ARIKA RESOURCES LIMITED — Capital/Financing Update 2019

Dec 18, 2019

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ASX RELEASE: 19 December 2019

Kookynie Drilling Campaign Finished & Drone Magnetic Survey Completed

HIGHLIGHTS

• 10 reverse circulation (RC) drill holes completed across the McTavish, Leipold and Champion Prospects.

  • All drill holes intersected the target mineralised structure.

  • Results due early in the New Year.

• A Drone Magnetic Survey over key trends – the Diamantina-CosmopolitanCumberland, Altona and Leipold-McTavish areas surveyed at high definition.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce the it has completed its third drilling programme for the year since entering into the Farm In agreement with Nex Metals Exploration Ltd in May 2019[1] . Furthermore, Metalicity has engaged Roc Aerial Pty Ltd (www.rocaerial.com.au) to perform a detailed aerial drone magnetics survey over key trends to better delineate along strike targets.

A well-executed programme, in terms of safety and technical success, consisting of 10 RC drill holes over the McTavish, Leopold and Champion Prospects, was completed to further test mineralisation to assist in future resource estimation work to JORC 2012 standards.

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Photograph 1 – Drilling at the McTavish Prospect, December 2019.

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

www.metalicity.com.au Level 3, 30 Richardson Street West Perth WA 6005

The observed mineralisation in this current drilling is consistent with previous observations and it is incredibly encouraging that every drill hole completed to date has intersected the target mineralised structure. As previously announced, all drill holes to date have intersected the targeted mineralised structure at Kookynie with highlight intercepts of:

• 9 metres @ 7.31 g/t Au from 34 metres, including 3 metres @ 7.91 g/t Au from 34 metres at Leipold[2 ]

• • 2 metres @ 22.1 g/t Au from 76 metres at Cosmopolitan[3]

• 4 metres @ 6.4 g/t Au from 67 metres, including 1 metre @ 15.47 g/t Au from 67 metres at McTavish[3 ]

Further to the drilling programme, Metalicity in conjunction with Roc Aerial Pty Ltd, has commissioned an aerial drone magnetics survey over key trends on the Kookynie Gold Project. Our initial survey has targeted the strike extents of the DCC (Diamantina-Cosmopolitan-Cumberland) Trend, the Altona trend and the Leipold-McTavish trend:

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Figure 1 – Kookynie Gold Project Tenure & Prospect Locations.

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The benefit of this type of survey is the incredible detail and resolution it provides by way of magnetic imagery and structural definition. The slower flight speed, and lower ground clearance afforded by the drone allows for better data capture, and hence processing of the raw magnetic data allows for greater detail.

To date, Metalicity and Nex’s structural model, which projects where mineralisation should occur, has been validated by the successful exploration drilling programmes to date. The information derived from this drone magnetics survey coupled with our technical understanding of the known Prospects like the DCC Trend, McTavish, Leipold etc. will allow succinct and high probability exploration success in the 8 kilometres of strike extents of these prolific Prospects which remains untested by drilling.

Managing Director and CEO, Jason Livingstone commented;

“ I am pleased to round off 2019 with a third successful drilling programme at our flagship Kookynie Gold Project. I look forward to January 2020 in presenting the results of this drilling with the details of what the drone magnetics survey has uncovered.”

1.Refer to ASX Announcement dated 6[th] May 2019 titled “ Metalicity Farms Into Prolific, Kookynie & Yundamindra Gold Projects, WA ”. 2.Refer to ASX Announcement dated 2[nd] October 2019 titled “ Metalicity Confirms Additional Gold Mineralisation at Kookynie ”. 3. Refer to ASX Announcement dated 31[st] July 2019 titled “ Metalicity Confirms Mineralisation ”.

ENQUIRIES

Jason Livingstone MD & CEO +61 8 6500 0202 jlivingstone@metalicity.com.au

Forward Looking Statements

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward-looking statements:

(a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

(b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such risks include, without limitation, resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which the Company operates or supplies or sells product to, and governmental regulation and judicial outcomes; and

(c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements.

All forward-looking statements contained in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward-looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forwardlooking statements due to the inherent uncertainty therein.

The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.

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