CONICO LTD — Interim / Quarterly Report 2017

Jul 30, 2017

ACN 119 057 457

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ASX QUARTERLY REPORT

FOR PERIOD ENDED 30TH JUNE 2017

HIGHLIGHTS: MT THIRSTY COBALT PROJECT:

• Scoping Study now targeting completion in September quarter

• Recent SO2 leach results consistent with previous studies

• Promising results from alternate reagents

• New cobalt-nickel oxide deposit delineated 3km north of Mt Thirsty on E63/1267

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

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Figure 1: Mt Thirsty Project Location

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

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MT THIRSTY COBALT PROJECT (50% Conico: 50% Barra – Joint Venture )

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 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.

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ACTIVITIES

Scoping Study Progress

The Scoping Study now due for completion in 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 will continue during July and will be considered prior to the finalisation of flowsheet design and Scoping Study.

Air Core Drilling E63/1267

Recent aircore (AC) drilling on E63/1267, located approximately 3km north of the Mt Thirsty Cobalt Deposit (Figure 1) 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 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) values 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 3).

Cobalt assays greater than or equal to 0.06% Co over a true thickness of 2m or more were intersected in 27 of the 31 holes drilled. Significant intersections are shown in Table 1. 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 Joint Venture partners are encouraged by the recently discovered Co-Ni oxide mineralisation in E63/1267 which has the potential to provide further upside to the Mt Thirsty Project

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Figure 3: 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 4.

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Table 1: E63/1267 Significant Cobalt and Nickel Intersections in Recent 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[0] 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 mineralisation is approximately. 13m. All holes were sampled in one metre intervals.

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Figure 4: E63/1267: Cross Section 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 (1m samples).

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Greg Solomon Chairman

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 quarterly 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.

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Mt Thirsty Project Summary

The Mt Thirsty Cobalt – Nickel - Manganese oxide project covering an area of 11.5km2 is located 20km north-northwest of Norseman in the southern goldfields of Western Australia, a well-endowed nickel terrain (see Figure 1). 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.

The project hosts the Mt Thirsty Cobalt Oxide Deposit (Table 2) which has the potential to emerge as a significant cobalt supplier. Refer also Cross Section through Mt Thirsty deposit, Figure 5 below.

Table 2: Mt Thirsty Cobalt Oxide Deposit Mineral Resource Summary (0.06% Co cut off)

Mineral Resource Category	Tonnes	Cobalt(Co) (%)	Nickel(Ni) (%)	Manganese(Mn) (%)
Indicated	16,600,000	0.14	0.60	0.98
Inferred	15,340,000	0.11	0.51	0.73
Total Mineral Resource	31,940,000	0.13	0.55	0.86

(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 8th March 2011: “Resource Upgrade”, available to view on www.conico.com.au ).

Extensive metallurgical testwork in recent years has indicated that high recoveries of cobalt can be achieved via agitated, low temperature, atmospheric leaching using cheaper and more efficient sulphur dioxide (SO2) as the main leaching agent resulting in a more practical and economic leaching method by specifically targeting cobalt only.

Two flowsheets, one utilising a paste thickener and the other using an ion exchange resin-in-pulp (RIP), are still under investigation. Both have low water consumption, low reagent consumption and greater than 80% cobalt and 25% nickel recoveries. Preliminary estimations justify continued work to progress to a pre-feasibility stage.

The Mt Thirsty Cobalt Oxide Deposit currently represents an excellent long-term, low cost, cobalt production opportunity.

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 within E63/373 (refer ASX announcement 19th May 2010: “High Grades Intersected at Mt Thirsty”, available to view on www.conico.com.au ).

For more details on the Mt Thirsty Cobalt Project, shareholders and investors are encouraged to visit the Project website at www.mtthirstycobalt.com .

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Figure 5: Representative schematic cross-section through the Mt Thirsty Cobalt – Nickel Oxide Deposit

Interests in Mining Tenements

Tenements	Location	Interest held at end of quarter	Acquired during the quarter	Disposed during the quarter
E63/1267	WA	50%
R63/4	WA	50%
EL63/1790	WA	50%
P63/2045	WA	50%
E63/1778	WA	0%		100%
E63/1779	WA	0%		100%

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Appendix 1: E63/1267 Mt Thirsty, Air Core Drilling and Sampling

