Arika Resources Raises $6.55 Million in Placement Led by Lion Selection Group to Accelerate 20,000m Drilling Program

Robust Institutional Support Highlights Confidence in Arika's Gold Portfolio Consolidation

The placement reflects strong institutional backing for Arika Resources amid challenging market conditions. Lion Selection Group’s cornerstone investment, securing a 6.7% stake, validates Arika’s exploration approach and asset quality. As a Melbourne-based specialist in resource investments, Lion Selection Group’s involvement signals significant confidence within the mining investment community.

Managing Director Justin Barton expressed delight over the high level of support despite tough equity markets. He highlighted the quality of participating institutions, particularly Lion Selection Group’s substantial shareholding decision. Barton noted Lion’s proven track record in backing emerging Australian resource companies and attributed the support to growing recognition of Arika’s consolidated 100%-owned gold portfolio and the extensive exploration opportunities at Yundamindra and Kookynie.

Placement Details and Pricing Compared to Recent Share Performance

Arika has received firm commitments to raise approximately $6.55 million before costs through issuing 344,736,842 new fully paid ordinary shares at $0.019 each. This price represents a 20.8% discount to the last closing price of $0.024 on 22 July 2026, a 17.7% discount to the five-day volume weighted average price of $0.023, and a 15.1% discount to the 15-day volume weighted average price of $0.022.

The placement will be completed in a single tranche using the company’s placement capacity under ASX Listing Rules 7.1 and 7.1A. Additionally, eligible directors intend to subscribe for approximately $700,000 worth of shares (36.8 million shares) at the same offer price, subject to shareholder approval at a general meeting anticipated in early September 2026. Argonaut Securities Pty Limited acted as lead manager and bookrunner. Settlement is planned for 31 July 2026 with allotment on 3 August 2026.

Major 20,000-Metre Drilling Campaign Aims to Expand Resources at Yundamindra and Kookynie

Arika has launched its largest drilling program to date, planning over 20,000 metres across its flagship gold projects in H2 2026. Drilling is currently active at Kookynie, marking the first activity there in more than five years. The program targets new exploration zones and includes further drilling at Yundamindra, building on strong results achieved earlier in the year.

Funds from the placement will accelerate drilling at both projects, support resource definition and extension drilling, advance maiden Mineral Resource Estimates, and cover working capital and placement expenses. This expanded program represents a significant increase in exploration activity enabled by the recent capital raise.

Yundamindra Gold Project: Historical Production and Exploration Potential

Located about 65 kilometres southeast of Leonora, Yundamindra is within trucking distance of established processing facilities in WA’s Eastern Goldfields. Situated on the western edge of the Laverton Greenstone Belt, a prolific gold region hosting major deposits like Sunrise Dam and Wallaby with combined production exceeding 15 million ounces, the project benefits from a world-class geological setting.

Historically, Yundamindra produced approximately 45,000 ounces of high-grade gold at around 19.3 grams per tonne before 1970, primarily from near-surface workings. The project includes multiple granted mining and exploration leases with several under-explored brownfield and greenfield targets at depth. Gold mineralisation is structurally controlled along regional batholith margins and shear zones. Previous drilling was mostly shallow (under 80 metres) but returned notable intercepts such as 8 metres at 56.36 g/t gold at Pennyweight Point and 10 metres at 9.99 g/t gold at Landed at Last.

Modern Exploration Expands Understanding at Yundamindra

Recent exploration by Arika has confirmed historical mineralisation and enhanced geological understanding through targeted drilling and geophysical surveys. The company has identified multiple high-priority targets, extended known mineralisation, and achieved strong assay results at key prospects including Pennyweight Point and Landed at Last. This systematic approach positions Arika well for the upcoming expanded drilling program.

The predominance of shallow historical drilling offers significant upside potential, as deeper testing may reveal additional resources. Leveraging historical high-grade intercepts alongside modern techniques and deeper drilling forms a clear exploration strategy. With new capital secured, Arika is set to comprehensively test these opportunities across Yundamindra.

Kookynie Gold Project: First Drilling in Over Five Years Targets Structural Extensions

Situated about 150 kilometres north of Kalgoorlie and 60 kilometres south-southeast of Leonora, the Kookynie Gold Project covers the eastern strike extension of geological structures hosting Genesis Minerals’ Ulysses Gold Operations. Despite a history of significant high-grade gold production in the region, the area remains under-explored, presenting compelling upside.

The ongoing drilling campaign at Kookynie marks a major increase in activity, being the first in over five years. This hiatus suggests the project was held but not intensively explored recently. Arika’s decision to initiate a major drilling program reflects management’s view that Kookynie’s exploration potential has been underappreciated. Its geological position as an extension of the Ulysses structure underpins the company’s exploration thesis.

Strategic Capital Deployment and Exploration Milestones

The $6.55 million raised will be strategically allocated across Arika’s exploration portfolio. Beyond immediate drilling, the company aims to progress toward maiden Mineral Resource Estimates, a key milestone that typically enhances investor interest and market valuation in junior resource companies.

The placement timetable includes settlement on 31 July 2026 and allotment on 3 August 2026, enabling rapid capital deployment. Director participation, subject to shareholder approval in early September 2026, demonstrates management’s confidence by investing alongside institutional investors on the same terms, aligning interests positively for the market.

100% Ownership of Projects in Western Australia’s Premier Gold Region

Both Yundamindra and Kookynie Gold Projects are wholly owned by Arika, avoiding joint venture complications and ensuring full upside capture from exploration and development successes. Located in WA’s Eastern Goldfields, the projects sit within one of Australia’s most prolific gold-producing regions. The Laverton Greenstone Belt alone hosts operations with combined production exceeding 15 million ounces, underscoring the geological significance.

Yundamindra’s proximity to established processing facilities within trucking distance adds operational advantages, potentially improving project economics at development. Currently, Arika remains focused on exploration and resource definition through drilling.

Fundraising Success Amid Challenging Market Conditions

The successful $6.55 million placement was achieved despite difficult equity market conditions, reflecting strong investor confidence in Arika’s assets and strategy. The cornerstone investment from a reputable institutional participant highlights the company’s compelling exploration narrative.

The placement price of $0.019 per share represents discounts between 15% and 21% to recent trading levels, consistent with market norms for institutional placements. The broad institutional support and quality of the lead investor underscore confidence in Arika’s growth prospects despite prevailing market challenges.