CONICO LTD — Interim / Quarterly Report 2021

Oct 28, 2021

September 2021 Quarterly Activities Report

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29 October 2021

HIGHLIGHTS:

• Drill programme at the Ryberg Project completed at the Miki, Sortekap and Cascata Prospects.

• New discovery made at Cascata interpreted to be a volcanicsedimentary hosted massive sulphide (VHMS).

• Drill equipment and fuel stored at Ryberg, enabling an early start in 2022.

• Regional magnetic-radiometric geophysical survey completed at

• Ryberg.

• Fuel delivered at the Mestersvig Project facilitating commencement of the field season in April/May 2022.

• Placement completed, raising a total of $4,020,000 (before expenses).

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Figure 1 : CNJ’s 100% owned Ryberg and Mestersvig Projects in East Greenland.

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Ryberg Project, Greenland (100% Conico)

The Ryberg Project (figure 1) covers 4,521km[2] on the east coast of Greenland, 365km west of Iceland. It contains magmatic sulphide mineralisation (the Miki Prospect), orogenic gold (the Sortekap Prospect) and volcanic-sedimentary hosted massive sulphide (Cascata Prospect).

Mobilisation to Greenland occurred on the 13[th] of July with personnel departing Reykjavik for Iceland, onboard a charter vessel. The vessel carried all equipment, including fuel and drill rigs and was used as accommodation for the duration of the field season.

The field season had a duration of 2 months, concluding on the 15[th] of September. During this period the Company accomplished drilling at the Miki, Sortekap and Cascata Prospects, while also conducting a regional magnetic-radiometric heli-borne geophysical survey. There were no incidents or injuries, and drill equipment was left on site, as was fuel in preparation for an early recommencement of activities in 2022.

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Figure 2: Panoramic view from the accommodation and supply vessel used in 2021.

MIKI PROSPECT

Drilling commenced at the Miki Prospect, targeting electromagnetic (EM) geophysical anomalies and the contact between host-rock and the Miki Fjord Dyke. Exploration targeted magmatic sulphide mineralisation that had been identified at surface during previous years’ sampling and mapping programmes. Drill-holes MIDD001-MIDD009 were completed, for a total of 2,057m.

Drill-holes MIDD001, MIDD003, MIDD005 and MIDD006 intersected sulphides of interest, with preliminary visual investigation suggesting the most abundant sulphides present to be pyrrhotite and chalcopyrite. The textures of the sulphide mineralisation include semi-massive, net-textured, disseminated, vein-hosted and stringers. The host lithologies consisted of mafic gneiss (country rock) and gabbro that forms part of the Miki Fjord Dyke.

Drill-holes MIDD001-MIDD006 (except for MIDD004 that was abandoned short of target depth) were logged and sampled on site, with samples sent for laboratory analysis and assay results pending. Drillholes MIDD007-008 have been logged, but not yet sampled, and drill-hole MIDD009 is yet to be logged or sampled.

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Figure 3: View of MIDD007, looking north.

SORTEKAP PROSPECT

Three drill-holes were successfully completed, SODD001-SODD003 for a total of 833 metres. All drill-holes were targeting induced polarisation (IP) anomalies in locations where gold had been identified from previous surface sampling.

All drill-holes intersected sulphide mineralisation, with preliminary visual investigations suggesting the most abundant sulphides present to be pyrrhotite, chalcopyrite and arsenopyrite. The textures of the sulphide mineralisation include pervasive, disseminated and vein hosted. Significant intercepts of magnetite were also encountered in SODD001. The host lithologies consisted of serpentinite, amphibolite, meta-volcanic and meta-sediments.

All drill-holes (SODD001-SODD003) were logged and sampled on site, with samples sent for laboratory analysis and assay results pending.

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Figure 4: View of SODD001, looking west.

CASCATA PROSPECT

The Cascata Prospect is a new discovery that was made during the field season, with personnel observing massive sulphide mineralisation at surface interpreted to be volcanic-sedimentary hosted massive sulphides (VHMS). Due to the compelling nature of the mineralisation, a drill rig was mobilised to Cascata with two drill-holes completed for a total of 590m drilled. Drilling was angled adjacent to stratigraphy and placed high in the stratigraphy to maximise lithologies intersected – no geophysics was present to aid drilling.

Drill-hole CADD001 intersected sulphide mineralisation and was found to be dispersed as diagenetic pyrite nodules in the upper sequence of black shales to 155 m metres downhole, while hydrothermal disseminated and massive sulphide lenses (up to 0.4 metres thick) commence in the lower sequence below this depth until contact with gabbro at 275 metres downhole. Most sulphide minerals in the lower sequence are very fine-grained and it is not possible to identify them conclusively without geochemical/mineralogical analysis.

