ARIKA RESOURCES LIMITED — Capital/Financing Update 2020

Apr 27, 2020

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ASX RELEASE: 27 April 2020

Non-Renounceable Rights Issue to Raise $1 million

HIGHLIGHTS

• Non-renounceable rights issue of two Shares for every three Shares held at an issue price of $0.002 per Share to raise up to $966,984.

• Subscribers will receive one free attaching Option for every two Shares subscribed exercisable at $0.004 per New Option with a 2-year expiry.

• Canaccord Genuity (Australia) Limited is the Lead Manager and Underwriter up to $500,000.

• Proceeds will go towards drilling at the Kookynie Gold Project in the prolific Eastern Goldfields region which has recently returned significant near surface gold intersections.

• Drilling expected to commence within the next 2-3 weeks.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce that it is undertaking a 2 for 3 non-renounceable Rights Issue to raise a total of circa $1 million before costs. Eligible participants who subscribe to the offer will also receive 1 free attaching option for every 2 shares subscribed, exercisable at $0.004 2 years after issue. It is intended for the options to be listed, subject to meeting relevant listing requirements.

The primary focus of the offer is to facilitate a program of reverse circulation (RC) and some diamond drilling (DD), at the Kookynie Project to confirm and extend zones of known mineralisation at the defined Leipold, McTavish, Cosmopolitan, Diamantina, Cumberland and Champion Prospects. As previously announced, recent drilling confirmed high grade gold mineralization at surface and that all Prospects are open along strike and down dip (refer to ASX announcement dated 21 January 2020). Drilling is scheduled to commence within the next 2-3 weeks, subject to finalization of a drilling contract.

Metalicity Managing Director, Jason Livingstone commented:

“ Our announcement in January 2020 where we described significantly high-grade gold intercepts up to 80/g/t gold from the Kookynie Gold Project, was a game changer for us. Now, with the support of a world-renowned brokerage house such as Canaccord, I am excited to offer our shareholders an opportunity to continue exploring and developing the Kookynie Gold Project. I fully expect our success with this Project to continue and sincerely look forward to keeping shareholders and the market updated regularly. ”

Under the Rights Issue, up to 483,491,810 shares and 354,245,905 options will be offered. Eligible shareholders will be given the opportunity to apply for additional securities in excess of their entitlement, which shall be allocated at the absolute discretion of the Board.

The Rights issue is Underwritten by Canaccord Genuity (Australia) Limited up to $500,000. Canaccord (or their nominees) will be issued up to 112,500,000 options pursuant to the underwriting. Details of the Underwriting Agreement are contained within the Prospectus.

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

www.metalicity.com.au Level 3, 30 Richardson Street West Perth WA 6005

If you have any queries concerning the Rights Issue, or the action you are required to take to subscribe for the new shares, please contact your financial advisor, or the Share Registry “Link Market Services” on 1300 554 474 or Mr. Neil Hackett, Metalicity’s Company Secretary, on +61 8 6500 0202.

Timetable for the Rights Issue:

Action	Date
Announcement of the Offer and lodgment of Appendix 3B with ASX	27 April 2020
Lodgement of Prospectus with the ASIC and ASX	27 April 2020
Ex date	30 April 2020
Record Date for determining Entitlements	1 May 2020
Prospectus and personalised Entitlement and Acceptance Forms sent out to Eligible Shareholders and Companyannounces despatch has been completed	6 May 2020
Last day to extend the Closing Date of the Offer	12 May 2020
Closing Date (Offer closes 5:00 pm WST)*	15 May 2020
Securities quoted on a deferred settlement basis	18 May 2020
Announcement of results of the Offer	20 May 2020
Issue date, Securities entered into Shareholders’ security holdings and lodgment of Appendix 2A with ASX	22 May 2020
Quotation of Securities issued under the Offer*	25 May 2020

*The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date. As such the date the Securities are expected to commence trading on ASX may vary.

ENQUIRIES

Jason Livingstone Managing Director +61 8 6500 0202 jlivingstone@metalicity.com.au

THIS ANNOUNCEMENT IS DESIGNED TO LIFT THE CURRENT TRADING HALT OF THE COMPANY’S SECURITIES.

Competent Person Statement

Please refer to the relevant announcement for the competent persons statement applicable.

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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