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ARIKA RESOURCES LIMITED Interim / Quarterly Report 2022

Oct 28, 2021

64420_rns_2021-10-28_99d1b7fc-3325-4ba2-812f-dd8e1387de2a.pdf

Interim / Quarterly Report

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ASX RELEASE: 29 October 2021

September 2021 Quarterly Activities Report

HIGHLIGHTS

  • Drilling recommenced at the McTavish Prospect to test the 2km of strike between the McTavish and Leipold Trends at the Kookynie Gold Project, for which both the McTavish and Leipold prospects remain open along strike and at depth[1] .

  • Current drilling program follows up Bonanza Gold intersections announced in July including[2] : o McTRC0049 – 5 metres @ 25.9 g/t from 28 metres incl:

    • 3 metres @ 41.5 g/t from 30 metres,

    • 1 metre @ 91.2g/t Au from 30 metres;

  • McTRC0064 – 6 metres @ 20.6 g/t from 19 metres incl

    • 4 metres @ 29.1 g/t from 20 metres;
  • Final assay results were received for Champion prospect, which delivered consistent grades over good widths close to surface.

  • Final assays from the initial scout drilling at the Cosmopolitan Gold Mine, which produced 360,000 ounces at 15 g/t Au, were received producing highly encouraging results[3] .

CORPORATE

  • During the quarter, the Company announced an off-market all scrip bid for all of the fully paid ordinary shares in Nex Metals Explorations Ltd (“NEX”)[4] .

  • Metalicity controls the Kookynie and Yundamindra projects with a 51% interest, providing a strong platform for consolidation and development of the projects.

  • Compelling combination that would provide significant benefits to both MCT and NEX shareholders including improved access to capital, removal of Joint Venture (“JV”) structure, cost savings and enhanced balance sheet position.

  • Cash on hand $2.8 million.

Metalicity Limited (ASX: MCT) (“MCT” or “Company”) is pleased to provide the Quarterly Activities Report for the period ending 30 September 2021.

1 Please refer to ASX Announcement “ McTavish Returns Assays Up To 52.8 g/t Au & Executive Changes ” dated 24 May 2021.

2 Please refer to ASX Announcement “ Assays up to 118 g/t Au from Leipold, Kookynie Gold Project ” dated 3 May 2021.

3 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 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.

4 Please refer to ASX Announcement “ Metalicity Proposal to Nex Metals Shareholders ” dated 14 September 2021.

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 Quarter, Metalicity CEO, Mr Justin Barton said:

The Company has had a very active and productive quarter, recommencing drilling at McTavish to follow up the Bonanza results we received in last drilling programme and announcing an off-market all scrip bid to NEX shareholders.

“We are excited to be able to make an offer directly to NEX Shareholders which we believe will give both groups of shareholders the opportunity to unlock significant upside from combining the two entities. Rationalising the ownership of the highly attractive Kookynie and Yundamindra Gold projects into a single listed entity creates a number of compelling benefits for both groups of shareholders including the ability to accelerate the development of these projects through better access to capital, reduced costs and greater efficiencies by removing the JV structure”.

Kookynie and Yundamindra Gold Projects

Metalicity has continued to actively develop the Kookynie and Yundamindra Gold Projects, located in the Goldfields district of Western Australia, please refer to Figure 1. These projects comprise the Kookynie & Yundamindra JV with NEX, for which Metalicity has a 51% and controlling interest.

The Kookynie Project, which is located approximately 60 km south of Leonora is host to seven large-producing historical mines: Champion, McTavish, Leipold, Altona, Diamantina, Cosmopolitan and Cumberland. Please refer to Figure One.

Drilling recommenced at McTavish prospect during the quarter with assay results from the Cosmopolitan Gold Mine, and Champion prospects received during the quarter. Detailed below is a summary of the field activities during the quarter.

Follow up Drilling Programme at McTavish

During the quarter, drilling recommenced at McTavish where last quarter drilling returned some of the best high-grade results at the Project to date.

