ASX RELEASE: 28th April 2022

Kookynie Gold Project Drilling Update

  • 9,000m extensional aircore and RC drilling programme at the Leipold, McTavish and Champion deposits now complete

  • Initial programme designed to test several exciting new targets and potential substantial extensions to known mineralisation identified across a significant area within the Leipold-McTavish-Champion gold mineralisation trend - over a combined potential strike length of circa 3kms

  • Programme now expanded to also target high priority regional prospects Mulga Plum2 and Wandin3 drilling expected to commence here imminently pending approval of submitted POW's

  • The diamond drilling at the Leipold and McTavish Deposits within the Kookynie Gold Project1 hit structural intersections at depth with assays presented within this announcement

  • This significant extension to the Leipold and McTavish host structures confidently and consistently confirmed intersections at a vertical depth of up to 270 metres (down dip length at Leipold of ~380 metres), providing significant encouragement for follow up drilling at both these prospects, which remaining open at depth and along extension

  • Assay results from the current 9,000m pending, with first results expected in the next 2-4 weeks

Metalicity Limited (ASX: MCT) ("MCT" or "Company") is pleased to announce the initial 9,000m RC and Aircore drilling programme at the Kookynie Gold Project has been completed. This Initial program was designed to test several exciting new targets and potential substantial extensions to known mineralisation that has now been identified across a significant area within the Leipold-McTavish-Champion gold mineralisation trend over a combined potential strike length of circa 3kms.

Metalicity is encouraged by the intersection of key structures along the known trends and also the potential extensions into the Company's ground of intersections drilled by Carnavale Resources (ASX: CAV) on our tenement border (CAV recent drilling discovery: 16m @ 20.92 g/t Au)7. These results appear to include outlying extensions of the Leipold and McTavish structures, where mineralisation trends are constrained to a certain extent by the tenement boundary.

As mentioned in previous announcements last week, the programme will now be significantly expanded to target to key regional Prospects in Mulga Plum and Wandin. Mulga Plum and Wandin are highly prospective and significantly underexplored tenure which could result in a significant step change to the prospective size of the gold footprint of this project. The Mulga Plum programme will follow up significant intercepts from previous programmes4,5 and the Wandin programme will include testing of highly anomalous targets analogous to those that host the highly prospective Niagara Gold Mining Centre6.

Diamond Drilling results from the Leipold and McTavish Prospects have confirmed the extension of the structural intersections at a vertical depth of up to ~270 metres (~380 metres down dip length) at Leipold.

1Please refer to ASX Announcement "Metalicity Achieves Earn-In On The Kookynie & Yundamindra Gold Projects" dated 20th May 2021 with Nex Metals Explorations Ltd, ASX:NME.

2Please refer to ASX Announcements "Current Drilling Programme at Kookynie significantly Expanded" dated 20/04/2022

3Please refer to ASX Announcement "Major New Structure Identified, Drilling Further Expanded" dated 22/04/2022.

4Please refer to ASX Announcement "Metalicity Continues To Consolidate The Area Around The Kookynie Gold Project" dated 23 November 2020.

5Please refer to ASX Announcement "Current Drilling Programme at Kookynie Significantly Expanded" dated 20 April 2022.

6Please refer to ASX Announcement "Major New Structure Identified, Drilling Further Expanded" dated 22 April 2022.

7Referenced from Carnavale Resources Ltd RC drilling intersects Bonanza Gold at Kookynie Gold Project announcement 18 Jan 2022.

Metalicity Limited

www.metalicity.com.au

ASX Code: MCT

Unit B2, 20 Tarlton Crescent

ABN: 92 086 839 992

Perth Airport WA 6105

Metalicity CEO, Justin Barton said:

"We have expeditiously completed the first 9,000m of extensional and new target drilling within the Kookynie Gold Project and we are excited about what visually looks like the continuation of the ore body in the pending assays which should start to come through in the next 2-4 weeks. We are now expanding this programme to the exciting Mulga Plum and Wandin Prospects where there are some excellent intersections, but only minimal drilling - we think there is potential to add a lot of ounces to the Resource in these areas.

The confirmation of the structural intersections at significant depths at the Leipold and McTavish prospects is also very encouraging, and we will head back there shortly to zone in on the mineralisation. Both prospects remain open at depth and along strike and these diamond drilling results highlight the significant potential of this area and has provide the exploration team with some highly anticipated key follow-up targets at depth. The team and Metalicity continue to push to generate value to shareholders by testing the bounds of our gold foot print in this area and performing systematic drilling to illustrate the significant value and very prospective nature of this Project."

Leipold and McTavish Diamond Drillhole Assay Results

The results confirm the southerly plunging nature of these orebodies that is analogous with many other prospects within the Kookynie area and the Leipold deposit remains open at depth indicating there is still significant potential with this orebody (Figures 1 2, and 3). The next step will be to zone in on the mineralised component with follow up drilling to properly test the down plunge component to these highly variable gold orebodies.

Table 1 below details the significant intercepts recently received from the diamond drilling component of the drilling programme. Assay results were significantly delayed due to longer than expected laboratory turn around times and transport logistics.

Table 1 - Leipold and McTavish Deposit 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.

The intercepts above were calculated based on a sample returning an assay value of greater than 0.5 g/t Au over an interval greater than 2 metre, but not including any more than 2 metres of internal material that graded less than 0.5 g/t Au. Intervals were based on geology and no top cut off was applied.

The Company regards the assay results for LPRD0001 to LPRD0005 and MCTRD0001 and MCTRD0002 are not typical of previous drilling results. However, the diamond drillholes are characteristic of the highly variable nature of these orebodies whilst also assisting in definition and confirmation of zones within the Leipold and McTavish mineralisation envelopes. Each of the seven drillholes consistently intersected the host shear structure close to the expected downhole depths as noted by the recorded presence of significant quartz zones with intense alteration, laminations and presence of sulphides indicative of the host structure elsewhere in the Leipold and McTavish (Figure 2).

These results highlight the need to keep targeting the extensive and prospective host structure whilst further defining the resources of Leipold, McTavish and Champion deposits in Metalicity's Kookynie Gold Project.

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Figure 1. Leipold plane of vein long-section with Mineral Resource Estimate outline.8

8Please refer to ASX Announcement "Kookynie Maiden JORC 2012 Mineral Resource Estimate" dated 1st April 2022.

3

Figure 2. McTavish plane pof vein long-section with Mineral Resource Estimate outline. 9

9Please refer to ASX Announcement "Kookynie Maiden JORC 2012 Mineral Resource Estimate" dated 1st April 2022.

4

Figure 3 - Leipold Prospect Core Photos (LPRD0003).

Please refer to ASX Announcement "Second Diamond Hole at Leipold May Extend Mineralisation Down Dip a Further 100m" dated 23rd November 2021

Next Steps

Drilling will commence at the Mulga Plum and Wandin prospects imminently pending approval of the POW's which have already been submitted to the department. The Company is also working towards developing a follow up drilling programme to further test the host structure, the southerly plunging mineralisation trend and peripheral high-grade results to help further define the geometry and extents of the Leipold and McTavish orebodies.

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Metalicity Limited published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 03:43:04 UTC.