ARIKA RESOURCES LIMITED — Interim / Quarterly Report 2021

Apr 27, 2021

ASX RELEASE: 28 April 2021

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January to March 2021 Quarterly Activities Report

HIGHLIGHTS

• Drilling continued during the quarter at the Cosmopolitan Gold Mine, Leipold, McTavish and Champion Prospects:

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

• McTavish - 20 holes for 1,206 metres during the quarter,

• Champion - 16 holes for 1,734 metres during the quarter, &

• Cosmopolitan Gold Mine - 12 holes for 3,043 metres during the quarter.

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

  • Visible gold observed in first drill holes.[2]

• During the quarter, the Company completed a total of 89 holes for 9,465 metres.

• 83 holes pending assay from Leipold, Champion, McTavish and Cosmopolitan.

• Assays from the circa 2-kilometre-long Altona Prospect at the Kookynie Gold Project[1] delivered excellent near surface results, including:

• ALTRC0030 - 3 metres @ 14.9 g/t from 97 metres (incl. 1 metre @ 39.2 g/t Au from 97 metres)

• ALTRC0032 - 2 metres @ 5.9 g/t from 62 metres (incl. 1 metre @ 10.7 g/t Au from 62 metres)

• ALTRC0027 - 2 metres @ 4.9 g/t from 106 metres (incl. 1 metre @ 8.5 g/t Au from 107 metres)

• These highly promising drilling results confirm that high grade mineralisation continues along strike and at depth to the historic Altona Mining Centre that produced 88,700 ounces between 1900 to 1965 at an average head grade of 30 g/t Au (circa 1.5kms east from the Cosmopolitan Gold mine).

• Metalicity acquired exploration licence E40/401[3] .

CORPORATE

• Cash on hand $1.8 million.

• US Litigation dismissed.

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.

3Please refer to ASX Announcement “ Significant & Strategic Tenement Secured for the Kookynie Gold Project and Update on 2021 Assays ” dated 19th February 2021.

Metalicity Limited (ASX: MCT) (“MCT” or “Company”) is pleased to provide the Quarterly Activities Report for the period ending 31 March 2021.

Cautionary Statement Relating to Cosmopolitan and Altona Historical Production Data

The Production details for the Cosmopolitan 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

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

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

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.

Commenting on the Quarter, Metalicity Managing Director Mr Jason Livingstone said:

“ It has been yet another very busy quarter for Metalicity as we actively explore and develop the Kookynie Gold Project. Drilling continued at an accelerated rate; however, assay turnaround time is hampering our efforts in validating our interpretations of the drilling.

Nevertheless, we are progressing expeditiously with Mineral Resource definition drilling at the Leipold, McTavish and Champion Prospects to update and convert the current JORC 2004 Estimated Resources to JORC 2012.

Initial drilling at Cosmopolitan has been incredible with the first holes intersecting visible gold. That coupled with some spectacular intercepts from Altona confirms quite coarse gold is prevalent at these prospects. However, as illustrated from our announcement in December 2020 “Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project”, the variability shown in assay grades for single samples confirms a nuggety gold presence. This makes qualifying the actual gold content of a sample very difficult as the gold is not uniformly dispersed through the mineralised rock.

We are pleased with what we are observing in the drilling to date at these four prospects and look forward to presenting those results in due course. I also encourage shareholders and the market in general that if there are questions, our contact details are contained within the report and each announcement and we are more than happy to field your questions within disclosure rules.”

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 Farm-In Agreement entered into with Nex Metals Explorations whereby Metalicity is earning into these (please refer to ASX Announcement “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ” dated 6th May 2019 with Nex Metals Explorations Ltd, ASX:NME).

The Kookynie Project, which is located approximately 60 km south of Leonora is host to seven largeproducing historical mines: Champion, McTavish, Leipold, Altona, Diamantina, Cosmopolitan and Cumberland.

