CONICO LTD — Interim / Quarterly Report 2014

Mar 12, 2014

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Conico Ltd ABN 85 009 253 187

and Controlled Entities

Interim Financial Report for the Half-Year Ended 31 December 2013

CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONTENTS

Highlights	3
Corporate Directory	4
Review of Operations	5
Directors’ Report	8
Auditor’s Independence Declaration	9
Consolidated Statement of Profit or Loss and Other Comprehensive Income	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Notes to the Financial Statements	14
Directors’ Declaration	17
Independent Auditor’s Review Report	18
Interests in Mining Tenements	20

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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HIGHLIGHTS

MT THIRSTY PROJECT (WA)

Mt Thirsty Co-Ni-Mn Oxide Resource

• EM Survey defines several Priority 1 EM conductors:

• 23.6 line km of moving loop EM (MLEM) surveys completed on Exploration Licences 63/373 and 63/1267.

• Seven EM conductors; three rated Category-1, three rated Category-2 and one rated Category-4 have been identified, modelled and prioritsed by a geophysical consultant.

• All Category-1 conductors have potential for Ni sulphides and have been recommended by the consultant for drill testing.

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Mt Thirsty Project Location and Regional Geology

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Executive Chairman) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page BA, BSc (Hons), MBA, FINSIA, MAusIMM (Non-Executive) James B Richardson Dip, Fin Plan (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates B.Com, CA, CSA

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 WA 6000

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Nexia Perth Audit Services Pty Ltd Level 3 88 William Street Perth WA 6000

SHARE REGISTRY:

Advance Share Registry Services 150 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: CNJ (ordinary shares)

Quotation has been granted for all the ordinary shares and all issued options of the company on all Member Exchanges of the Australian Stock Exchange Limited.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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REVIEW OF OPERATIONS

Mt Thirsty Project Summary

The Mt Thirsty Cobalt-Nickel-Manganese oxide project covering an area of 47km[2] is located 20km north-northwest of Norseman in the southern goldfields of Western Australia, a well endowed nickel terrain. Conico Ltd through its wholly owned subsidiary Meteore Metals Pty Ltd owns 50% of the project in joint venture with Barra Resources Limited. The Mt Thirsty deposit has the potential to emerge as a significant cobalt supplier. Recent metallurgical test work indicates that high recoveries of cobalt together with some nickel can be achieved through low temperature agitated leaching in closed tanks using SO2.

Mt Thirsty has a JORC (2004) compliant Indicated Resource of 16.6 million tonnes at 0.14% Cobalt, 0.60% Nickel and 0.98% Manganese and a JORC (2004) compliant Inferred Resource of 15.3 million tonnes at 0.11% Co, 0.51% Ni and 0.73% Mn over a length of 1.6 kilometres and a width of up to 850 metres. (This resource information was prepared and first disclosed under 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 ASX Announcement 8[th] March 2011: “Resource Upgrade”, available to view on www.conico.com.au.)

As well as the Co-Ni oxide resource, the Mt Thirsty joint venture tenements have potential for nickel sulphide mineralisation at greater depths within the same ultramafic sequence which hosts the near surface oxide deposit. Intersections of nickel sulphides up to 6m down hole at 3.4% Ni were made by the joint venture in 2010 (refer ASX announcement 19[th] May 2010: “High Grades Intersected at Mt Thirsty”, available to view on www.conico.com.au.)

Nickel Sulphide Exploration

Electromagnetic Surveys

A 23.6 line kilometre MLEM survey over 19 lines was undertaken by GEM Geophysics over the NNE trending maficultramafic-sediment sequence within E63/373 and E63/1267 (Figure 2).

The survey was targeting conductors due to nickel sulphides associated with an interpreted basal footwall maficultramafic contact or mafic – ultramafic rocks higher in the sequence.

The area tested is the strike extension of the sequence hosting the Mt Thirsty nickel sulphide prospect in E63/373 that has previously returned a number of strong but isolated Ni sulphide intersections up to 6 metres down hole @ 3.4% Ni and 2 metres @ 5.9% Ni in holes MTRC 15 and 22 respectively.

