CONICO LTD — Capital/Financing Update 2017

Jul 4, 2017

ACN 119 057 457

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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MT THIRSTY SCOPING STUDY UPDATE

Highlights

• Final Scoping Study Report due in August 2017.

• Atmospheric leaching process flow sheet continues to yield positive results.

Scoping Study Progress

The Mt Thirsty Joint Venture ( Conico Limited - CNJ : 50% Barra Resources Ltd - BAR : 50%) is pleased to advise that the Scoping Study is due for completion in August 2017.

The Scoping Study is being managed Provide Advantage, with support from consultant engineers CPC Engineering, metallurgical support from ALS Metallurgy Pty Ltd and the mining resource and 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 will continue during July and will be considered prior to the finalisation of flowsheet design and Scoping Study.

Background on Mt Thirsty Cobalt Project

Mineral ResourceCategory	Tonnes	Cobalt (Co)(%)	Nickel (Ni)(%)	Manganese (Mn)(%)
IndicatedInferredTotal Mineral Resource	16,600,00015,340,00031,940,000	0.140.110.13	0.600.510.55	0.980.730.86

The Mt Thirsty Cobalt Oxide Deposit mineral resource was prepared and first reported in accordance with the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported; refer to ASX announcement 8[th] March 2011: “Resource Upgrade Mt Thirsty Cobalt-Nickel Oxide Deposit”: available to view at www.conico.com.au ). The Company is not aware of any new information or data that materially affects the information included in the previous announcement and that all of the previous assumptions and technical parameters underpinning the estimates in the announcement dated 8[th] March 2011 have not materially changed.

______________________________________________________________________________________________________________ Level 15, 197 St George’s Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866 Website: www.conico.com.au

Mt Thirsty is one of Australia’s largest known stand-alone cobalt resources at 32 million tonnes with approximately 40,000 tonnes of contained cobalt. The great advantages of Mt Thirsty compared to other potential cobalt miners is the nature of the resource, being a flat lying, continuous and thick deposit starting from near surface to around 70 metres below surface. Due to intense oxidation, the deposit is very soft, fine grained and low in silica. As the cobalt is attached to the manganese, initial test work has indicated that an agitated leach process done at around 40[o] C and atmospheric pressure will be sufficient to extract the cobalt. The very nature of the deposit and leaching process being pursued has the potential to translate to a very low CAPEX/OPEX operation.

Given Mt Thirsty’s ideal positioning close to infrastructure including power and port access in Western Australia, the Joint Venture remains confident Mt Thirsty has the potential to become a major supplier to the burgeoning battery supply chain.

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Guy T Le Page Director

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.

Competent Persons Statement

The information in this announcement that relates to Exploration Targets, Exploration Results and Mineral Resources is based on and fairly represents information compiled by Michael J Glasson, Competent Person who is a member of the Australian Institute of Geoscientists.

Mr Glasson is an employee of Tasman Resources Ltd and in this capacity acts as a part time consultant to Conico Ltd. Mr Glasson hold shares in Conico Ltd.

Mr Glasson has 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 consents to the inclusion in the report of the matters based on his information, in the form and context in which it appears.

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----- Start of picture text ----- Figure 1: Mt Thirsty Cobalt Project location map----- End of picture text -----

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Figure 2: Representative schematic cross-section through the Mt Thirsty Cobalt – Nickel Oxide Deposit