ARIKA RESOURCES LIMITED — Capital/Financing Update 2021

May 2, 2021

Address: 45 Guthrie St Osborne Park, WA, 6017 Postal: PO Box 6731 East Perth, WA, 6892, Australia Phone: 61 8 9221 6813 Fax: 61 8 9221 3091 Email: admin@nexmetals.com

ABN: 63 124 706 449

3 May 2021

The Company Announcements Officer The Australian Securities Exchange Level 40, 152-158 St Georges Terrace Perth WA 6000

Further impressive Drilling Results at Leipold, Kookynie Gold Project

Nex Metals Explorations Ltd (Nex or the Company) is pleased to attach an announcement by Metalicity Ltd (ASX: MCT) our Joint Venture Partner (refer to ASX announcement dated 6 May 2019) with respect to further impressive drilling results from Leipold, Kookynie Gold Project.

Please note the attached announcement forms part of this announcement and should be read in its entirety.

This announcement is approved by authority of the Managing Director, Kenneth Allen.

Yours Faithfully

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Kenneth M Allen

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ASX RELEASE: 3 May 2021

Assays up to 118 g/t Au from Leipold, Kookynie Gold Project

HIGHLIGHTS

• First deeper holes at Leipold have confirmed extensions to mineralisation down dip, with highlighted results of:

• LPRC0107 - 2m @ 59.9g/t from 147m (incl. 1m @ 118.4g/t Au from 147m) & 4m @ 3.7g/t Au from 151m (incl. 1m @ 11.6g/t Au from 151m),

• LPRC0109 - 3m @ 4.2g/t Au from 137m (incl. 1m @ 9.4 g/t Au from 137m,

• LPRC0098 - 5m @ 3.8g/t Au from 92m (incl. 2m @ 6.7 g/t Au from 92m).

• The down dip extensions have the potential to significantly increase mineralisation envelopes at Leipold representing a step change to the prospect.

• Mineralisation at Leipold now defined over a strike length of 800 metres and which remains open to the north, to a vertical depth of 130 metres (where the down dip component is only defined to a length of 200 metres thus far) and still open at depth.

• Drilling is continuing at the high priority Leipold, McTavish and Champion Prospects:

• Leipold – 35 holes for 4,545 metres. This drilling is continuing to step out along strike from known mineralisation & testing down dip:

  • 13 drill holes for 2,005 metres reported in this announcement leaving a balance of 22 drill holes pending assays,

• McTavish – 20 holes for 1,206 metres – to be reported, assays pending.

• Champion – 16 holes for 1,734 metres – to be reported, assays pending.

• As previously reported, 12 holes for 3,043 metres at the Cosmopolitan Gold Mine pending QAQC checks and further work[2] :

  • The historic Cosmopolitan Gold Mine that produced 360,000 ounces between 1896 to 1922 at an average head grade of 15 g/t Au.

Metalicity Limited (ASX: MCT) (“MCT” or “Company”) is pleased to announce assays results for the Leipold Prospect at the Kookynie Gold Project[1] in the Eastern Goldfields, Western Australia, approximately 60 kilometres south southwest of Leonora.

1Please refer to ASX Announcement “Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA” dated 6th May 2019 with Nex Metals Explorations Ltd, ASX:NME.

• 2Please refer to ASX Announcement “First Hole Intersects Visible Gold at the Cosmopolitan Prospect, 100m North of Historic Cosmopolitan Gold Mine” dated 4[th] February 2021.

Cautionary Statement Relating to the Cosmopolitan Production Data

The Production details for the Cosmopolitan Mine are referenced from publicly available data sources. The source and date of the production data for the Cosmopolitan Gold Mine has been reported in the Geological Survey of Western Australia records showing the development of the Cosmopolitan Gold Mine in 1905. DMIRS digital records include open file Annual Reports and data pertaining to the exploration and development efforts of previous operators. Two documents with WAMEX reference numbers A069774 and A067918 are of particular interest. The previous operator in the early 2000’s, Point Exploration Ltd, digitised these historical maps, including the channel sampling. The historical production data have not been reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior reported production data may be reduced when reported under the JORC Code 2012 Nothing has come to the attention of the operator that causes it to question the accuracy or reliability of the historical production data; An assessment of the additional exploration or evaluation work that is required to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan.

