Metalicity Limited (ASX: MCT) (Company or Metalicity) is pleased to announce that the Closing Date for its offer for Nex Metals Exploration Limited (ASX: NME) (NME) has been extended by four weeks to 5.00pm (Perth time) on 12 January 2022.

The extension does not impact acceptances received to date and the Offer remains Unconditional. NME shareholders who have accepted any time after 3 December will receive MCT shares within one month after the date they accepted (or 21 days after the end of the Offer Period).

The extension of the offer period is to allow NME shareholders more time to consider the offer in light of the inadequate information provided by NME in the Target's Statement, and the delay this has caused. Since Metalicity launched its bid NME's Target's statement has been found by the Takeovers Panel to be misleading and to contain material information deficiencies. Accordingly, the Takeovers Panel has ordered (amongst other things) NME to prepare a replacement Target's statement in a form that ASIC does not object to and which is to be accompanied by an independent expert's report providing an opinion for NME's shareholders on whether Metalicity's bid is fair and/or reasonable.

The Takeovers Panel has also made two separate declarations of unacceptable circumstances in relation to conduct of NME during the bid process. In addition, Metalicity's bid was declared Unconditional on 3 December 2021 and Metalicity has now received acceptances representing more than 25% of NME's issued shares, providing it with the largest single voting interest in NME.

Andrew Daley, Chairman of Metalicity commented: 'The failure of NME to produce a compliant Target's Statement has now left NME shareholders without the material information they should have received from their Board more than 6 weeks ago. This ongoing delay has taken considerable time out of the usual timetable for a takeover Offer. As such we believe extending the Closing Date of our Offer is warranted and provides NME shareholders that have not yet accepted, an opportunity to properly consider the Offer as well as the Independent Expert report that was ordered by the Takeovers Panel.'

'I am pleased that as of yesterday evening Metalicity has already secured an interest exceeding 25% in NME, and we see a path forward to unite the Kookynie and Yundamindra Gold Projects under one focussed and qualified management team that can actually progress the project, in order to realise their potential. The drilling results continue to be highly encouraging and Metalicity remains focused on moving the projects forward. 'I'd like to thank all the NME shareholders who have accepted our offer, and strongly encourage all those that have not yet done so to also accept so that we can realise these benefits sooner and with lower costs.'

Contact:

Justin Barton

Tel: +61 8 6500 0202

Email: jbarton@metalicity.com.au

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, forward-looking 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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