Spectacular intercepts from last quarter drilling include:

o McTRC0049 - 5 metres @ 25.9 g/t from 28 metres incl:

  • 3 metres @ 41.5 g/t from 30 metres,

  • 1 metre @ 91.2g/t Au from 30 metres);

  • McTRC0064 - 6 metres @ 20.6 g/t from 19 metres incl

  • 4 metres @ 29.1 g/t from 20 metres;

  • McTRC0044 - 3 metres @ 19.1 g/t from 88 metres incl:

  • 1 metre @ 52.8 g/t from 89 metres;

  • McTRC0051 - 4 metres @ 3.5 g/t from 8 metres incl:

  • 1 metre @ 11.4 g/t from 10 metres.

Please refer to ASX Announcements “McTavish Returns Assays Up To 52.8 g/t Au & Executive Changes” dated 24 May 2021 and “McTavish Delivers Bonanza Grade Gold Results up to 91.2g/t Au” dated 8 July 2021.

The results illustrated above continue to define and expand the mineralisation observed at McTavish, which given the nature of the mineralisation and the drilling angle, are very close to true widths for the mineralisation observed. The McTavish prospect remains open at depth and to the South (refer Figure 2), which is the focus of this follow up drilling programme, combined with testing the 2km of strike between the McTavish and Leipold Trends at the Kookynie Gold Project.

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2

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Figure 1 – The Kookynie Tenement Map

Below are intercepts reported (Table 1) and a plane of vein long section detailing the drilling to date (Figure 2).

Table 1 – McTavish Prospect Anomalous Drill Hole Intercepts.

Hole ID Tenement Hole
Type
Easting Northing RL EOH Dip Azi From
(m)
To
(m)
Down
Hole
Width (m)
Grade (Au
g/t)
Comments
McTRC0039 M40/77 RC 350,631 6,753,887 426 84 -60 270 No significant intersection
McTRC0040 M40/77 RC 350,633 6,753,919 427 42 -60 270 19 20 1 1.1 1 metre @ 1.1g/t Au from 19 metres
23 24 1 2.3 1 metre @ 2.3g/t Au from 23 metres
31 32 1 1.1 1 metre @ 1.1g/t Au from 31 metres
McTRC0041 M40/77 RC 350,630 6,753,940 427 48 -60 270 21 22 1 1.1 1 metre @ 1.1g/t Au from 21 metres
23 25 2 1.2 2 metres @ 1.2g/t Au from 23 metres
27 28 1 2.2 1 metre @ 2.2g/t Au from 22 metres
McTRC0042 M40/77 RC 350,624 6,754,011 429 54 -60 270 No significant intersection
McTRC0043 M40/77 RC 350,617 6,754,058 430 66 -60 270 No significant intersection
McTRC0044 M40/77 RC 350,667 6,754,098 430 96 -60 270 88 91 3 19.1 3 metres @ 19.1g/t Au from 88 metres incl. 1 metre @ 52.8g/t Au from 89 metres
McTRC0045 M40/77 RC 350,578 6,754,176 437 36 -60 270 24 25 1 1.2 1 metre @ 1.2g/t Au from 24 metres
McTRC0046 M40/77 RC 350,609 6,754,148 436 54 -60 270 37 38 1 1.3 1 metre @ 1.3g/t Au from 37 metres
39 42 3 1.0 3 metres @ 1.0g/t Au from 39 metres

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3

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Figure 2 – McTavish Plane of Vein Section with recent drilling*.

*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, Strong Gold Assays Extend Leipold Mineralisation to 1km dated 2 July 2021 & “McTavish Delivers Bonanza Grade Gold Results up to 91.2 g/t Au” dated 8 July 2021.

The Leipold Prospect Drilling Summary

Assay results from the last drilling programme were received during the quarter for the Leipold prospect, which is now defined over nearly 1km to a vertical depth of only 130 metres, remaining open along strike to the North and at depth.

Significant results of drilling received during the quarter include:

  • 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), and

o LPRC0122 – 2 metres @ 4.7 g/t from 65 metres incl. 1 metre @ 8.4 g/t from 66 metres. Please refer to ASX Announcements “Assays up to 118 g/t Au from Leipold, Kookynie Gold Project” dated 3 May 2021 and “Strong Gold Assays Extend Leipold Mineralisation to 1km” dated 2 July 2021.

