ARIKA RESOURCES LIMITED — Capital/Financing Update 2021

Feb 16, 2021

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ASX RELEASE: 17 February 2021

Reconnaissance Drilling Confirms Regional Prospectivity for the Kookynie Gold Project

HIGHLIGHTS

• Assays received from the 2020 reconnaissance drilling programme demonstrate high prospectivity for the Kookynie Gold Projects’[1] regional targets.

• Numerous targets were assessed including Orient Well East, Leipold North, Altona, McTavish and Cosmopolitan North, all targets that were identified from a recent drone magnetic survey.

• Results illustrate the targets are high priority with anomalous results returned across all prospects.

• Furthermore, geological observations note similar settings to prolific and highly mineralised prospects like the Cosmopolitan Gold Mine and the Leipold Prospect.

• Highlights include:

• Orient Well East – OWERC0020, 1 metre @ 7.85 g/t Au from 22 metres,

• Cosmopolitan North – COSRC0002, 3 metres @ 0.4 g/t Au from 57 metres, &

• Leipold North – LEONRC0019, 1 metre @ 0.94 g/t Au from 36 metres.

• Current drilling is now concentrating on extensional work at Leipold and the Cosmopolitan Gold Mine.

• The Cosmopolitan Gold Mine produced circa 360,000 ounces between 1896 and 1922 at an average life of mine head grade of 15 g/t Au.

• Visible gold observed in the first drill hole at Cosmopolitan[2] .

• Assays for 7 holes pending – 3 from Cosmopolitan including the visible gold intercept, and 4 from Leipold.

Metalicity Limited (ASX: MCT) (“MCT” or “Company”) is pleased to announce the return of all pending assays from the 2020 Drilling Programme 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 Cosmopolitan Historical Production Data

The Production details for the Cosmopolitan Mine are referenced from publicly available data sources. The source and date of the production data reported has been referenced in the body of this announcement where production data has been reported. 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.

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

“Off the back of presenting our first hole this year into the Cosmopolitan Gold Mine area returning visible gold, detailing highly encouraging results from our regional targets is very satisfying and highlights the large potential scale of this system. Our drilling results have shown that our exploration models are targeting the right places. The highly anomalous results returned to date from these targets derived from

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

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

our drone magnetic survey and mapping show that the areas have been subjected to alteration caused by mineralised systems. With the information at hand, and whilst we return to the “jewel in the crown”, The Cosmopolitan Gold Mine and Leipold, we will refine our regional prospect models to further assess and home in on potential mineralisation of economic interest in due course.”

“We have started the year with two rigs operating at the Kookynie Gold Project. It was unfortunate we were unable to secure the second rig last year to start the Cosmopolitan drilling, however, we needed to conduct the regional exploration to ensure we create that pipeline of prospects as we move through the exploration phase.”

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.

