ARIKA RESOURCES LIMITED — Capital/Financing Update 2020

Mar 11, 2020

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ASX RELEASE: 12 March 2020

Kookynie Gold Project – Development Strategy & Exploration Target Update

HIGHLIGHTS

• An Updated “Exploration Target” has been estimated 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, historical and recent drilling results.

• Metalicity outlines the “Development Strategy” for the Kookynie Gold Project to realise the “Exploration Target”.

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

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce a JORC-2012 compliant Exploration Target for the Kookynie Gold Project in the Eastern Goldfields, Western Australia coupled with how the Company intends to develop the assets in conjunction with our farm-in partner, Nex Metals Explorations Ltd (ASX:NME).

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

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Kookynie Gold Project "Exploration Target" Summation
Grade Range Tonnage Range Ounces
Prospect
Lower g/t Au Upper g/t Au Lower tonnes Upper Tonnes Lower ounce range Upper Ounce Range
Diamantina-Cosmopolitan-Cumberland (DCC) Trend 10.0 15.0 300,000 600,000 100,000 290,000
previously excluded area of underground development 6.0 10.0 600,000 1,000,000 115,000 320,000
Overall Ounce Range 215,000 610,000
The Champion Prospect 3.6 6.0 200,000 400,000 25,000 80,000
previously excluded area of underground development 2.0 4.0 60,000 150,000 4,000 20,000
Overall Ounce Range 29,000 100,000
The McTavish Prospect 1.8 5.0 250,000 500,000 15,000 80,000
previously excluded area of underground development 1.5 5.0 100,000 200,000 5,000 32,000
Overall Ounce Range 20,000 112,000
The Leipold Prospect 1.5 5.0 500,000 800,000 25,000 120,000
previously excluded area of underground development 1.5 4.0 100,000 200,000 5,000 25,000
Overall Ounce Range 30,000 145,000
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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 294,000 ounces and 967,000 ounces and is inclusive of historically stated mineral resource estimates and previously

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

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

excluded areas of underground development. The work by the Company in drilling mapping sampling has supported historical work and provided confidence to include historical work in the “Exploration Target”.

Since entering into the farm-in agreement, Metalicity has completed:

• Three drilling programmes of 19 drill holes for 1,955.83 metres over the Cosmopolitan, Cumberland, Diamantina, Champion, Leipold and McTavish Prospects,

• The Company has managed to more than double our landholding,

• Undertaken on-ground exploration through methodical “fact” field mapping and ground truthing,

• Reprocessed regional geophysics and commenced a drone magnetic survey to delineate regional trends of mineralisation, and

• Detailed assessment of past and present exploration to facilitate stating the updated “Exploration Target”.

The Kookynie Project is host to six, 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.

At Cosmopolitan, the mineralisation is extrapolated some 200 meters to 300 meters down dip from historic workings to estimate the Exploration Target. The update is based on the Company’s review of historical reports, sampling and the results of the company’s drilling and exploration work. Historical reports from 1905, detailed channel sampling conducted during the development of the gold mine, coupled with a mineralisation estimate (actual date of publishing was 1989) illustrated that both sets of information detailed remnant mineralisation was evident.

The Company has drill tested part of the Cosmopolitan Gold Mine that was excluded in this May 2019 estimated Exploration Target. A drill hole result from within the Cosmopolitan Gold Mine returned 2 metres @ 22.1 g/t Au from 76 metres (please refer to ASX Announcement dated 31 July 2019 titled “ Metalicity Confirms Mineralisation ”) coupled with other significant intercepts in the general area (detailed in that same announcement dated 31 July 2019), has instigated a revue of the “Exploration Target” in this area.

At Diamantina and Cumberland, mineralisation is extrapolated 300 meters to 500 meters down dip and 700 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. The revision of the “Exploration Target” within the Diamantina and Cumberland Prospects is due to the extrapolation and confirmation of information previously excluded from the original May 2019 estimate.

At Champion, McTavish and Leipold, the mineralisation is extrapolated between 150 meters to 200 meters down dip and along strike. The upper grade is assumed to be between 1.5 g/t Au and 6 g/t Au based on averages of significant drill hole intersections (both historic and recent) within the structures hosting mineralisation.

Below in Figure 1, Prospect locations are illustrated.

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Figure 1 – Kookynie Prospect Locality Map.

The drilling performed by Metalicity to date has been successful by way that every drill hole has intersected the mineralised structure at each Prospect. A revision of our “Exploration Target” for the Kookynie Gold Project articulates the results, exploration philosophy and overall potential of what we know now. Given the work completed so far by the Company to understand the strike extents of the known prospects, the Company sees the development of the Kookynie Gold Project will be supplemented through the potential additional discovery of well-endowed Prospects peripheral to the known DDC Trend, Leipold, McTavish and Champion Prospects.