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

www.metalicity.com.au Unit B2, 20 Tarlton Crescent Perth Airport WA 6105

Commenting on the drilling results, Metalicity Managing Director, Jason Livingstone said:

“The results received to date confirm the down dip extensions to the mineralisation observed at Leipold, which is highly encouraging. The confirmation of down dip extensions of very high-grade lodes intercepted by LPRC0107 where an interval of 2 metres at 59.9 g/t Au from 147 metres that also included a spectacular result of 118.4 g/t Au.”

“In January 2021, we commissioned an external mineral resource consultant to start the process of reestimating current pre-2012 mineral resources at Leipold, McTavish and Champion. This provided an external review to our drilling, and detail opportunities to potentially expand an estimation at each of the prospects; Leipold, McTavish and Champion. Therefore, our aim is to complete the required drilling and produce this estimate. Hence, the results returned so far illustrate a highly mineralised and continuous system that bodes well for the estimation process and reporting of the tonnes and grade in due course.”

“Assay turnaround still hampers our work, and I do sincerely apologise for this fact. However, we are drilling at highly prospective areas and look forward to continuing the good news flow. I do however encourage people to email me if they do have questions and I will do my best to answer questions expeditiously and within disclosure rules.”

Assay & Drilling Discussion

Kookynie is located 60 kilometres south south-east from Leonora, Western Australia and is host to nine, significant prospects; Champion, McTavish, Leipold, Altona, Mulga Plum, Wandin, Diamantina, Cosmopolitan and Cumberland. Diamantina, Cosmopolitan and Cumberland are known collectively as the DCC Trend, please refer to Figure 1.

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Figure 1 – Kookynie Prospect Locality Map with mineralised trends.

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			MGA94_Zone 51S	MGA94_Zone 51S	MGA94_Zone 51S
Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Au g/t)	Comments
LPRC0097	M40/22	RC	350,835	6,752,028	432	96	-60	250	75	78	3	1.3	3 metres @ 1.3 g/t from 75 metres
LPRC0098	M40/22	RC	350,856	6,752,035	432	120	-60	250	92	97	5	3.8	5 metres @ 3.8 g/t from 92 metres incl. 2 metres @ 6.7 from 92 metres
									103	104	1	3.1	1 metre @ 3.1 g/t from 103 metres
									110	111	1	1.7	1 metre @ 1.7 g/t from 110 metres
LPRC0099	M40/22	RC	350,876	6,752,043	432	132	-60	250	67	68	1	2.2	1 metre @ 2.2 g/t from 67 metres
									80	81	1	5.3	1 metre @ 5.3 g/t from 80 metres
									106	107	1	1.0	1 metre @ 1.0 g/t from 106 metres
									111	114	3	2.0	3 metres @ 2.0 g/t from 111 metres
LPRC0100	M40/22	RC	350,896	6,752,050	432	143	-60	250	101	102	1	1.1	1 metre @ 1.1 g/t from 101 metres
									127	128	1	1.4	1 metre @ 1.4 g/t from 127 metres
									131	132	1	1.0	1 metre @ 1.0 g/t from 131 metres
									136	139	3	1.3	3 metres @ 1.3 g/t from 136 metres
LPRC0101	M40/22	RC	350,858	6,752,084	432	126	-60	250	78	81	3	2.3	3 metres @ 2.3 g/t from 78 metres
LPRC0105	M40/22	RC	350,940	6,752,088	432	182	-60	250	160	161	1	1.3	1 metre @ 1.3 g/t from 160 metres
LPRC0107	M40/22	RC	350,933	6,752,042	432	182	-60	250	147	149	2	59.9	2 metres @ 59.9 g/t from 147 metres incl. 1 metre @ 118.4 from 147 metres
									151	155	4	3.7	4 metres @ 3.7 g/t from 151 metres incl. 1 metre @ 11.6 from 151 metres
LPRC0108	M40/22	RC	350,892	6,752,027	432	140	-60	250	109	110	1	4.0	1 metre @ 4.0 g/t from 109 metres
									113	114	1	8.6	1 metre @ 8.6 g/t from 113 metres
LPRC0109	M40/22	RC	350,913	6,752,035	432	158	-60	250	128	131	3	1.7	3 metres @ 1.7 g/t from 128 metres
									137	140	3	4.2	3 metres @ 4.2 g/t from 137 metres incl. 1 metre @ 9.4 from 137 metres