The EM survey lines were mostly at 400m spacing and designed for a 200m by 200m loop. Readings were taken every 100m along each line. In some cases the line spacing was 300m to facilitate access along existing tracks to improve production rates in thick scrub.

Results were modelled and interpreted by Spinifex Geophysics with the aim of identifying conductors representing potential massive sulphide accumulations (refer ASX announcement 11[th] November 2011: “EM Survey defines several priority one EM conductors at Mt Thirsty”, available to view on www.conico.com.au.).

Survey Results

A total of seven EM conductors have been identified and modelled within E63/1267 (3 anomalies) and E63/373 (4 anomalies), (Figure 2). All conductors have been prioritised based on their compliance with a number of primary criteria. Three of the conductors are rated Category-1 (MT002, MT004 & MT009; highest priority), three rated Category2 (MT005, MT007 & MT008; high priority) and one rated category-4 (MT010; low priority). Category-2 conductors have been downgraded due to their lower modelled conductivity but are generally well defined. Conductors ranked Category1 and -2 warrant immediate consideration as drill targets.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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E63/1267
E63/373
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Figure 2: Stacked in-loop MLEM profiles and conductor locations over TMI-1VD aeromagnetic image.

Future Exploration

Recommendations for follow up work are based upon conductor quality and implied geological setting. All Category-1 conductors are recommended for drill testing by Spinifex Geophysics.

Drill testing of the highest priority conductors is planned in the near term.

Mt Thirsty Co-Ni Oxide Deposit

Metallurgical Testwork

A split from a bulk sample was provided to Metaleach Ltd for testing the amenability of Mt Thirsty oxide material to the proprietary ammonia based Ammleach[®] process for selective leaching of Ni and Co. It has been postulated that this process has the potential to recover significantly higher nickel than the agitated leach process recently developed for Mt Thirsty Co-Ni oxide material. Initial results however were not encouraging although further tests will be undertaken.

At this stage closed tank agitated leaching with SO2 still looks to be the most cost effective method to treat Mt Thirsty oxide mineralisation.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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Retention Licence

A retention licence has been applied for over E63/373 which covers a large portion of the Mt Thirsty Co-Ni oxide resource. A new mining lease application will be lodged over this tenement once market conditions have improved.

***

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 six monthly 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 full time 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

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2013.

Directors

The names of directors who held office during or since the end of the half-year:

Mr Gregory H Solomon

Mr Douglas H Solomon Mr Guy T Le Page

Mr James B Richardson

Review of Operations

The net loss after income tax for the half year was $231,542 (2012: $302,499).

A review of the operations of the Group during the half-year ended 31 December 2013 is set out in the Review of Operations on Page 5.

Auditor’s Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 9 for the half-year ended 31 December 2013.

This report is signed in accordance with a resolution of the Board of Directors.

Director

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Gregory H Solomon

Dated this 13[th] day of March 2014

ASX Code: CNJ

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

To the directors of Conico Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the period ended 31 December 2013, there have been:

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

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

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director

Perth 13 March 2014

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Notes Other income Accounting and audit expense Depreciation and amortisation expense Employee benefits expense Due diligence expense Insurance expense Interest expense Legal and other consultants expense Management Fees Other expenses Loss before income tax Income tax expense Loss for the period Other Comprehensive Income Items that may be reclassified to profit or loss: Revaluation Reserve Income tax relating to other comprehensive income Other comprehensive income, after tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic/Diluted earnings per share (cents per share)

Consolidated Group 31 Dec 2013 31 Dec 2012 $ $ 4,721 16,793 (7,160) (6,187) (1,611) (2,075) (86,715) (80,859) - (82,731) (13,890) (13,900) (6,041) - (3,023) (8,126) (97,335) (97,335) (20,488) (28,079) (231,542) (302,499) - - (231,542) (302,499) - - - - - - - - (231,542) (302,499) (0.1748) (0.2383)

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Exploration and Evaluation expenditure TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Non-interest bearing liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY

