ARIKA RESOURCES LIMITED — Capital/Financing Update 2020

Jun 9, 2020

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ASX RELEASE: 10 June 2020

Metalicity Completes Phase 1 Drilling

HIGHLIGHTS

• The first Phase of the larger drilling programme across the Kookynie Gold Project for 44 holes for 2,255 metres has been completed comprising:

  • 34 holes for 1,721 metres of Reverse Circulation (RC) drilling at Leipold.

  • 10 holes for 534 metres of Reverse Circulation (RC) drilling at McTavish.

• Programme was designed to step out from Metalicity drill hole intercepts of:*

  • McTavish - McTRC0005 – 5 metres @ 17.9 g/t Au from 48 metres, inc. 1 metre @ 80.17 g/t Au from 51 metres.

  • Leipold - LPRC0003 – 6 metres @ 9.4 g/t Au from 26metres, inc. 2metres @ 19g/t Au from 26metres.

  • Historical intercepts in the area include:**

    • Leipold - 3m @ 107.2 g/t Au from 32 metres in LQRC0026

    • Leipold - 4m @ 104.8 g/t Au from 36 metres in BLQ012

    • McTavish - 3m @ 52.33 g/t Au from 23m in hole CRC136

• First Assays are expected to be available shortly and will be released as soon as possible.

• Drone Survey across the 8kms of identified Strike extensions to known mineralisation progressing well with results to refine further targets for drill testing.

Metalicity Limited (ASX: MCT) (“MCT” or “Company”) with our farm in partner Nex Metals Exploration Ltd (ASX: NME), is pleased to advise that our first phase drilling programme for 2020 at the Kookynie Gold Project has been completed. The work completed is a major step forward at testing extensions of the Leipold and McTavish Prospects. As discussed in our 27 May 2020 Announcement “ Drilling commences at High Grade Kookynie Gold Project ”, this programme is the first phase of our staged exploration approach to the Kookynie Gold Project. This staged approach will allow for results to be interpreted and incorporated into future plans, ensuring that all follow-up exploratory stages will be carried out as efficiently and cost effective as possible.

The drone magnetics survey, as discussed in our ASX Announcement dated 2 June 2020 “ Drone Magnetic Survey To Commence at the Kookynie Gold Project ”, continues as part of our overall exploration and development strategy for the Kookynie Gold Project. The Drone survey will refine targets for drilling testing within the 8kms of strike extensions to the known mineralisation at Kookynie that have been identified.

Managing Director and CEO, Jason Livingstone commented;

“ Above all, the drilling programme was executed very effectively. The drilling contractor, DrillWest, was professional, efficient and delivered exceptionally well and most importantly, safely.”

“All samples from the drilling programme over the past 2 weeks have been submitted for analysis and we are currently updating our geological interpretations in anticipation of these results. I look forward to presenting these results to our shareholders as and when we can. But it was incredibly satisfying executing this programme on 2 of our 7 incredible prospects within the Kookynie Gold Project, let alone the drone survey exploring the further 8 kilometres of strike extent of these fantastic prospects.”

*Please refer to ASX Announcement titled “ Metalicity Reports Drill Hole Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for Kookynie ” dated 21 January 2020.

**Please refer to ASX Announcement “Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA” dated 6 May 2019

Metalicity Limited www.metalicity.com.au ASX Code: MCT Level 25, 108 St Georges Terrace ABN: 92 086 839 992 West Perth WA 6005

This Announcement is approved by Jason Livingstone, Managing Director & CEO of Metalicity Limited.

ENQUIRIES Jason Livingstone Managing Director & CEO +61 (0)8 6500 0202 jlivingstone@metalicity.com.au

Metalicity confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of “exploration results” that all material assumptions and technical parameters underpinning the “exploration results” in the relevant announcements referenced apply and have not materially changed.

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. 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.

Note

This Announcement is designed to also supplement for Nex Metals Explorations as it relates to our farm-in agreement as announced on the 6[th] May 2019 titled “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ”.

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.

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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