Appendix 1: E63/1267 Mt Thirsty, AirCore Drilling and Sampling	Appendix 1: E63/1267 Mt Thirsty, AirCore Drilling and Sampling	Appendix 1: E63/1267 Mt Thirsty, AirCore Drilling and Sampling
	Section 1: Sampling Techniques and Data
Criteria	**JORC Code explanation **	Commentary
Sampling techniques.	Nature and quality of sampling (eg. cut channels, random chips or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where “industry standard” work has been done this would be relatively simple (eg “reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a 30g charge for fire assay”). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	The samples have been obtained by drilling 30 vertical air core (AC) holes to a maximum depth of 54m and one inclined hole to45m within E63/1267. Holes were drilled at 40m spacings along 7 lines mostly 100m apart. Holes were sampled at even regular 1m intervals. AC drilling was used to obtain 1m samples from which a 2kg split was bagged and sent to the laboratory. The sample was then dried and pulverised and a 40gm sub sample analysed for Co, Ni, Mn, Al & Fe using a four acid digest with an ICP MS finish for Co and ICP OES for the other elements.
Drilling techniques.	Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	AC blade drilling (100mm hole diameter) was used throughout as drilling was mostly in soft clays.
Drill sample recovery.	Whether core and chip sample recoveries have been properly recorded and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery was excellent as all samples were dry. No intervals with poor recovery were observed. Drill hole cuttings were collected in a cyclone, and subsequently reduced in volume with a riffle splitter attached to the cyclone. The cyclone and splitter were cleaned thoroughly between each3 metre rod. Most of the material drilled is strongly oxidised, soft and relatively fine grained. No significant sample bias is expected to have occurred due to preferential loss of fine/coarse material.

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Logging.	Whether core and chip samples have been logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc.) photography. The total length and percentage of the relevant intersections logged.	Logging is conducted in detail at the drill site by the site geologist, who routinely records weathering, lithology, alteration, mineralisation, or any other relevant features. It is considered to be logged at a level of detail to support appropriate Mineral Resource estimation and mining studies. Logging is qualitative in nature. The entire length of each hole was logged in 1m intervals.
Sub-sampling techniques and sample preparation.	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicates/second half sampling. Whether sample sizes are appropriate to the grainsize of the material being sampled.	n/a. All drill chips were split with a riffle splitter and the remaining sample placed in rows on the ground. Duplicate samples were obtained from the sample piles with a plastic scoop. All samples were dry. Sample preparation followed industry standard practice of drying, coarse crushing to -6mm, before pulverising to 90% passing 75 micron. To meet QAQC requirements duplicates were placed at irregular intervals in the sample stream, one or two duplicates per drill hole. Certified blanks (OREAS 24P or 22e) were also placed in the sample stream at the rate of 1 in 50. Additionally a certified standard was also used in the sample stream (OREAS 182) at the rate of 4 standards per 100 samples. Duplicates were collected from approx. 1 in every 20 samples. A comparison of the results has not yet been completed but will be prior to any resource estimation. Material being sampled is generally fine grained, and a 2-3kg sample from each metreis considered quite adequate.
Quality of assay data and laboratory tests.	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometer, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation etc. Nature of quality control procedures adopted (eg. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) andprecision have been established.	Samples were crushed and pulverised, and analysed for Co, Ni, Mn, Al & Fe by Bureau Veritas using a four acid digest with an ICP MS finish for Co and ICP OES for the others. These procedures are considered appropriate for the elements and style of mineralisation. Analysis is considered total. No tools used. The internal laboratory QAQC procedures included analysing their own suite of internal standards and blanks within every sample batch and also adding sample duplicates.

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Verification of sampling and assaying.	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	Significant intersections are determined by company personnel, and checked internally. As this is early stage drilling no twin holes were used. Individual sample numbers are generated and matched on site with down hole depths. Sample numbers are then used to match assays when received from the laboratory. Verification of data is managed and checked by company personnel with extensive experience. All data is stored electronically, with industry standard systems and backups. Data is not subject to any adjustments.
Location of data points.	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	Collar locations were determined by hand held GPS and are accurate to approximately +/- 5m); GPS derived RLs are not sufficiently accurate for use. The grid system used is AGD84; AMG Zone 51 to match a previously established grid. 2.5m spaced topographic contours have been prepared from ortho-photomaps and hole RLs are measured from these. This topographic control is considered quite adequateforthe current purposes.
Data spacing and distribution.	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.	The data spacing used (mostly 40x 100m) is considered sufficient for estimation of an inferred resource. All holes were sampled and assayed in 1m intervals and no compositing has been applied.
Orientation of data in relation to geological structure.	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	The mineralisation is mostly contained within a flat lying weathering blanket and vertical holes achieve unbiased sampling in most cases. n/a
Sample security	The measures taken to ensure sample security.	Samples were delivered to a dedicated cartage contractor in Norseman and sealed inbulka bags by company employees.
Audits or reviews.	The results of any audits or reviews of sampling techniques and data.	No audits or reviews carried out for this drilling exercise as it was considered not to bewarranted.