				MGA 94 Zone 51 South	MGA 94 Zone 51 South	MGA 94 Zone 51 South
Prospect	Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Aug/t)	Comments
Cosmopolitan North	COSRC0002	M40/61	RC	353,870	6,755,892	430	84	-60	270	57	60	3	0.4	3 metres @ 0.4 g/t Au from 57 metres
	COSRC0004			353,950	6,755,892	430	96	-60	270	77	79	2	0.1	2 metres @ 0.1 g/t Au from 77 metres
	COSRC0010			353,871	6,756,192	430	108	-60	270	42	44	2	0.1	2 metres @ 0.1 g/t Au from 77 metres
	COSRC0018			353,967	6,756,473	430	84	-60	270	50	53	3	0.3	3 metres @ 0.3 g/t Au from 50 metres
	COSRC0020			354,047	6,756,473	430	84	-60	270	49	51	2	0.2	2 metres @ 0.2 g/t Au from 49 metres
Cosmopolitan (Water Bore)	CMBWB001			354,096	6,753,988	430	36	-90	0	0	2	2	0.2	2 metres @ 0.4 g/t Au from 0 metres
										17	19	2	0.2	2 metres @ 0.2 g/t Au from 17 metres
										22	24	2	0.2	2 metres @ 0.4 g/t Au from 22 metres
										26	28	2	0.2	2 metres @ 0.3 g/t Au from 28 metres
Leipold North	LEONRC0006	M40/22	RC	350,657	6,752,621	430	96	-60	270	40	43	3	0.1	3 metres @ 0.1 g/t Au from 40 metres
	LEONRC0008			350,737	6,752,621	430	84	-60	270	55	58	3	0.1	3 metres @ 0.2 g/t Au from 55 metres
	LEONRC0019			350,731	6,752,808	430	84	-60	270	32	37	5	0.3	5 metres @ 0.3 g/t Au from 32 metres
	LEONRC0026			350,659	6,752,928	430	81	-60	270	76	81	5	0.1	5 metres @ 0.1 g/t Au from 76 metres
	LEONRC0027			350,582	6,752,621	430	84	-60	270	23	26	3	0.4	3 metres @ 0.4 g/t Au from 23 metres
Leipold	LPRC0096			350,752	6,752,095	430	60	-60	250	22	26	4	0.7	4 metres @ 0.7 g/t Au from 22 metres
										22	23	1	2.2	incl. 1 metre @ 2.2 g/t Au from 22 metres
										30	37	7	0.8	7 metres @ 0.8 g/t Au from 30 metres
										31	33	2	2.3	incl. 2 metres @ 2.3 g/t Au from 31 metres
										44	47	3	0.1	3 metres @ 0.1 g/t Au from 44 metres
										55	57	2	0.2	2 metres @ 0.2 g/t Au from 55 metres
McTavish East	MCTRC0030	M40/77	RC	350,661	6,754,049	430	102	-60	310	58	64	6	0.2	6 metres @ 0.2 g/t Au from 58 metres
										87	93	6	0.2	6 metres @ 0.2 g/t Au from 87 metres
	MCTRC0036			350,695	6,754,151	430	80	-60	310	48	50	2	0.3	2 metres @ 0.3 g/t Au from 46 metres
										77	80	3	0.3	3 metres @ 0.3 g/t Au from 77 metres
	MCTRC0038			350,756	6,754,099	430	96	-60	310	76	78	2	0.4	2 metres @ 0.4 g/t Au from 76 metres
Orient Well East	OWERC0020	E40/289	RC	351,772	6,764,923	430	36	-60	40	22	23	1	7.9	1 metre @ 7.9 g/t from 22 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.

The drilling programmes were designed to test potential mineralisation zones interpreted from detailed aerial geophysics and along strike from historical workings and currently known mineralised areas. This is the methodical approach we have adopted in our efforts to discover and develop Mineral Resources in

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the future. The full intercept list for completed drill holes is available in Appendix Two which also includes the collar details for the drill holes discussed in this announcement. Please refer to Figure 1 for Prospect and tenure locations within the greater Kookynie Gold Project.

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Figure 1 – Kookynie Prospect Locality Map with mineralised trends.

Prospect Collar Plots

Below is a series of collar plots that illustrate the recent drill collars and discussion detailing the significance of the results to date.

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The Orient Well East (Fortuna) Prospect

The Company has entered a farm-in agreement with a private entity who holds E40/289, located 3 kilometres east, along strike from Genesis Mineral’s Ulysses and Orient Well Projects. The tenement contains highly prospective historical production centres like Fortuna – 2,070 tonnes @ 42.49 g/t Au, Niagara Commonwealth – 53 tonnes @ 28.36 g/t Au and Nunnoya – 16 tonnes @ 308.56 g/t Au (Source DMIRS MineDex System - https://minedex.dmirs.wa.gov.au/ with Fortuna site ID S0012723, Niagara Commonwealth site ID S0012816 & Nunnoya site ID S0012820).

Cautionary Statement Relating to Historical Production Data

The Production details for Fortuna, Niagara and Nunnoya are referenced from publicly available data sources. The source and date of the production data reported has been referenced in the body of this announcement where production data has been reported. 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 has agreed to spend $200,000 over 2 years to earn 100% of the tenure. Upon reaching this milestone, the former holder will revert to a royalty of 1% NSR on the first 50,000 ounces of production that may potentially be sourced from within this area. All expenditure incurred on this tenement is also contributory towards the Nex-Metalicity farm-in agreement of 51% for $5 million spent within 5 years.

