ARIKA RESOURCES LIMITED — Regulatory Filings 2021

Feb 3, 2021

Address: 45 Guthrie St Osborne Park, WA, 6017 Postal: PO Box 6731 East Perth, WA, 6892, Australia Phone: 61 8 9221 6813 Fax: 61 8 9221 3091 Email: admin@nexmetals.com ABN: 63 124 706 449

4 February 2021

The Company Announcements Officer The Australian Securities Exchange Level 40, 152-158 St Georges Terrace Perth WA 6000

Visible Gold at Cosmopolitan Prospect Drilling

Nex Metals Explorations Ltd (Nex or the Company) is pleased to attach an announcement by Metalicity Ltd (ASX: MCT) our Joint Venture Partner (refer to ASX announcement dated 6 May 2019) with respect to Visible Gold at the first drill hole north of Cosmopolitan Gold Mine as part of their recently commenced drill campaign.

Please note the attached announcement forms part of this announcement and should be read in its entirety.

This announcement is approved by authority of the Managing Director, Kenneth Allen.

Yours Faithfully

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Kenneth M Allen

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ASX RELEASE: 4 February 2021

First Hole Intersects Visible Gold at the Cosmopolitan Prospect, 100m North of Historic Cosmopolitan Gold Mine

DRILLING HIGHLIGHTS

• Drilling has re-commenced at the high-grade Kookynie Gold Project[1] in WA, circa 60 kms south of Leonora, with two RC rigs operating.

• Visible gold has been intersected in the first hole at the high priority Cosmopolitan Prospect, circa 100 metres to the north of the historic high-grade Cosmopolitan mine workings and indicating possible extensions to the high-grade mineralisation.

• The Cosmopolitan mine produced 360,000oz at a very high average head grade of 15 grams per tonne (g/t)[3]

• These are the first holes drilled by Metalicity in and around the Cosmopolitan Gold mine to test extensions, with visible gold[2] observed in RC Drill Chips over a 3-metre interval from 228 metre depth interpreted to be consistent with the overall Cosmopolitan Gold Mine mineralisation.

• More holes are underway at Cosmopolitan to test the extensions of the mineralisation with assays to follow.

• Drilling also underway at Leipold to test the down plunge mineralised trends and is progressing well.

Metalicity Limited (ASX: MCT) (“ MCT ” or “ Company ”) is pleased to announce that drilling has recommenced at the Kookynie Gold Project (“ Kookynie ”). Two drill rigs are currently operating at the Leipold Prospect and the Cosmopolitan Gold Mine.

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.

The Visible Gold

The Company has commenced drilling at both the Cosmopolitan Gold Mine and at the Leipold Prospect. The first hole executed at the Cosmopolitan Gold Mine, targeting the northern strike extent and down plunge aspects of the Cosmopolitan-Cumberland area has returned an interval with visible gold present, (please see photograph 1 on page two of this announcement).

The Company regards this as incredibly exciting and demonstrates that the potential of the Cosmopolitan Gold Mine to host significant mineralisation in and around historical workings to be initially validated by this intercept. Further details of the drilling programme rationale are in the subsequent sections.

1Please refer to ASX Announcement “Metalicity Farms Into Prolific Kookynie & Yundamindra Gold Projects, WA” dated 6 May 2019.

2Assays results are pending.

3Cautionary 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.

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

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

“What a phenomenal way to start the years’ exploration. Visible gold in RC chips is always an exciting development in a drilling programme, however, we await assays to truly quantify the actual gold content.

“The current back log of samples is scheduled to be delivered to us early next week. The assays pending will assist us in understanding the regional prospects of Orient Well East, Cosmopolitan North, Leipold North and extensional work around McTavish. The drilling in those areas to date has been invaluable in understanding the regional framework of the Kookynie Gold Project and geological observations to date have assisted in aiding the interpretation of the drone magnetic survey and where to focus our efforts moving forward in the efforts of a material discovery.”

“Nevertheless, the assays will be released in due course, but the start we have observed for the 2021 drilling programme is simply magnificent in being able to target areas of the Cosmopolitan Gold Mine that have not been developed and returned samples with visible gold.”

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Photograph 1 – Visible gold from interval 227-228 metres in COSRC0023 at the Cosmopolitan Gold Mine.

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Planned Drilling Programmes:

The current programme at the Kookynie Gold Project (Figure 1 below) is designed to follow up on the phenomenal drill hole results to date through step out and infill drilling at the Leipold Prospect, and to finally start assessing the prolific Cosmopolitan Gold Mine. Below (Figures 2 and 3 below) is a series of drill hole, plane of vein long sections that illustrate the recent and historical drilling pierce points, with anticipated pierce points from this initial phase of follow up drilling. Along with this is a discussion detailing the significance of the observations to date at each of the Prospects.

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Figure 1 – Kookynie Prospect Locality Map with mineralised trends.

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The Cosmopolitan Gold Mine - DCC Trend

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Figure 2 – The DCC Trend Plane of Vein Section with recent drilling*.

The Company has completed its first Reverse Circulation (RC) drill hole to date at the DCC Trend. This area has seen an incredible amount of historical production of circa 360koz at an average head grade of the life of this mine from 1896 to 1922 of 15 g/t Au. As illustrated from the long section, very little effective exploration has been completed at this historical mine that intersected the structure hosting the Cosmopolitan Gold Mine.

Therefore, to assess our “Exploration Target” published on the 23 May 2019, we interpreted that the historical mine is still host to significant remnant mineralisation in extensive unmined sections within the historical mine, but also along strike and down plunge. This programme is designed to test unmined sections of the Cosmopolitan Gold Mine and step out from known mineralisation. This first hole is a step out from the observed development and has returned visible gold as illustrated in photograph 1 above.