Commenting on the Exploration Targets, Metalicity MD & CEO Jason Livingstone said:

“I am pleased with the results to date in light of capital restrictions that have faced Metalicity and the market in general. We have consistently demonstrated news flow from the drill bit and have delivered phenomenal results that I am very proud of. The work conducted to date has allowed a revision of our Exploration Target, especially in areas we previously excluded due to a lack of information.”

“Metalicity is working towards the development of a maiden JORC-2012 compliant mineral resource estimate. We are well advanced in confirming historical work with mineralisation extensions being developed at all

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known prospects. Therefore, we are able to articulate a revised Exploration Target of up to approximately 1 million ounces of gold. This is a fantastic result and truly illustrates the Kookynie Gold Project to be a truly wellendowed and prolific gold field.”

“I look forward to developing the Kookynie Gold Project and reaching this target in due course. Monetising our other assets and easing of restrictions in the general market are key to enabling Metalicity to fully concentrate on this fantastic asset and work towards our goals. Working with Nex Metals has been an absolute pleasure and I further look forward to ongoing discussions that are designed to truly unlock the value of this Project.”

Forward Activities – Development Strategy

Metalicity continues to follow the strategy developed as part of entering into the Joint Venture agreement on Kookynie.

The approach to the Kookynie Gold Project is:

1. Address aspects of the Pre-2012 JORC Mineral Resource Estimates centered around density, down hole surveys and metallurgy through drilling.

2. a. Density is a key aspect to understanding the tonnage of a mineral resource estimate, with our diamond drilling to date, we are able to contribute towards not only qualifying the gold grades, but also the bulk densities of mineralised and waste material,

3. b. Down hole surveys are key to understanding where mineralisation exists in three-dimensional space as drill holes do deviate as they are drilled. Understanding this aspect of how drill holes behave as they are drilled, and where the mineralisation is located in situ, allows for a higher degree of confidence in the location of the ore in future mining activities.

4. c. Whilst the area has previous gold production stated, understanding what process methodology is appropriate is paramount to ensure a robust operation is possible. Therefore, ore body knowledge not only includes what tonnes and grade are possible within a Prospect, but how the commodity is extracted efficiently, cheaply and as environmentally responsible as possible impacts directly on the financial metrics of an operation.

5. Continue to develop an understanding of the boundaries of the observed mineralisation through targeted and methodical drilling programmes.

6. a. To date, every drill hole has intersected the mineralised structure or a zone where mineralisation did exist but has been mined out.

7. b. As we work to defining these limits, we are understanding and become able to estimate the tonnes and grade of these ore bodies.

8. c. Understand the remnant mineralisation within previously developed areas of underground mining as we have illustrated that mineralisation does still exist.

9. d. The above all contributes towards our last point;

10. Issue a maiden JORC-2012 compliant Mineral Resource Estimate to allow further studies to illustrate financial metrics around this Project to allow an investment decision.

11. Finally, continue the tenement consolidation efforts.

12. a. Metalicity, with our partner Nex Metals, have managed to make great strides in reconsolidating the Kookynie and Yundamindra areas. Since the farm-in agreement was signed, the Company has managed to more than double our landholding that we have exclusive right to explore to nearly 15,000 hectares.

13. b. Around the Kookynie Gold Project, we have tripled our landholding from just under 2,400 hectares, to just over 7,000 hectares.

14. c. This aspect is important as historical exploration appears to have been hampered by the fractured ownership of tenure in the area. Our consolidation efforts is exposing Metalicity to further exploration upside through potential discoveries.

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The updated “Exploration Target” illustrates the potential of the Kookynie Gold Project. Establishing a mineral resource base within the “Exploration Target” range during the coming months is key next step to unlock value is pivotal for the Company’s success.

Estimation of the Exploration Target

The Company’s stated Exploration Target for Kookynie of 294,000 to 967,000 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), historical production notably historical underground development that has removed mineralisation and quantifying that extraction, and drilling results both completed by Metalicity and by previous operators. Mineralisation is open down dip and along strike at all prospects within the Kookynie Gold 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:

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Project: Kookynie
Reverse Circulation Diamond Drilling Total
Prospect
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
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Table 2 – Kookynie 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.

