Copper exploration strategy via the sale of non-core projects including the Pilbara Lithium Tenements and the Yerrida Cobalt Tenements for a total sum of ~$1.5M cash/equity..

The company has completed a first pass review of its recently secured copper exploration projects covering a total area of 2,166 km[2 ] of Exploration License Applications (ELA’s) in the Paterson Province of the Pilbara Region, adjoining Rio Tinto’s Exploration Licenses, and has generated significant high priority targets for future exploration covering a total area of 908km[2] .

The sale of the company’s lithium and cobalt assets ensures Metalicity retains a strong non-dilutive cash position to progress the next stage of exploration in the Paterson while also retaining an interest in the Lithium and Cobalt projects generated by the company.

Commenting on the cash injection, Metalicity Managing Director Matt Gauci said:

“The immediate cash injection ensures the Company can pursue its Pilbara Copper Exploration strategy aggressively while importantly retaining an interest in the lithium and cobalt projects via appropriate mechanisms. The immediate cash injection is in addition to the anticipated A$35M cash/shares from the sale of our zinc assets to further support those activities. We look forward to seeing both SQM and GTE succeed in their activities which our shareholders will benefit from as we focus on exploring our Paterson Copper targets and building on our Pilbara Copper exploration study”

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

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

ENQUIRIES

Investors Investor Relations Matt Gauci David Tasker/ Colin Jacoby Managing Director Chapter One Advisors +61 8 9324 1053 +61 433 112 936 / +61 439 980 359 mgauci@metalicity.com.au david.tasker@lateral.com.au cjacoby@chapteroneadvisors.com.au

About Metalicity Limited

Metalicity Limited is an Australian mining exploration company with a primary focus on the base metals sector and the exploration for Nickel-Copper in the Fraser Range and Copper in the Pilbara Region, both located in the world first jurisdiction of Western Australia. The Company is well supported by a corporate and technical management team with significant collective experience in the mining exploration sector as well as strategic, private equity, institutional and retail funds as shareholders.

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