Our drilling programme has been guided initially by historical drilling, but also the historical channel samples taken in 1905. The historical channel samples illustrated the incredibly high-grade nature of the Cosmopolitan Gold Mine mineralisation with*:

• Of the 2,438 sample points presented: o 110 returned assays above 100 g/t Au o 444 returned assays above 50 g/t Au. o 1,046 returned assays above 20 g/t Au

With specific samples returning:

• 3.2m @ 428.6 g/t Au

• 2.2m @ 433.2 g/t Au

• 2.0m @ 330.6 g/t Au

• 2.2m @ 220.4 g/t Au

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• 2.0m @ 220.4 g/t Au

• 2.1m @ 217.4 g/t Au

• 2.1m @ 214.3 g/t Au

*Please refer to ASX Announcement “Extremely High-Grade Gold From Historical Underground Sampling At The Cosmopolitan Gold Mine” dated 9 June 2020. The Geological Survey of Western Australia records shows the development of the Cosmopolitan Gold Mine at 1905, including channel sampling noted as being completed in 1905, on paper maps. 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.

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.

As the Company progresses this drilling programme, we expect to gain an understanding of the tenure of mineralisation present, and extents of remnant mineralisation observed in historical maps. Please note, the analytical method that will need to be employed to analyse these samples is screen fire assay which is traditionally a longer process. We are also taking the samples from this interval in triplicate. That is to ensure that the gold content observed is verified expeditiously. Therefore, two samples will be submitted to one laboratory for analysis, then the third to an alternate laboratory utilising the same methodology to ensure we understand and are able to articulate any potential variance in gold grades returned.

The Leipold Prospect

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Figure 3 – Leipold Plane of Vein Section with planned pierce points from the current drilling.

The Company has previously confirmed and stepped out from the mineralisation observed at Leipold, with further step out drilling justified based on the exploration to date as shown in Figure 3. As announced on the 22 December 2020 in “ Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project ” the Company drilled three holes for sample to conduct pilot metallurgical test work. The results of two of those holes were:

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• LPRC0094 - 10 metres @ 2.28 g/t Au from 29 metres,

• inc. 1 metre @ 10.94 g/t from 34 metres,

• LPRC0095 - 13 metres @ 2.77 g/t Au from 23 metres,

• inc. 1 metre @ 16.86 g/t Au from 34 metres.

This follow up programme is designed to test the relatively shallow, down plunge extents of the Leipold Prospect ahead of commencing a mineral resource estimate.

Summary:

Whilst the presence of visible gold in the first drill hole at Cosmopolitan is incredibly exciting, we cannot predict the actual assay results. That is why the Company has taken three sets of samples per interval to ensure our quality control measures are sound and provide us with the best data to announce when available. This interval appears to be highly mineralised with the presence of visible gold, therefore the need to adequately qualify the gold grade is imperative.

Nevertheless, the Company has returned to site with two drill rigs targeting the Leipold Prospect and Cosmopolitan Gold Mine and continuing with our work. The balance of the 2020 drilling programme is still pending as we await assays and conduct quality control measures. The 2020 programme has provided incredible information about more regional prospects and how they fit into the overall geological architecture of the Kookynie Gold Project.

With the balance of the 2020 drilling programme pending, and initial drilling observations incredibly favourable, we anticipate an incredibly busy start to the 2021 campaign whilst we work with the laboratories to address turnaround times on assays.

This Announcement is approved by Jason Livingstone, Managing Director & CEO of Metalicity Limited.

ENQUIRIES

Jason Livingstone Managing Director & CEO +61 (0)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.

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.

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 will be submitted for analysis, no compositing has taken 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.

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Drill sample recovery	● Method of recording and assessing core and chip sample recoveries and results assessed. ● Measures taken to maximise sample 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.	● RC drilling sample recovery was excellent. ● At this stage we cannot establish if there is a relationship displayed between recovery and grade nor loss/gain of fine/course material – announcement is about geological observations of visible gold.
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	● The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is	● Fire assay has been selected for RC samples. The methodology employed in these analytical procedures are industry standard with appropriate checks and balances throughout

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and laboratory tests	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 checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	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 (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. But as discussed, the samples described within the visible gold zone have been sampled in triplicate, with the duplicate submitted to one laboratory, and the third check sample to be submitted to an alternate laboratory utilising the same alaysis. ● 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 as assay data is not available at this point in time, nor will it be adjusted.
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.

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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 structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	● All drilling is or close to 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.
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.
ection 2: Reportingof 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	● Please refer to the map in the body of the announcement to where the drill holes were completed. The drill hole was completed within tenement M40/61. ● 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

Section 2: Reporting of Exploration Results

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	the time of reporting along with any known impediments to obtaining a licence to operate in the area.	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 Cosmopolitan Area has been subjected to many phases of Exploration commencing with the discovery of gold in 1897. 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 establishing the location of 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

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		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 refer to the body of the announcement.
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.	● No intercepts are being discussed, just geological observations of visible gold in RC drill chips. ● No metal equivalents are discussed or reported.
Relationship between	● These relationships are particularly important in the reporting of	● Given the shallow dipping nature (approximately -45° on average)of the mineralisation observed

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mineralisation widths and intercept lengths	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’).	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.	● No assay results have been published in this announcement. Visible gold is discussed in the body of the announcement with caveats that assays are pending and an extensive QAQC protocol put in place to qualify the gold content..
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; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	● 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 the planned drilling will be required to ensure 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

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• 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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