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The results highlighted above and illustrated below continue to define and expand the mineralisation observed at Leipold. 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 has commenced the resource estimation for Leipold. Below is a plane of vein long section detailing the drilling to date (Figure 3) and intercepts reported (Table 2):

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 @ 1.3g/t from 75 metres
LPRC0098 M40/22 RC 350,856 6,752,035 432 120 -60 250 92 97 5 3.8 5 metres @ 3.8g/t from 92 metres incl. 2 metres @ 6.7 from 92 metres
103 104 1 3.1 1 metre @ 3.1g/t from 103 metres
110 111 1 1.7 1 metre @ 1.7g/t from 110 metres
LPRC0099 M40/22 RC 350,876 6,752,043 432 132 -60 250 67 68 1 2.2 1 metre @ 2.2g/t from 67 metres
80 81 1 5.3 1 metre @ 5.3g/t from 80 metres
106 107 1 1.0 1 metre @ 1.0g/t from 106 metres
111 114 3 2.0 3 metres @ 2.0g/t from 111 metres
LPRC0100 M40/22 RC 350,896 6,752,050 432 143 -60 250 101 102 1 1.1 1 metre @ 1.1g/t from 101 metres
127 128 1 1.4 1 metre @ 1.4g/t from 127 metres
131 132 1 1.0 1 metre @ 1.0g/t from 131 metres
136 139 3 1.3 3 metres @ 1.3g/t from 136 metres
LPRC0101 M40/22 RC 350,858 6,752,084 432 126 -60 250 78 81 3 2.3 3 metres @ 2.3g/t from 78 metres
103 107 4 3.7 4 metres @ 3.7g/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 @ 3.7g/t from 116 metres
132 136 4 1.4 4 metres @ 1.4g/t from 132 metres
LPRC0103 M40/22 RC 350,954 6,752,049 432 191 -60 250 162 164 4 2.2 2 metres @ 2.2g/t from 162 metres
188 189 1 1.9 1 metre @ 1.9g/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 @ 1.3g/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 @ 59.9g/t from 147 metres incl. 1 metre @ 118.4 from 147 metres
151 155 4 3.7 4 metres @ 3.7g/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 @ 4.0g/t from 109 metres
113 114 1 8.6 1 metre @ 8.6g/t from 113 metres
LPRC0109 M40/22 RC 350,913 6,752,035 432 158 -60 250 128 131 3 1.7 3 metres @ 1.7g/t from 128 metres
137 140 3 4.2 3 metres @ 4.2g/t from 137 metres incl. 1 metre @ 9.4 from 137 metres

As reported in “ Assays up to 118 g/t Au from Leipold, Kookynie Gold Project ” 3 May 2021.

