CONICO LTD — Annual Report 2017

Aug 29, 2017

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ABN 49 119 057 457

for the Year Ended 30 June 2017

Table of Contents

Highlights for the Year to 30 June 2017	3
Corporate Directory	4
Review of Operations	5
Directors’ Report	11
Auditor’s Independence Declaration	16
Consolidated Statement of Profit or Loss and Other Comprehensive Income	17
Consolidated Statement of Financial Position	18
Consolidated Statement of Changes in Equity	19
Consolidated Statement of Cash Flows	20
Notes to the Financial Statements	21
Directors’ Declaration	32
Independent Auditor’s Report	33
Additional Information for Listed Public Companies	36
Tenement Schedule	37

* Cover Photo: Cuttings from drill hole through mineralised zone - Mt Thirsty Nickel-Cobalt-Manganese Oxide Project

ASX Code: CNJ

Page 2 of 37

Annual Report for Year Ending 30 June 2017

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HIGHLIGHTS FOR THE YEAR TO 30 JUNE 2017

• RC drilling for metallurgical test work completed. Intersections (within current JORC (2004) Resource outline) include:

MTRC036 - 24m at 0.16% Co, 0.80% Ni from 18m MTRC037 - 17m at 0.16% Co, 0.77% Ni from 13m MTRC038 - 14m at 0.18% Co, 0.96% Ni from 14m MTRC039 - 20m at 0.32% Co, 0.42% Ni from 14m MTRC040 - 6m at 0.29% Co, 0.40% Ni from 30m MTRC041 - 9m at 0.12% Co, 0.71% Ni from 23m

• 1.5 tonnes RC drill samples sent to ALS Metallurgy in Perth

• Metallurgical testwork continuing

• Recent SO2 leach results consistent with previous studies

• Promising results from alternate reagents

• New cobalt-nickel oxide deposit delineated 3km north of Mt Thirsty by recent air core drilling. Best Intersections include:

MTAC771 14m @ 0.12% Co & 0.8% Ni from 13m MTAC772 18m @ 0.16% Co & 0.8% Ni from 15m MTAC 773 10m @ 0.17% Co & 0.8% Ni from 16m MTAC778 10m @ 0.13% Co & 1% Ni from 22m

• Scoping Study targeting completion in September quarter

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----- Start of picture text -----

E63/1267
New Co-Ni Oxide
Deposit
----- End of picture text -----

Figure 1: Mt Thirsty Project Location Plan

ASX Code: CNJ

Page 3 of 37

Annual Report for Year Ending 30 June 2017

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Non-Executive) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM (Non-Executive) James B Richardson Dip, Fin Plan (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates B.Com CA AGIA

REGISTERED OFFICE:

Level 15, 197 St Georges Terrace Perth, Western Australia 6000 Tel +61 8 9282 5889 Fax +61 8 9282 5866 Email: mailroom@conico.com.au Website: www.conico.com.au

SOLICITORS:

Solomon Brothers Level 15, 197 St Georges Terrace Perth, Western Australia 6000

AUDITORS:

Nexia Perth Audit Services Pty Ltd Chartered Accountants Level 3 88 William Street Perth, Western Australia 6000

SHARE REGISTRY:

Advanced Share Registry Services 110 Stirling Highway Nedlands, Western Australia 6009

STOCK EXCHANGE LISTING:

ASX Code: CNJ (ordinary shares)

Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited.

ASX Code: CNJ

Page 4 of 37

Annual Report for Year Ending 30 June 2017

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REVIEW OF OPERATIONS

MT THIRSTY PROJECT, WA (Conico Ltd 50%, JV with Barra Resources Ltd)

The Mt Thirsty Cobalt Project is located 20km north-northwest of Norseman, Western Australia. Conico Ltd (ASX: CNJ) is the Joint Venture manager.

The Project contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit that has the potential to emerge as a significant cobalt producer. Further information can be found at www.mtthirstycobalt.com . In addition to the Co-Ni Oxide Deposit, the Project also hosts nickel sulphide (Ni-S) mineralisation.

Demand for cobalt looks encouraging as the world becomes more dependent on rechargeable power sources. Innovations with portable electronics and electric vehicle design are adding to this surging demand. However, the battery industry is also competing with demand for cobalt from producers of superalloys, aircraft turbines and chemical industries.

Demand is likely to escalate exponentially with battery production, however supply is uncertain due to:

• Over 60% of global supply coming from the politically unstable African countries such the Democratic Republic of Congo, Central African Republic and Zambia.

• Cobalt is largely a by-product of copper and nickel mining and there are an increasing number of mine closures and project deferments due to low commodity prices.

With potential supply constraints and surging demand, many commentators see pricing pressure as a likely eventuality.

The undeveloped Mt Thirsty Cobalt Project has a significant JORC (2004) compliant resource with a potential to have a long mine life. The Project is close to all necessary infrastructure (rail, road, power, water, and sea port) and, being in a mining orientated state, has the potential to attract a variety of interested parties including end users of cobalt. The Joint Venture partners are working collaboratively to exploit this joint opportunity and have launched a marketing initiative.

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Figure 2: Global lithium-ion battery and materials demand forecast from EV sales, 2015-2030.

ASX Code: CNJ

Page 5 of 37

Annual Report for Year Ending 30 June 2017

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REVIEW OF OPERATIONS

RC Drilling R63/4

A six-hole reverse circulation drilling program totalling 234m was completed in November 2016. The holes were drilled within the area of the JORC (2004) Indicated Resource (Figure 3) to provide a range of samples for further metallurgical testwork. All holes were drilled vertically and sampled in 1m intervals using a rotary splitter. Significant results are summarised in Table 1 below. All of the available sample material (1.5 tonnes in total) from the intersections below was sent to ALS Metallurgy in Perth for use in further metallurgical testwork. The significant cobalt intersections comprised soft clay-rich material derived from strongly weathered ultramafic rocks.

Table 1: Metallurgical RC Drilling - Summary of Cobalt Intersections

**Hole No. **	Easting	Northing	RL	**Depth **	**From **	To	**Interval **	*Co **	Ni	Mn
	AGD84 Zone 51		m	m	m	m	m	%	%	%
MTRC036 MTRC037 MTRC038 MTRC039 MTRC040 MTRC041	372162 372244 372349 371956 372115 372295	6447455 6447455 6447457 6447000 6447001 6446999	380 378 371 385 396 383	54 30 35 40 40 35	18 13 14 14 30 23	42 30 28 34 36 32	24 17 14 20 6 9	0.16 0.16 0.18 0.32 0.29 0.12	0.80 0.77 0.96 0.42 0.40 0.71	1.58 1.04 1.60 2.26 1.90 0.89

*A cut off assay of 0.06% Co was used for the above intersections. Intersections are close to true width.

