ARIKA RESOURCES LIMITED — Capital/Financing Update 2019

May 22, 2019

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ASX RELEASE: 23 May 2019

KOOKYNIE EXPLORATION TARGET DEMONSTRATES POTENTIAL FOR A HIGH-QUALITY GOLD PROJECT

HIGHLIGHTS

• An Exploration Target has been defined for the Kookynie Gold Project in the Eastern Goldfields, Western Australia.

• Exploration Target was estimated using data from historical pre-JORC 2012 mineral resource estimates, historical production and historical drilling results.

• Initial drill programme will identify mineralisation extents and lead to further drilling to define mineral resources over the coming 12 months.

• Exploration Target provides an estimate of potential to be tested by drilling.

• Since entering into the farm-in agreement with Nex Metals Explorations Ltd, Metalicity has:

• Completed detailed assessment of past exploration to facilitate stating the Exploration Target;

• Commenced on-ground exploration; and

• Prepared for upcoming drilling campaign.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce a JORC 2012 Code compliant Exploration Target for the Kookynie Project in the Eastern Goldfields, Western Australia.

The Exploration Target – as detailed in Table 1 below – was estimated in accordance with JORC 2012 guidelines utilising data from historical work, including the review of pre-JORC 2012 mineral resource estimates, historical production and drilling results.

	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie
Prospect	Grade Range		Tonnage Range		Ounces
	Lowerg/t Au	Upperg/t Au	Lower tonnes	Upper Tonnes	Lower ounce range	Upper Ounce Range
Diamantina-Cosmopolitan-Cumberland(DCC)Trend	10.0	15.0	250,000	500,000	150,000	250,000
The Champion Prospect	3.6	6.0	120,000	300,000	20,000	60,000
The McTavish Prospect	1.8	4.0	80,000	500,000	30,000	100,000
The Leipold Prospect	1.5	4.0	500,000	750,000	30,000	100,000

Table 1 – Kookynie Gold Project Exploration Target[(1)]

• (1) “ Exploration Target ” cautionary statement: The potential quantity and grade is conceptual in nature, given that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Based on the above tabulation the Kookynie Gold Project has a total Exploration Target of between 230,000 ounces and 510,000 ounces and is exclusive of historically stated mineral resource estimates.

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

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

Since entering into the farm-in agreement with Nex Metals Explorations Ltd (ASX: NME) (“ Nex ”) (refer to ASX announcement dated 6[th] May 2019), Metalicity has completed:

• Detailed assessment of past exploration to facilitate stating the Exploration Target;

• Commenced on-ground exploration; and

• Prepared for drilling campaign.

The Kookynie Project is host to six, significant prospects; Champion, McTavish, Leipold, Diamantina, Cosmopolitan and Cumberland. Each has been assessed in the preparation of the Exploration Target based on an in-depth review of the existing data of historical production and exploration efforts.

At Cosmopolitan, the mineralisation is extrapolated some 150 meters to 200 meters down dip from historic workings to estimate the Exploration Target. No mineralisation is assumed within the area of historic workings. The upper end grade is estimated to be the historic mined grade.

At Diamantina and Cumberland, mineralisation is extrapolated up to 250 meters to 350 meters down dip and 500 meters along strike. The maximum grade is assumed to be the historically mined grade of Cosmopolitan as the Diamantina and Cumberland are strike continuations of that mineralisation.

At Champion, McTavish and Leipold, the mineralisation is extrapolated between 100 meters to 120 meters down dip and along strike. The upper grade is assumed to be between 4 g/t Au and 6 g/t Au based on averages of significant drill hole intersections within the structures hosting mineralisation.

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Figure 1 – Kookynie Prospect Locality Map.

The first phase of exploration at Kookynie will focus on defining and extending known mineralisation rather than early stage exploration to find prospects. The Company believes stating Exploration Targets in accordance with JORC 2012 guidelines will provide the market an insight on what exploration at Kookynie may produce. The Company’s intention is to scope out the extents of the mineralisation then define mineralisation quality at these prospects prior to conducting formal resource estimates.