Table 1 – Anomalous Drill Hole Intercepts.

Intercepts were calculated based on a sample returning an assay value of greater than 0.1 g/t Au over an interval greater than 2 metres, but not including any more than 1 metre of internal material that graded less than 0.1 g/t Au. Intervals were based on geology and no top cut off was applied.

Drilling Discussion

Since the recommencement of drilling at the Kookynie Gold Project for 2021*, the Company has completed a total of 89 drill holes for a total of 9,465 metres, the following table details the drill to date:

*Please refer to ASX Announcement “First Hole Intersects Visible Gold at the Cosmopolitan Prospect, 100m North of Historic Cosmopolitan Gold Mine” dated 4th February 2021.

Tenement	Prospect	Metres Drilled	No. of Drill Holes
E40/332	Altona	605	6
M40/61	Cosmopolitan	3,043	12
M40/22	Leipold	4,545	35
M40/77	McTavish	1,206	20
M40/27	Champion	1,734	16
All		9,465	89

Table 2 – Drilling completed in 2021.

The Company, from these programmes, has reported, including the results reported in this announcement:

Tenement	Prospect	Metres Drilled	No. of Drill Holes
E40/332	*Altona	605	6
M40/22	Leipold	2,005	13
All		2,610	19

Table 2 – Drilling reported in 2021 so far.

*Please refer to ASX Announcement “Further Impressive Drill Results at Altona, Kookynie Gold Project” dated 18[th] March 2021.

Therefore, the balance as of late April to be reported is:

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Tenement	Prospect	Metres Drilled	No. of Drill Holes
M40/61	Cosmopolitan	3,043	12
M40/22	Leipold	2,540	22
M40/77	McTavish	1,206	20
M40/27	Champion	1,734	16
All		9,465	70

Table 2 – Drilling to be reported as of late April 2021.

As illustrated, we have a significant backlog from previously drilled prospects that has been designed to extend known mineralisation in preparing and stating updated mineral resource estimates for the Leipold, McTavish and Champion Prospects.

Regarding the pending results from the Cosmopolitan Gold Mine as detailed in the ASX Announcement “ First Hole Intersects Visible Gold at the Cosmopolitan Prospect, 100m North of Historic Cosmopolitan Gold Mine ” dated 4th February 2021, the Company has received some preliminary results. However, as illustrated by the ASX Announcement “Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project” dated 22[nd] December 2020, the very high variability shown by the Altona results is also present at the Cosmopolitan Gold Mine. Therefore, a quality control programme on remaining sample has been implemented for the Company by the Competent Person and Metalicity Staff to be able to competently discuss the results in accordance with JORC 2012 reporting standards and ASX Listing rules. This quality control programme is ongoing, and results will be published in due course and in line with the required standard and reporting rules.

The drilling programme is ongoing for the McTavish and Champion Prospects.

The Leipold Prospect Summary

The results illustrated above continue to define and expand the mineralisation observed at Leipold. As mentioned earlier, the programme at Leipold (and McTavish and Champion), has been designed off the back of a preliminary mineral resource work conducted in January 2021. The tenure and extent of the returned mineralisation bodes exceptionally well for this impending mineral resource estimate at Leipold, and the Company has observed similar structures at Champion and McTavish that correlate with previously observed mineralisation.