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MGA 94_Zone 51 South MGA 94_Zone 51 South MGA 94_Zone 51 South
Hole ID Tenement Hole Type Easting Northing RL EOH Dip Azi From (m) To (m) Down Hole
Width(m)
Grade
(Aug/t)
Comments
LPRC0110 M40/22 RC 350,917 6,752,057 432 170 -60 250 137 140 3 1.5 3 metres @ 1.5 g/t from 137 metres
142
144 2 1.1 2 metres @ 1.1 g/t from 142 metres
148 149 1 1.8 1 metre @ 1.8 g/t from 148 metres
LPRC0111 M40/22 RC 350,838 6,752,052 432 110 -60 250 83 84 1 1.1 1 metre @ 1.1 g/t from 83 metres
LPRC0112 M40/22 RC 350,899 6,752,074 432 160 -60 250 127 131 4 3.4 4 metres @ 3.4 g/t from 127 metres
134
135 1 1.3 1 metre @ 1.3 g/t from 134 metres
137 138 1 1.6 1 metre @ 1.6 g/t from 137 metres
LPRC0113 M40/22 RC 350,919 6,752,106 432 176 -60 250 134
136 2 2.1 2 metres @ 2.1 g/t from 134 metres
147
148 1 1.1 1 metre @ 1.1 g/t from 147 metres
LPRC0114 M40/22 RC 350,890 6,752,116 432 158 -60 250 133 136 3 3.3 3 metres @ 3.3 g/t from 133 metres incl. 1 metre @ 6.4 g/t from 135 metres
LPRC0115 M40/22 RC 350,865 6,752,125 432 140 -60 250 124 125 1 3.4 1 metre @ 3.4 g/t from 124 metres
LPRC0116 M40/22 RC 350,809 6,752,087 432 94 -60 250 65 69 4 1.7 4 metres @ 1.7 g/t from 65 metres
LPRC0117 M40/22 RC 350,805 6,752,146 432 102 -60 250 84 86 2 2.4 2 metres @ 2.4 g/t from 84 metres
LPRC0118 M40/22 RC 350,749 6,752,149 431 66 -60 250 35 36 1 7.4 1 metre @ 7.4 g/t from 35 metres
39
40 1 2.9 1 metre @ 2.9 g/t from 39 metres
44 45 1 1.2 1 metre @ 1.2 g/t from 44 metres
LPRC0119 M40/22 RC 350,794 6,752,188 432 118 -60 250 82 83 1 3.7 1 metre @ 3.7 g/t from 82 metres
LPRC0120 M40/22 RC 350,835 6,752,180 432 140 -60 250 No significant intersection
LPRC0121 M40/22 RC 350,874 6,752,160 432 162 -60 250 No significant intersection
LPRC0122 M40/22 RC 350,766 6,752,200 432 90 -60 250 65
67 2 4.7 2 metres @ 4.7 g/t from 65 metres incl. 1 metre @ 8.4 g/t from 66 metres
72
74 2 2.0 2 metres @ 2.0 g/t from 72 metres
LPRC0123 M40/22 RC 350,717 6,752,211 431 42 -60 250 26
32 6 1.7 6 metres @ 1.7 g/t from 26 metres
36
37 1 1.1 1 metre @ 1.1 g/t from 36 metres
LPRC0124 M40/22 RC 350,712 6,752,252 432 60 -60 250 38 39 1 1.5 1 metre @ 1.5 g/t from 38 metres
LPRC0125 M40/22 RC 350,712 6,752,273 432 60 -60 250 41 42 1 3.3 1 metre @ 3.3 g/t from 41 metres
LPRC0126 M40/22 RC 350,717 6,752,232 431 54 -60 250 30 32 2 1.4 2 metres @ 1.4 g/t from 30 metres, within 10 m @ 1.1 g/t from 30 m anomalous zone
34
36 2 2.1 2 metres @ 2.1 g/t from 34 metres, within 10 m @ 1.1 g/t from 30 m anomalous zone
38 40 2 1.6 2 metres @ 1.6 g/t from 38 metres, within 10 m @ 1.1 g/t from 30 m anomalous zone
LPRC0127 M40/22 RC 350,725 6,752,185 430 48 -60 250 No significant intersection
LPRC0128 M40/22 RC 350,963 6,752,009 432 186 -60 250 No significant intersection
LPRC0129 M40/22 RC 350,886 6,751,983 432 126 -60 250 107
108 1 1.0 1 metre @ 1.0 g/t from 107 metres
111
114 3 1.3 3 metres @ 1.3 g/t from 111 metres
LPRC0130 M40/22 RC 350,924 6,751,996 432 168 -60 250 148 149 1 2.0 2 metres @ 2.0 g/t from 148 metres
LPRC0131 M40/22 RC 350,798 6,752,240 432 120 -60 250 No significant intersection

As reported in “Strong Gold Assays Extend Leipold Mineralisation to 1km” 2 July 2021.

Table 2 – Leipold 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.

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6

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Figure 3 – Leipold Plane of Vein Long Section with recent drilling*.

*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 & Strong Gold Assays Extend Leipold Mineralisation to 1km dated 2 July 2021.

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

Summary of Cosmopolitan Gold Mine Assay Results

Seven of the 12 holes drilled at the Cosmopolitan Gold Mine during the quarter delivered significant intercepts, further highlighting the potential of this prospect. Whilst values returned are not at historical grades, it is highly encouraging to intersect the structure that hosted the historical workings continues and is mineralised.

Figure 4 below details a plane of vein long section for the Cosmopolitan drilling to date and intercepts reported in Table 3.