This tenement is approximately 12 kilometres north of the Cosmopolitan Gold Mine and hosts the strike continuation of the prolific Orient Well Mining Centre. Five high tenure geophysical anomalies have been identified that coincide with historical mining centres listed above, coupled with similar signatures further along strike within this highly endowed trend.

The drilling to date at Orient Well East has demonstrated similar stratigraphy to that hosting the Orient Well Mine site mineralisation with a highly magnetic mafic, transitioning into a demagnetised and altered mafic, with a contact intersected by a volcanoclastic sediment, that has also been extensively altered. The drone geophysical survey has delineated the contact between the mafic and volcanoclastic very well and with the information on hand, we are able to refine our model for the Orient Well tenement to ensure follow up work is targeted at economic mineralisation.

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Figure 2 – Orient Well East Collar Plot.

The Cosmopolitan North Prospect

The following was reported on the 31 August 2020 under the ASX Announcement titled “ Compelling 1.3 Kilometre Anomaly Along Strike and 2.5kms to the North of the Historic High-Grade Cosmopolitan Gold Mine ”.

The Cosmopolitan Gold Mine between 1896 and 1922 produced 360,000 ounces at an average, life of mine head grade of 15 g/t gold. Historic channel sampling results at Cosmopolitan has indicated extraordinarily high-grade mineralisation in areas of remnant mineralisation that may still exist in developed areas of the mine. Of the 2,438 sample points presented, 110 returned assays above 100 g/t Au, 444 returned assays above 50 g/t Au and 1,046 returned assays above 20 g/t Au (please refer to ASX Announcement dated 9 June 2020 titled “Extremely High-Grade Gold From Historical Underground Sampling At The Cosmopolitan Gold Mine”).

The Altona area is 1.5 kilometres east of the DCC Trend and between 1900 and 1965, produced some 88.7koz from approximately 90,000 tonnes at an average grade of approximately 30 g/t Au.

Cautionary Statement Relating to Historical Production Data

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The Production details for the Cosmopolitan Gold Mine and Altona are referenced from publicly available data sources. The source and date of the production data for Altona has been referenced in the body of this announcement; and 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.

The DCC and Altona Trends have very prominent geophysical signatures with clear contrast between magnetic intensities. Interestingly, the northern extents of the Cosmopolitan Gold Mine presents an incredible opportunity where two distinct zones have been identified, the most prominent is 1.3kilometre anomaly some 2.5 kilometres north of this historically prolific gold mine wholly within Mining License 40/61. Furthermore, the Altona Trend appears to be an almost mirror image of the DCC trend with very prominent geophysical and structural discontinuities coincident with historical production centres.

Highly anomalous assay results coincident with geophysical anomalism within this very broad first pass drilling is exciting. The similar host rocks and alteration to the Cosmopolitan Gold Mine indicate that a similar mineralised event has occurred in this area. Whilst the first pass drilling has been quite broad (circa 500 metre line spacing and 80 metres between holes), what the returned assays are telling us is that the area is anomalous and hosts the right geological, geophysical, and structural controls to host mineralisation similar to the main Cosmopolitan Gold Mine.

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Figure 3 – Cosmopolitan North Collar Plot.

The McTavish & Leipold North Prospects

The mineralisation observed at McTavish and Leipold appears to be hosted within the border zones of basement lithologies of contrasting magnetic highs and lows. Key is the influence of cross cutting structures (oblique to the main north south trends) that appear to influence the high-grade pods observed within each of these prospects. The trends observed in the drone magnetic data correlate well with the known mineralisation at these two prospects, therefore, similar settings were investigated as potential sites of further mineralisation within the area.

These trends were investigated in late 2020, notably, Leipold North, and an oblique structure that appears to be influencing mineralisation observed at McTavish. The Leipold North drilling intersected iron-stained quartz veining of similar nature to the main Leipold Prospect, especially in the southern region of the Leipold Prospect. The Company is interpreting that we have indeed found the offset strike extent of the main Leipold mineralisation, however, we have, as for the southern drilling at Leipold, intersected the structure that is a distance from the main mineralisation. Whilst no economic mineralisation was

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encountered, the favourable lithology and similar structural observations are incredibly encouraging. Concurrent with the current phase of drilling at Leipold and Cosmopolitan, we will be using this data, and potentially returning to the laboratory to develop further multi-element geochemistry to assist in vectoring into significant mineralisation in this vicinity.

