ARIKA RESOURCES LIMITED — Capital/Financing Update 2022

Oct 25, 2022

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ASX RELEASE: 26 October 2022

Maiden Exploration Programme Completed at Mt Surprise Lithium Project Uncovers Abundant Copper Mineralisation at Surface

HIGHLIGHTS

• Metalicity has completed its initial fieldwork at its highly prospective Mt Surprise Lithium Project.

• Activities concentrated on areas that have produced historic results including a 2016 rock chip sample which returned 3.55% Li2O, 125ppm tantalum, 0.25% caesium and 1.26% rubidium[1] .

• Initial results from geological field mapping and collection of representative rock chip samples are promising.

• Abundant copper sulphides of azurite and malachite identified at surface from historic workings where significant high-grade copper mineralisation was previously reported (grades above 1% Cu, including one <25% Cu)*[2] .

• Key insights have been gained for the Company’s follow-up programme for the targeting of Lithium pegmatites during discussions with local geologists with an extensive knowledge of the area.

• Metalicity is awaiting assay results from this fieldwork and has begun generating exploration targets and planning a follow-up targeted lithium exploration programme in the coming weeks.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is excited to announce that the Company has completed its maiden exploration programme at its newly acquired 100% owned Mt Surprise Lithium Project (EPM 28052) located circa 57km northeast of the town of Mt Surprise, 165 km west of the major centre of Cairns. (Figure 5). The Company’s exploration team completed extensive fieldwork activities last week and returned with a promising amount of information regarding the prospectivity of the Project and potential target areas.

Commenting on the expanded drilling programme, Metalicity Managing Director, Justin Barton said:

“We are excited to get on with exploring this highly prospective tenure. We are really encouraged by the initial sample of rock chips that we have collected to date, particularly the extensive copper sulphides of azurite and malachite identified, and eagerly await these results. The Company was also excited to get the opportunity to have detailed discussions with geologists who have spent much of their careers exploring and learning about the geology and mineral prospectivity of the Mt Surprise area and north-west Queensland as a whole. These discussions are proving to be highly beneficial in planning our follow-up programme targeting Lithium pegmatites and other prospective metals.”

1 Please refer ASX announcement ASX Announcement “Metalicity Secures Highly Prospective Lithium Project” dated 18 August 2022.

2 Please refer ASX announcement “Historical Samples at the Mt Surprise Lithium Project Identify Significant Copper Mineralisation over 5km Strike” dated 2 September 2022

*Cautionary Note: There has previously been only minor work done on lithium at the Project area to date. It has been further reported in the historical data that “a number of reasonable lithium results were obtained (> 1% Li) in the past”[2] . However, these additional samples from the area are unable to be obtained and verified and only one sample has been documented with lithium at 3.55%. More exploration sampling is required to establish what is representative of the true extent and sample grade of the lithium mineralisation within the Project area.

Metalicity Limited www.metalicity.com.au ASX Code: MCT Unit B2, 20 Tarlton Crescent ABN: 92 086 839 992 Perth Airport WA 6105

Fieldwork Programme

The successful reconnaissance field programme completed its goals of scoping out the environment, topography, and geology of the Mt Surprise Project area of EPM 28052 as well as collecting key geological information and to meet with a number of key stakeholders. The programme also set out to verify if possible historic exploration results for Lithium and other base and precious metals with results from these samples pending analysis and return from Intertek Laboratories in Townsville and Perth.

Metalicity was able to locate and sample historic workings that yielded significant high grade copper results up to 27.5% Cu[3] . Abundant copper as azurite and malachite mineralisation was observed at surface and within 30 -50cm wide quartz stockwork veins (Figures 1, 2 and 3).

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Figure 1. Copper mineralisation as azurite (blue) with minor malachite (green) White scale bar 4cm.

3 Please refer ASX announcement dated 2 September 2022 “ Historical Samples at the Mt Surprise Lithium Project Identify Significant Copper Mineralisation over 5km Strike” .