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Figure 4 – Cosmopolitan Gold Mine Plane of Vein Section with recent drilling*.

For Figure Two Drilling Results;*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 & “Cosmopolitan Gold Mine Drilling Results” dated 28 July 2021.

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8

MGA 94_Zone 51 South MGA 94_Zone 51 South MGA 94_Zone 51 South
Hole ID Tenement Hole
Type
Easting Northing RL EOH Dip Azi From (m) To (m) Down Hole
Width(m)
Grade
(Aug/t)
Comments
COSRC0022 M40/61 RC 354,346 6,753,970 431 240 -75 270 No significant intersection Note this exludes re-assay of COSRC0022 from Viz Au 227
to 228 m where we didget a 1.5 and a 1.2 on 2 samples
COSRC0023 M40/61 RC 354,376 6,753,930 433 234 -72 270 No significant intersection
COSRC0024 M40/61 RC 354,388 6,753,890 434 270 -70 270 No significant intersection
COSRC0025 M40/61 RC 354,386 6,753,850 433 250 -70 270 No significant intersection
COSRC0026 M40/61 RC 354,393 6,753,780 431 269 -80 270 193 194 1 5.4 1 metre @ 5.4 g/t from 193 metres
202 203 1 3.9 1 metre @ 3.9 g/t from 202 metres
COSRC0027 M40/61 RC 354,371 6,753,580 429 274 -80 270 183 184 1 4.4 1 metre @ 4.4 g/t from 183 metres
208 209 1 7.7 1 metre @ 7.7 g/t from 208 metres
COSRC0028 M40/61 RC 354,335 6,753,535 428 252 -80 270 No significant intersection
COSRC0029 M40/61 RC 354,348 6,753,515 428 232 -60 270 165 167 2 2.1 2 metres @ 2.1 g/t from 165 metres
COSRC0030 M40/61 RC 354,377 6,753,450 428 256 -70 270 182 188 6 1.4 6 metres @ 1.4 g/t from 182 metres
COSRC0031 M40/61 RC 354,377 6,753,450 428 102 -60 270 No significant intersection
COSRC0032 M40/61 RC 354,371 6,753,385 428 245 -80 270 180 182 2 1.9 2 metres @ 1.4 g/t from 182 metres
COSRC0033 M40/61 RC 354,368 6,753,345 429 275 -75 270 No significant intersection

Table 3 – Cosmopolitan Gold Mine Anomalous Drill Hole Intercepts.

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. (Please refer to ASX Announcement “Cosmopolitan Gold Mine Drilling Results” dated 28 July 2021).

The intercepts above were calculated based on a sample returning an assay value of greater than 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 1 g/t Au. Intervals were based on geology and no top cut off was applied.

Champion Prospect Drilling

The assay results returned during the quarter, illustrated below, continue to define and expand the mineralisation observed at Champion, which given the nature of the mineralisation and the drilling angle, are very close to true widths for the mineralisation observed. These very encouraging results at Champion, showing similar structures observed by the Company at McTavish and Leipold. Furthermore, the Champion prospect results to date are all near surface and remain open at depth, highlighting the increased potential of this prospect.

Figure 5 details a plane of vein long section for the Champion drilling to date and intercepts reported in Table 4.

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9

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Figure 5 – Champion Prospect Plane of Vein Section with recent drilling*.

For Figure Two Drilling Results;*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 & “Champion Delivers Consistent Grades at Significant Widths” dated 15 July 2021.