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For the Yundamindra Gold Project, further assessment of the controls on mineralisation is required prior to stating Exploration Targets and detail exact drilling targets. To ensure that future programmes are effective, the mapping currently being implemented will allow the Company to understand the controls on mineralisation at the prolific Yundamindra Gold Project.

Commenting on the Exploration Targets, Metalicity CEO Mat Longworth said: “The Kookynie Gold Project presents an opportunity to define high quality ounces in a short period of time. Having access to a wealth of historical work including mineral resource estimates, historical production and drilling results has greatly assisted Metalicity to quickly estimate an Exploration Target of between 230,000 ounces and 510,000 ounces.

“We are also buoyed by the fact that all Prospects at Kookynie are open along strike and down dip which bodes well for MCT to define and extend resources with our upcoming drilling campaign. We are excited to be progressing with this project and look forward to delivering further exciting news flow in the near term.”

Planned Drilling

The Metalicity drilling programme will involve between 1,000 meters to 1,500 meters of reverse circulation (RC) drilling, and 800 meters to 1,200 meters of diamond core (DD) drilling to confirm the mineralisation. The actual number of holes drilled and the final metres drilled may vary based on geology and exploration results as the drilling programmes progress. Drilling is scheduled to commence in late June and take several months to complete.

However, the Company sees the result of fulfilling the farm-in agreement spend of $5 million may result in the Exploration Target being reported as a mineral resource estimate at suitable classifications amenable to making economic decisions via appropriate studies at the time.

Estimation of the Exploration Target

The Company’s stated Exploration Target for Kookynie of 230,000 to 510,000 ounces is a realistic outcome from targeted and results driven exploration. Ongoing drilling will be dictated by results.

The estimated Exploration Target is based on reviewing the historical work, including the review of pre-JORC (2012) mineral resource estimates estimated by current and historical operators (which contributed towards the evaluation of the Prospects, but not towards the Exploration Target ranges), historical production and drilling results. Mineralisation is open down dip and along strike at all prospects within the Kookynie Project and provides the opportunity for further expansion of drill programmes to define the resource potential.

Drilling Completed to Date

Below is a table of historical drilling completed to date by Prospect to detail the level of information available in stating the Exploration Targets:

	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie	Project: Kookynie
Prospect	Reverse Circulation		Diamond Drilling		Total
	No. of holes	Metres	No. of holes	Metres	No. of holes	Metres
Diamantina-Cosmopolitan-Cumberland(DCC)Trend	447	21,543	15	3,761.3	462	25,304.3
The Champion Prospect	123	6,291	-	-	123	6,291
The McTavish Prospect	166	6,213	-	-	166	6,213
The Leipold Prospect	184	9,053	-	-	184	9,053
Total	920	43,100	15	3,761.3	935	46,861.3

Table 2 – Kookynie historical drilling details.

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Project: Yundamindra
Reverse Circulation Diamond Drilling Total
Prospect
No. of holes Metres No. of holes Metres No. of holes Metres
The Landed at last Prospect 229 12,835 3 130.6 232 12,965.6
The Maori Queen Prospect 225 7,067 2 111 227 7,178.2
The Golden Treasure Prospect 38 1,359 - - 38 1,359.0
The Queen of May Prospect 68 2,786 - - 68 2,786.0
The Bound to Rise Prospect 16 668 - - 16 668.0
The Pennyweight Point Prospect 249 14,074 11 1,600.1 260 15,674.1
The George Washington Prospect 12 444 - - 12 444.0
Total 837 39,233 16 1,841.9 853 41,074.9
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Table 3 – Yundamindra historical drilling details.

Please refer to the significant drill hole intercepts released in the Company’s announcement dated 6[th] May 2019, “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ”. The results details in that announcement were a facet in estimating the stated Exploration Targets above.

