ARIKA RESOURCES LIMITED — Interim / Quarterly Report 2016

Apr 28, 2016

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

	Name of entity
	METALICITY LIMITED
	ABN 92 086 839 992 Consolidated statement of cash flows	Quarter ended (“current quarter”)
		31 March 2016
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) production (b) administration (c) project generation 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000	Year to date (9 .months) $A’000
		- (143) (121) 2 (35)	- (1,231) (239) 4 (35)
		(297)	(1,501)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) (a) exploration and evaluation Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(25) - (793)	(1,156) (3) (1,178)
		(818)	(2,337)
		(1,115)	(3,838)

• See chapter 19 for defined terms.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,115)	(3,838)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings (related party) 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Funds received, equity not yet issued Receipts from sale of royalty Net financing cash flows	295 (45) -	295 - 7,053
	250	7,348
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(865) 4,670 (56)	3,510 443 (204)
	3,749	3,749

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		101
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Director fees and superannuation

Non-­‐cash financing and investing activities

2.1	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	During the quarter, the company issued 1,250,000 fully paid ordinary shares with an issue price of $0.02 totalling $25,000 as part consideration to acquire certain exploration tenements. In a prior quarter, the company issued 14,375,000 fully paid ordinary shares with an issue price of $0.016 totalling $230,000 to acquire certain exploration tenements.

• See chapter 19 for defined terms.

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	440
	-
	-
	250
Total	690

Reconciliation of cash

Total Reconciliation of cash		690
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) USD$ at bank Term deposit	312	96
	1,008	46
	2,409 20	4,528 -
Total: cash at end of quarter(item 1.22)	3,749	4,670

• See chapter 19 for defined terms.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements and petroleum tenements acquired or increased E74/550 E74/574 Tenement acquired Tenement granted - - 100% 100% Refer to Quarterly Activities Report for schedule of tenements held. Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements and petroleum tenements acquired or increased E74/550 E74/574 Tenement acquired Tenement granted - - 100% 100% Refer to Quarterly Activities Report for schedule of tenements held. Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements and petroleum tenements acquired or increased E74/550 E74/574 Tenement acquired Tenement granted - - 100% 100% Refer to Quarterly Activities Report for schedule of tenements held. Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements and petroleum tenements acquired or increased E74/550 E74/574 Tenement acquired Tenement granted - - 100% 100% Refer to Quarterly Activities Report for schedule of tenements held. Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements and petroleum tenements acquired or increased E74/550 E74/574 Tenement acquired Tenement granted - - 100% 100% Refer to Quarterly Activities Report for schedule of tenements held. Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.
	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	380,144,654	360,769,654	Not applicable	Not applicable
	5,250,000 1,250,000 2,000,000 2,000,000 2,000,000	5,250,000 1,250,000 2,000,000 2,000,000 2,000,000	0.02 0.02 0.025 0.03 0.04	0.02 0.02 0.025 0.03 0.04

• See chapter 19 for defined terms.

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	$500,000		20 day VWAP	Interest payable at 7.5% per annum
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 1,000,000 1,000,000 2,000,000 6,000,000 3,000,000 3,000,000 11,500,000 11,500,000 11,500,000 2,000,000 10,050,000 10,050,000 8,050,000		Exercise price 4 cents 8 cents 12 cents 3 cents 4 cents 8 cents 12 cents 2.5 cents 3 cents 4 cents 2.5 cents 3 cents 4 cents 5cents	Expiry_date_ 11 March 2017 11 March 2017 11 March 2017 31 December 2019 31 December 2019 31 December 2019 31 December 2019 23 July 2020 23 July 2020 23 July 2020 10 December 2020 10 December 2020 10 December 2020 10 December 2020
	2,000,000 6,000,000 3,000,000 3,000,000		3 cents 4 cents 8 cents 12 cents	31 December 2019 31 December 2019 31 December 2019 31 December 2019
	5,250,000 2,000,000 2,000,000 2,000,000		2 cents 2.5 cents 3 cents 4cents	31 December 2015 23 July 2020 23 July 2020 23 July2020
	14,750,000		2 cents	31 December 2015
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

• See chapter 19 for defined terms.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

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Sign here:

Date: 29 April 2016

(Director) Print name: Matthew Gauci

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.