The Company is waiting on the assays to finalise the drill hole database and commence the resource estimation for Leipold. Below is a plane of vein long section detailing the drilling to date and intercepts reported:

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Figure 2 – Leipold POV Long Section*.

*Please refer to ASX Announcements: Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project, dated 22nd December 2020, Metalicity Continues to Deliver Fantastic Drill Hole Results for the Kookynie Gold Project dated 1st October 2020, Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project dated 15th September 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th August 2020, Metalicity Delivers More Outstanding Drill Hole Results for the Kookynie Gold Project. Phase Two Drilling to Commence Imminently dated 10th July 2020, Metalicity Continues to Deliver Excellent Drill Hole Results for the Kookynie Gold Project dated 2nd July 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th June 2020 & Metalicity Reports Drill Hole Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for Kookynie dated 21st January 2020.

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This Announcement is approved by the Board of Metalicity Limited.

ENQUIRIES

Investors

Jason Livingstone MD & CEO +61 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 Exploration 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 forward-looking 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 techniques	● Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ● Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ● Aspects of the determination of mineralisation that are Material to the Public Report. ● In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	● 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. The presence of quartz veining +- sulphide presence +- alteration was used to determine if a zone was interpreted to be mineralised. If the sample was deemed to be potentially mineralised, the samples were submitted for screen fire assay. If no mineralisation was observed, the sample was submitted for check using fire assay. ● All samples were submitted for analysis, no compositing took place. ● 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 20 samples submitted. The material used to make these standards was sourced from a West Australian, Eastern Goldfields orogenic gold deposits.
Drilling techniques	● Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	● RC drilling used a bit size of 5 ¼ inch.
Drill sample recovery	● Method of recording and assessing core and chip sample recoveries and results assessed. ● Measures taken to maximise sample	● RC drilling sample recovery was excellent. ● No relationship was displayed between recovery and grade nor loss/gain of fine/course material.

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	recovery and ensure representative nature of the samples. ● Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Logging	● Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ● Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ● The total length and percentage of the relevant intersections logged.	● All recovered sample from RC has been geologically logged to a level where it would support an appropriate Mineral Resource Estimate, mining studies and metallurgical test work. ● Logging was qualitative based on the 1 metre samples derived from the RC drilling.
Sub-sampling techniques and sample preparation	● If core, whether cut or sawn and whether quarter, half or all core taken. ● If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ● For all sample types, the nature, quality and appropriateness of the 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.	● RC samples were cone split from the rig. ● All RC samples were dry. All recoveries were >90%. ● Duplicates or a CRM standard were inserted every 20 samples. ● The Competent Person is of the opinion the sampling method is appropriate.
Quality of assay data and laboratory tests	● The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ● For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ● Nature of quality control procedures adopted(eg standards, blanks,	● Fire assay has been selected for RC samples. The methodology employed 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. However, selected entire intercepts with a returned weighted average assay above 5 g/t Au will be selected and analysed using the screen fire method to provide a statistical comparison between the two analytical methods in high grade zones. This is to ensure the high-grade nature (nugget effect) is defined and articulated. ● Nogeophysical tools,spectrometers,handheld XRF

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	duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	instruments were used. ● A 1 in 20 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.
Verification of sampling and assaying	● The verification of significant intersections by either independent or alternative company personnel. ● The use of twinned holes. ● Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ● Discuss any adjustment to assay data.	● No umpire analysis has been performed. ● No twinned holes have been completed. However, drill holes have been collared near previously drilled holes but on different orientations. ● 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.
Location of data points	● Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ● Specification of the grid system used. ● Quality and adequacy of topographic control.	● Drill hole collars will be surveyed using a DGPS. ● The RC holes were downhole surveyed using a “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. ● Appendix Two contains collar coordinates as drilled:
Data spacing and distribution	● Data spacing for reporting of Exploration Results. ● Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ● Whether sample compositing has been applied.	● The data spacing is sufficient to establish a relatively high confidence in geological and grade continuity, however, peripheral data to support the drill holes requires further work to ensure compliance with JORC 2012 guidelines. ● No sample compositing was applied beyond the calculation of down hole significant intercepts.
Orientation of data in relation to geological structure	● Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ● If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this	● Most of the drilling has been perpendicular to the main structure that hosts mineralisation. Secondary structures oblique to the main structure may have influence hanging and foot wall intercepts. ● The author believes that the drilling orientation and the orientation of key mineralised structures has not introduced a bias.