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Figure 3: Location of recent RC drill holes and JORC (2004) Indicated Resource outline. The dots are all previous drill holes (AGD84 Zone 51).

ASX Code: CNJ

Page 6 of 37

Annual Report for Year Ending 30 June 2017

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Air Core Drilling E63/1267

Aircore (AC) drilling on E63/1267, located approximately 3km north of the Mt Thirsty Cobalt Deposit has delineated a new zone of cobalt-nickel oxide mineralisation. The mineralisation lies at shallow depth beneath outcropping laterite in strongly weathered ultramafic rocks and is of similar style to that of the Mt Thirsty Cobalt Deposit.

Thirty-one shallow AC holes were drilled in late April 2017 for an aggregate of 1,084m to test a GSWA mapped laterite outcrop on the eastern side of E63/1267 where a single AC traverse drilled by the joint venture in May 2015 intersected significant cobalt (Co) and nickel (Ni) assays in the three most eastern holes. The latest drilling was mostly on a 100m by 40m grid with one infill line to 50m by 40m in the central portion (Figure 4).

Cobalt assays greater than or equal to 0.06% Co over a true thickness of 2m or more were exhibited in 27 of the 31 holes drilled. Significant intersections are shown in Table 2. All but one of the AC holes were drilled vertically except for MTAC797, which was inclined at -60[o] to the west due to steep topography at the intended location.

The newly defined zone of mineralisation is strongest in the northern portion of the area drilled and weakens to the south. With the exception of the two northernmost lines, the mineralised zone has been closed off to the west, remains open to the east across the tenement boundary, with potential to extend further to the north and south.

The recently discovered Co-Ni oxide mineralisation in E63/1267 has the potential to provide further upside to the Mt Thirsty Project.

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Figure 4: Drill Hole Location Plan. Mapped laterite (shaded brown) and topographic contours (brown lines). Red dots are recent AC drilling, black dots are 2015 AC drilling. Approximate western boundary of Co-Ni oxide mineralisation shown in blue and eastern tenement boundary in red. Grid AGD84 Zone 51. Cross Section A-B shown in Figure 5.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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Figure 5: Cross Section A-B, 6451050N, looking north through holes MTAC770 to 773. Brown hatch is laterite, orange is goethitic saprolite and green is nontronitic saprolite. Ni% assays on the left and Co% assays on the right.

Table 2: E63/1267 Significant Cobalt and Nickel Intersections in AC Drilling (≥0.06% Co)

Hole No	East	North	RL	Hole Depth	From	To	Downhole Thickness	Co %	Ni %
	AGD84	AGD84	m	m	m	m	m
MTAC767 MTAC768 MTAC769 MTAC770 MTAC771 MTAC772 MTAC773 MTAC774 MTAC775 MTAC776 MTAC777 MTAC778 MTAC779 MTAC780 MTAC782 MTAC783 MTAC784 MTAC785 MTAC787 MTAC788 MTAC789 MTAC790 MTAC793 MTAC794 MTAC795 MTAC796 MTAC797*	372418 372379 372340 372418 372384 372341 372298 372263 372419 372377 372418 372382 372336 372305 372416 372380 372339 372301 372419 372378 372340 372303 372304 372422 372383 372341 372353	6451150 6451148 6451152 6451048 6451050 6451052 6451049 6451045 6450950 6450951 6450847 6450843 6450843 6450841 6450749 6450748 6450749 6450757 6450642 6450648 6450652 6450653 6450958 6450893 6450903 6450900 6450947	342 340 338.4 346.1 343.7 341.5 341.8 342.2 349.5 347.5 353.5 352.5 348.8 346.2 350.7 350.9 347.9 344.2 340 341.9 340.8 338.7 350 349.4 347.5 347.5 348.1	34 26 30 42 30 39 46 21 47 45 40 39 48 39 42 34 36 33 23 27 16 24 54 51 42 45 45	14 0 15 1 17 5 13 13 15 16 8 22 19 15 36 22 27 22 29 19 17 15 4 18 14 15 31 24 5 1 21 24	16 2 25 3 26 7 24 27 33 26 10 30 33 17 38 32 38 30 34 31 27 28 6 25 16 18 41 29 7 18 26 39	2 2 10 2 9 2 11 14 18 10 2 8 14 2 2 10 11 8 5 12 10 13 2 7 2 3 10 5 2 17 5 15*	0.095 0.092 0.085 0.091 0.098 0.073 0.085 0.123 0.161 0.167 0.069 0.222 0.135 0.044 0.077 0.126 0.076 0.093 0.095 0.086 0.093 0.083 0.141 0.121 0.068 0.122 0.140 0.105 0.124 0.134 0.088 0.123	0.39 0.51 1.09 0.61 0.62 0.73 0.58 0.78 0.75 0.79 0.42 0.74 0.86 1.08 0.40 1.04 0.61 0.69 0.54 0.60 0.52 0.45 0.38 0.41 0.41 0.38 0.38 0.61 0.57 0.62 0.68 0.57

Note: All holes drilled vertically except for MTAC797 inclined at -60[o] W. As mineralisation is interpreted to be relatively flat lying, downhole depth is interpreted to be equivalent to true thickness except for hole MTAC797 where true thickness of the mineralisation is approximately 13m. All holes were sampled in one metre intervals.

ASX Code: CNJ

Page 8 of 37

Annual Report for Year Ending 30 June 2017

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Metallurgical Testwork

The 1.5 tonnes of RC drill samples obtained from Mt Thirsty were sent to ALS Metallurgy in Perth in early January 2017 and final stages of the testwork are still in progress.

This current phase of metallurgical testwork will expand on and increase the level of confidence in previous testwork undertaken which has shown that agitated leaching using sulphur dioxide (SO2) at atmospheric pressure and low temperature (<50[o] C) recovers up to 80% of the cobalt and over 25% of the nickel within a few hours of leaching. The results of the metallurgical testwork will be fed directly into a Scoping Study over the Mt Thirsty Cobalt Oxide Deposit.

Recent results from testwork on the preferred reagent for the atmospheric leach process, sulphur dioxide, have been consistent with earlier studies which showed high recovery of cobalt.

Metallurgical test work has also been conducted using an alternate ferrous sulphate reagent, with early results very promising. This continuing work will be considered prior to the finalisation of flowsheet design.

Mt Thirsty Scoping Study

A Scoping Study, due for completion in late August 2017, is being managed by Provide Advantage, with support from consultant engineers CPC Engineering, metallurgical support from ALS Metallurgy Pty Ltd and open pit optimisation and mine scheduling from CSA Global.