Historical Mineral Resource Estimates

The following table is a summary of mineral resource estimates commissioned by Nex Metals Exploration Ltd as detailed in the ASX Announcement dated 1[st] August 2011 “ Update on activities ”:

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Cut Off Indicated Inferred Total
Prospect
g/t Au Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces
Champion 0.5 49,643 2.53 4,033 67,753 4.70 10,237 117,396 3.78 14,270
Leipold 0.5 293,727 1.90 18,251 261,240 1.80 14,791 554,968 1.90 33,042
McTavish 0.5 61,463 2.45 4,836 17,239 1.50 829 78,701 2.24 5,665
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Table 4 – Nex Metals Exploration Ltd Mineral Resource Estimate Summary.

The mineral resource estimates above were reported prior to the release of JORC 2012. Quality control/assurance (QAQC) and whole rock density determinations of both mineralisation and waste need qualifying to ensure a best practice mineral resource estimate can be performed moving forward. The initial drilling programme is designed to address part of those aspects, but infill and further extensional drilling will be required to ensure a robust estimation. Note - the Exploration Targets are exclusive of prior resource estimates, but the information derived from the historical mineral resource estimates were used in the determination of the stated Exploration Targets.

Project tenure

As announced by the Company on the 6[th] May 2019, “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ”, Nex Metals Exploration are the tenement holders whereby the Company can:

• Spend a minimum $500,000 before withdrawal and $5 million over up to 5 years to earn 51% of the Projects.

• Upon 51% earn in completion, NME and MCT will form a co-contributing joint venture to develop the Kookynie and Yundamindra Projects.

Below is a table detailing the tenements subject to the Metalicity – Nex Metals Farm-In Agreement:

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Tenement Registered Holder Shares Held Plainted
Kookynie
E40/333 Nex Metals Explorations Limited 100/100 No
G40/3 Nex Metals Explorations Limited 100/100 No
L40/9 Nex Metals Explorations Limited 100/100 No
E40/332 Nex Metals Explorations Limited 100/100 No
M40/22 Nex Metals Explorations Limited 100/100 No
M40/27 Nex Metals Explorations Limited 100/100 No
M40/61 Nex Metals Explorations Limited 100/100 No
M40/77 Nex Metals Explorations Limited 90,405/90,405 No
Yundamindra
L39/34 Nex Metals Explorations Limited 100/100 Yes
L39/52 Nex Metals Explorations Limited 96/96 Yes
L39/258 Nex Metals Explorations Limited 100/100 Yes
M39/84 Nex Metals Explorations Limited 100/100 Yes
M39/274 Nex Metals Explorations Limited 100/100 Yes
M39/406 Nex Metals Explorations Limited 100/100 Yes
M39/407 Nex Metals Explorations Limited 100/100 Yes
M39/408 Nex Metals Explorations Limited 100/100 Yes
M39/409 Nex Metals Explorations Limited 100/100 Yes
M39/410 Nex Metals Explorations Limited 100/100 Yes
M39/839 Nex Metals Explorations Limited 100/100 Yes
M39/840 Nex Metals Explorations Limited 100/100 Yes
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Table 5 – Nex Metals Exploration Ltd Mineral Resource Estimate Summary.

Forward plan

The Company will be rolling out an exploration programme with a modern methodical approach across both the Kookynie and Yundamindra Projects to define ounces.

The key exploration focus is the expansion and confirmation of existing mineralisation, especially at depth, as most of the current drilling is less than 50 metres at all prospects. The unique granite and intrusive related mineralisation identified at both Yundamindra and Kookynie provide a focus on this previously poorly understood mineralisation styles.

The Company senior management has decades of experience exploring for gold in the Eastern Goldfields and will apply state of the art mineralisation models and techniques alongside rigorous drill testing.

