ARIKA RESOURCES LIMITED — Capital/Financing Update 2019

Feb 27, 2019

==> picture [282 x 59] intentionally omitted <==

ASX RELEASE: 28 February 2019

ADMIRAL BAY & NAPIER RANGE TSX-V IPO

Kimberley Mining TSX-V Listing and Technical Update

HIGHLIGHTS

• KML remains committed to the IPO on TSX-V and is ready to proceed when market conditions permit

• Prospectus is at an advanced stage, KML marketing to potential investors continues

• Adding value to Admiral Bay zinc project ahead of KML IPO :

  • Completed review of current geophysical data sets including SEEBASE data from GSWA

  • Airbourne and ground methods are being evaluated to enhance targeting

Metalicity Limited (ASX:MCT) (“ MCT ” or “ Company ”) is pleased to provide an update on progress of the listing of Kimberley Mining Limited ( “KML” or “Kimberley Mining” ) on the TSX-V.

Kimberley Mining - a 81% owned subsidiary of MCT - is following a strategy of listing on the TSX-V to raise sufficient funds to progress the Admiral Bay zinc project in Western Australia (refer to ASX Announcement dated 29 May 2018).

KML has raised C$2 million (A$2.1 million) in seed capital, made the initial payment of C$500,000 (A$532,605) and issued 25 million shares in KML to MCT as required by the Sale and Purchase Agreement.

While worldwide market conditions remain unconducive to mining Initial Public Offerings, particularly in the Canadian market, KML nevertheless remains ready to proceed as markets improve.

The prospectus is at an advanced stage of readiness and marketing of the company to potential investors including strategic cornerstone investors continues. The efforts of the Canadian Management are untiring.

Adding Value to Admiral Bay

While waiting for market conditions to improve, the Company’s technical management continues to work with KML to advance the Admiral Bay project by adding value ahead of IPO.

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

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

==> picture [471 x 341] intentionally omitted <==

Figure 1 – Airborne Magnetics filtered for target depth with anticlinal axis (red), and the limits of the anticline (blue). Block dots – drill hole collar locations, Black polygon - tenure.

Initially a review of current geophysical data sets including the recently released SEEBASE data from the Geological Survey of Western Australia (GSWA) has been completed; complimenting the current geological interpretation and providing understanding of anticlinal structure that hosts the Admiral Bay mineralisation.

The Company’s consultants suggest that gravity data may be capable of seeing stronger accumulations of base metal sulphides and therefore comparison of ground and airbourne techniques are being evaluated to enhance targeting.

MCT remains committed to the listing strategy and the Company’s new management team is actively working with Kimberly Mining to enhance the IPO and derive value for MCT shareholders and incoming shareholders of KML.

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 david.tasker@chapteroneavisors.com.au

==> picture [133 x 28] intentionally omitted <==

2