The unique characteristics of the Mt Thirsty Cobalt Deposit has encouraged the joint venture partners to progress the Scoping Study on the basis of ore being treated via an atmospheric leaching process (at ambient pressure and relatively low temperature) instead of the traditional higher capex/opex HPAL process. Recent results from testwork on the preferred reagent for the atmospheric leach process, sulphur dioxide, have been consistent with earlier studies which showed high recovery of cobalt.

Metallurgical test work has also been conducted using alternate reagents, with early results producing some extremely promising results. This work is continuing and will be considered prior to the finalisation of flowsheet design and Scoping Study.

At completion of the Scoping Study, the Joint venture will be able to better determine the funding requirements and development options which may be available to bring the Mt Thirsty Cobalt Project to fruition.

New Tenement Applications

The two new licences (E63/1790 and P63/2045) applied for last financial year adjacent to the existing Joint Venture tenements were granted in February 2017. The latter covers a short extension of the interpreted footwall contact north of R63/4 which is considered prospective for Ni sulphides. Both licences have potential for lithium-bearing pegmatites that have been mapped by the GSWA in the Mt Thirsty area.

Mt Thirsty Project - Mineral Resources Statement

In view of the current status of the project and lack of any new information no annual review of the company’s mineral resources which are entirely located within R63/4 (previously E63/373) at Mt Thirsty has been undertaken.

Mt Thirsty Oxide Resources	Mt Thirsty Oxide Resources	Mt Thirsty Oxide Resources
Category	Tonnes	Co%	Ni%	Mn%
Indicated Resource	16,600,000	0.14	0.60	0.98
Inferred Resource	15,340,000	0.11	0.51	0.73
Total Resource	31,940,000	0.13	0.55	0.86

The figures shown in this table were estimated within a wireframed mineralised envelope which was based mostly on a 0.06% Co cut off. In some places where Co was less than 0.06% a Ni cut off of 0.7% was used.

Estimation Governance Statement

The resource information above was prepared and first disclosed under the JORC Code (2004). It has not been updated since or reestimated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, refer ASX Announcement 8th March 2011: “Resource Upgrade”, available to view on www.conico.com.au).

Disclaimer

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

ASX Code: CNJ

Page 9 of 37

Annual Report for Year Ending 30 June 2017

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Competent Person’s Statement

The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources is based on and fairly represents information compiled by Michael J Glasson and Robert N Smith, Competent Persons who are members of the Australian Institute of Geoscientists.

Mr Glasson and Mr Smith are employees of Tasman Resources Ltd and in this capacity act as part time consultants to Conico Ltd. Mr Glasson and Mr Smith hold shares in Conico Ltd.

Mr Glasson and Mr Smith have sufficient experience which is relevant to the style of mineralisation and type of the deposits under consideration and to the activity being undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Glasson and Mr Smith consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

ASX Code: CNJ

Page 10 of 37

Annual Report for Year Ending 30 June 2017

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DIRECTORS’ REPORT

The directors present their report together with the consolidated financial statements of the Group comprising Conico Ltd (the Company) and its controlled entity and the Group’s interest in a joint venture for the financial year ended 30 June 2017.

Directors

The names of directors in office at any time during or since the end of the year are:

Gregory H Solomon Guy T Le Page Douglas H Solomon James B Richardson

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company Secretary

The following person held the position of Company Secretary at the end of the financial year:

Mr Aaron P Gates has worked for Conico Ltd for the past 9 years. He is a Chartered Accountant and Chartered Secretary, has completed a Bachelor of Commerce (Curtin University) with majors in accounting and business law and completed a Diploma of Corporate Governance. Prior to joining Conico he worked in public practice in audit and corporate finance roles.

Principal Activities

The principal activity of the Group during the financial year ended 30th June 2017 was mineral exploration for cobalt, nickel and manganese.

There were no significant changes in the nature of the activities of the Group during the year.

Operating Results

The loss of the Group after providing for income tax amounted to $325,673 (2016: $54,113).

Dividends Paid or Recommended

No dividends were paid or declared for payment during the year.

Review of Mineral Exploration Operations

A review of the operations of the Group during the year ended 30 June 2017 is set out in the Review of Operations on Page 5.

Financial position

The net assets of the Group have increased by $146,827 from 30 June 2016 to $15,023,025 in 2017. This increase has largely resulted from the capital raising during the year.

Significant Changes in State of Affairs

In the opinion of the directors, other than disclosed elsewhere in this report, there were no significant changes in the state of affairs of the Group that occurred during the year.

After Balance Date Events

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Future Developments, Prospects and Business Strategies

The Group proposes to continue with its exploration and evaluation program as detailed in the Review of Operations.

Environmental Issues

The Group is the subject of environmental regulation with respect to mining exploration and will comply fully with all requirements with respect to rehabilitation of exploration sites.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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Information on Directors

Gregory H Solomon

Qualifications Experience

Interest in Shares and Options Directorships held in other listed entities

Executive Chairman

LLB

Appointed chairman March 2006. Board member since March 2006. A solicitor with more than 30 years of Australian and international experience in a wide range of areas including mining law, commercial negotiation (including numerous mining and exploration joint ventures) and corporate law. He is a partner in the Western Australian legal firm, Solomon Brothers and has previously held directorships of various public companies since 1984 including two mining/exploration companies. 23,105,469 Ordinary Shares

Eden Innovations Ltd Tasman Resources Ltd

Douglas H Solomon

Qualifications Experience

Interest in Shares and Options Directorships held in other listed entities

Non-Executive

BJuris LLB (Hons)

Board member since 30 March 2006. A Barrister and Solicitor with more than 20 years’ experience in the areas of mining, corporate, commercial and property law. He is a partner in the legal firm, Solomon Brothers. 21,586,875 Ordinary Shares

Eden Innovations Ltd Tasman Resources Ltd

Guy T Le Page

Qualifications Experience

Interest in Shares and Options Directorships held in other listed entities

Non-Executive

B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM

Board member since 30 March 2006. Currently a corporate adviser specialising in resources. He is actively involved in a range of corporate initiatives from mergers and acquisitions, initial public offerings to valuations, consulting and corporate advisory roles. He previously spent 10 years as an exploration and mining geologist in Australia, Canada and the United States. His experience spans gold and base metal exploration and mining geology and he has acted as a consultant to private and public companies.