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Three separate historic workings were identified, mapped and sampled consisting of a small shaft with minor underground workings (Figure 3) and two shallower trenches or costeans within 250m from each other on a north-south striking trend. Samples were collected where possible from narrow veins as well as the surrounding geology with abundant copper as azurite (blue) and malachite (green) mineralisation observed at surface and within 30 -50cm wide quartz stockwork veins (Figures 1, 2 and 3).

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----- Start of picture text ----- AzuriteAzurite andMalachite----- End of picture text -----

Figure 2. Azurite and Malachite Mineralisation.

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Figure 3. Historic copper workings.

The geology of the area is characterised by the Silurian-aged Blackman Gap Complex, a medium to coarsegrained biotite-muscovite granodiorite, granite and minor pegmatite which also hosts the Gingerella Site . Granitic rocks of the Blackman Gap Complex are the oldest lithologies in the area are more weathered and have noticeably less outcrop and exposure than surrounding younger rocks. Metalicity spent significant time investigating these granitic units for alteration and mineralisation in the project area as well as any later stage dykes, veins or shear structures prospective for hosting mineralisation (Figure 4).

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Figure 4 – Altered granite of the Gingerella Prospect.

A full day of the fieldwork was committed to the Gingeralla prospect for possible Lithium where reconnaissance rock sampling was conducted by Monax in 2016 (See MOX announcement May 2016[4] ) from an area identified as the Gingerella Site, which returned assay results of 3.55% Li2O, 125ppm tantalum, 0.25% caesium and 1.26% rubidium. Lithium minerals were described as lepidolite (lithium mica); however, the mineralogy was never confirmed. A representative number of samples were collected from the original Monax location as well as other key exposures of altered granite with samples dispatched for analysis upon return to Townsville at the end of the fieldwork (Figure 4).

Samples were transported to Intertek laboratories in Townsville and Perth testing for Lithium and other valuable minerals as well as other pathfinder/indicator elements. In addition, several samples will undergo mineralogical analysis to qualitatively determine the minerals present.

Next Steps

Metalicity anticipates results from initial reconnaissance rock chip samples to be returned by the end of November where these will help further guide future exploration targets. Whilst awaiting these results, Metalicity will plan the next stage of exploration at the Mt Surprise project area, in consultation with highly reputable exploration consultants and geologists who have extensive knowledge and history of the Mt Surprise/Georgetown area of north-west Queensland, to assist in identifying potential lithium and other mineralised targets before the onset of the North Queensland wet season. Metalicity will engage with these Townsville-based consultants to assist with future exploration activities both from a technical and fieldwork resource perspective.

4 https://www.asx.com.au/asxpdf/20160517/pdf/43797gzb3nxrf3.pdf. Monax Mining Limited (MOX) to Acquire Prospective Lithium Project (17 May 2016).

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Overview of Mt Surprise Project

The Mount Surprise project covers a large area approximately 165km from the city of Cairns, Queensland and 57 km northeast of the town of Mt Surprise and is serviced by excellent infrastructure in the area and easy access outside of the tropical wet season (Figure 5). The geology of the area is characterised by the Silurianaged Blackman Gap Complex, a medium to coarse-grained biotite-muscovite granodiorite and granite and pegmatite. The granite is overlain by various Carboniferous-aged volcanics including the Double Barrel andesite and tuff as well as the Gingerella rhyolites and ignimbrites.

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Figure 5 – Location of EPM 28052 Mt Surprise Project - North Queensland.

This Announcement is approved by the Board of Metalicity Limited.

ENQUIRIES

Investors

Justin Barton Managing Director +61 8 6500 0202 jbarton@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.

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Competent Person Statement

Information in this report that relates to Exploration results and targets is based on, and fairly reflects, information compiled by Mr. Stephen Guy, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr. Guy is an employee of Metalicity Limited. Mr. Guy 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. Guy consents to the inclusion of the data in the form and context in which it appears.

Forward Looking Statements

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward-looking statements:

(a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

(b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such risks include, without limitation, resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which the Company operates or supplies or sells product to, and governmental regulation and judicial outcomes; and

(c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements.

All forward-looking statements contained in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward-looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forwardlooking statements due to the inherent uncertainty therein.

The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.

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