Consolidated Group 31 Dec 2013 30 Jun 2013 $ $ 24,329 94,984 11,605 11,420 35,934 106,404 17,796 19,407 14,695,240 14,658,139 14,713,036 14,677,546 14,748,970 14,783,950 455,100 278,538 100,000 100,000 20,000 - 575,100 378,538 250,000 250,000 250,000 250,000 825,100 628,538 13,923,870 14,155,412 16,799,457 16,799,457 477,450 477,450 (3,353,037) (3,121,495) 13,923,870 14,155,412

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2013

	Share Capital	Option	Accumulated	Accumulated
	Ordinary	Reserve		Losses	Total
	$	$		$	$
Balance at 1 July 2012	16,618,474	477,450		(2,433,031)	14,662,893
Net loss for the period	-		-	(302,499)	(302,499)
Other comprehensive income / (loss)	-		-	-	-
Balance at 31 December 2012	16,618,474	477,450		(2,735,530)	14,360,394
Balance at 1 July 2013	16,799,457	477,450		(3,121,495)	14,155,412
Net loss for the period	-		-	(231,542)	(231,542)
Other comprehensive income / (loss)	-		-	-	-
Balance at 31 December 2013	16,799,457	477,450		(3,353,037)	13,923,870

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Share application monies received Net cash provided by (used in) financing activities Net increase/(decrease) in cash held Cash at beginning of period Cash at end of period

Consolidated Group 31 Dec 2013 31 Dec 2012 $ $ 3,449 7,584 (60,760) (313,751) 457 3,005 (56,854) (303,162) (33,801) (15,974) (33,801) (15,974) 20,000 - - 192,535 20,000 192,535 (70,655) (126,601) 94,984 347,491 24,329 220,890

The accompanying notes form part of these financial statements.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 1: BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with AASB 134: Interim Financial Reporting ensures compliance with IAS 34: Interim Financial Reporting.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2013 and any public announcements made by Conico Ltd and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules . The half-year report does not include full disclosures of the type normally included in an annual financial report.

Accounting Policies

The accounting policies have been consistently applied by the entities in the consolidated group and are consistent with those in the June 2013 financial report except for the adoption of new and revised Accounting Standards.

The Group has adopted all of the new and revised Standards issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year.

New and revised Standards and amendments thereof effective for the current half-year that are relevant to the Group include:

• AASB 10 Consolidated Financial Statements and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 11 Joint Arrangements and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 12 Disclosure of Interests in Other Entities and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 127 Separate Financial Statements (2011) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 128 Investments in Associates and Joint Ventures (2011) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

• AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures – Offsetting Financial Assets and Financial Liabilities

The effects of applying these standards are described below.

AASB 11 Joint Arrangements

AASB 11 replaces AASB 131 Interests in Joint Ventures and the guidance contained in a related interpretation, Interpretation 113 Jointly Controlled Entities – Non-Monetary Contributions by Venturers, has been incorporated in AASB 128 (as revised in 2011). AASB 11 deals with how a joint arrangement of which two or more parties have joint control should be classified and accounted for. Under AASB 11, there are only two types of joint arrangements – joint operations and joint ventures. The classification of joint arrangements under AASB 11 is determined based on the rights and obligations of parties to the joint arrangements by considering the structure, the legal form of the arrangements, the contractual terms agreed by the parties to the arrangement, and, when relevant, other facts and circumstances. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint venturers) have rights to the net assets of the arrangement.

Previously, AASB 131 Interests in Joint Ventures contemplated three types of joint arrangements – jointly controlled entities, jointly controlled operations and jointly controlled assets. The classification of joint arrangements under AASB 131 was primarily determined based on the legal form of the arrangement (e.g. a joint arrangement that was established through a separate entity was accounted for as a jointly controlled entity).

The initial and subsequent accounting of joint ventures and joint operations is different. Investments in joint ventures are accounted for using the equity method (proportionate consolidation is no longer allowed). Investments in joint operations are accounted for such that each joint operator recognises its assets (including its share of any assets jointly held), its liabilities (including its share of any liabilities incurred jointly), its revenue (including its share of revenue from the sale of the output by the joint operation) and its expenses (including its share of any expense incurred jointly). Each joint operation accounts for the assets and, liabilities, as well as revenue and expenses, relating to its interest in the joint operation in accordance with the applicable Standards.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

The Group’s interest in a 50% project in joint venture with Barra Resources Limited is treated as a joint operation in accordance with AASB 11.

