ARIKA RESOURCES LIMITED — Capital/Financing Update 2019

Aug 26, 2019

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ASX RELEASE: 27 August 2019

Metalicity moves to consolidate the Kookynie Gold Project

HIGHLIGHTS

• Metalicity, makes inroads to consolidation efforts within the Kookynie Gold Project:

• Outright acquisition of P40/1331, contiguous with the Champion Lease, M40/27.

• Further cements our position within this prolific goldfield.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) would like to inform shareholders and the market, that an acquisition of significant and strategic tenure within the Kookynie area has been executed. The acquisition is a major step forward with our farm in agreement with Nex Metals Exploration Ltd (please refer to ASX announcement dated 6[th] May 2019 titled “ Metalicity Farms Into Eastern Goldfields Gold Projects ”) whereby acquisition and farm in activity by Metalicity, in the Kookynie and Yundamindra areas, is included and contributory towards our commitment of $5 million to earn 51%.

Managing Director, Jason Livingstone commented;

“ The history of the Kookynie and Yundamindra areas is one of very fractured ownership. That has been a significant block on effective exploration and development over the past few decades. This step taken by Metalicity ensures that we can explore and develop this Project effectively to maximise its value. ”

Details of the tenement acquisition:

The acquisition of P40/1331 is contributory towards Metalicity’s commitment of $5 million to earn 51% of the Kookynie and Yundamindra Gold Projects.

The tenement was acquired from a local prospector, Simon Gary Byrne.

P40/1331 is a live prospecting tenement purchased from the vendor for $10,000 upon transfer of the tenement to KYM Mining Pty Ltd, with a further $10,000, six months from the date of transfer, and a royalty of 1% NSR on the first 50,000 ounces of production that may potentially be sourced from within this area.

P40/1331 is immediately west of M40/27 which hosts the highly prospective Champion Prospect as detailed in the plane of vein long section below.

Below is an explanatory timetable on the acquisition by Metalicity Limited of P40/1331:

Action	Date
PreliminaryAcquisition Agreement Signed and Due Diligence Period	30-07-19
1st Payment Actioned to effect acquisition	26-08-19
Caveat for Royalty& Transfer to be lodged	28-08-19
2nd and lastpayment to be made	26-02-20

www.metalicity.com.au

Metalicity Limited ASX Code: MCT6 Outram Street ABN: 92 086 839 992

West Perth WA 6005

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Figure 1 – Kookynie Area Updated Tenement Map.

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Figure 2 – Champion Prospect Long Section with significant drill hole intercepts. Please refer to ASX Announcement dated 31 July 2019 titled “Metalicity Confirms Mineralisation” & ASX Announcement dated 6 May 2019 titled ““Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA”

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ENQUIRIES

Investors Investor Relations Jason Livingstone David Tasker/ Colin Jacoby MD & CEO Chapter One Advisors +61 8 9324 1053 +61 433 112 936/ +61 439 980 359 jlivingstone@metalicity.com.au dtasker@chapteroneadvisors.com.au

Competent Person Statement

Information in this report that relates to Exploration results and targets is based on, and fairly reflects, information compiled by Mr. Jason Livingstone, a Competent Person who is a Member of the Australian Institute of Geoscientists and Australian Institute of Mining and Metallurgy. Mr. Livingstone is an employee of Metalicity Limited. Mr. Livingstone has sufficient experience that 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. Livingstone consents to the inclusion of the data in the form and context in which it appears.

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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