ARIKA RESOURCES LIMITED — Capital/Financing Update 2018

Apr 25, 2018

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ASX RELEASE: 26 APRIL 2018

YERRIDA COBALT EXPLORATION COMMENCES UPDATE

Metalicity Limited (ASX:MCT) (“MCT” or “Company”) informs the market that the previous announcement made on the 24[th] April 2018 title “Yerrida Cobalt Exploration Commences” inadvertently omitted cross references in compliance with ASX Listing Rule 5.23.2.

For the purpose of clarity, the Company has attached an updated version of the announcement made on 24[th] April 2018 with amendments addressing these matters on page 6 under Competent Person Statement.

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

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

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

YERRIDA COBALT EXPLORATION COMMENCES UPDATE

HIGHLIGHTS

• RC drill rig has mobilised to the Yerrida Cobalt Project to test deeper structures at the K1 copper-cobalt target, identified from field mapping, sampling and the company’s initial 1,800m RC drill program, which intersected a significant cobalt horizon to a depth of 150m

• The shallow, south-dipping cobalt horizon contains anomalous mineralisation associated with highgrade sulphides associated with deeper structures from the underlying “red bed” sandstones

• Field exploration teams have also commenced work, including rock chip sampling and geological mapping to generate further drill targets at K2, K3 and K4 within the Yerrida Basin

• Metalicity has developed an exploration model that has characteristics compatible to the Central African Copperbelt – a prolific copper-cobalt and nickel-cobalt geological setting

• The additional targets have been generated via a recent review of the entire Yerrida Basin by the preeminent Dr Dennis Gee and analysis of previous work by copper-cobalt expert Dr Simon Dorling

Metalicity Limited (ASX:MCT) (“MCT” or “Company”) is pleased to report an RC drill rig and field exploration team have commenced work at the 100% Metalicity-owned Yerrida cobalt project, located in WA.

The exploration activity will investigate the Yerrida project’s geological setting, which is considered analogous to the Central African Copperbelt, a prolific mining province hosting structural/stratigraphic-controlled copper-cobalt and nickel -cobalt sulphide mineralisation.

The planned drill program is targeting deeper structures from the the shallow, south-dipping, zone of 8m to 12m cobalt horizon. Exploration at the horizon recently intersected anomalous cobalt mineralisation which provides support for the geological setting’s potential to host further high-grade copper-cobalt mineralisation associated with the underlying “red bed” sandstones of the Yerrida Basin.

Additionally, field exploration teams have commenced a work program, including geological mapping and rock chip sampling, using a 250m X 250m pattern over a radius of 1km, to generate further drill targets at K2 and K3 which have been recently generated within the Yerrida Basin (Figure 2).

Metalicity Managing Director Matthew Gauci commented:

“The commencement of exploration at Yerrida is of significant importance to the Company, as we are not only targeting deeper, highly-prospective structures adjoined to the identified cobalt horizon, we are also testing an exploration model which could deliver substantial exploration upside.

“At a time when battery minerals are increasingly in demand, globally, Metalicity is investigating the similar geological setting shared by the Yerrida project and the internationally renowned Central African Copperbelt.”

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YERRIDA COBALT EXPLORATION PROJECT UPDATE

The Kyarra cobalt project is located in the Yerrida Basin, WA, which has a geological setting considered amenable to hosting structural/stratigraphic-controlled copper-cobalt mineralisation and nickel-cobalt sulphide mineralisation.

Based on a geological evaluation of the region, the Company has developed an exploration model that has characteristics compatible to the geological setting of the prolific copper-cobalt and nickel-cobalt deposits of the Central African Copperbelt where new discoveries continue to be made based on advances in exploration concepts (Figure 1).

Recent field work by Metalicity, including 65 samples within a 2km by 3.5km target zone, identified up to 1500ppm Co and >1% Zn in weathered near-surface rock chips across the K1 target zone sampled (See ASX:MCT 21/07/17 for further details).

Some of these anomalous results were from samples associated with west-north-west striking breccia zones, which are interpreted to be related to deep-seated structures, and to represent part of a potential ‘plumbing system’ for metalliferous fluids upwards and southwards into suitable trap horizons.

Recent drilling intersected sandstones of the Yelma Formation which unconformably overly the Maraloo Formation black shales. Holes were terminated within black shale at a predetermined depth. Locally, anomalous results were associated with quartz veining, related to fractures and brecciation.

The downhole quartz zones are possibly correlative with quartz float at surface and related to the west-northwest trending breccia zones. Drill holes encountered a consistent near-surface base metal enrichment zone, interpreted to be a regolith enrichment zone, which may account for some of the anomalous results in surface samples.

More interestingly, an 8m to 12m thick, shallow south-dipping zone of anomalous base metal (400–500ppm Cu and 50–60ppm Co) was intersected in all drill holes. These values represent around 4x the Cu background and about 2x the Co background values (See ASX:MCT 14/11/17 for further details).

This anomalism is considered significant because in the Central African Copperbelt – the source of the exploration model – there are multiple mineralised horizons (associated with minor redox boundaries) found above the basal productive zone.

The Company will now focus is efforts to target the base of the Maraloo Formation and the main transition zone from the underlying “red-bed” sandstones, which represents the primary target and most prospective setting for significant mineralization across K1 and, pending geological mapping and sampling results, across K2, K3 and K4.

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Figure 1: Kyarra Cobalt and base metals conceptual mineralisation model

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Source: Metalicity

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Figure 2: Regional Location Map showing cobalt rich high priority target area

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----- Start of picture text -----

6,400ppm Co, 3,000ppm Cu
K3
544ppm Co, 2,400ppm Ni
1,220ppm Co, 3,590ppm Ni K4
839ppm Co, 2,100ppm
K2
E51/1755
K1
E51/1756 248ppm Co, 553ppm
808ppm Zn
E53/1894
Proposed drill holes
Interpreted NW trending Fault
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Source: Metalicity

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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 exploration company with a primary focus on the base metals sector and the development of the world class Admiral Bay Zinc Project, and exploration of the Lennard Shelf Zinc Project, both located in the north west of Australia. The Company is currently undertaking a Pre-Feasibility Study (PFS) on Admiral Bay and preparing for an extensive drilling program at Lennard Shelf. The Company’s secondary focus is the lithium and cobalt sector with the addition of several lithium and cobalt projects where early stage exploration has commenced. The Company is supported by a management team with significant collective experience in the resources sector as well as international private equity, institutional and retail funds.

Competent Person Statement

For further information that relates to exploration results, please refer to:

• ASX:MCT 21/7/2017 “Outstanding Cobalt Results Drilling to Commence”, Metalicity confirms that it is not aware of any new information or data that materially affects the information

• ASX:MCT 14/11/2017 “Significant Cobalt Intersections at Yerrida”, Metalicity confirms that it is not aware of any new information or data that materially affects the information

• ASX:MCT 13/3/2018 “Yerrida Cobalt Drilling to Commence”, Metalicity confirms that it is not aware of any new information or data that materially affects the information

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