ENQUIRIES

Investors Investor Relations Mat Longworth David Tasker/ Colin Jacoby CEO Chapter One Advisors +61 8 9324 1053 +61 433 112 936/ +61 439 980 359 mlongworth@metalicity.com.au dtasker@chapteroneadvisors.com.au

Competent Person Statement

For the pre JORC 2012 mineral resource statements made (McTavish, Champion and Leipold), please refer to ASX Announcement by NME dated 1[st] August 2011 “Update on activities” for the Competent Person details. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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

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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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Appendix One – JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•Reverse Circulation (RC sampling; the drilling collar file and historical
techniques	specific specialised industry standard measurement tools appropriate	WAMEX reports note the use of various bit sizes between 5 and 5 ¼
	to the minerals under investigation, such as down hole gamma	inch, with riffle splitting to obtain a sample for analysis. All sampling
	sondes, or handheld XRF instruments, etc). These examples should	appears to be on 1 metre samples.
	not be taken as limiting the broad meaning of sampling.	•Diamond core (DD) is NQ sized with ½ core submitted for analysis
	• Include reference to measures taken to ensure sample representivity	and based on geological intervals, no bigger than 1m and no smaller
	and the appropriate calibration of any measurement tools or systems	than 30cms.
	used.	•Analysis varied between AAS and 30 to 50g fire assay. Approximately
	• Aspects of the determination of mineralisation that are Material to the	2% of samples were subjected to screen fire assay analysis.
	Public Report.	•The work conducted and under review appears to be “industry
	• In cases where ‘industry standard’ work has been done this would be	standard practice”. However, the data on hand requires field
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	verification, follow up drilling and further screen fire assay to address
	m samples from which 3 kg was pulverised to produce a 30 g charge	potential course gold aspects of the mineralisation.
	for fire assay’). In other cases more explanation may be required,
	such as where there is coarse gold that has inherent sampling
	problems. Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•RC drilling notes the use of various bit sizes between 5 and 5 ¼ inch.
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	•DD is noted at being NQ diameter core. Structural measurements are
	or standard tube, depth of diamond tails, face-sampling bit or other	on file, however the method of obtaining such measurements was not
	type, whether core is oriented and if so, by what method, etc).	noted but appear to be concordant with observed structures in
		historical workings.
Drill sample	• Method of recording and assessing core and chip sample recoveries	•No records exist to the method of recording and assessing core and
recovery	and results assessed.	chip recoveries.
	• Measures taken to maximise sample recovery and ensure	•Unknown.
	representative nature of the samples.	•There appears to be no biased in the data with regards to a
	• Whether a relationship exists between sample recovery and grade	relationship between sample recovery and grade. The drilling
	and whether sample bias may have occurred due to preferential	intercepts delineate similar plunged shoots that the historical
	loss/gain of fine/coarse material.	workings mined – so, prima facie, there appears to be little bias.
		However, future work will include such assurance protocols including
		twinned holes to verify stated mineralised intercepts on selected
		sections.
Logging	• Whether core and chip samples have been geologically and	•All recovered sample from RC and DD have been geologically
	geotechnically logged to a level of detail to support appropriate	logged. No records of geotechnical logging exist beyond noting
	_Mineral Resource estimation, mining studies and metallurgical _	structural measurements ofcertain featureslikeveins, joints and