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Furthermore, Metalicity has completed three drilling programmes to date and below is a summation of the results:

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MGA 94 Zone 51 South
Down
Grade
Hole From To Hole
Prospect Hole ID Tenement Easting Northing RL EOH Dip Azi (Au Comments
Type (m) (m) Width
g/t)
(m)
-60 250 34 43 9 7.31 9m @ 7.31 g/t Au from 34m
including 34 37 3 7.91 inc. 3m @ 7.91 g/t Au from 34m
LPRC0001 RC 350,744 6,752,130 420 48
including 39 43 3 10.4 inc. 3m @ 10.4 g/t Au from 39m
including 40 41 1 31.2 inc. 1m @ 31.2 g/t Au from 40m
-60 250 18 22 4 7.1 4m @ 7.1 g/t Au from 18m
Leipold LPRC0002 M40/22 RC 350,760 6,752,040 431 42 including 19 21 2 10.8 inc. 2m @ 10.8 g/t Au from 19m
-60 250 26 29 3 3.4 3m @ 3.4 g/t Au from 26m
-60 250 24 30 6 9.4 6m @ 9.4 g/t Au from 24m
LPRC0003 RC 350,766 6,752,030 431 42
including 26 28 2 19 inc. 2m @ 19 g/t Au from 26m
-60 250 38 46 8 3.2 8m @ 3.2 g/t Au from 38m
LPRC0004 RC 350,785 6,752,027 431 60
including 38 41 3 6.3 inc. 3m @ 6.3 g/t Au from 38m
-60 270 67 71 4 6.4 4m @ 6.4 g/t Au from 67m
McTRC0001 350,647 6,754,118 423 112
RC including 67 68 1 15.47 inc. 1m @ 15.47 g/t Au from 67m
McTRC0002 350,647 6,754,098 424 84 -60 270 73 76 3 1.41 3m @ 1.41 g/t Au from 73m
McTavish McTRC0003 M40/77 RC 350,576 6,754,153 423 30 -60 270 14 15 1 1.9 1m @ 1.9 g/t Au from 14m
McTRC0004 RC 350,596 6,754,153 423 48 -60 270 33 35 2 2.2 2m @ 2.2 g/t Au from 33m
-60 270 48 53 5 17.9 5m @ 17.9 g/t Au from 48m
McTRC0005 RC 350,618 6,754,083 424 66
including 51 52 1 80.17 inc. 1m @ 80.17 g/t Au from 51m
CPRC0001 352,224 6,757,503 417 112 -60 270 Stope fill intersected - structure present but mined out.
RC
CPRC0002 352,265 6,757,582 416 138 -60 250 127 128 1 1.35 1m @ 1.35 g/t Au from 127m
CPRC0003 RC 352,158 6,757,586 417 48 -60 270 31 33 2 1.8 2m @ 1.8 g/t Au from 31m
-60 270 28 30 2 25.2 2m @ 25.2 g/t Au from 28m to EOH
Champion CPRC0004 M40/27 RC 352,149 6,757,566 417 30
including 28 29 1 42.04 inc. 1m @ 42.04 g/t Au from 28m
16 17 1 1.3 1m @ 1.3 g/t Au from 16m
CPRC0005 RC 352,167 6,757,631 417 42 -60 270
39 40 1 2.1 1m @ 2.1 g/t Au from 39m
CPRC0006 RC 352,167 6,757,649 417 54 -60 270 Assays Pending
167 168 0.72 3.1 0.72m @ 3.1 g/t Au from 167m
RC/DD
CDRCDD0001 M40/61 354,377 6,753,209 427 186 -60 270 173.1 173 0.21 8.8 0.21m @ 8.8 g/t Au from 173.07m
Tail
174.9 176 1.15 1.5 1.15m @ 1.5 g/t Au from 174.85m
DCC Trend
CLRC0001 M40/61 RC 354,153 6,754,058 429 136 -60 270 72 74 2 1.4 2m @ 1.4 g/t Au from 72m
CDDD0001 E40/332 DD 354728 6753398 432 530 -60 270 Structure diluted by Proterozoic Dolerite Dyke
CDRC0001 M40/61 RC 354284 6753513 430 148 -60 270 76 78 2 22.1 2m @ 22.1 g/t Au from 76m
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Table 3 – Kookynie drilling results to date.

Historical Mineral Resource Estimates & Information

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 ”:

Prospect	Cut Off	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
	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

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 drilling

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programmes have been 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.