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Figure 3 – McTavish Collar Plot.

1Please refer to ASX Announcement “Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project” dated 22nd December 2020.

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Figure 4 – Leipold & Leipold North Collar Plot.

1Please refer to ASX Announcement “Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project” dated 22nd December 2020.

The Altona Prospect

For the Altona Prospect, all except for the last 3 holes completed in 2020 have had assays returned from the first phase of drilling demonstrates that previously identified mineralisation continues at depth and along strike. Plans were executed to continue the exploration and development programmes at Altona

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based on these results and observations and a further three drill holes were completed just before Christmas 2020. The work to date is highly encouraging with the Altona structure been intersected and the Company is expediting plans to return to Altona in the new year to continue that extensional work across the full 2-kilometre strike defined.

Altona was a very prolific gold mine during its years of operation. With 88,700 ounces between 1900 to 1965 at an average head grade of 30 g/t Au (Source DMIRS MineDex System - https://minedex.dmirs.wa.gov.au/ with site ID S0012639 for Altona and surrounds) (circa 1.5kms from the Cosmopolitan Gold mine) bodes well for its prospectivity and potentially for further discovery. The drone magnetic survey has assisted in delineating circa 2 kilometres of strike with historical workings dotted along this trend. As we continue our efforts at more developed prospects like Leipold and Cosmopolitan, we will be refining our exploration models to ensure further work is effective in delineating economic intersections.

Cautionary Statement Relating to Historical Production Data

The Production details for Altona are referenced from publicly available data sources. The source and date of the production data reported has been referenced in the body of this announcement where production data has been reported. 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.

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Figure 5 – Altona Collar Plot with recent drilling*.

*Please refer to ASX Announcement “ Drilling Progressing Strongly, Assays Pending for 86 Holes. ” dated 9 December 2020

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Summary

The results returned to date from our regional prospects at the Kookynie Gold Project is very encouraging having returned highly anomalous gold values confirming prospectivity of these areas. Our exploration models and effective testing of regional prospects, being areas outside of the known areas of mineralisation such as Leipold, is ensuring that our prospects are being effectively evaluated at an early stage and progressed as potential greenfield/brownfield prospects ensuring a pipeline of development assets for the future.

Moving forward, as we continue to refine our regional exploration model, we have returned to more developed prospects at Leipold and the Cosmopolitan Gold Mine. Initial drilling at Cosmopolitan is exceptionally encouraging with the reported visible gold in the first hole. The Company will continue for at least the first half of 2021 developing the more progressed prospects towards resource definition style programmes. Concurrently, we will take the information derived from the late 2020 programme and revise our regional exploration model to expedite and justify further exploratory work at a later stage.

*Please refer to ASX Announcement “ Drone Survey Demonstrates 21 Targets with Incredible Prospectivity for the Kookynie Gold Project ” dated 2 September 2020.

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, forwardlooking 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.

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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, duplicates, external laboratory	● 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. Selected intervals have been submitted for Screen Fire Analysis to understand the relationship between gold distribution and the influence of potential nuggety gold. ● 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

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	checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	(nugget effect) is defined and articulated. ● No geophysical tools, spectrometers, handheld XRF 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. ● 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	● All drilling was 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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	structures is considered to have introduced a sampling bias, this 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 establishingthe location of

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		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.
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:

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----- Start of picture text -----