Beneath the volcanic-sedimentary sequence a layered gabbro was encountered containing plagioclase, magnetite, ilmenite, apatite, and oxide minerals magnetite and ilmenite, together with trace sulphide. The gabbro persists through to end of hole and is thought to represent a newly identified layered mafic intrusion (LMI) that may have potential for precious and base metals.

CADD001 was logged and sampled on site, with samples sent for laboratory analysis and assay results pending. Drill-hole CADD002 is yet to be logged and sampled.

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Figure 5: View to the south of Cascata.

GEOPHYSICS

A regional heli-borne magnetic and radiometric survey (Figure 6) was flown across the majority of the Ryberg licence area by New Resolution Geophysics (NRG) of South Africa. This represents the first regional geophysical survey to ever occur at Ryberg, flown in an E-W direction at 200 metre line spacing, with infill lines at 100 metre spacing at the Miki and Sortekap Prospects.

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Figure 6: NRG regional geophysics, total magnetic intensity.

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Mestersvig Project, Greenland (100% Conico)

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Figure 7: The Mestersvig Project, and locations of interest.

Samples obtained from field reconnaissance at the Werner Bjerge Complex, conducted in May were sent for assay and results received in the quarter. A total of 28 samples were submitted, none of which returned highly anomalous values. It is anticipated that future programmes will benefit from insights given by the EM survey interpretation, and satellite hyperspectral data.

In the quarter, a total of 300 barrels of fuel were delivered by vessel to the Mestersvig Project area. This will enable the Company to commence activities April-May 2022.

The Mestersvig Project (figure 7), covers 1,447km and is located on the east coast of Greenland, 640km north of Iceland. It contains base and precious metal bearing sulphides, REE mineralisation and the historic Blyklippen Mine (past production of 545,000 tons of ore @ 9.3% Pb and 9.9% Zn between 1956-1962).

Interpretation of historic electromagnetic (EM) data obtained over the Werner Bjerge Complex (in the southern half of the licence area) was conducted by an independent geophysicist and received in the quarter. Eight areas of interest have been identified that warrant field investigation. The survey was flown by Fugro in 2012 at 100m line spacing, for a total of 9,030-line kilometres flown and received at no cost to the Company.

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Figure 8: Residual magnetic intensity for the Mestersvig EM survey.

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Current activities

As mentioned in the ASX Announcement on 18 October 2021, core logging and analysis is ongoing with key technical staff having recently arrived in Lisbon. The remaining core samples are likely to be dispatched to the analytical laboratories shortly and the Company is anticipating assays over November and December 2021. A report on the NRG geophysical survey data is also anticipated in late November, early December 2021.

Proposed 2022 Greenland field activities

The operations manager and CEO have begun planning for the 2022 field season, focusing on options to allow activities to commence as early as April. At Ryberg three drill rigs and ample fuel have been left on site and efforts will also focus on advancing Mestersvig with fuel having been imported there this year allowing for an early start to operations.

Mt Thirsty Project, Western Australia, (50% Conico: 50% Barra Resources)

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Figure 9 : Mt Thirsty Cobalt-Nickel Project near Norseman, Western Australia.

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The Mt Thirsty Cobalt Project (figure 9) is located 16km north-northwest of Norseman, Western Australia. It contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit which had a prefeasibility study completed in February 2020 (CNJ ASX Announcement 20 February 2020) and has the potential to emerge as a significant cobalt producer.

The Mt Thirsty Joint Venture (MTJV) is actively in discussions with parties in respect to development options, consolidation and or securitisation of the MTJV.

Corporate Activities

On 22 September 2021 Conico announced the Placement of 67,000,000 ordinary fully paid shares (“Shares”), together with one for two free attaching options to acquire Shares at 10 cents each on or before 30 November 2024 (“Options”) to Sophisticated Investors pursuant to s708 Corporations Act (Cwth) 2001 and Chapter 7.1 ASX Listing Rules at an issue price of 6 cents per Share, raising a total of $4,020,000 (before expenses of the Placement Offer).

On 15 September 2021 Conico announced its intention to undertake a non-renounceable, pro-rata rights issue to shareholders to raise up to (if fully subscribed) approximately $2,998,195. This was withdrawn on 28 September 2021.

During the quarter 16,847,833 unlisted 4 cent and 7 cent options were exercised raising $723,348.

For and on behalf of the board,

Guy T Le Page, FFIN, MAusIMM

Director

EXPLORATION

Exploration expenditure for the quarter was $3.69 million, relating to the Ryberg drilling program and a heli-borne magnetic survey. There were no mining production or development activities during the quarter.