Furthermore, a historical mineral resource estimate completed in 1989 by R. H. A. Cochrane for the holders at the time, Golden Valley Mines N.L. stated that the remnant and deeper parts of the Cosmopolitan gold mine may host a resource of 120,000 tonnes @ 10.5 g/t Au for 40,000 ounces let alone the down dip and along strike extrapolations. This coupled with underground sampling and stope/drive mapping completed in 1905 illustrates that remnant mineralisation via un-mined lodes remain and presents an opportunity for resource development activities. As stated previously, this was omitted from use in the previous Exploration Target as there was no historical drilling on hand to confirm these assumptions. The Company has now tested this, and the results have allowed an estimation to the potential using the recent drilling results to give validity to historical statements. This statement is also true for the Leipold, McTavish and Champion Prospects as recent drilling into areas previously omitted form the Exploration Target are shown to hold mineralisation and are not mined out.

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 post 6[th] May 2019 and include details of subsequent tenements that are now included in the overall farm-in agreement:

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Tenement Registered Holder Shares Held Plainted Status Area (ha)
Kookynie
E40/333 Nex Metals Explorations Limited 100/100 No Live 600.0
G40/3 Nex Metals Explorations Limited 100/100 No Live 7.2
L40/9 Nex Metals Explorations Limited 100/100 No Live 1.0
E40/332 Nex Metals Explorations Limited 100/100 No Live 600.0
M40/22 Nex Metals Explorations Limited 100/100 No Live 121.7
M40/27 Nex Metals Explorations Limited 100/100 No Live 85.5
M40/61 Nex Metals Explorations Limited 100/100 No Live 832.7
M40/77 Nex Metals Explorations Limited 90,405/90,405 No Live 119.2
P40/1331 KYM Mining Limited 100/100 No Live 161.2
E40/289 Paris Enterprises Pty Ltd 100/100 No Live 1,222.7
P40/1499 Nex Metals Explorations Limited 100/100 No Pending 8.3
P40/1500 Nex Metals Explorations Limited 100/100 No Pending 5.9
P40/1501 Nex Metals Explorations Limited 100/100 No Pending 21.1
E40/390 KYM Mining Limited 100/100 No Pending 3,300.0
Kookynie Total Area (ha) 7,086.4
Yundamindra
L39/34 Nex Metals Explorations Limited 100/100 Yes Live 1.0
L39/52 Nex Metals Explorations Limited 96/96 Yes Live 1.0
L39/258 Nex Metals Explorations Limited 100/100 Yes Live 3.2
M39/84 Nex Metals Explorations Limited 100/100 Yes Live 378.0
M39/274 Nex Metals Explorations Limited 100/100 Yes Live 230.0
M39/406 Nex Metals Explorations Limited 100/100 Yes Live 124.0
M39/407 Nex Metals Explorations Limited 100/100 Yes Live 896.0
M39/408 Nex Metals Explorations Limited 100/100 Yes Live 785.0
M39/409 Nex Metals Explorations Limited 100/100 Yes Live 966.0
M39/410 Nex Metals Explorations Limited 100/100 Yes Live 978.0
M39/839 Nex Metals Explorations Limited 100/100 Yes Live 7.3
M39/840 Nex Metals Explorations Limited 100/100 Yes Live 9.7
P39/6126 Nex Metals Explorations Limited 100/100 No Pending 10.4
P39/6127 Nex Metals Explorations Limited 100/100 No Pending 5.6
E39/1773 Paddick Investments Pty Ltd 100/100 Yes Live 903.0
E39/1774 Paddick Investments Pty Ltd 100/100 Yes Live 2,517.0
Yundamindra Total Area (ha) 7,815.1
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Table 5 – Metalicity - Nex Metals Exploration Ltd Farm-In Tenure Table.

ENQUIRIES

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

This announcement is released under the full authority of the Board of Metalicity Limited.

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 and a shareholder. 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.

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Information in this report that details pre-JORC 2012 Mineral Resource Estimates, please refer to the ASX Announcement dated 1st August 2011 “Update on activities” lodged by Nex Metals Exploration Ltd for the relevant competent persons statements.