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10

MGA 94_Zone 51 South MGA 94_Zone 51 South MGA 94_Zone 51 South
Hole ID Tenement Hole Type Easting Northing RL EOH Dip Azi From (m) To (m) Down Hole
Width(m)
Grade (Au
g/t)
Comments
CPRC0016 M40/27 RC 352,213 6,757,476 413.6 114 -60 270 No significant intersection
CPRC0017 M40/27 RC 352,185 6,757,509 413.1 90 -60 270 No significant intersection
CPRC0018 M40/27 RC 352,188 6,757,534 413.7 72 -60 272 67 68 1 1.4 1 metre @ 1.4 g/t from 67 metres
CPRC0019 M40/27 RC 352,181 6,757,605 413.2 48 -60 270 22 23 1 1.1 1 metre @ 1.1 g/t from 22 metres
CPRC0020 M40/27 RC 352,222 6,757,641 413.8 84 -60 280 No significant intersection
CPRC0021 M40/27 RC 352,180 6,757,677 414.0 48 -60 270 32 33 1 1.7 1 metre @ 1.7 g/t from 32 metres
CPRC0022 M40/27 RC 352,260 6,757,601 417.1 138 -60 270 121 124 4 1.7 4 metres @ 1.7 g/t from 121 metres
126 127 1 1.1 1 metre @ 1.1 g/t from 126 metres
CPRC0023 M40/27 RC 352,237 6,757,569 418.1 114 -60 270 95 101 5 1.5 5 metres @ 1.5 g/t from 95 metres
104 108 4 3.9 4 metres @ 3.9 g/t from 104 metres incl. 2 metres @ 6.5 g/t from 105 metres
CPRC0024 M40/27 RC 352,167 6,757,516 417.7 60 -55 270 No significant intersection
CPRC0025 M40/27 RC 352,147 6,757,458 416.0 54 -60 270 42 43 1 1.1 1 metre @ 1.1 g/t from 42 metres
CPRC0026 M40/27 RC 352,242 6,757,457 414.7 150 -60 270 140 141 1 8.4 1 metre @ 8.4 g/t from 140 metres
CPRC0027 M40/27 RC 352,274 6,757,476 414.1 174 -60 270 167 168 1 1.0 1 metre @ 1.0 g/t from 167 metres
CPRC0028 M40/27 RC 352,224 6,757,530 416.6 132 -75 255 No significant intersection
CPRC0029 M40/27 RC 352,228 6,757,529 416.7 132 -80 305 No significant intersection
CPRC0030 M40/27 RC 352,236 6,757,526 417.1 156 -90 0 116 117 1 2.8 1 metre @ 2.8 g/t from 116 metres
CPRC0031 M40/27 RC 352,239 6,757,571 418.9 168 -80 305 141 143 2 2.7 2 metres @ 2.7 g/t from 141 metres
152 153 1 3.5 1 metre @ 3.5 g/t from 152 metres
CPRC0032 M40/27 RC 352,240 6,757,565 418.5 156 -80 250 No significant intersection
CPRC0033 M40/27 RC 352,251 6,757,563 419.7 180 -85 225 No significant intersection
CPRC0034 M40/27 RC 352,259 6,757,605 416.9 198 -80 220 179 180 1 3.6 1 metre @ 3.6 g/t from 179 metres
185 189 4 2.8 4 metres @ 2.8 g/t from 185 metres incl. 1 metre @ 7.2 g/t from 185 metres
CPRC0035 M40/27 RC 352,267 6,757,637 418.2 132 -60 270 117 118 5 2.1 5 metres @ 2.1 g/t from 117 metres incl. 1 metre @ 6.3 g/t from 120 metres
CPRC0036 M40/27 RC 352,261 6,757,677 417.3 126 -60 270 114 115 1 2.0 1 metre @ 2.0 g/t from 114 metres
CPRC0037 M40/27 RC 352,203 6,757,571 417.5 60 -60 270 45 48 3 2.4 3 metres @ 2.4 g/t from 45 metres
CPRC0038 M40/27 RC 352,283 6,757,481 414.5 174 -68.5 298 133 134 1 1.0 1 metre @ 1.0 g/t from 133 metres
CPRC0039 M40/27 RC 352,253 6,757,608 417.9 162 -75 270 135 139 4 1.3 4 metres @ 1.3 g/t from 135 metres
141 144 3 2.5 3 metres @ 2.5 g/t from 141 metres incl. 1 metre @ 5.6 g/t from 143 metres

Table 4 – Champion Prospect Anomalous Drill Hole Intercepts.

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. Please refer to ASX Announcement “Champion Delivers Consistent Grades at Significant Widths” dated 15 July 2021.

The intercepts above were calculated based on a sample returning an assay value of greater than 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 1 g/t Au. Intervals were based on geology and no top cut off was applied.