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	should be assessed and reported if material.
Sample security	● The measures taken to ensure sample security.	● The chain of supply from rig to the laboratory was overseen a contract geologist under the supervision of the Competent Person. At no stage has any person or entity outside of the Competent Person, the contract geologist, the drilling contractor, and the assay laboratory came into contact with the samples. ● Samples dispatched to the laboratory were delivered to the laboratory by a contract geologist, no third-party courier used.
Audits or reviews	● The results of any audits or reviews of sampling techniques and data.	● No external audit of the results, beyond the laboratory internal QAQC measures, has taken place.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	● Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ● The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	● Please refer to the tenement column below to where the drill holes were completed. ● Nex Metals Explorations Ltd holds the tenure in question. Metalicity is currently performing an earn in option as part of our farm in agreement (please refer to ASX Announcement “Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA” dated 6thMay 2019) ● No impediments exist to obtaining a license to operate over the listed tenure.
Exploration done by other parties	● Acknowledgment and appraisal of exploration by other parties.	● Nex Metals Explorations Ltd have done a great job of collating the historical drilling completed over the previous 30 years. ● The Kookynie Area been subjected to many phases of Exploration commencing with the discovery of gold in 1897 at the Cosmopolitan Gold Mine. Extensive work by Western Mining Corporation between 1934 to 1937 with Aerial Geological and Geophysical Survey of Northern Australia (AGGNSA) between 1937 to 1940. Then with WMC at 1966 and 1986, ASARCO between 1974 to 1975, Square Gold and Minerals in 1981, CRA between 1982 and 1983, and Money Mining in 1992. Between 1993 and 2008, FMR and since 2008 it has been held between A&C Mining and Nex Metals Explorations. ● 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 laboratorycertificates for

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		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.
Drill hole Information	● A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ● If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	● For Kookynie (and Yundramindra), please refer to the Company’s announcement dated 6th May 2019, “Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA”, for all historical drill collar information, and selected significant intercepts. ● For the drilling performed and subject to this announcement, please see Appendix Two in this announcement.

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Data aggregation methods	● In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ● Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ● The assumptions used for any reporting of metal equivalent values should be clearly stated.	● All intercepts have been calculated using the weighted average method but are based on 1 metre samples from RC drilling. Specific intervals within an interval have been described as part of the overall intercept statement. ● Intercepts were calculated based on a sample returning an assay value of greater than 0.1 g/t Au over an interval greater than 2 metres, but not including any more than 1 metre of internal material that graded less than 0.1 g/t Au. Intervals were based on geology and no top cut off was applied. ● No metal equivalents are discussed or reported.
Relationship between mineralisation widths and intercept lengths	● These relationships are particularly important in the reporting of Exploration Results. ● If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ● 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’).	● Given the shallow dipping nature (approximately - 45° on average) of the mineralisation observed at Kookynie, the nominal drilling inclination of -60° lends to close to truth width 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 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.	● Please see main body of the announcement for the relevant figures.
Balanced reporting	● Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	● All results have been presented. Please refer to Appendix 2.
Other substantive exploration data	● Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results;	● The area has had significant historical production recorded and is accessible via the MINEDEX database. ● All stated mineral resources for the Kookynie (and Yundramindra) Projects are pre-JORC 2012. Considerable work around bulk density, QAQC, down hole surveys and metallurgy, coupled with theplanned drillingwill be required to ensure

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	bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	compliance with JORC 2012 guidelines.
Further work	● The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ● Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	● Metalicity intends to drill the known and extend the mineralised occurrences within the Kookynie and Yundramindra Projects. The Yundramindra Project is currently under the plaint process, however Metalicity believes that Nex Metals is well advanced in defending 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.

