Metalicity Limited announced that the Company has completed its second significant exploration programme at its newly acquired 100% owned Mt Surprise Lithium Project (EPM 28052) located circa 57km northeast of the town of Mt Surprise and 165 km west of the major centre of Cairns. The Company's exploration team completed extensive soil sampling across a number of priority targets last week which have highlighted the prospectivity of the Project and further potential target areas. Recent field work by the Company in the area returned outstanding high grade rock chips from outcropping gossans up to 11.65% Copper.

Fieldwork Programme: The successful soil sampling field programme consisted of an experienced field crew collecting over 300 soil samples sieved down to 2mm across three priority targets within 6 days. The soil samples were collected in a grid pattern consisting of 250m between sample lines and 100m between samples along each line. Townsville based exploration contractors, Terra Search Pty Ltd. was engaged to assist with resourcing and undertaking the soil sampling programme along with Metalicity using light vehicles, quad bikes, and standard soil sampling equipment.

A targeted soil approach was selected over a holistic regional programme, as timing to complete the field work was limited before the onset of the North Queensland wet season, which has commenced in earnest as at the time of this announcement. Metalicity was able to locate an additional historic copper excavation 500m directly west of the high-grade rock chips collected in the maiden fieldwork programme . Similar to copper prospects identified in the maiden field programme1, abundant vein-hosted azurite and malachite mineralisation were identified and sampled from a 3m long, 1m wide trench excavation.

This discovery indicates that the area is not restricted to a single mineralised vein, but potentially a wide zone of parallel mineralised veins and it significantly increases the area of prospectivity for vein hosted copper mineralisation which could potentially grow off the results of the soil sampling programme. Also, during collection of soil samples over the base metal target from the maiden fieldwork programme (significant rock chips returning results elevated in lead up to 2.9% Pb and 45 g/t Ag silver as well as elevated zinc12), further gossanous outcrop was discovered up to 750m to the west along strike from the initial discovery. In addition, Metalicity discovered a historical shaft not previously identified in the GSQ Open Data Portal System (formerly the QDEX system).

Mineralisation was difficult to identify in the field but appeared to be base metals, primarily lead and minor zinc within mineralised veins and surrounding rock. The area around the historical excavation was rock chip sampled and submitted to ALS Townsville for analysis. This discovery highlights the possibility the base metals mineralisation identified in the first fieldwork programme could potentially be larger at surface than first thought.

A large programme of soil sampling was undertaken for possible lithium where reconnaissance rock sampling conducted by Monax in 2016 from an area identified as the Gingerella Prospect returned assay results of 3.55% Li2O, 125ppm tantalum, 0.25% caesium and 1.26% rubidium. As the Silurian aged Granites of the Blackman Gap Supersuite which could potentially host lithium mineralisation are significantly more weathered than the younger, overlying late Carboniferous Volcanic units there is less outcrop to be sampled and a soil sampling program is an excellent tool for identifying any potential lithium anomalies or associated pathfinder minerals within the area. Fieldwork samples were transported to ALS laboratories in Townsville, with soil samples transported to Perth testing for lowest detection limit Multi-Element Super Trace analysis ideal for exploration in soils for lithium and other valuable minerals as well as other pathfinder/indicator elements.

Several rock chip samples from newly identified copper and base metal excavations will undergo standard elemental analysis in the Townsville ALS laboratory with all results pending at the time of this announcement. Next Steps With the project area under the influence of the tropical wet season, all on ground exploration activities are temporarily on hold until early 2023 when the ground dries and access to the project area can be re-established. Metalicity anticipates results from the soil sampling program within the new year, and these results will help further guide future exploration targets.

Whilst awaiting these results, Metalicity will plan the next stages of exploration at the Mt Surprise project area. The wet season gives Metalicity opportunity to thoroughly investigate results from the soil sampling programme as well as any other desktop-based exploration activities. Overview of Mt Surprise Project The Mount Surprise project covers a large area approximately 165km from the city of Cairns, Queensland and 57 km northeast of the town of Mt Surprise and is serviced by excellent infrastructure in the area and easy access outside of the tropical wet season.

The geology of the area is characterised by the Silurian- aged Blackman Gap Complex, a medium to coarse-grained biotite-muscovite granodiorite and granite and pegmatite. The granite is overlain by various Carboniferous-aged volcanics including the Double Barrel andesite and tuff as well as the Gingerella rhyolites and ignimbrites.