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Section 2: Reporting of Exploration Results

(criteria listed in the preceding group apply also to this group)

Section 2: Reporting of Exploration Results (criteria listed in the preceding group apply also to this group)	Section 2: Reporting of Exploration Results (criteria listed in the preceding group apply also to this group)	Section 2: Reporting of Exploration Results (criteria listed in the preceding group apply also to this group)
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status.	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The exploration results relate to the Mt Thirsty Project, located approximately 20km north west of Norseman, Western Australia. The tenements are owned 50% by Conico Ltd through its subsidiary Meteore Metals Pty Ltd and 50% by Barra Resources Ltd (The Mt Thirsty Joint Venture). The project includes retention licence, R63/4, and exploration licence 63/1267, A cobalt-nickel oxide resource is located on R63/4 and this announcement deals with a potential small satellite resource located 3km to the north on E63/1267. A 1.75% NSR royalty is payable on any production from R63/4 to a third party relating to Meteore’s interest. The tenements lie within the Ngadju native title claim (WC99/002), and agreements between the claimants and Conico are designed to protect Aboriginal heritage sites and facilitate access. There are no historical or wilderness sites or national parks or known environmental settings that affect the Mt Thirsty Project although the project area is located within the Great Western Woodlands. The MTJV has secure tenure over the project area and there are no known impediments to obtaining alicence to operateinthe area.
Exploration done by other parties.	Acknowledgment and appraisal of exploration by other parties.	The Mt Thirsty area was explored for nickel sulphide mineralisation in the late sixties and early seventies by Anaconda, Union Miniere, CRA, WMC/CNGC and others. Although no significant sulphide discoveries were made during that time, limonitic nickel/cobalt mineralisation was encountered but not followed up. In the 1990’s Resolute- Samantha discovered high grade cobalt mineralisation in the oxidised profile above anorthocumulate peridotite..
Geology.	Deposit type, geological setting and style of mineralisation.	The Mt Thirsty Co-Ni-Mn oxide mineralisation has developed as a result of weathering of ultramafic (peridotite) rocks located at the southern end of the Archaean Norseman - Wiluna greenstone belt. Most of the Co and some of the Ni mineralisation is associated with manganese oxides which have formed intheweathering profile.
Drill hole information.	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: Easting and northing of the drill hole collar Elevation or RL (Reduced Level-elevation above sea level in metres) of the drill hole collar Dip and azimuth of the hole Down hole length and interception depth Hole length	Included in table in body of report

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Data aggregation methods.	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg. cutting of high grades) and cut-off grades are usually material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	All samples are of the same length hence weighting by length was mostly not required. Due to the nature of the mineralisation no cutting of high grades is required. 0.06% Co has been used as a cut off grade. All holes were sampled in 1m intervals and hence all samples are of the same length. No metal equivalent values have been calculated or reported.
Relationship between mineralisation widths and intercept lengths.	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down-hole lengths are reported, there should be a clear statement to this effect (eg. ‘downhole length, true width not known’).	As the mineralised envelope is generally flat lying and 30 of the 31 holes were drilled vertically; down hole width is generally considered to be true width.
Diagrams.	Where possible, maps and sections (with scales) and tabulations of intercepts should be included for any material discovery being reported if such diagrams significantly clarify the report.	Not relevant
Balanced reporting.	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Not relevant
Other substantive exploration data.	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	A number of bulk samples have been collected from identical mineralisation in R63/4 and extensive metallurgical testwork has been completed which has been the subject of previous announcements. There are no potential deleterious or contaminating substances.
Further work.	The nature and scale of planned further work (eg. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	The limits of the resource are almost fully defined and no further drilling for extensions is planned at this stage.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Conico Ltd ABN Quarter ended (“current quarter”) 49 119 057 457 30 June 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (35) - - (39) (59) - 1 - - - 2	- (112) - - (64) (228) - 4 - - - 5
	(130)	(395)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - 472 (9) - - - - -
	-	463
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	596 (130) - - -	398 (395) - 463 -
	466	466

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	466 - - -	596 - - -
	466	596

6. Payments to directors of the entity and their associates 6.1 Aggregate amount of payments to these parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	75
	-

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Director fees were paid during the quarter.

Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors.

7. Payments to related entities of the entity and their Current quarter associates $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included - in item 2.3

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows			100 - - - 150 -
			250
10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest		Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	E63/1778 E63/1779	Direct Direct		100% 100%	0% 0%
10.2 Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: 31 July 2017 Company secretary

Print name: Aaron Gates

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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