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Criteria	Criteria		JORC Code explanation	Commentary
			studies.	faults.
			• Whether logging is qualitative or quantitative in nature. Core (or	•The drilling data in its current state will not support a Mineral
			costean, channel, etc) photography.	Resource Statement to JORC 2012 guidelines. Confirmatory drilling
			• The total length and percentage of the relevant intersections logged.	is required and investigation of existing core/RC sample (if possible)
				is required. Further QAQC and whole rock density determinations are
				also required in future programmes to assist in the estimation of a
				mineral resource.
				•Geology logging was qualitative, and no core photography exists.
Sub-			• If core, whether cut or sawn and whether quarter, half or all core	•Core was halved and a consistent side was taken for analysis as
sampling			taken.	noted in logging sheets detailed in submitted exploration reports on
techniques			• If non-core, whether riffled, tube sampled, rotary split, etc and	file through the WAMEX system.
and sample preparation			whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique.	•RC samples were riffle split to obtain a nominal 3kg sample for analysis. •No notes were available regarding the quality and appropriateness of
			• Quality control procedures adopted for all sub-sampling stages to	the sample preparation technique.
			maximise representivity of samples.	•Field duplicates have been noted as a historical issue previously and
			• Measures taken to ensure that the sampling is representative of the in	requires attention in future programmes.
			situ material collected, including for instance results for field	•Sample size is appropriate, whilst larger sizes given the nature of the
			duplicate/second-half sampling.	mineralisation would be better, it would be logistically and cost
			• Whether sample sizes are appropriate to the grain size of the material	prohibitive.
			_being sampled. _
Quality		of	• The nature, quality and appropriateness of the assaying and	•The fire assay data appears sufficient, whereas the AAS analysis
assay		data	laboratory procedures used and whether the technique is considered	may be understating the gold content. Therefore, to address the
and			partial or total.	potential course gold aspect of the observed mineralisation, screen
laboratory tests			• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument	fire assay on mineralised sections is recommended. •No geophysical tools, spectrometers, handheld XRF instruments
			make and model, reading times, calibrations factors applied and their	were used.
			derivation, etc.	•Since all of the drilling was conducted by historic explorers there is a
			• Nature of quality control procedures adopted (eg standards, blanks,	failure to document the QAQC practices conducted at the time of
			duplicates, external laboratory checks) and whether acceptable levels	drilling. As such there is no data to be examined for this work.
			_of accuracy (ie lack of bias) and precision have been established. _
Verification of			• The verification of significant intersections by either independent or	•Lab certificate inspection on selected jobs was conducted by the CP
sampling		and	alternative company personnel.	and found to be within specification.
assaying			• The use of twinned holes.	•No twinned holes have been completed.
			• Documentation of primary data, data entry procedures, data	•No record of primary data protocols, however, historical data has
			verification, data storage (physical and electronic) protocols.	been collated and interrogated with spiralis data omitted (that being
			• Discuss any adjustment to assay data.	drill holes with no recorded collar coordinates or down hole survey
				information –that being the drill hole set azimuthandinclination.

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Criteria		JORC Code explanation	Commentary
			•No adjustment to the available assay data has been made.
Location	of	• Accuracy and quality of surveys used to locate drill holes (collar and	•No mineral resources are being estimated/stated beyond the
data points		down-hole surveys), trenches, mine workings and other locations	referenced Pre JORC 2012 mineral resource statements noted – for
		used in Mineral Resource estimation.	those please refer to ASX Announcement by NME dated 1st August
		• Specification of the grid system used.	2011 “Update on activities” and have been reproduced from that
		• Quality and adequacy of topographic control.	source. The mineral resource estimates are considered historical and
			require further work to establish current best practice estimations
			before restating the mineral resource estimation.
			•Regarding the use of the
			•Both AMG84and GDA94 were used, collars were picked up by a
			qualified surveyor using a DGPS (Trimble S7).
			•The surveyed collar coordinates appear to be enough, however,
			better definition is required of the topography to allow for a JORC
			2012 compliant estimation.
Data spacing		• Data spacing for reporting of Exploration Results.	•The data spacing is sufficient to establish a relatively high confidence
and		• Whether the data spacing and distribution is sufficient to establish the	in geological and grade continuity, however, peripheral data to
distribution		degree of geological and grade continuity appropriate for the Mineral	support the drill holes requires further work to ensure compliance with
		Resource and Ore Reserve estimation procedure(s) and	JORC 2012 guidelines.
		classifications applied.	•No sample compositing was applied beyond the calculation of down
		• Whether sample compositing has been applied.	hole significant intercepts.
Orientation	of	• Whether the orientation of sampling achieves unbiased sampling of	•All drilling appears to be perpendicular to the main structure that
data	in	possible structures and the extent to which this is known, considering	hosts mineralisation. Secondary structures oblique to the main
relation	to	the deposit type.	structure may have influence hanging and foot wall intercepts.
geological structure		• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a	•The author believes that the drilling orientation and the orientation of key mineralised structures has not introduced a bias.
		sampling bias, this should be assessed and reported if material.
Sample		• The measures taken to ensure sample security.	•Unknown as historical work is being discussed.
security
Audits	or	• The results of any audits or reviews of sampling techniques and data.	•Beyond verifying laboratory certificates and cross checking with the
reviews			database, no further reviews of the sampling techniques and data
			was completed at the time of reporting.