AASB 12 Disclosure of Interests in Other Entities

AASB 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. In general, the application of AASB 12 will result in more extensive disclosures in the annual consolidated financial statements. However, this has not resulted in any changes to the interim financial report.

The Group does not expect the other new and revised Standards and amendments to have any material effect on the Group’s financial statements.

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 period of $231,542 (2012: $302,499) and a cash outflow from operating activities of $56,854 (2012: $303,162). The Group also had a net working capital deficit of $539,166 at 31 December 2013 (30 June 2013: deficit of $272,134).

Included in current liabilities are amounts owed to related parties totalling $567,655 which do not become payable until the company has raised sufficient funds to pay all outstanding debts and continue as a going concern after the related party debt have been repaid.

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 period 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.

NOTE 2: SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining the allocation of resources.

The Group is managed on the basis it is a mineral exploration company operating in the geographical region of Australia. The mineral assets held via outright ownership or joint venture are considered one business segment and the minerals currently being targeted include cobalt, nickel and manganese in Western Australia.

NOTE 3: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The directors are not aware of any contingent liabilities or contingent assets as at 31 December 2013.

NOTE 4: EVENTS SUBSEQUENT TO REPORTING 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 economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 5: RELATED PARTY TRANSACTIONS

		2013	2012
		$	$
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:
a.	Key Management Personnel
	Management fees and administration fees payable to Princebrook Pty Ltd, a
	company in which Mr G Solomon and Mr D Solomon have an interest.	97,335	97,335
	Legal and professional fees paid to Solomon Brothers, a firm in which Mr G Solomon
	and Mr D Solomon are partners.	-	8,126
	Mr G Solomon provided the Company an unsecured interest-free loan of $5,000.	5,000	-
	Mr D Solomon provided the Company an unsecured interest-free loan of $5,000.	5,000	-
	Mr G LePage provided the Company an unsecured interest-free loan of $5,000.	5,000	-
	Mr J Richardson provided the Company an unsecured interest-free loan of $5,000.	5,000	-
b.	Associated Companies
	Reimbursement to Tasman Resources Ltd (which has a 19.5% fully diluted
	interest in the Company) for employee costs on an hourly basis, in relation to
	Tasman staff utilised by the Company.	6,416	10,045

ASX Code: CNJ

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 10 to 16:

2. a. comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

3. b. give a true and fair view of the economic entity’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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

Director Gregory H Solomon

Dated this 13[th] day of March 2014

ASX Code: CNJ

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Independent Auditor’s Review Report to the members of Conico Limited

Report on the Interim Financial Report

We have reviewed the accompanying interim financial report of Conico Limited and its controlled entities (the “Group”), which comprises the consolidated statement of financial position as at 31 December 2013, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period ended on that date, other selected explanatory notes and the directors’ declaration of the Group comprising the Company and the entities it controlled at the half-year end or from time to time during the period.

Directors’ Responsibility for the Interim Financial Report

The directors of the Group are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards, including the Australian Accounting Interpretations, and the Corporations Act 2001. This responsibility includes: establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the interim financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2013 and its performance for the period ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Conico Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Conico Limited and its controlled entities is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Group’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to Note 1 in the financial report, which indicates that the Group will require further equity funding within the next twelve months from the date of this report to fund its operations and planned exploration projects. 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.

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director

Perth 13 March 2014

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CONICO LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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Interests in Mining Tenements

Tenements	Location	Interest held at end of period	Acquired during the 6 months	Disposed during the period
P63/1749	WA	0%		50%
E63/1113	WA	50%
E63/373	WA	50%
E63/1267	WA	50%
E63/1268	WA	0%		50%
E63/1303	WA	50%
E63/1304	WA	50%
MLA63/527*	WA	50%
RA63/4*	WA	50%	50%
LA63/60	WA	0%		50%
LA63/61	WA	0%		50%
LA63/62	WA	0%		50%
L63/66	WA	50%
L63/67	WA	50%

*These applications cover the same area as E63/373

ASX Code: CNJ

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