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	•Historical:
techniques	specific specialised industry standard measurement tools appropriate	•Reverse Circulation (RC sampling; the drilling collar file and historical
	to the minerals under investigation, such as down hole gamma	WAMEX reports note the use of various bit sizes between 5 and 5 ¼
	sondes, or handheld XRF instruments, etc). These examples should	inch, with riffle splitting to obtain a sample for analysis. All sampling
	not be taken as limiting the broad meaning of sampling.	appears to be on 1 metre samples.
	• Include reference to measures taken to ensure sample representivity	•Diamond core (DD) is NQ sized with ½ core submitted for analysis
	and the appropriate calibration of any measurement tools or systems	and based on geological intervals, no bigger than 1m and no smaller
	used.	than 30cms.
	• Aspects of the determination of mineralisation that are Material to the	•Analysis varied between AAS and 30 to 50g fire assay. Approximately
	Public Report.	2% of samples were subjected to screen fire assay analysis.
	• In cases where ‘industry standard’ work has been done this would be	•The work conducted and under review appears to be “industry
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	standard practice”. However, the data on hand requires field
	m samples from which 3 kg was pulverised to produce a 30 g charge	verification, follow up drilling and further screen fire assay to address
	for fire assay’). In other cases more explanation may be required,	potential course gold aspects of the mineralisation.
	such as where there is coarse gold that has inherent sampling	•Metalicity Completed Drilling:
	problems. Unusual commodities or mineralisation types (eg	• Half core with samples only taken from the right side of the core
	submarine nodules) may warrant disclosure of detailed information.	(looking down hole on the orientation line) with a cut line offset to
		the right of the orientation line by 1cm. Core was cut using a
		brick saw and a semi-automated Almonte core saw – samples
		were washed with clean water, prior to sampling.
		• Reverse circulation (RC) sampling was conducted by the
		offsiders on the drill rig and checked at the end of each rod (6
		metres) to ensure that the sample ID’s matched the interval that
		was intended to be represented by that sample ID. No issues
		were seen or noted by the Competent person during the entire
		drilling campaign. These samples are kept onsite in a secure
		location available for further analysis if required.
		• All RC samples were sieved and washed to ensure samples
		were taken from the appropriate intervals and to determine
		composites.
		• Composites in interpreted non mineralised zones were taken on
		2 metre intervals using the spear methodology:
		• A 50mm spear made from PVC tubing was used to create
		composites in zones where mineralisation was not dominant.
		The green bag containing the RC sample was laid on its side,
		andina topleft to bottom right stabwiththe spear, thenthe

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Criteria	JORC Code explanation	Commentary	Commentary
			opposite side, was taken from each 2 bags that represented 2
			metres of RC drilling. On intervals where mineralisation or
			anomalism was seen, a single sample to represent that metre
			was taken using the above method. The original rig cone split
			samples remain onsite for further analysis or test work if needed
			and represent a physical record, beyond the chip trays, of the
			sample taken.
		•	Channel samples from the Cumberland Pit where chisled off
			using both a G-Pick and hammer and chisel, collected into a
			clean 20l bucket. The collected sample was then transferred to a
			pre-numbered calico bag and submitted for analysis
		•	The quality of the sampling is industry standard and was
			completed with the utmost care to ensure that the material being
			sampled, can be traced back to the interval taken from the drill
			hole for both RC and diamond core.
		•	OREAS standards of 60 gram charges of OREAS 22F (Au grade
			range of <1ppb Au – this is a blank), OREAS 251 (Au grade
			range of 0.498ppm Au to 0.510ppm Au), OREAS 219 (Au grade
			range of 0.753ppm Au to 0.768ppm Au) and OREAS 229b (Au
			grade range of 11.86ppm Au to 12.04ppm Au) were used in
			alternating and sporadic patterns at a ratio of 1 QAQC sample in
			10 samples submitted. The material used to make these
			standards was sourced from a West Australian, Eastern
			Goldfields orogenic gold deposit.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•Historical:
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	•RC drilling notes the use of various bit sizes between 5 and 5 ¼ inch.
	or standard tube, depth of diamond tails, face-sampling bit or other	•DD is noted at being NQ diameter core. Structural measurements are
	type, whether core is oriented and if so, by what method, etc).	on file, however the method of obtaining such measurements was not
		noted but appear to be concordant with observed structures in
		historical workings.
		•Metalicity Completed Drilling:
		•	RC drilling used a bit size of 5 ¼ inch.
		•	DD is orientated NQ2 diameter core.
Drill sample	• Method of recording and assessing core and chip sample recoveries	•Historical:
recovery	and results assessed.	•No	records exist to the method of recording and assessing core and
	• Measures taken to maximise sample recovery and ensure	chip recoveries.
	representative nature of the samples.	•Unknown.
	• Whether a relationship exists between sample recovery and grade	•There appears to be no biased in the data with regards to a
	and whether sample bias may have occurred due topreferential	relationship betweensamplerecovery and grade. The drilling