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Section 2: Reporting of Exploration Results

Criteria JORC Code explanation	Commentary
Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	•Please refer to the tenement schedule below: •Nex Metals Explorations Ltd hold the tenure in question. •As illustrated above, the tenements associated with the Yundramindra Project are currently subject to plaint proceedings. TENEMENT REGISTERED HOLDER SHARES HELD PLAINTED Kookynie Tenements M 40/77 Nex Metals Explorations Limited 90,405/90,405 No M 40/61 Nex Metals Explorations Limited 100/100 No M 40/27 Nex Metals Explorations Limited 100/100 No M 40/22 Nex Metals Explorations Limited 100/100 No L 40/9 Nex Metals Explorations Limited 100/100 No G 40/3 Nex Metals Explorations Limited 100/100 No E 40/333 Nex Metals Explorations Limited 100/100 No E 40/332 Nex Metals Explorations Limited 100/100 No Yundamindra Tenements M 39/840 Nex Metals Explorations Limited 100/100 Yes M 39/839 Nex Metals Explorations Limited 100/100 Yes M 39/410 Nex Metals Explorations Limited 100/100 Yes M 39/409 Nex Metals Explorations Limited 100/100 Yes M 39/408 Nex Metals Explorations Limited 100/100 Yes M 39/407 Nex Metals Explorations Limited 100/100 Yes M 39/406 Nex Metals Explorations Limited 100/100 Yes M 39/274 Nex Metals Explorations Limited 100/100 Yes M 39/84 Nex Metals Explorations Limited 100/100 Yes L 39/258 Nex Metals Explorations Limited 100/100 No L 39/52 Nex Metals Explorations Limited 96/96 No L 39/34 Nex Metals Explorations Limited 100/100 No
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties.	•Nex Metals Explorations Ltd have done a great job of collating the historical drilling completed over the previous 30 years. •The historical work completed requires further field verification via re- down hole surveying (if possible) of drill holes beyond 60 metres depth – it appears below this depth; hole deviation becomes a factor in establishing the location of mineralisation in 3D. Furthermore, collar pickups require verification. All laboratory certificates for the assays on file are collated, only recommendation is possibly more duplicate information in mineralised zones.