15,852,502 Ordinary Shares

Eden Innovations Ltd Tasman Resources Ltd

Mt Ridley Mines Ltd Red Sky Energy Ltd

James B Richardson

Qualifications Experience

Interest in Shares and Options Directorships held in other listed entities

Non-Executive

Dip, Fin Plan

Board member since 11 November 2008. Currently a corporate advisor where he has been actively involved in a range of corporate activities, including the development, documentation, negotiation and marketing of a number of successful financial instruments for various companies encompassing various sectors of the investment market. He has also been employed as a specialist business development executive in some of the more successful national financial services organisations. Additionally, he has extensive experience in evaluating investment opportunities, structuring projects and negotiating financial transactions to meet the expectations of the investment market. 28,500,000 Ordinary Shares

None

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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Remuneration Report (Audited)

This report details the nature and amount of remuneration for each director of Conico Ltd, and for the executives receiving the highest remuneration.

Remuneration Policy

The remuneration policy of Conico Ltd has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the company’s financial results. The board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the company, as well as create goal congruence between directors, executives and shareholders.

The board’s policy for determining the nature and amount of remuneration for board members and senior executives of the company is as follows:

All executives receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits and options. Executives are also entitled to participate in the employee share and option arrangements. All directors and executives receive a superannuation guarantee contribution where required by the government, which is currently 9.5%, and do not receive any other retirement benefits.

All remuneration paid to directors and executives is valued at the cost to the company and expensed. Options are valued using the Black-Scholes methodology or an appropriate market based pricing valuation methodology. The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The Group does not have a policy on directors hedging their shares.

The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to the performance of the company. However, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in the company and are able to participate in the employee option plan.

Details of Remuneration for Year Ended 30 June 2017

The remuneration for each director and each of the executive officers of the Group during the year was as follows:

Key Management Personnel Remuneration –	Key Management Personnel Remuneration –	Key Management Personnel Remuneration –	Key Management Personnel Remuneration –
Key Management					Post-	Other	Termination				Perfor-
Person					employment	long-term	Benefits	Share-based			mance
	Short-term Benefits				benefits	benefits		payments		Total	Related
	Salary	Cash	Non-		Super-	Other	Other	Equity	Options
	and Fees	profit	cash		annuation
		share	benefit
	$	$	$		$	$	$	$	$	$	%
2017
Gregory H Solomon	31,250		-	-	2,969	-	-	-	-	34,219		-
Douglas H Solomon	10,000		-	-	950	-	-	-	-	10,950		-
Guy T Le Page	10,000		-	-	950	-	-	-	-	10,950		-
James B Richardson	10,000		-	-	950	-	-	-	-	10,950		-
Aaron P Gates	(i)		-	-	-	-	-	-	-	-		-
	61,250		-	-	5,819	-	-	-	-	67,069		-
2016
Gregory H Solomon	46,875		-	-	4,453	-	-	-	-	51,328		-
Douglas H Solomon	15,000		-	-	1,425	-	-	-	-	16,425		-
Guy T Le Page	15,000		-	-	1,425	-	-	-	-	16,425		-
James B Richardson	15,000		-	-	1,425	-	-	-	-	16,425		-
Aaron P Gates	(i)		-	-	-	-	-	-	-	-		-
	91,875		-	-	8,728	-	-	-	-	100,603		-

(i) - These management personnel are remunerated by Princebrook Pty Ltd under the Princebrook Management Services Contract.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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Options issued as part of remuneration for the year ended 30 June 2017

No options were issued to directors and employees as part of their remuneration during the year and no shares were issued upon the exercise of options granted as remuneration.

Directors Meetings

During the financial year, two meetings of directors were held. Attendances by each director were as follows:

	Directors’ Meetings	Directors’ Meetings
	Number eligible	Number
	to attend	attended
Gregory H Solomon	2	2
Douglas H Solomon	2	2
Guy T Le Page	2	2
James B Richardson	2	1

Indemnifying Officers or Auditor

The company has arranged for an insurance policy to insure the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The total premium payable is approximately $12,210.

Proceedings on Behalf of Group

No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings. The Group was not a party to any such proceedings during the year.

Options

At the date of this report, the unissued ordinary shares of Conico Ltd under option are as follows:

Grant Date Date of Expiry Exercise Price Various 30 November 2019 $0.03	Number under Option 43,375,000
	43,375,000

During the year ended 30 June 2017, no ordinary shares of Conico Ltd were issued on the exercise of options granted under the Conico Ltd Employee Share Option Plan. No shares have been issued since.

No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of any other body corporate.

Non-audit Services

The board of directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons:

• all non-audit services are reviewed and approved prior to commencement to ensure they do not adversely affect the

• integrity and objectivity of the auditor; and

• the nature of the services provided does not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2017.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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Auditor’s Independence Declaration

The auditor’s independence declaration for the year ended 30 June 2017 has been received and can be found on page 16.

Signed in accordance with a resolution of the Board of Directors.

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Gregory H Solomon Chairman

Dated this 29[th] day of August 2017

ASX Code: CNJ

Page 15 of 37

Auditor’s independence declaration under section 307C of the Corporations Act 2001

To the directors of Conico Ltd

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2017 there have been:

• (i) no contraventions of the auditor’s independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

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Nexia Perth Audit Services Pty Ltd

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TJ SPOONER FCA, FCA(UK), ACIS, AGIA, AMIIA, CTA Director

Perth 29 August 2017

Annual Report for Year Ending 30 June 2017

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2017

Note Other Income 2 Debt forgiveness Accounting and audit Depreciation and amortisation Exploration and evaluations assets written off Interest Expense Key management remuneration 4(d) Legal and other consultants Management fees Other expenses Loss before income tax Income tax benefit 3 Loss for the year Other Comprehensive Income Items that may be reclassified to profit or loss: Revaluations of financial assets Income tax relating to comprehensive income Total other comprehensive income Total Comprehensive Loss attributable to members of the parent entity, net of tax Basic/Diluted loss per share (cents per share) 6	Consolidated 2017 $ 2016 $ 12,528 2,519 - 355,342 (17,037) (18,054) (1,738) (2,095) (35,720) - - (764) (65,905) (100,603) (2,419) (100,091) (144,000) (117,446) (71,382) (72,921)
	(325,673) (54,113) - -
	(325,673) (54,113) - - - -
	- - (325,673) (54,113)
	(0.11) (0.03)

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note ASSETS CURRENT ASSETS Cash and cash equivalents 7 Trade and other receivables 8 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment 9 Exploration and evaluation 10 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 13 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions 14 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 15 Reserves 16 Accumulated losses TOTAL EQUITY	Consolidated 2017 $ 2016 $ 466,368 397,789 24,700 66,212
	491,068 464,001
	9,587 11,325 14,921,918 14,768,889
	14,931,505 14,780,214
	15,422,573 15,244,215
	124,548 93,017
	124,548 93,017
	275,000 275,000
	275,000 275,000
	399,548 368,017
	15,023,025 14,876,198
	18,907,403 18,434,903 477,450 477,450 (4,361,828) (4,036,155)
	15,023,025 14,876,198