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2

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Figure 1 – The Kookynie Tenement Map

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Drilling Discussion The Altona Prospect

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

The drilling programme at Altona was designed to test potential mineralisation zones interpreted from detailed aerial geophysics and along strike from historical workings and currently known mineralised areas. To date, 33 RC drill holes for 3,251 metres has been completed. This is the methodical approach we have adopted in our efforts to discover and develop Mineral Resources in 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

Prospect	Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Au g/t)	Comments
Altona	ALTRC0025	E 40/332	RC	355324	6754176	430	84	-60	270	55	56	1	2.8	1 metre @ 2.8 g/t from 55 metres
										64	65	1	1.3	1 metre @ 1.3 g/t from 64 metres
	ALTRC0027			355391	6754137	430	114	-60	270	34	35	1	1.8	1 metre @ 1.8 g/t from 34 metres
										106	108	2	4.9	2 metres @ 4.9 g/t from 106 metres incl. 1 metre @ 8.5 from 107 metres
	ALTRC0030			355407	6754243	430	100	-60	270	97	100	3	14.9	3 metres @ 14.9 g/t from 97 metres incl. 1 metre @ 39.2 from 97 metres
	ALTRC0031			355389	6754370	430	72	-60	270	33	35	2	2.1	2 metres @ 2.1 g/t from 33 metres
	ALTRC0032			355426	6754349	430	102	-60	270	62	64	2	5.9	2 metres @ 5.9 g/t from 62 metres incl. 1 metre @ 10.7 from 62 metres

Kookynie Gold Project.

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.

Altona was a very prolific gold mine during its years of operation, yielding 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 east and parallel from the Cosmopolitan Gold mine), which 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.

For the Altona Prospect, the drilling demonstrates that previously identified mineralisation continues at depth and along strike. Plans were executed to continue the exploration and development programmes at Altona based on these results and observations and a further three drill holes were completed just before Christmas 2020 and at the commencement of the 2021 drilling programme. The work to date is highly encouraging with the Altona structure been intersected and the Company is expediting plans to return to Altona later in the year to continue that extensional work across the full 2-kilometre strike defined. Figure 2 illustrates the drilling to date at the Altona Prospect whereby approximately 400 metres of the 2-kilometre strike length has been assessed:

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Figure 2 – Altona Collar Plot with recent drilling*.

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

Drilling this quarter

The Company has completed during the quarter and up until the quarterly report date:

• Leipold – 35 holes for 4,545 metres,

• McTavish - 20 holes for 1,206 metres,

• Champion - 16 holes for 1,734 metres, &

• Cosmopolitan Gold Mine - 12 holes for 3,043 metres.

The Company has prioritised our drilling efforts to areas where an updated Mineral Resource Estimate is required. In January 2021, the Company engaged an external mineral resource estimation consultant to review our drilling to date and interrogate our interpretations. An initial review confirmed that our drilling is effective to state an updated Mineral Resource Estimate and provided us an opportunity to significantly expand our known mineralisation envelopes. As we receive results, verify quality control and geological aspects of the results, we will update the market accordingly.

Tenement Application and Ballot Results

Through our monitoring of competitor activity within the Kookynie area, the Company utilised the Department of Mines, Industry Regulation and Safety tenement application process to acquire E40/401.

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Whilst there were competing applications, the Company was successful in the ballot process and has won the right to be first in time to apply and subsequently be granted the tenement.

The setting of this tenement highlights that it is 2 kilometres along strike from the prolific Desdemona Mining Camp please see Figure 1.

The Desdemona Mining Camp is made up of several MINEDEX noted gold production sites and sits 2 kilometres south, along strike from our recent successful acquisition of E40/401. Desdemona (MINEDEX Site ID S0012701) between 1897 and 1936 produced 6418 tonnes @ 28.55 g/t Au, Harriet (MINEDEX Site ID S0012744) between 1909 to 1910 produced 318 tonnes @ 13.68 g/t Au, Rising Sun (MINEDEX Site ID S00128856) in 1907 produced 250 tonnes @ 19.89 g/t Au, and Othello (MINEDEX Site ID S0012827 between 1907 to 1910 produced 1,465 tonnes @ 13.07 g/t Au.

Cautionary Statement Relating to Desdemona Mining Camp Historical Production Data

The Production details for the Desdemona Mining Camp area 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.

With the acquisition of this strategic and highly prospective tenement, the Company has increased its presence within the region and now commands a prominent land holding. The regional geophysics illustrate similar signatures to the prolific and well-endowed Ulysses Trend, which is host to significant gold mineralisation, specifically the Desdemona Mine some 2 kilometres south of the tenement E40/401.