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Criteria	JORC Code explanation	Commentary
Geology	• Deposit type, geological setting and style of mineralisation.	•Kookynie:
		•The project area is in the Keith-Kilkenny Tectonic Zone within the
		north-northwest trending Archean-aged Malcolm greenstone belt.
		The Keith-Kilkenny Tectonic Zone is a triangular shaped area
		hosting a succession of Archean mafic-ultramafic igneous and
		meta-sedimentary rocks. Regional magnetic data indicates the
		Kookynie region is bounded to the west by the north-trending Mt
		George Shear, the Keith-Kilkenny Shear Zone to the east and the
		Mulliberry Granitoid Complex to the south.
		•There are several styles of gold mineralisation identified in the
		Kookynie region. The largest system discovered to date is the
		high-grade mineralisation mined at the Admiral/Butterfly area,
		Desdemona area and Niagara area. The gold mineralisation is
		associated with pyritic quartz veins hosted within north to
		northeast dipping structures cross-cutting 'favourable' lithologies
		which can also extend into shears along geological contacts.
		Gold mineralisation tends to be preferentially concentrated in
		differentiated dolerite sills associated with
		pyrite/carbonate/silica/sericite wall rock alteration.
		•Yundramindra:
		•The Project area covers a belt of gold mineralisation occurring
		along the margin of a regional hornblende granodiorite pluton
		intrusive to mafic rocks, largely metabasalts of Association 2 in
		the Murrin-Margaret sector of the Eastern Goldfields. The
		mineralised contact area between granitoid and mafic rocks is
		arcuate in shape and is subdivided on geographic locations into
		the “Western” and “Eastern” lines:
		•The Western Line consists of a NNW trending zone of generally
		continuous, east dipping quartz reefs and quartz filled shears in
		granitoid near the contact between a large hornblende
		granodiorite pluton and a thin, remnant greenstone succession.
		•The Eastern Line encompasses the eastern portion of the arcuate
		granodiorite/greenstone contact. The greenstones here are
		poorly exposed and the high-Mg basalt, in turn intruded by
		doleritic and porphyritic felsic dykes. The greenstone succession
		is several kilometres in thickness. It’s eastern margin forms a
		fault bounded contact with rocks of the regionally significant,
		southerly plunging Eucalyptus Anticline. The western margin of
		the Eastern Line exhibits sharp to gradational assimilated
		contactswith hornblende granodiorite. Mineralisationalong the

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Criteria		JORC Code explanation	Commentary
			Eastern Line occurs in two settings: 1. Associated with quartz
			veining within the mafic succession, and 2. Within quartz
			veins/stockworks within the granodiorite.
Drill	hole	• A summary of all information material to the understanding of the	•For both Kookynie and Yundramindra, please refer to the Company’s
Information		exploration results including a tabulation of the following information	announcement dated 6th May 2019, “Metalicity Farms Into Prolific
		for all Material drill holes:	Kookynie & Yundamindra Gold Projects, WA”, for all drill collar
		o easting and northing of the drill hole collar	information, and selected significant intercepts.
		o elevation or RL (Reduced Level – elevation above sea level in	•The rationale behind presenting the significant intercepts in the
		metres) of the drill hole collar	Company’s announcement dated 6th May 2019, “Metalicity Farms
		o dip and azimuth of the hole	Into Prolific Kookynie & Yundamindra Gold Projects, WA” using the
		o down hole length and interception depth	methodology described was to illustrate the significance of the
		o hole length.	intercepts and the extent, that being, the actual number of this high
		• If the exclusion of this information is justified on the basis that the	tenor type intercepts within both Projects.
		information is not Material and this exclusion does not detract from
		the understanding of the report, the Competent Person should clearly
		_explain why this is the case. _
Data		• In reporting Exploration Results, weighting averaging techniques,	•Initially, significant intercepts were calculated using values >1 g/t Au
aggregation		maximum and/or minimum grade truncations (eg cutting of high	over a minimum width of 1m with no more than 1m internal waste or
methods		grades) and cut-off grades are usually Material and should be stated.	values <1 g/t Au. Subsequently, since 1,263 significant intercepts
		• Where aggregate intercepts incorporate short lengths of high grade	were produced (771 for Yundramindra and 492 for Kookynie) from the
		results and longer lengths of low grade results, the procedure used	data available, a further refinement of intercepts that produced >10-
		for such aggregation should be stated and some typical examples of	gram metres were presented.
		such aggregations should be shown in detail.	•Please refer to the Company’s announcement dated 6th May 2019,
		• The assumptions used for any reporting of metal equivalent values	“Metalicity Farms Into Prolific Kookynie & Yundamindra Gold
		should be clearly stated.	Projects, WA”
			•All intercepts were treated as above with no top cuts applied.
			•No metal equivalents are discussed or reported.
Relationship		• These relationships are particularly important in the reporting of	•Given the shallow dipping nature (approximately -45° on average) of
between		Exploration Results.	the mineralisation observed at Kookynie and Yundramindra, the
mineralisatio		• If the geometry of the mineralisation with respect to the drill hole	nominal drilling inclination of -60° lends to close to truth width
n widths	and	angle is known, its nature should be reported.	intercepts.
intercept lengths		• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true _width not known’). _	•However, cross cutting structures within the hanging wall and footwall are noted and may influence the results.
Diagrams		• Appropriate maps and sections (with scales) and tabulations of	•Please see main body of the announcement for the relevant figures.
		intercepts should be included for any significant discovery being
		reported These should include, but not be limited to a plan view of
		_drill hole collar locations and appropriate sectional views. _