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2017

Consolidated Group

Balance at 30 June 2015 Net loss for the year Shares issued Other comprehensive Income Balance at 30 June 2016 Net loss for the year Shares issued Other comprehensive Income Balance at 30 June 2017	Ordinary Share Capital Option Reserve Retained Earnings Total $ $ $ $
	16,799,457 477,450 (3,982,042) 13,294,865
	- - (54,113) (54,113) 1,635,446 - - 1,635,446 - - - -
	18,434,903 477,450 (4,036,155) 14,876,198
	- - (325,673) (325,673) 472,500 - - 472,500 - - - -
	18,907,403 477,450 (4,361,828) 15,023,025

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2017

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash provided by (used in) operating activities 22 CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issues Net cash provided by (used in) financing activities Net increase / (decrease) in cash held Cash at beginning of financial year Cash at end of financial year 7	Consolidated 2017 $ 2016 $ 17,793 1,257 (256,969) (484,605) 2,568 417
	(236,608) (482,931)
	(167,313) (37,581)
	(167,313) (37,581)
	472,500 901,949
	472,500 901,949
	68,579 381,437 397,789 16,352
	466,368 397,789

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 . The financial report of Conico Limited and controlled entities complies with all International Financial Reporting Standards (IFRS) in their entirety.

The financial report covers the consolidated group of Conico Ltd and controlled entities as at and for the year ended 30 June 2017. Conico Ltd is a listed public company, incorporated and domiciled in Australia. The Group is a forprofit entity and primarily is involved in mineral exploration for cobalt, nickel and manganese.

The following is a summary of the material accounting policies adopted by the group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. These consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency.

Going Concern

These financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities the realisation of assets and extinguishment of liabilities in the ordinary course of business.

The Group has reported a net loss for the year of $325,673 (2016: $54,113) and a cash outflow from operating activities of $236,608 (2016: $482,931).

The directors are confident that the Group, subject to being able to raise further capital, will be able to continue its operations as a going concern. Without such capital, the net loss for the year and the cash outflow from operating activities indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern. The directors also carefully manage discretionary expenditure in line with the Group’s cash flow.

The continuing applicability of the going concern basis of accounting is dependent upon the Group’s ability to source additional finance. Unless additional finance is received the Group may need to realise assets and settle liabilities other than in the normal course of business and at amounts which could differ from the amounts at which they are stated in these financial statements.

Accounting Policies

a. Principles of Consolidation

A controlled entity is any entity Conico Ltd is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. A list of controlled entities is contained in Note 12 to the financial statements. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled entities have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

b. Interests in a Joint Operation

The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income that it earns from the joint operation. Details of the Group’s interests are shown at Note 11.

c. Income Tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

c. Income Tax continued

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future tax profits will be available against which they can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the group will derive sufficient future assessable income to enable the benefit to be realised.

The R&D tax offset is recognised upon receipt.

d. Property, Plant and Equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The depreciation rates used for each class of depreciable assets are:

Plant and equipment 15.00–50.00%

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss.

e. Exploration and Evaluation Expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward where right of tenure is current and to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.

f. Impairment of Non-financial Assets

At each reporting date, the Group reviews the carrying values of its non-financial / tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

h. Cash and cash equivalents

Cash comprises current deposits with banks.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

• i. Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Impairment

At each reporting date, the Group assesses at a specific asset level whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the income statement.

j. Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

• k. Revenue

Revenue from the sale of goods is recognised upon delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

• l. Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

m. New accounting standards and interpretations

A number of new and revised standards became effective for the first time to annual periods beginning on or after 1 July 2016. There were no significant standards or interpretations and the adoption of the new standards and interpretations has not had a material impact on the Group.

n. Segment reporting

Segment results that are reported to the Group’s board of directors (the chief operating decision maker) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

o. Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.

p. New accounting standards and interpretations not yet adopted

A number of new standards and amendments to standards are effective for annual periods beginning after 1 July 2017, and have not been applied in preparing these consolidated financial statements. The Group does not plan to adopt these standards early. The new standards include AASB 9 – Financial Instruments, AASB 15 – Revenue from contracts with customers and AASB 16 - Leases. Based on the current operations of the Group, management are of the view that these standards and amendments will not have a significant impact on the financials.

q. Key estimates – Exploration and Evaluation

The Group’s policy for exploration and evaluation is discussed in Note 1(f). The application of this policy requires management to make certain assumptions as to future events and circumstances. Any such estimates and assumptions may change as new information becomes available. At the date of this report the Group has sufficient reason to believe:

• rights to explore in specific areas, once expired, will be renewed;

• substantive expenditure on further exploration and evaluation in specific areas has been budgeted;

• exploration in specific areas is ongoing and the entity has not decided to discontinue such activities; and

• no specific sufficient data exists that indicates that the carrying amount of the exploration and evaluation asset is unlikely to be recovered.

The consolidated financial statements were authorised for issue on 29 August 2017 by the board of directors.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
NOTE 2: OTHER INCOME — interest received — sale of goods / services Total Other Income	2017 $ 2016 $ 2,568 417 9,960 2,102
	12,528 1,105

NOTE 3: INCOME TAX BENEFIT

a. The prima facie tax on loss from ordinary activities before income tax is reconciled to Prima facie tax payable on loss from ordinary activities before income tax at 27.5% (2016: 30%) Tax effect of: — Current year temporary differences not recognised — Effect of tax rate change — Current year tax losses not recognised Income tax expense / (benefit) b. Components of deferred tax Unrecognised deferred tax asset - losses Unrecognised deferred tax asset – provisions and accruals Unrecognised deferred tax liabilities – exploration and evaluation Unrecognised deferred tax liabilities – capital raising costs Net Unrecognised deferred tax assets	the income tax as follows: (89,560) (16,234) (235,053) (309,406) (79,665) - 404,278 325,640
	- -
	2,091,497 2,122,058 83,254 95,203 (979,667) (1,022,819) (223,353) (238,461)
	971,731 955,981

Deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised. The benefit of the tax losses will only be obtained if the Group complies with conditions imposed by the tax legislation in Australia.

NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION

a. Names and positions held of key management personnel in office at any time during the financial year:

Person	Position	Person	Position
Gregory H Solomon	Executive Chairman	James B Richardson	Non-Executive Director
Douglas H Solomon	Non-Executive Director	Guy T Le Page	Non-Executive Director
Aaron P Gates	Company Secretary/CFO

Key management personnel remuneration is included in the Remuneration Report of the Directors’ Report.

b. Options and Rights Holdings

Number of Options Held by Key Management Personnel

	Balance		Granted as	Options		Net Change	Balance	Total	Total Exer-	Total Unexer-
	1.7.2016		Compen-	Exercised		Other	30.6.2017	Vested	cisable	cisable
			sation					30.6.2017	30.6.2017	30.6.2017
Gregory H Solomon		-	-		-	-	-	-	-		-
Douglas H Solomon		-	-		-	-	-	-	-		-
Guy T Le Page		-	-		-	-	-	-	-		-
James B Richardson		-	-		-	-	-	-	-		-
Aaron P Gates		-	-		-	-	-	-	-		-
Total		-	-		-	-	-	-	-		-

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED

c. Shareholdings

Number of Shares held by Key Management Personnel

Gregory H Solomon Douglas H Solomon Guy T Le Page James B Richardson Aaron P Gates Total	Balance 30.6.2016 Received as Compen- sation Options Exercised Net Change Other* Balance 30.6.2017 23,105,469 - - - 23,105,469 21,586,875 - - - 21,586,875 21,852,510 - - (6,000,008) 15,852,502 34,060,000 - - (5,560,000) 28,500,000 - - - - -
	100,604,854 - - (11,560,008) 89,044.846

*Net Change Other refers to shares purchased or sold during the financial year.

d. Remuneration Refer to disclosures contained in the Remuneration Report section of the Directors’ Report. The totals of remuneration paid to key management personnel of the Group during the year are as follows: Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Share based payments Total NOTE 5: AUDITOR’S REMUNERATION Remuneration of the auditor for auditing or reviewing the financial report NOTE 6: LOSS PER SHARE a. Reconciliation of loss to profit or loss Profit/(loss) Loss used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS The share options on issue are not potentially dilutive shares. NOTE 7: CASH AND CASH EQUIVALENTS Cash at bank Reconciliation of cash Cash at the end of the financial year as shown in the consolidated statement of cash flows is reconciled to items in the balance sheet as follows: Cash and cash equivalents	2017 $ 2016 $ 61,250 91,875 5,819 8,728 - - - - - -
	67,069 100,603
	17,975 17,775 (325,673) (54,113)
	(325,673) (54,113) 299,949,570 212,739,446
	466,368 397,789
	466,368 397,789
	466,368 397,789
	466,368 397,789

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30	JUNE 2017
	2017	2016
	$	$
NOTE 8: TRADE AND OTHER RECEIVABLES
Other receivables	24,700	66,212
	24,700	66,212
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
Equipment:
At cost	50,786	50,786
Accumulated depreciation	(41,199)	(39,461)
Total Plant and Equipment	9,587	11,325
a. Movements in Carrying Amounts
Movement in the carrying amount between the beginning and the end of the current financial year.
Opening balance	11,325	13,420
Depreciation expense	(1,738)	(2,095)
Closing balance	9,587	11,325
b. Impairment losses

The total impairment loss recognised in the consolidated statement of profit or loss and other comprehensive income during the current year amounted to $Nil (2016: Nil).

NOTE 10: EXPLORATION AND EVALUATION

NOTE 10: EXPLORATION AND EVALUATION
Balance at the beginning of the financial year Expenditure incurred during the year Expenditure written-off during the year Balance at the end on the financial year	14,768,889 14,727,743 188,749 41,146 (35,720) -
	14,921,918 14,768,889

Capitalised costs amounting to $167,313 (2016: $37,581) have been included in cash flows from investing activities in the statement of cash flows for the consolidated entity.

NOTE 11: JOINT OPERATION

A controlled entity, Meteore Metals Pty Ltd, has a 50% interest in the Mt Thirsty Joint Venture, whose principal activity is the development of the Mt Thirsty nickel, cobalt and manganese project. The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income that it earns from the joint operation.

Share of joint operation results and financial position:

Current Assets Non-Current Assets Total Assets Current Liabilities Total Liabilities Revenue Expenses Profit / (Loss) before income tax Income tax expense Profit / (Loss) after income tax	45,519 9,506 2,470,626 2,317,597
	2,516,145 2,327,103
	55,183 8,681
	80,183 33,681
	- - (7,461) (13,280)
	(7,461) (13,280) - -
	(7,461) (13,280)

ASX Code: CNJ

Page 26 of 37

Annual Report for Year Ending 30 June 2017 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 12: CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 12: CONTROLLED ENTITIES
Country of Controlled Entities Consolidated Incorporation Meteore Metals Pty Ltd Australia * Percentage of voting power is in proportion to ownership NOTE 13: TRADE AND OTHER PAYABLES Trade payables Sundry payables and accrued expenses NOTE 14: PROVISIONS NON-CURRENT Other	Percentage Owned (%) 2017 2016 100 100 2017 $ 2016 $* 92,163 47,874 32,385 45,143 124,548 93,017 275,000 275,000
	275,000 275,000

This mainly relates to a provision of $250,000 that has been recognised in relation to the Group’s 50% share of the liability to pay the original owners of the Mt Thirsty project $500,000 upon the commencement of mining on the tenements. The directors believe this will not become due for at least a couple of years. This amount has not been recorded at present value as a timeframe for discounting is not determinable.

NOTE 15: ISSUED CAPITAL

310,993,387 (2016: 295,243,387) ordinary shares a. Ordinary shares At the beginning of reporting period Shares issued during the year At reporting date	2017 $ 2016 $ 18,907,403 18,434,903 2017 No. 2016 No. 2017 $ 2016 $ 295,243,387 132,431,258 18,434,903 16,799,457 15,750,000 162,812,129 472,500 1,635,446	2017 $ 2016 $
		18,907,403 18,434,903
	310,993,387 295,243,387 18,907,403 18,434,903

Ordinary shares participate in dividends and in the proceeds of winding up in proportion to the number of shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. The Company has no authorised share capital or par value. All issued shares are fully paid.

ASX Code: CNJ

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Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 15: ISSUED CAPITAL CONTINUED

b. Options At the beginning of reporting period Issued during the year Options lapsed during the year Options exercised during the year At reporting date	2017 2016 64,626,000 5,501,000 - 59,125,000 (5,501,000) - (15,750,000) -
	43,375,000 64,626,000

c. Capital Management

Management controls the working capital of the Company in order to maximise the return to shareholders and ensure that the Company can fund its operations and continue as a going concern. Management effectively manages the Company’s capital by assessing the Company’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders and capital raisings. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year.

NOTE 16: RESERVES

a. Option Reserve

The option reserve records items recognised as expenses on valuation of share options.

b. Financial Asset Reserve

The financial asset reserve records revaluations of non-current assets. Under certain circumstances dividends can be declared from this reserve.

NOTE 17: PARENT COMPANY INFORMATION

a.