To date, all of Metalicity’s acquisitions and tenement application activities contribute towards the $5 million required to earn 51% of the original farm-in agreement with Nex Metals (please refer to ASX Announcement “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ” dated 6th May 2019).

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

The Admiral Bay asset is on care and maintenance.

Corporate & Financial

Cash on hand at the end of the Quarter was $1.8 million.

Exploration and evaluation expenditure during the quarter was $940,782. Full details of exploration activity during the quarter are in this report.

There were no substantive mining production and or development activities during the quarter.

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

Payments to related parties of the Company and their associates during the quarter: $142,384. The Company advises that this relates to non-executive director’s fees and executive directors’ salaries, including superannuation and PAYG withheld. Please see Remuneration Report in the Annual Report for further details on Directors’ remuneration.

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Security Issues, Lapses and Conversions

• 22,866,481 Listed Options (ASX Code: MCTO), exercisable at $0.004 on or before 22 May 2022 have been converted to Shares during the quarter for $91,466.

• 3,000,000 Unlisted Options (ASX Code: MCTAY) exercisable at $0.06 (Sub code: MCTOP36) lapsed during the quarter.

• 3,000,000 Unlisted Options (ASX Code: MCTAY) exercisable at $0.08 (Sub code: MCTOP35) lapsed during the quarter.

US Litigation

On the 29[th] of January and the 9th of February 2021, the Company updated the market with regards to the US Litigation. The Company was pleased to announce that the proceedings brought against the Company in the United States District Court of Minnesota have been dismissed by the Court. The Court made orders dismissing the proceedings on 5[th] February 2021, following the filing of a Voluntary Dismissal of Action by the plaintiff seeking to withdraw the proceedings.

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 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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Tenement Schedules:

*Tenement Schedule under the Farm in Agreement, please refer to ASX Announcement “ Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA ” dated 6th May 2019, however, to date, the below tenement schedule is subject to the farm-in agreement:

Tenement	Registered Holder	Shares Held	**Plainted **	**Plainted **	**Status **	Area (ha)	Nature of Interest	Interest at the beginning ofQuarter	Interest at end ofQuarter
				Kookynie
P40/1331	KYM MiningLimited	100/100	No		Live	161.2	Direct Holding	100%	100%
E40/390	KYM MiningLimited	100/100	No		Live	3,300.0	Direct Holding	100%	100%
E40/350	KYM MiningLimited	100/100	No		Live	2,394.0	Direct Holding	100%	100%
E40/357	KYM MiningLimited	100/100	No		Live	1,194.0	Direct Holding	100%	100%
E40/401	KYM MiningLimited	100/100	No		Live	598.0	Direct Holding	100%	100%
P40/1407	KYM MiningLimited	100/100	No		Live	10.0	Direct Holding	100%	100%
P40/1430	KYM MiningLimited	100/100	No		Live	9.9	Direct Holding	100%	100%
P40/1510	MetalicityLimited	100/100	No		Live	185.0	Direct Holding	100%	100%
P40/1511	MetalicityLimited	100/100	No		Live	176.7	Direct Holding	100%	100%
E40/387	MetalicityLimited	100/100	No		Live	299.0	Direct Holding	100%	100%
G40/3	Nex Metals Explorations Limited	100/100	No		Live	7.2	*Earningin	0%	0%
L40/9	Nex Metals Explorations Limited	100/100	No		Live	1.0	*Earningin	0%	0%
E40/332	Nex Metals Explorations Limited	100/100	No		Live	600.0	*Earningin	0%	0%
M40/22	Nex Metals Explorations Limited	100/100	No		Live	121.7	*Earningin	0%	0%
M40/27	Nex Metals Explorations Limited	100/100	No		Live	85.5	*Earningin	0%	0%
M40/61	Nex Metals Explorations Limited	100/100	No		Live	832.7	*Earningin	0%	0%
M40/77	Nex Metals Explorations Limited	90,405/90,405	No		Live	119.2	*Earningin	0%	0%
P40/1499	Nex Metals Explorations Limited	100/100	No		Live	8.3	*Earningin	0%	0%
P40/1500	Nex Metals Explorations Limited	100/100	No		Live	5.9	*Earningin	0%	0%
P40/1501	Nex Metals Explorations Limited	100/100	No		Live	21.1	*Earningin	0%	0%
E40/289	Paris Enterprises PtyLtd	100/100	No		Live	1,222.7	*Earningin	0%	0%
	Kookynie Total Area(ha)					11,352.9
			Yundamindra
L39/34	Nex Metals Explorations Limited	100/100	Yes		Live	1.0	*Earningin	0%	0%
L39/52	Nex Metals Explorations Limited	96/96	Yes		Live	1.0	*Earningin	0%	0%
L39/258	Nex Metals Explorations Limited	100/100	Yes		Live	3.2	*Earningin	0%	0%
M39/84	Nex Metals Explorations Limited	100/100	Yes		Live	378.0	*Earningin	0%	0%
M39/274	Nex Metals Explorations Limited	100/100	Yes		Live	230.0	*Earningin	0%	0%
M39/406	Nex Metals Explorations Limited	100/100	Yes		Live	124.0	*Earningin	0%	0%
M39/407	Nex Metals Explorations Limited	100/100	Yes		Live	896.0	*Earningin	0%	0%
M39/408	Nex Metals Explorations Limited	100/100	Yes		Live	785.0	*Earningin	0%	0%
M39/409	Nex Metals Explorations Limited	100/100	Yes		Live	966.0	*Earningin	0%	0%
M39/410	Nex Metals Explorations Limited	100/100	Yes		Live	978.0	*Earningin	0%	0%
M39/839	Nex Metals Explorations Limited	100/100	Yes		Live	7.3	*Earningin	0%	0%
M39/840	Nex Metals Explorations Limited	100/100	Yes		Live	9.7	*Earningin	0%	0%
P39/6126	Nex Metals Explorations Limited	100/100	No		Live	10.4	*Earningin	0%	0%
P39/6127	Nex Metals Explorations Limited	100/100	No		Live	5.6	*Earningin	0%	0%
E39/1773	Paddick Investments PtyLtd	100/100	Yes		Live	903.0	*Earningin	0%	0%
E39/1774	Paddick Investments PtyLtd	100/100	Yes		Live	2,517.0	*Earningin	0%	0%
	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 ofQuarter	Interest at end of Quarter
Admiral Bay
E04/1610	KimberleyMiningAustralia PtyLyd	Live	42 Blocks	Holdingin Subsidiary	80.3%	80.3%
M04/244	KimberleyMiningAustralia PtyLyd	Live	796.4 ha	Holdingin Subsidiary	80.3%	80.3%
M40/249	KimberleyMiningAustralia PtyLyd	Live	843.85 ha	Holdingin Subsidiary	80.3%	80.3%

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Appendix Two – Full Quarters Significant Intercept List:

Prospect	Hole ID	Tenement	Hole Type	Easting	Northing	RL	EOH	Dip	Azi	From (m)	To (m)	Down Hole Width(m)	Grade (Au g/t)	Comments
Altona	ALTRC0025	E 40/332	RC	355324	6754176	430	84	-60	270	55	56	1	2.8	1 metre @ 2.8 g/t from 55 metres
										64	65	1	1.3	1 metre @ 1.3 g/t from 64 metres
	ALTRC0026			355359	6754156	430	108	-60	270	No significant intersection
	ALTRC0027			355391	6754137	430	114	-60	270	34	35	1	1.8	1 metre @ 1.8 g/t from 34 metres
										106	108	2	4.9	2 metres @ 4.9 g/t from 106 metres incl. 1 metre @ 8.5 from 107 metres
	ALTRC0028			355339	6754282	430	102	-60	270	No significant intersection
	ALTRC0029			355373	6754264	430	96	-60	270	No significant intersection
	ALTRC0030			355407	6754243	430	100	-60	270	97	100	3	14.9	3 metres @ 14.9 g/t from 97 metres incl. 1 metre @ 39.2 from 97 metres
	ALTRC0031			355389	6754370	430	72	-60	270	33	35	2	2.1	2 metres @ 2.1 g/t from 33 metres
	ALTRC0032			355426	6754349	430	102	-60	270	62	64	2	5.9	2 metres @ 5.9 g/t from 62 metres incl. 1 metre @ 10.7 from 62 metres
	ALTRC0033			355458	6754330	430	91	-60	270	No significant intersection

Collar & Intercept Information:

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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