As detailed above, sixteen of the 24 holes drilled at Champion returned a significant intercept. The width and consistency of these significant intercepts, further enhances the prospectivity of this prospect, which remains open at depth.

Kimberley Mining Limited – Admiral Bay (circa 80.3% holding)

The Admiral Bay asset is on care and maintenance.

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11

Corporate & Financial

Off-market all scrip bid to Nex Metals shareholders

On 14 September 2021, Metalicity Limited announced a proposal to rationalise ownership of the Kookynie and Yundamindra Gold Projects into a single listed entity by making an off-market all scrip takeover bid of all of the Fully Paid Ordinary Shares in its Joint Venture (“JV”) partner, Nex Metals Exploration Limited (ASX:NME) (NEX)[3] .

The offer to NEX shareholders is 4.81 Metalicity ordinary shares for every 1 Nex Metals Share on issue, valuing NEX equity at A$12.8 million based on Metalicity’s closing share price on 13 September 2021. The offer is subject to a number of conditions as set out in the ASX announcement of 14 September 2021, titled “Metalicity Proposal to Nex Metals Shareholders”.

Metalicity believes that the successful completion of the Offer will:

  • a) accelerate project outcomes by improving the ability to fund the development of the Projects (currently there are two companies, owning the same asset, competing for the required development capital);

  • b) create size and scale benefits in the form of increased market capitalisation, enhanced share trading liquidity, and potential for stock re-rate;

  • c) lead to the removal of the Joint Venture which will provide management efficiencies, streamlining administration process and eliminating ancillary costs; and

  • d) provide cost synergy benefits by removing duplicate ASX and other listed company costs such as audit, tax, investor relations, legal, ASX listing fees and share registry costs.

Financial

Cash on hand at the end of the Quarter was $2.8 million.

Exploration and evaluation expenditure during the quarter was ~$1,025,000. Full details of exploration activity during the quarter are in this report.

All tenements held during the quarter are given in the Tenement Schedule attached including beneficial percentages held.

Payments to related parties of the Company and their associates during the quarter: $181,189. The Company advises that this relates to non-executive director’s fees and executive directors’ salaries, including superannuation, annual leave and PAYG withheld. Please see Remuneration Report in the Annual Report for further details on Directors’ remuneration.

Security Issues, Lapses and Conversions

18,994,499 Listed Options (ASX Code: MCTO), exercisable at $0.004 on or before 22 May 2022 have been converted to Shares during the quarter for $75,978.

In addition, the following Unlisted Options expired during the quarter:

  • 2,500,000 Unlisted Options (ASX Code: MCTAY) exercisable at $0.06 on or before 26 August 2021 (Sub code : MCTOP37);

  • 2,500,000 Unlisted Options (ASX Code: MCTAY) exercisable at $0.08 on or before 26 August 2021 (Sub code : MCTOP38);

  • 2,500,000 Unlisted Options (ASX Code: MCTAY) exercisable at $0.10 on or before 26 August 2021 (Sub code : MCTOP39).

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12

This Announcement is approved by the board of Metalicity Limited.

ENQUIRIES

Investors Justin Barton Finance Director & CEO +61 8 6500 0202 [email protected]

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 Persons Statement

For relevant Competent Person Statements, please refer to the announcement referenced.

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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13

Tenement Schedules:

Please Note all Kookynie and Yundamindra Tenements will be 51% MCT and 49% NME as per ASX Announcement “Metalicity Achieves Earn-In On The Kookynie & Yundamindra Gold Projects” dated 20 May 2021 with Nex Metals Explorations Ltd, ASX:NME.