MGA 94 Zone 51 South
From To Down Hole Grade
Prospect Hole ID Tenement Hole Type Easting Northing RL EOH Dip Azi Comments
(m) (m) Width (m) (Au g/t)
COSRC0001 353,830 6,755,892 430 84 -60 270 No significant anomalism
COSRC0002 353,870 6,755,892 430 84 -60 270 57 60 3 0.4 3 metres @ 0.4 g/t Au from 57 metres
COSRC0003 353,910 6,755,892 430 84 -60 270 No significant anomalism
COSRC0004 353,950 6,755,892 430 96 -60 270 77 79 2 0.1 2 metres @ 0.1 g/t Au from 77 metres
COSRC0005 353,990 6,755,892 430 96 -60 270 No significant anomalism
COSRC0006 354,030 6,755,892 430 96 -60 270 No significant anomalism
COSRC0007 354,070 6,755,892 430 96 -60 270 No significant anomalism
COSRC0008 353,791 6,756,192 430 108 -60 270 No significant anomalism
COSRC0009 353,831 6,756,192 430 108 -60 270 No significant anomalism
COSRC0010 353,871 6,756,192 430 108 -60 270 42 44 2 0.1 2 metres @ 0.1 g/t Au from 77 metres
Cosmopolitan
COSRC0011 353,911 6,756,192 430 102 -60 270 No significant anomalism
North
COSRC0012 353,951 6,756,192 430 84 -60 270 No significant anomalism
COSRC0013 M40/61 RC 353,991 6,756,192 430 84 -60 270 No significant anomalism
COSRC0014 354,031 6,756,192 430 84 -60 270 No significant anomalism
COSRC0015 353,847 6,756,473 430 90 -60 270 No significant anomalism
COSRC0016 353,887 6,756,473 430 84 -60 270 No significant anomalism
COSRC0017 353,927 6,756,473 430 90 -60 270 No significant anomalism
COSRC0018 353,967 6,756,473 430 84 -60 270 50 53 3 0.3 3 metres @ 0.3 g/t Au from 50 metres
COSRC0019 354,007 6,756,473 430 78 -60 270 No significant anomalism
COSRC0020 354,047 6,756,473 430 84 -60 270 49 51 2 0.2 2 metres @ 0.2 g/t Au from 49 metres
COSRC0021 354,087 6,756,473 430 84 -60 270 No significant anomalism
0 2 2 0.2 2 metres @ 0.4 g/t Au from 0 metres
Cosmopolitan 17 19 2 0.2 2 metres @ 0.2 g/t Au from 17 metres
CMBWB001 354,096 6,753,988 430 36 -90 0
(Water Bore) 22 24 2 0.2 2 metres @ 0.4 g/t Au from 22 metres
26 28 2 0.2 2 metres @ 0.3 g/t Au from 28 metres
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				MGA 94 Zone 51 South	MGA 94 Zone 51 South	MGA 94 Zone 51 South
Prospect	Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Aug/t)	Comments
Leipold North	LEONRC0001	M40/22	RC	350,457	6,752,621	430	84	-60	270	No significant anomalism
	LEONRC0002			350,497	6,752,621	430	84	-60	270	No significant anomalism
	LEONRC0003			350,537	6,752,621	430	84	-60	270	No significant anomalism
	LEONRC0004			350,577	6,752,621	430	54	-60	270	No significant anomalism
	LEONRC0005			350,617	6,752,621	430	84	-60	270	No significant anomalism
	LEONRC0006			350,657	6,752,621	430	96	-60	270	40	43	3	0.1	3 metres@0.1g/t Au from 40 metres
	LEONRC0007			350,697	6,752,621	430	78	-60	270	No significant anomalism
	LEONRC0008			350,737	6,752,621	430	84	-60	270	55	58	3	0.1	3 metres@0.2g/t Au from 55 metres
	LEONRC0009			350,777	6,752,621	430	84	-60	270	No significant anomalism
	LEONRC0010A			350,415	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0011			350,491	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0012			350,531	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0013			350,512	6,752,807	430	42	-60	270	No significant anomalism
	LEONRC0014			350,571	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0015			350,611	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0016			350,514	6,752,805	430	54	-60	90	No significant anomalism
	LEONRC0017			350,651	6,752,808	430	90	-60	270	No significant anomalism
	LEONRC0018			350,691	6,752,808	430	84	-60	270	No significant anomalism
	LEONRC0019			350,731	6,752,808	430	84	-60	270	32	37	5	0.3	5 metres@0.3g/t Au from 32 metres
	LEONRC0020			350,709	6,752,808	430	36	-60	270	No significant anomalism
	LEONRC0021			350,459	6,752,930	430	84	-60	270	No significant anomalism
	LEONRC0022			350,499	6,752,930	430	84	-60	270	No significant anomalism
	LEONRC0023			350,539	6,752,929	430	84	-60	270	No significant anomalism
	LEONRC0024			350,579	6,752,929	430	84	-60	270	No significant anomalism
	LEONRC0025			350,619	6,752,928	430	84	-60	270	No significant anomalism
	LEONRC0026			350,659	6,752,928	430	81	-60	270	76	81	5	0.1	5 metres@0.1g/t Au from 76 metres
	LEONRC0027			350,582	6,752,621	430	84	-60	270	23	26	3	0.4	3 metres@0.4g/t Au from 23 metres
	LEONRC0028			350,598	6,752,621	430	60	-60	270	No significant anomalism
Leipold	LPRC0096			350,752	6,752,095	430	60	-60	250	22	26	4	0.7	4 metres@0.7g/t Au from 22 metres incl. 1 metre@2.2g/t Au from 22 metres
										30	37	7	0.8	7 metres@0.8g/t Au from 30 metres incl. 2 metres@2.3g/t Au from 31 metres
										44	47	3	0.1	3 metres@0.1g/t Au from 44 metres
										55	57	2	0.2	2 metres@0.2g/t Au from 55 metres