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Appendix Two – Drilling and Assay Information

Reverse Circulation Drilling and Assay Information

Collar & Intercept Information:

			MGA94_Zone 51S	MGA94_Zone 51S	MGA94_Zone 51S
Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width (m)	Grade (Au g/t)	Comments
LPRC0097	M40/22	RC	350,835	6,752,028	432	96	-60	250	75	78	3	1.3	3 metres @ 1.3 g/t from 75 metres
LPRC0098	M40/22	RC	350,856	6,752,035	432	120	-60	250	92	97	5	3.8	5 metres @ 3.8 g/t from 92 metres incl. 2 metres @ 6.7 from 92 metres
									103	104	1	3.1	1 metre @ 3.1 g/t from 103 metres
									110	111	1	1.7	1 metre @ 1.7 g/t from 110 metres
LPRC0099	M40/22	RC	350,876	6,752,043	432	132	-60	250	67	68	1	2.2	1 metre @ 2.2 g/t from 67 metres
									80	81	1	5.3	1 metre @ 5.3 g/t from 80 metres
									106	107	1	1.0	1 metre @ 1.0 g/t from 106 metres
									111	114	3	2.0	3 metres @ 2.0 g/t from 111 metres
LPRC0100	M40/22	RC	350,896	6,752,050	432	143	-60	250	101	102	1	1.1	1 metre @ 1.1 g/t from 101 metres
									127	128	1	1.4	1 metre @ 1.4 g/t from 127 metres
									131	132	1	1.0	1 metre @ 1.0 g/t from 131 metres
									136	139	3	1.3	3 metres @ 1.3 g/t from 136 metres
LPRC0101	M40/22	RC	350,858	6,752,084	432	126	-60	250	78	81	3	2.3	3 metres @ 2.3 g/t from 78 metres
									103	107	4	3.7	4 metres @ 3.7 g/t from 103 metres incl. 1 metre @ 6.9 from 103 metres
LPRC0102	M40/22	RC	350,898	6,752,099	432	150	-60	250	116	117	1	3.7	1 metre @ 3.7 g/t from 116 metres
									132	136	4	1.4	4 metres @ 1.4 g/t from 132 metres
LPRC0103	M40/22	RC	350,954	6,752,049	432	191	-60	250	162	164	4	2.2	2 metres @ 2.2 g/t from 162 metres
									188	189	1	1.9	1 metre @ 1.9 g/t from 188 metres
LPRC0104	M40/22	RC	350,957	6,752,072	432	191	-60	250	No significant intersection
LPRC0105	M40/22	RC	350,940	6,752,088	432	182	-60	250	160	161	1	1.3	1 metre @ 1.3 g/t from 160 metres
LPRC0106	M40/22	RC	350,939	6,752,114	432	194	-60	250	No significant intersection
LPRC0107	M40/22	RC	350,933	6,752,042	432	182	-60	250	147	149	2	59.9	2 metres @ 59.9 g/t from 147 metres incl. 1 metre @ 118.4 from 147 metres
									151	155	4	3.7	4 metres @ 3.7 g/t from 151 metres incl. 1 metre @ 11.6 from 151 metres
LPRC0108	M40/22	RC	350,892	6,752,027	432	140	-60	250	109	110	1	4.0	1 metre @ 4.0 g/t from 109 metres
									113	114	1	8.6	1 metre @ 8.6 g/t from 113 metres
LPRC0109	M40/22	RC	350,913	6,752,035	432	158	-60	250	128	131	3	1.7	3 metres @ 1.7 g/t from 128 metres
									137	140	3	4.2	3 metres @ 4.2 g/t from 137 metres incl. 1 metre @ 9.4 from 137 metres

Note:

Duplicates and CRM analysis was not used in the calculation of the significant intercepts.

A hole listed with “no significant anomalism” means that no sample run returned a value to trigger reporting.

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