Tenement Registered Holder Shares Held Plainted Status Area (ha) Nature of
Interest
Interest
Kookynie
P40/1331 KYM Mining Limited 100/100 No Live 161.2 Direct Holding 51%
E40/390 KYM Mining Limited 100/100 No Live 3,300.0 Direct Holding 51%
E40/350 KYM Mining Limited 100/100 No Live 2,394.0 Direct Holding 51%
E40/357 KYM Mining Limited 100/100 No Live 1,194.0 Direct Holding 51%
E40/401 KYM Mining Limited 100/100 No Live 598.0 Direct Holding 51%
P40/1407 KYM Mining Limited 100/100 No Live 10.0 Direct Holding 51%
P40/1430 KYM Mining Limited 100/100 No Live 9.9 Direct Holding 51%
P40/1510 Metalicity Limited 100/100 No Live 185.0 Direct Holding 51%
P40/1511 Metalicity Limited 100/100 No Live 176.7 Direct Holding 51%
E40/387 Metalicity Limited 100/100 No Live 299.0 Direct Holding 51%
G40/3 Nex Metals Explorations Limited 100/100 No Live 7.2 Earnt In 51%
L40/9 Nex Metals Explorations Limited 100/100 No Live 1.0 Earnt In 51%
E40/332 Nex Metals Explorations Limited 100/100 No Live 600.0 Earnt In 51%
M40/22 Nex Metals Explorations Limited 100/100 No Live 121.7 Earnt In 51%
M40/27 Nex Metals Explorations Limited 100/100 No Live 85.5 Earnt In 51%
M40/61 Nex Metals Explorations Limited 100/100 No Live 832.7 Earnt In 51%
M40/77 Nex Metals Explorations Limited 90,405/90,40
5
No Live 119.2 Earnt In 51%
P40/1499 Nex Metals Explorations Limited 100/100 No Live 8.3 Earnt In 51%
P40/1500 Nex Metals Explorations Limited 100/100 No Live 5.9 Earnt In 51%
P40/1501 Nex Metals Explorations Limited 100/100 No Live 21.1 Earnt In 51%
E40/289 Paris Enterprises Pty Ltd 100/100 No Live 1,222.7 Earning In 51%
Kookynie Total Area (ha) 11,352.9
Yundamindra
L39/34 Nex Metals Explorations Limited 100/100 Yes Live 1.0 Earnt In 51%
L39/52 Nex Metals Explorations Limited 96/96 Yes Live 1.0 Earnt In 51%
L39/258 Nex Metals Explorations Limited 100/100 Yes Live 3.2 Earnt In 51%
M39/84 Nex Metals Explorations Limited 100/100 Yes Live 378.0 Earnt In 51%
M39/274 Nex Metals Explorations Limited 100/100 Yes Live 230.0 Earnt In 51%
M39/406 Nex Metals Explorations Limited 100/100 Yes Live 124.0 Earnt In 51%
M39/407 Nex Metals Explorations Limited 100/100 Yes Live 896.0 Earnt In 51%
M39/408 Nex Metals Explorations Limited 100/100 Yes Live 785.0 Earnt In 51%
M39/409 Nex Metals Explorations Limited 100/100 Yes Live 966.0 Earnt In 51%

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14

Tenement Registered Holder Shares Held Plainted Status Area (ha) Nature
of
Interest
Interest
M39/410 Nex Metals Explorations Limited 100/100 Yes Live 978.0 Earnt In 51%
M39/839 Nex Metals Explorations Limited 100/100 Yes Live 7.3 Earnt In 51%
M39/840 Nex Metals Explorations Limited 100/100 Yes Live 9.7 Earnt In 51%
P39/6126 Nex Metals Explorations Limited 100/100 No Live 10.4 Earnt In 51%
P39/6127 Nex Metals Explorations Limited 100/100 No Live 5.6 Earnt In 51%
E39/1773 Paddick Investments Pty Ltd 100/100 Yes Live 903.0 Earning-in 51%
E39/1774 Paddick Investments Pty Ltd 100/100 Yes Live 2,517.0 Earning-in 51%
Yundamindra Total Area (ha) 7,815.1

Below is the full tenement Schedule for the Admiral Bay Project held by Kimberley Mining Australia Pty Ltd:

Tenement Registered Holder Status Area Nature of Interest Interest at the
beginning of Quarter
Interest at end of
Quarter
Admiral Bay
E04/1610 Kimberley Mining Australia Pty Lyd Live 42 Blocks Holding in Subsidiary 80.3% 80.3%
M04/244 Kimberley Mining Australia Pty Lyd Live 796.4 ha Holding in Subsidiary 80.3% 80.3%
M40/249 Kimberley Mining Australia PtyLyd Live 843.85 ha Holding in Subsidiary 80.3% 80.3%

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15