Metalicity Limited announced that China Non-Ferrous Metals (NFC) have formally notified the company of the successful completion of a detailed review (Review) of the technical and financial parameters of the Admiral Bay Zinc Project PFS Stage 1 report supporting the Memorandum of Understanding ("MOU") signed with the NFC holding company CNFC for the feasibility, development and financing of Admiral Bay. CNFC is the major engineering and equipment arm of NFC in the resources and mining sector and has established markets in the Middle East, Central and North Asia, Central and South Africa, and is seeking further projects related to resources in developed resources and mining markets such as Australia. CNFC is an organization with a strong track record in supporting the development of large, long life projects, including Mehdiabad, Citronen, Talla Hamza and other projects in Northern China including the "City of Zinc". NFC has entered the Shenzen 100 Stock Index and Shanghai-Shenzen 300 Composite Index. The Review is a key term of the MOU between the Companies and a strong endorsement of the technical and financial parameters of the Admiral Zinc Project PFS Stage 1 report, establishing a framework for the Project Study at the completion of the PFS, incorporating NFC EPC costings. The Project Study is anticipated to significantly reduce overall capital and operating costs, reduce long lead items times, accelerate development timelines and overall economics, and in turn support a binding agreement regarding the feasibility, development and financing of Admiral Bay. Key Terms of the MOU with CNFCMN The terms of the MOU which will be the basis for progressing a binding and formal funding, joint venture or other financial agreement with CNFC for Admiral Bay are: 1. Assist the Pre-Feasibility Study (PFS) including a detailed review of the technical and financial parameters of the PFS Stage 1; 2. Prepare a project study report in compliance with the financing requirements of Chinese banks; 3. Incorporate equipment and construction costs via CNFC for the PFS; 4. Work with Metalicity in securing Chinese project financing for the feasibility, development and construction of the Admiral Bay Zinc Project; 5. Outline the broad terms of product specifications and Off-take arrangements with Chinese smelters.