11

Criteria	JORC Code explanation	Commentary
	loss/gain of fine/coarse material.	intercepts delineate similar plunged shoots that the historical
		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.
		•Metalicity Completed Drilling:
		• RC drilling sample recovery was excellent.
		• Diamond core recovery was exceptional with near 100%
		recovery.
		• No relationship was displayed between recovery and grade nor
		loss/gain of fine/course material.
Logging	• Whether core and chip samples have been geologically and	•Historical:
	geotechnically logged to a level of detail to support appropriate	•All recovered sample from RC and DD have been geologically
	Mineral Resource estimation, mining studies and metallurgical	logged. No records of geotechnical logging exist beyond noting
	studies.	structural measurements of certain features like veins, joints and
	• Whether logging is qualitative or quantitative in nature. Core (or	faults.
	costean, channel, etc) photography.	•The drilling data in its current state will not support a Mineral
	• The total length and percentage of the relevant intersections logged.	Resource Statement to JORC 2012 guidelines. Confirmatory drilling
		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.
		•Metalicity Completed Drilling:
		• All recovered sample from RC and DD has been geologically
		logged by the Competent Person to a level where it would
		support an appropriate Mineral Resource Estimate, mining
		studies and metallurgical test work.
		• Logging was qualitative, sampling with the diamond core was
		based on geological boundaries, and as practical, on the metre
		in which a geological boundary was intersected in the RC
		drilling.
		• Core photography was taken on the diamond core with a
		suitable colour scale within the frame of the photograph
Sub-	• If core, whether cut or sawn and whether quarter, half or all core	•Historical:
sampling	taken.	•Core was halved and a consistent side was taken for analysis as
techniques	• If non-core, whether riffled, tube sampled, rotary split, etc and	noted in logging sheets detailed in submitted exploration reports on
	_whether sampled wet or dry. _	file through the WAMEX system.

12

• Criteria JORC Code explanation and sample • For all sample types, the nature, quality and appropriateness of the preparation sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

Commentary

•	RC samples were riffle split to obtain a nominal 3kg sample for	RC samples were riffle split to obtain a nominal 3kg sample for
	analysis.
•	No notes were available regarding the quality and appropriateness of
	the sample preparation technique.
•	Field duplicates have been noted as a historical issue previously and
	requires attention in future programmes.
•	Sample size is appropriate, whilst larger sizes given the nature of the
	mineralisation would be better, it would be logistically and cost
	prohibitive.
•	Metalicity Completed Drilling:
	•	Selected intervals, therefore, not all core, within the core drilling
		was sampled based on geological boundaries, the core was cut
		using a brick saw set up, and the right side looking downhole
		was the consistent side for sampling.
	•	RC samples were cone split from the rig. However, a 50mm
		spear made from PVC tubing was used to create composites in
		zones where mineralisation was not dominant. The green bag
		containing the RC sample was laid on its side, and in a top left to
		bottom right stab with the spear, then the opposite side, was
		taken from each 2 bags that represented 2 metres of RC drilling.
		On intervals where mineralisation or anomalism was seen, a
		single sample to represent that metre was taken using the above
		method. The original rig cone split samples remain onsite for
		further analysis or test work if needed and represent a physical
		record, beyond the chip trays, of the sample taken.
	•	All RC samples were dry except for one sample at Champion. All
		recoveries were >90%.
	•	Duplicates were taken every 20 samples, however, given the
		lack of QAQC data in historical drilling, the Competent Person
		performed a 1 in 10 standard or blank or duplicate QAQC
		protocol across both the RC and diamond core sampling.
	•	Diamond core duplicates were ¼ from the right side to ensure
		that ½ core remains and is available for further test work if
		necessary.
	•	Outside of duplicates in the diamond core sampling, the right
		side of the cut line (with the cut line consistently on the right side
		of the orientation line (offset by 1cm), the ½ core was sampled
		and submitted for analysis.
	•	The Competent Person is of the opinion the sampling method
		described above is appropriate as far aspractical,and