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Criteria	JORC Code explanation	Commentary
Balanced	• Where comprehensive reporting of all Exploration Results is not	•It is noted that historical mineral resource estimates commissioned by
reporting	practicable, representative reporting of both low and high grades	Nex Metals Explorations Ltd were used to assist in defining the stated
	and/or widths should be practiced to avoid misleading reporting of	Exploration Targets, however, the Exploration Target isexclusiveof
	Exploration Results.	the mineral resource estimates stated in the ASX Announcement
		dated 1st August 2011 “Update on activities”.
		•Regarding the significant intercept tables presented in the
		announcement by the Company on the 6th May 2019, “Metalicity
		Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA”, the
		sheer volume of data (No. of significant intercepts - 771 for
		Yundramindra and 492 for Kookynie) based on the data aggregation
		methods described above is not practical to report nor beneficial.
		•In context though, below is a table of the recorded drilling to date so a
		comparison to the number of holes drilled versus the number of
		significant intercepts present can be made. However, more detailed
		drilling tabulations are within the body of the announcement so as to
		communicate the level of drilling at each prospect within each Project:
		No. drill holes Metres No. drill holes Metres No. drill holes Metres No. drill holes Metres Kookynie 920 43,100 11 3,223.3 4 538.1 935 46,861.4 Yundramindra 837 39,233 15 1,785.6 1 56.3 853 41,074.9 Total 1757 82,333 26 5,008.9 5 594.4 1788 87,936.3 RC DD RC/DD Total Drilling Summary
Other	• Other exploration data, if meaningful and material, should be reported	•The area has had significant historical production recorded and is
substantive	including (but not limited to): geological observations; geophysical	accessible via the MINEDEX database.
exploration data	survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density,	•All stated mineral resources for the Kookynie and Yundramindra Projects are pre-JORC 2012. Considerable work around bulk density,
	groundwater, geotechnical and rock characteristics; potential	QAQC, down hole surveys and metallurgy, coupled with the planned
	deleterious or contaminating substances.	drilling will be required to ensure compliance with JORC 2012
		guidelines.

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Criteria	JORC Code explanation	Commentary
Further work	• The nature and scale of planned further work (eg tests for lateral	•Metalicity intends to drill the known and extend the mineralised
	extensions or depth extensions or large-scale step-out drilling).	occurrences within the Kookynie and Yundramindra Projects. The
	• Diagrams clearly highlighting the areas of possible extensions,	Yundramindra Project is currently under the plaint process, however
	including the main geological interpretations and future drilling areas,	Metalicity believes that Nex Metals is well advanced in defending
	provided this information is not commercially sensitive.	those claims. The drilling will be designed to validate historical drilling
		with a view to making maiden JORC 2012 Mineral Resource Estimate
		statements. Metalicity has made the aspirational statement of
		developing “significant resource and reserve base on which to
		commence a sustainable mining operation focusing on grade and
		margin”.
		•Diagrams pertinent to the area’s in question are supplied in the body
		of this announcement.

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