ARIKA RESOURCES LIMITED — Capital/Financing Update 2020

May 11, 2020

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ASX RELEASE: 12 May 2020

Metalicity to Drill the Kookynie Gold Project

HIGHLIGHTS

• An RC Drilling Programme to commence in mid to late May 2020 at the Kookynie Gold Project initially targeting the prolific Leipold – McTavish Trend circa 3 kms west from the historic high-grade Cosmopolitan Mine.

  • *Previous drilling by Metalicity returned hole intercepts including:

    • McTavish:

      • 5 metres @ 17.9 g/t Au from 48 metres

        • including 1 metre @ 80.17 g/t Au from 51 metres.

    • Leipold:

      • 6 metres @ 9.4 g/t Au from 26 metres,

        • including 2 metres @ 19g/t Au from 26 metres.

• The programme is designed to extend known, high grade mineralisation.

• Finalisation of drill contract imminent.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce that the Company will shortly commence a large drilling programme at the Kookynie Gold Project ( Kookynie ), located approximately 50km south of the WA Goldfields town of Leonora.

The Company released the results of a drilling programme at Kookynie in January this year which retuned some excellent high-grade results. A follow up programme of reverse circulation (RC) is planned at Kookynie to confirm and extend zones of known mineralisation primarily at the Leipold and McTavish Prospects, which are approximately 3kms to the west of the historic high-grade Cosmopolitan mine.

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Figure 1 – Kookynie Prospect Locality Map.

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

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

www.metalicity.com.au Level 25, 108 St Georges Terrace Perth WA 6000

The Company is finalizing a drill contract at the moment and expects drilling to commence in the next two weeks.

Commenting on the commencement of drilling, Metalicity MD Jason Livingstone said:

“ I am very pleased to be announcing that we are re-commencing field work at the prolific Kookynie Gold Project. The results we published in January 2020 were spectacular and I have been incredibly eager to follow these up. I look forward to keeping our shareholders and the market in general updated as we continue to develop this amazing gold Project. ”

ENQUIRIES

Jason Livingstone Managing Director +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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