13

Criteria		JORC Code explanation	Commentary
			anomalous assays will be tested further by submission of the
			original cone split sample.
Quality	of	• The nature, quality and appropriateness of the assaying and	•Historical:
assay	data	laboratory procedures used and whether the technique is considered	•The fire assay data appears sufficient, whereas the AAS analysis
and		partial or total.	may be understating the gold content. Therefore, to address the
laboratory tests		• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument	potential course gold aspect of the observed mineralisation, screen fire assay on mineralised sections is recommended.
		make and model, reading times, calibrations factors applied and their	•No geophysical tools, spectrometers, handheld XRF instruments
		derivation, etc.	were used.
		• Nature of quality control procedures adopted (eg standards, blanks,	•Since all of the drilling was conducted by historic explorers there is a
		duplicates, external laboratory checks) and whether acceptable levels	failure to document the QAQC practices conducted at the time of
		of accuracy (ie lack of bias) and precision have been established.	drilling. As such there is no data to be examined for this work.
			•Regarding the 1905 channel sampling – this information was sourced
			from public archives and converted to digital information that allowed
			three-dimensional interrogation. The nature of the mineralisation
			surrounding aspects of how the mineralisation plunges, vein width
			described in the logs appears to be accurate as it correlates with
			modern day observations. However, the analytical method used to
			qualify the gold grades has not been ascertained and will not be able
			to be used in a mineral resource estimate at this point in time. Its
			inclusion in this Exploration Target is solely to indicate the presence
			of mineralisation, grades have been extrapolated from known
			productions figures and drill hole results where possible.
			•Metalicity Completed Drilling:
			• Fire assay and screen fire assay was used across channel, RC
			and diamond core samples. The methodologies employed at
			NAGROM and Intertek Genalysis in these analytical procedures
			are industry standard with appropriate checks and balances
			throughout their own processes.
			• The analytical method employed is appropriate for the style of
			mineralisation and target commodity present.
			• No geophysical tools, spectrometers, handheld XRF instruments
			were used.
			• A 1 in 10 standard or duplicate or blank was employed during
			this programme. QAQC analysis shows that the lab performed
			within the specifications of the QAQC protocols. The standards
			used were from OREAS and based on material sourced from
			with the Eastern Goldfields. Blanks were also sourced from
			OREAS as well.

14

Criteria		JORC Code explanation	Commentary
			• All core submitted for analysis has had specific gravity
			determinations made to start to build the database of insitu
			density information for any impending mineral resource
			estimates in the future.
			• Umpire analysis was performed on the NAGROM samples by
			submitted rig cone split derived samples to Intertek Genalysis.
			• No twinned holes have been completed.
			• Data was collected on to standardised templates in the field and
			data entered at night. Cross checks were performed verifying
			field data
			• No adjustment to the available assay data has been made.
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 azimuth and inclination.
			•No adjustment to the available assay data has been made.
Location	of	• Accuracy and quality of surveys used to locate drill holes (collar and	•Historical:
data points		down-hole surveys), trenches, mine workings and other locations	•No mineral resources are being estimated/stated beyond the
		used in Mineral Resource estimation.	referenced Pre JORC 2012 mineral resource statements noted – for
		• Specification of the grid system used.	those please refer to ASX Announcement by NME dated 1st August
		• Quality and adequacy of topographic control.	2011 “Update on activities” and have been reproduced from that
			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.
			•Metalicity Completed Drilling:
			• The channel sample and drill holes were marked in the field
			using a Garmin 62S handheld GPS.
			• Drill hole collars will be surveyed using a DGPS.
			• The diamond andRCholeswere downhole surveyed using a

15

Criteria		JORC Code explanation	Commentary	Commentary
				“Champ Gyro multi-shot down hole survey camera”.
				• GDA94 Zone 51S was used, collars will be picked up by a
				qualified surveyor using a DGPS (Trimble S7).
				• The surveyed collar coordinates appear to be sufficient,
				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.	•	Historical & Metalicity Completed Drilling:
and		• Whether the data spacing and distribution is sufficient to establish the	•	The data spacing is sufficient to establish a relatively high confidence
distribution		degree of geological and grade continuity appropriate for the Mineral		in geological and grade continuity, however, peripheral data to
		Resource and Ore Reserve estimation procedure(s) and		support the drill holes requires further work to ensure compliance with
		classifications applied.		JORC 2012 guidelines.
		• Whether sample compositing has been applied.	•	No sample compositing was applied beyond the calculation of down
				hole significant intercepts.
Orientation	of	• Whether the orientation of sampling achieves unbiased sampling of	•	Historical & Metalicity Completed Drilling:
data	in	possible structures and the extent to which this is known, considering	•	All drilling appears to be perpendicular to the main structure that
relation	to	the deposit type.		hosts mineralisation. Secondary structures oblique to the main
geological structure		• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a	•	structure may have influence hanging and foot wall intercepts. The author believes that the drilling orientation and the orientation of
		sampling bias, this should be assessed and reported if material.		key mineralised structures has not introduced a bias.
Sample		• The measures taken to ensure sample security.	•	Unknown as historical work is being discussed.
security			•	Metalicity Completed Drilling:
				• The chain of supply from rig to courier to deliver the samples to
				the laboratory was overseen by the Competent Person. At no
				stage has any person or entity outside of the Competent Person,
				the drilling contractors, the courier contractors and the assay
				laboratory, Nagrom, came into contact with the samples.
				• Samples dispatched to Intertek Genalysis in Kalgoorlie were
				delivered to the laboratory by the Competent Person, no third-
				party courier used.
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.
			•	Metalicity Completed Drilling:
			•	No external audit of the results, beyond the laboratory internal QAQC
				measures, has taken place.