Parent Entity Assets Current assets Non-current assets Total Assets Liabilities Current liabilities Non-current liabilities Total liabilities Equity Issued capital Accumulated losses Reserves Option reserve Total reserves Financial performance Profit / (Loss) for the year Other comprehensive income Total comprehensive loss Contingent Liabilities and Commitments	2017 $ 2016 $ 430,761 446,897 14,251,822 14,103,560
	14,682,583 14,550,457 74,740 84,337 - -
	74,740 84,337 18,907,403 18,434,903 (4,777,010) (4,446,232) 477,450 477,450
	477,450 477,450 (330,778) (44,229) - -
	(330,778) (44,229)

The Directors are not aware of any contingent liabilities or capital commitments as at 30 June 2017. Guarantees in respect of the debts of its subsidiaries

There are no parent entity guarantees in respect of the debts of its subsidiary at year end.

ASX Code: CNJ

Page 28 of 37

Annual Report for Year Ending 30 June 2017 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 18: CAPITAL AND LEASING COMMITMENTS

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a. Capital Expenditure Commitments Payable: — not later than 12 months — greater than12 months	2017 $ 2016 $ - - - -
	- -

• b. Exploration Expenditure Commitments

In order to maintain current rights of tenure to exploration tenements, the company is required to perform minimum exploration work to meet the requirements specified by various State governments. It is anticipated that expenditure commitments for the twelve months will be tenement rentals of $3,000 (2016: $5,000) and exploration expenditure of $33,500 (2016: $94,000).

NOTE 19: SHARE-BASED PAYMENTS

No share-based payment arrangements existed at 30 June 2017.

NOTE 20: RELATED PARTY TRANSACTIONS

NOTE 20: RELATED PARTY TRANSACTIONS
	2017	2016
	$	$
Transactions between related parties are on normal commercial terms and conditions no
more favourable than those available to other parties unless otherwise stated.
Transactions with related parties:
Key Management Personnel
Management fees and administration fees paid to Princebrook Pty Ltd, a company in
which Mr GH Solomon and Mr DH Solomon have an interest. At 30 June 2017 $12,000
(2016: $12,000) was included in Trade and Other Payables owing to Princebrook Pty Ltd.	144,000	117,446
Management fees and administration fees forgiven by Princebrook Pty Ltd, a company in
which Mr G Solomon and Mr D Solomon have an interest.	-	355,342
Legal and professional fees payable to Solomon Brothers, a firm of which Mr GH Solomon
and Mr DH Solomon are partners.	2,436	21,466
Corporate advisory fees paid to RM Corporate Finance Pty Ltd, a company in which Mr G
T Le Page and Mr J B Richardson have an interest.	-	81,000
Placement fees paid to RM Corporate Finance Pty Ltd, a company in which Mr G T Le
Page and Mr J B Richardson have an interest.	-	36,000
Placement fees paid to RM Capital Pty Ltd, a company in which Mr G T Le Page and Mr J
B Richardson have an interest.	-	22,620
Amount included in Trade and Other Payables as owing to Mr Gregory H Solomon for
unpaid directors fees and superannuation.	8,031	9,516
Amount included in Trade and Other Payables as owing to Mr Douglas H Solomon for
unpaid directors fees and superannuation.	2,570	3,045
Amount included in Trade and Other Payables as owing to Mr Guy T Le Page for unpaid
directors fees and superannuation.	2,570	3,045
Amount included in Trade and Other Payables as owing to Mr James B Richardson for
unpaid directors fees and superannuation.	2,570	3,045
Associated Companies
Reimbursement to Tasman Resources Ltd (which has a 14.05% interest in the Company)
for employee costs on an hourly basis, in relation to Tasman staff utilised by the Company
and rent of a motor vehicle.	27,586	3,668

ASX Code: CNJ

Page 29 of 37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Annual Report for Year Ending 30 June 2017

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TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
TE 21: CASH FLOW INFORMATION Reconciliation of Cash Flow from Operations with Loss after Income Tax Loss after income tax Non-cash flows in profit Depreciation Debt forgiveness Exploration and evaluation written off Changes in assets and liabilities, net of non-cash payments (Increase)/decrease in trade and term receivables* Increase/(decrease) in trade payables and accruals Cash flow used in operations	2017 $ 2016 $ (325,673) (54,113) 1,738 2,095 35,720 (355,342) 20,076 (55,976) 31,531 (19,595)
	(236,608) (482,931)

NOTE 21: CASH FLOW INFORMATION

• a. Reconciliation of Cash Flow from Operations with Loss after Income Tax

• • Net of Exploration and Evaluation cash flows.

NOTE 22: SEGMENT REPORTING

The Group operates predominately in one geographical segment and one business segment, being mineral exploration and development in Western Australia. Operating segments are identified based on internal reports reviewed by the chief operating decision maker/s.

NOTE 23: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Directors are not aware of any contingent assets or contingent liabilities as at 30 June 2017.

NOTE 24: EVENTS AFTER THE BALANCE SHEET DATE

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

NOTE 25: FINANCIAL INSTRUMENTS

a. Financial Risk Exposures and Management

The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

• i. Interest Rate Risk

• Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group has minimal exposure to interest rate risk, the only asset / liability affected by changes in market interest rates is Cash and cash equivalents.

• ii. Liquidity Risk

• The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate funding is maintained. The Company’s operations require it to raise capital on an on-going basis to fund its planned exploration program and to commercialise its tenement assets. If the company does not raise capital in the short term, it can continue as a going concern by reducing planned but not committed exploration expenditure until funding is available and/or entering into joint venture arrangements where exploration is funded by the joint venture partner. All financial liabilities and assets are expected to be realised and settled within 6 months.

• iii. Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the company. The company has adopted a policy of only dealing with credit-worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

ASX Code: CNJ

Page 30 of 37

Annual Report for Year Ending 30 June 2017

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 25: FINANCIAL INSTRUMENTS CONTINUED

• iii. Credit risk continued

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

The Company does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the company.

b. Financial Instruments

• i. Net Fair Values

The aggregate net fair values of the financial assets and financial liabilities, at the balance date, are approximated by their carrying value.

• ii. Interest Rate Risk

The company’s exposure to interest rate risk and effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

	Weighted	Average
	Effective	Interest	Floating Interest Rate		Non Interest	Bearing	Total
	Rate
	2017	2016	2017	2016	2017	2016	2017	2016
			$	$	$	$	$	$
Financial Assets:
Cash and cash equivalents	0.60%	0.95%	466,368	397,789	-	-	466,368	397,789
Trade and other receivables	-	-	-	-	24,700	66,212	24,700	66,212
Total Financial Assets	0.60%	0.95%	466,368	397,789	24,700	66,212	491,068	464,001
Financial Liabilities:
Trade and sundry payables	-	-	-	-	124,548	93,017	124,548	93,017
Total Financial Liabilities	-	-	-	-	124,548	93,017	124,548	93,017

NOTE 26: COMPANY DETAILS

The registered office of the company is:

The principal place of business is:

Conico Limited Conico Limited Level 15, Level 15, 197 St Georges Terrace 197 St Georges Terrace Perth Western Australia 6000 Perth Western Australia 6000

ASX Code: CNJ

Page 31 of 37

Annual Report for Year Ending 30 June 2017

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DIRECTORS’ DECLARATION

In the opinion of the directors of Conico Ltd (the “Company”):

• a. the financial statements and notes set out on pages 17 to 31, and the Remuneration disclosures that are contained in pages 13 to 14 of the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its performance, for the financial year ended on that date; and

• (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

• (iii) complying with International Financial Reporting Standards as disclosed in Note 1.