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				MGA 94 Zone 51 South	MGA 94 Zone 51 South	MGA 94 Zone 51 South
Prospect	Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Aug/t)	Comments
McTavish East	MCTRC0030	M40/77	RC	350,661	6,754,049	430	102	-60	310	58	64	6	0.2	6 metres@0.2g/t Au from 58 metres
										87	93	6	0.2	6 metres@0.2g/t Au from 87 metres
	MCTRC0031			350,692	6,754,023	430	96	-60	310	No significant anomalism
	MCTRC0032			350,723	6,753,997	430	66	-60	310	No significant anomalism
	MCTRC0033			350,725	6,753,995	430	96	-60	310	No significant anomalism
	MCTRC0034			350,753	6,753,971	430	72	-60	310	No significant anomalism
	MCTRC0035			350,664	6,754,177	430	108	-60	310	No significant anomalism
	MCTRC0036			350,695	6,754,151	430	80	-60	310	48	50	2	0.3	2 metres@0.3g/t Au from 46 metres
										77	80	3	0.3	3 metres@0.3g/t Au from 77 metres
	MCTRC0037			350,726	6,754,125	430	96	-60	310	No significant anomalism
	MCTRC0038			350,756	6,754,099	430	96	-60	310	76	78	2	0.4	2 metres@0.4g/t Au from 76 metres
Orient Well East	OWERC0001	E40.289	RC	352,017	6,764,752	430	78	-60	40	No significant anomalism
	OWERC0002			351,991	6,764,721	430	84	-60	40	No significant anomalism
	OWERC0003			351,966	6,764,691	430	78	-60	40	No significant anomalism
	OWERC0004			351,940	6,764,660	430	84	-60	40	No significant anomalism
	OWERC0005			351,957	6,764,673	430	84	-60	220	No significant anomalism
	OWERC0006			351,983	6,764,706	430	84	-60	220	No significant anomalism
	OWERC0007			352,006	6,764,734	430	78	-60	220	No significant anomalism
	OWERC0008			351,863	6,764,724	430	78	-60	220	No significant anomalism
	OWERC0009			351,889	6,764,755	430	84	-60	220	No significant anomalism
	OWERC0010			351,915	6,764,786	430	78	-60	220	No significant anomalism
	OWERC0011			351,940	6,764,816	430	78	-60	220	No significant anomalism
	OWERC0012			351,787	6,764,789	430	78	-60	220	No significant anomalism
	OWERC0013			351,736	6,764,883	430	78	-60	220	No significant anomalism
	OWERC0014			351,762	6,764,945	430	84	-60	220	No significant anomalism
	OWERC0015			351,787	6,764,945	430	78	-60	40	No significant anomalism
	OWERC0016			351,710	6,764,853	430	78	-60	220	No significant anomalism
	OWERC0017			351,787	6,764,945	430	78	-60	40	No significant anomalism
	OWERC0018			351,762	6,764,914	430	78	-60	40	No significant anomalism
	OWERC0019			351,736	6,764,883	430	108	-60	40	No significant anomalism
	OWERC0020			351,772	6,764,923	430	36	-60	40	22	23	1	7.9	1 metre@7.9g/t from 22 metres
	OWERC0021			351,751	6,764,898	430	72	-60	40	No significant anomalism

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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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