Metalicity Limited www.metalicity.com.au ASX Code: MCT 6 Outram Street ABN: 92 086 839 992 West Perth WA 6005

ASX RELEASE: 12 February 2019

Comprehensive Review of Paterson Province Geology

Highlights:

• Metalicity uses advanced technologies to undertake comprehensive review of Paterson Province

• Western and eastern extensions of the Mandora and Desert Queen projects interpreted as highly-prospective for copper mineralisation at depths potentially amenable to modern exploration techniques

• Metalicity to continue to progress its projects as ELAs progressed

The Paterson Province is an underexplored stretch of geology in Western Australia’s Pilbara region which hosts several major mineral deposits, including the Telfer copper-gold mine and Nifty copper-lead-zine mine. Interest in the Paterson Province has grown in prominence in recent years, with a number of new copper discoveries emerging from the region, promoting accelerated exploration.

The Company’s ELAs in the Paterson Province cover approximately 2,166 km2 (refer Figure 1), with both the Mandora and the Desert Queen copper projects identified by the geological review as areas of interest and suitable for further exploration.

Metalicity has undertaken an extensive geological review of the Paterson Province confirming its Exploration License Applications (ELAs) contain prospective locations for copper and base metal mineralisation.

The review, which was conducted by the Company’s consultants Corporate Geoscience Group (CGSG), assessed the geological makeup of the North West Paterson Orogen to identify structural controls, as well as depths of surface cover over potential mineralised areas.

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Figure 1 North West Paterson Province tenements

Figure 2 ELA and structural interpretation

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The Mandora Project straddles the Samphire graben (see Figure 3), a post Proterozoic sedimentary basin bounded by deep crustal faults on the eastern Waukarlycarly fault and western Camel-Tabletop. Whilst the central graben has very deep cover, shallower cover is interpreted adjacent to the bounding faults.

Figure 3 Mandora Project detailed interpretation

The bounding faults are interpreted from seismic sections to be very deep, tapping crust or even mantle sources and are likely conduits for mineralised fluids. Shallower cover suggests modern exploration techniques maybe successful in identifying mineralised targets. Shallower cover generally translates to cheaper, faster and more effective exploration. A schematic section shows the Company’s interpretation based on the seismic and geological data (see Figure 4).

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Figure 4 Mandora Project interpreted section

The Company’s consultants have interpreted the Waukarlycarly fault to be a control on the location of Rio Tinto’s Winu prospect, which is anticipated to host a large-scale copper deposit. This graben margin structure can be traced over approximately 200km.

The Company is particularly encouraged by the junction of the Waukarlycarly fault and a sub parallel fault in the eastern Mandora project (Figure 3) and northeast structures evident in the deep residual gravity data. The interpretation of shallower cover combined with the structural complexity of Waukarlycarly fault make the Mandora Eastern Target a priority zone for further exploration.

The Desert Queen project has also been identified as an area of significance, with the tenement similarly straddling the Waukarlycarly embayment – a southern extension of the Samphire graben. The southern extension of the Camel-Tabletop fault zone cover is again interpreted to be shallower to the east and west of the embayment.

Commenting on the report, Metalicity CEO and Executive Director Mr Mathew Longworth said:

“The report into the Paterson Province geology is encouraging as Metalicity continues to increase its understanding of the region, which continues to grow in stature for copper mineralisation.

“The analysis of Mandora and Desert Queen continues to build our confidence in these projects, which are considered prime assets based on their exciting geology.

“The Company’s consultants have utilised highly-advanced geophysical filtering and algorithm-driven structure detection modelling to assess publicly available data sets, which include magnetics, gravity, Airborne Electro Magnetics and Shuttle Radar Topography Mission (SRTM) DEM data.

“Adding to our confidence, the data processing techniques have involved sophisticated artificial intelligence and machine learning technologies to process the large volumes of data,” he said.

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Metalicity is an early adopter of new data, with the latest review including information derived from the Geological Survey of Western Australia’s 2017 SEEBASE project, which covers the Canning Basin and adjacent Paterson Province.

While the SEEBASE interpretation project was primarily developed for the oil and gas industry, the Company’s consultants used technology to manipulate the data and gain a new understanding of the Province for metals prospecting.

Metalicity will continue to evaluate its Paterson Province ELAs, identifying the following upcoming milestones:

• Progress of tenements to grant, including native title; • Review of work completed and refining target interpretations, depth of cover models

and potentially direct exploration targets; • Prioritisation of exploration targets and development of potential work programmes,

involving one or more airborne or ground geophysics surveys, continued data interpretation or drilling; and

• Monitoring ground for pegging and acquisition.

The Company has received interest in the tenements from several parties. This interest is informal in nature and shareholders should note that there is no guarantee that this interest will lead to a formal transaction.

Competent Person Statement The information in this report that relates to Exploration results is based on information compiled by Mathew Longworth, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy. Mr Longworth is a Director of the Company. Mr Longworth has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the type of activity being undertaken to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Longworth consents to the inclusion in the report of the information in this announcement in the form and context in which it appears.

ENQUIRIES

Investors Investor Relations

Mat Longworth David Tasker/ Colin Jacoby CEO Chapter One Advisors +61 8 9324 1053 +61 433 112 936/ +61 439 980 359 mlongworth@metalicity.com.au david.tasker@chapteroneavisors.com.au

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