• b. the remuneration disclosures that are contained in pages 13 to 14 of the Remuneration Report in the Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures and

• c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Non-Executive Chairman and Chief Financial Officer for the financial year ended 30 June 2017.

This declaration is made in accordance with a resolution of the Board of Directors.

Gregory H Solomon Chairman

Dated this 29[th] day of August 2017

ASX Code: CNJ

Page 32 of 37

Independent Auditor’s Report to the Members of Conico Limited

Report on the financial report

Opinion

We have audited the financial report of Conico Limited (the Company and its subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and

• (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial report’ section of our report. We are independent of the entity in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

Without modifying our opinion, we draw attention to Note 1 to the Financial Report, which indicates that the Group will require further funding in the next twelve months from the date of this report to fund its planned exploration and evaluation projects and operating costs. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter Capitalisation of Exploration and evaluation assets Refer to Note 10 (Exploration and evaluation)

As at 30 June 2017 the carrying value of Exploration and Evaluation assets was $14,921,918 (2016: $14,768,889). The Group’s accounting policy in respect of exploration and evaluation assets is outlined in Note 1e.

This is a key audit matter due to the fact that significant judgement is applied in determining whether:

• the capitalised Exploration and Evaluation assets meet the recognition criteria in terms of AASB 6 Exploration for and Evaluation of Mineral Resources; and

• facts and circumstances exist that suggest that the carrying amount of the Exploration and Evaluation assets may exceed their recoverable amount in accordance with AASB 6.

How our audit addressed the key audit matter

• Our procedures focussed on evaluating management’s assessment of the capitalised Exploration and Evaluation assets’ carrying value. These procedures included, amongst others:

• confirming whether the rights to tenure of the areas of interest remained current at balance date;

• obtaining evidence of the future intention for the areas of interest, including reviewing future budgeted expenditure and related work programmes; and

• obtaining an understanding of the status of ongoing exploration programmes for the areas of interest.

We also assessed the appropriateness of the accounting treatment and disclosure in terms of AASB 6.

Other information

The directors are responsible for the other information. The other information comprises the information in Conico Limited’s annual report for the year ended 30 June 2017, but does not include the financial report and the auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.

Directors’ responsibility for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibility for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at The Australian Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/Home.aspx. This description forms part of our auditor’s report.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 13 to 14 of the Directors’ Report for the year ended 30 June 2017.

In our opinion, the Remuneration Report of Conico Limited for the year ended 30 June 2017, complies with Section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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Nexia Perth Audit Services Pty Ltd

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TJ SPOONER FCA, FCA(UK), ACIS, AGIA, AMIIA, CTA

Director

Perth

29 August 2017

Annual Report for Year Ending 30 June 2017

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ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

1. Shareholding as at 15 August 2017

a.	Distribution of Shareholders	Number of
	Category (size of holding)	Shareholders
	1 – 1,000	29
	1,001 – 5,000	67
	5,001 – 10,000	161
	10,001 – 100,000	511
	100,001 – and over	256
		1,024

• b. The number of shareholdings held in less than marketable parcels at 15 August 2017 is 263.

• c. The names and relevant interests of the substantial shareholders listed in the holding company’s register as at 31 August 2017 are:

August 2017 are:
Shareholder	Number of Ordinary shares
Tasman Resources Ltd	41,476,285
J Richardson	28,500,000
Arkenstone Pty Ltd	23,105,469
March Bells Pty Ltd	21,586,875
G T Le Page	15,852,502

• d. Voting Rights

Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

• e 20 Largest Shareholders — Ordinary Shares

Name 1. Tasman Resources Ltd 2 March Bells Pty Ltd 3 Arkenstone Pty Ltd 4. Tasman Resources Ltd 5. Tadea Pty Ltd 6. Tadea Pty Ltd 7. Peto Pty Ltd <1953 Superfund A/c> 8. Redcode Pty Ltd 9. Guy Le Page & Dina Le Page 10. Matthew Torenius & Oliver Torenius 11. Flourish Super Pty Ltd 12. GT Le Page & Associates Pty Ltd 13. Apostman Superannuation Pty Ltd 14. Merriwa Street Pty Ltd 15. Guy Touzeau Le Page 16. Gary Tatasciore + Eric Tatasciore + Luke Tatasciore 17. Hyun Ho Ok & Byung Hye Ok 18. Pennock Pty Ltd 19. Arkenstone Pty Ltd 20. Anna De Lucia

Number Shares Held % of Issued Capital 25,000,000 7.96% 20,728,125 6.60% 17,015,625 5.42% 16,476,285 5.25% 15,250,000 4.86% 13,250,000 4.22% 8,500,000 2.71% 7,500,000 2.39% 6,214,194 1.98% 5,670,000 1.81% 5,550,000 1.77% 5,138,308 1.64% 4,875,000 1.55% 4,700,000 1.50% 4,500,008 1.43% 4,500,000 1.43% 4,441,493 1.42% 4,000,000 1.27% 3,837,500 1.22% 3,650,000 1.16% 180,816,538 57.59%

2. Unquoted Securities – Options as at 15 August 2017

Holder Name Date of Expiry Exercise Price Various 30 November 2019 $0.03	Number on issue Number of holders 40,375,000 17
	40,375,000 17

ASX Code: CNJ

Page 36 of 37

Annual Report for Year Ending 30 June 2017

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TENEMENT SCHEDULE

Table 1 lists further details on the tenements.

Table 1: Conico Tenement Schedule

State	Licence Type	Number	Interest %	Locality	Location
WA	EL	E63/1790	50	Mt Thirsty	Approximately 20 km NW of Norseman
WA	P	P/2045	50	MtThirsty	Approximately20km NWof Norseman
WA	EL	E63/1267	50	Mt Thirsty	Approximately20 km NW of Norseman
WA	R	R63/4	50	Mt Thirsty	Approximately20 km NW of Norseman

• • This application covers the same area as R63/4.

ASX Code: CNJ

Page 37 of 37