16

17

Section 2: Reporting of Exploration Results

Criteria		JORC Code explanation	Commentary
Mineral		• Type, reference name/number, location and ownership including	•Please refer to the tenement schedule supplied within the
tenement		agreements or material issues with third parties such as joint	announcement:
and	land	ventures, partnerships, overriding royalties, native title interests,	•As illustrated above, the tenements associated with the
tenure status		historical sites, wilderness or national park and environmental	Yundramindra Project are currently subject to plaint proceedings.
		settings.
		• The security of the tenure held at the time of reporting along with any
		_known impediments to obtaining a licence to operate inthe area. _
Exploration		• Acknowledgment and appraisal of exploration by other parties.	•Nex Metals Explorations Ltd have done a great job of collating the
done by other			historical drilling completed over the previous 30 years.
parties			•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.
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
			alongthe margin of a regional hornblendegranodioritepluton

18

Criteria		JORC Code explanation	Commentary	Commentary
				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
				contacts with hornblende granodiorite. Mineralisation along the
				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	•Historical:
Information		exploration results including a tabulation of the following information	•For	both Kookynie and Yundramindra, please refer to the Company’s
		for all Material drill holes:	announcement dated 6th May 2019, “Metalicity Farms Into Prolific
		o easting and northing of the drill hole collar	Kookynie & Yundamindra Gold Projects, WA”, for all drill collar
		o elevation or RL (Reduced Level – elevation above sea level in	information, and selected significant intercepts.
		metres) of the drill hole collar	•The	rationale behind presenting the significant intercepts in the
		o dip and azimuth of the hole	Company’s announcement dated 6th May 2019, “Metalicity Farms
		o down hole length and interception depth	Into	Prolific Kookynie & Yundamindra Gold Projects, WA” using the
		o hole length.	methodology described was to illustrate the significance of the
		• If the exclusion of this information is justified on the basis that the	intercepts and the extent, that being, the actual number of this high
		information is not Material and this exclusion does not detract from	tenor type intercepts within both Projects.
		the understanding of the report, the Competent Person should clearly	•Metalicity Completed Drilling:
		explain why this is the case.	•	For the drilling performed and subject to this announcement,
				please see table 3 in the above announcement.
Data		• In reporting Exploration Results, weighting averaging techniques,	•Historical:
aggregation		maximum and/or minimum grade truncations (eg cutting of high	•Initially, significant intercepts were calculated using values >1 g/t Au
methods		grades) and cut-off grades are usually Material and should be stated.	over a minimum width of 1m with no more than 1m internal waste or
		• Where aggregate intercepts incorporate short lengths of high grade	values <1g/t Au. Subsequently,since 1,263 significant intercepts

19

Criteria	JORC Code explanation	Commentary
	results and longer lengths of low grade results, the procedure used	were produced (771 for Yundramindra and 492 for Kookynie) from the
	for such aggregation should be stated and some typical examples of	data available, a further refinement of intercepts that produced >10-
	such aggregations should be shown in detail.	gram metres were presented.
	• The assumptions used for any reporting of metal equivalent values	•Please refer to the Company’s announcement dated 6th May 2019,
	should be clearly stated.	“Metalicity Farms Into Prolific Kookynie & Yundamindra Gold
		Projects, WA”
		•All intercepts were treated as above with no top cuts applied.
		•No metal equivalents are discussed or reported.
		•Metalicity Completed Drilling:
		•All intercepts have been calculated using the weighted average
		method. Specific intervals within a weighted average interval have
		been described as part of the overall intercept statement. All results
		are presented in Appendix 2 for the reader to reconcile the
		Competent Persons’ calculations.
		• Intervals were based on geology and no specific cut off was
		applied.
		• No metal equivalents are discussed or reported.
Relationship	• These relationships are particularly important in the reporting of	•Historical & Metalicity Completed Drilling:
between	Exploration Results.	•Given the shallow dipping nature (approximately -45° on average) of
mineralisatio	• If the geometry of the mineralisation with respect to the drill hole	the mineralisation observed at Kookynie and Yundramindra, the
n widths and	angle is known, its nature should be reported.	nominal drilling inclination of -60° lends to close to truth width
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’).	intercepts. •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. _
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 are inclusive of
	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 aboveisnot practicaltoreportnorbeneficial.

20

Criteria	JORC Code explanation	Commentary
		•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.
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.

21