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DESCRIPTION OF PAYMENTS TO RELATED PARTIES OF THE ENTITY AND THEIR ASSOCIATES (LR 5.3.5)

Payments to related parties during the quarter related to:

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

2. Director Fees and superannuation.

3. Legal Fees were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

4. Corporate advisory and website maintenance fees were paid during the quarter to a company in which Mr G Le Page and Mr J Richardson are directors.

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Interests in Mining Tenements

Tenement	Location	Interest held at end of	Acquired during the quarter	Disposed during the quarter
E63/1267	WA	50%
R63/4	WA	50%
E63/1790	WA	50%
P63/2045	WA	50%
M(A) 63/669*	WA	50%
M(A) 63/670#	WA	50%
G(A) 63/93^	WA	50%
L63/80	WA	50%
L63/81	WA	50%
L63/91	WA	50%
MEL 2017/06	Greenland	100%
MEL-S2019/38	Greenland	100%
MEL 2020/64	Greenland	100%
MPL 2019/39	Greenland	100%
MEL-S2021/24	Greenland	100%

Notes:

*MLA over P63/1267,[#] MLA over R63/4,[^] GLA over E63/1790 & P63/2045 LA 63/91 for haul roads and services. L63/80 & 81 for ground water search.

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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 based on interpretations or conclusions contained in this report will therefore carry an element of risk.

This report contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this report. No obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Competent Persons Statements

The information contained in this report relating to exploration results for the Greenland projects is based on information compiled or reviewed by Thomas Abraham-James, the CEO of Longland Resources Ltd. Mr. Abraham-James has a B.Sc. Hons (Geol) and is a Chartered Professional (CPGeo) and Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Abraham-James has sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the Joint Ore Reserve Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Abraham-James consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Conico	Ltd
ABN		Quarter ended (“current	quarter”)
49 119	057 457	30 September 2021
Consolidated statement of cash flows		Current quarter	Year to date (3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) exploration & evaluation	(3,687)	(3,687)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(49)	(49)
	(e) administration and corporate costs	(208)	(208)
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	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(3,944)	(3,944)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) exploration & evaluation	-	-
	(e) investments	-	-
	(f) other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) investments	-	-
	(e) 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 equity securities
	(excluding convertible debt securities)	4,743	4,743
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity	(10)	(10)
	securities or convertible debt securities
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)	58	58
3.10	Net cash from / (used in) financing	4,791	4,791
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	3,919	3,919
	period
4.2	Net cash from / (used in) operating	(3,944)	(3,944)
	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	4,791	4,791
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
			$A’000	months)
				$A’000
4.5		Effect of movement in exchange rates on	(26)	(26)
		cash held
4.6		Cash and cash equivalents at end of	4,740	4,740
		period
5.		Reconciliation of cash and cash	Current quarter	Previous quarter
		equivalents	$A’000	$A’000
		at the end of the quarter (as shown in the
		consolidated statement of cash flows) to the
		related items in the accounts
5.1		Bank balances	4,740	3,919
5.2		Call deposits	-	-
5.3		Bank overdrafts	-	-
5.4		Other (provide details)	-	-
5.5		Cash and cash equivalents at end of	4,740	3,919
		quarter (should equal item 4.6 above)
6.		Payments to related parties of the entity and their		Current quarter
		associates		$A'000
6.1		Aggregate amount of payments to related parties and their		105
		associates included in item 1
6.2		Aggregate amount of payments to related parties and their		-
		associates included in item 2
Note: if		any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an
explanation for, such payments.
6.1	-
	1.	Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH
		Solomon and Mr DH Solomon are directors.
	2.	Director Fees and superannuation
	3.	Legal Fees and disbursements were paid during the quarter to a firm of which Mr GH Solomon and Mr
		DH Solomon are partners.
	4.	Corporate advisory fees were paid during the quarter to a company in which Mr G Le Page and Mr J
		Richardson are directors.
	5.	Website maintenance fees were paid during the quarter to a company in which Mr G Le Page and Mr
		J Richardson are directors.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000	quarter end $A’000
7.1	Loan facilities -	-
7.2	Credit standby arrangements -	-
7.3	Other (please specify) -	-
7.4	Total financing facilities -	-
7.5	Unused financing facilities available at quarter end	-
7.6	Include in the box below a description of each facility above, including	the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed to be entered into after quarter end,
	include a note providing details of those facilities as well.

8.	Estimated cash available for future operating activities $A’000	Estimated cash available for future operating activities $A’000
8.1	Net cash from / (used in) operating activities (item 1.9)	(3,944)
8.2	(Payments for exploration & evaluation classified as investing	-
	activities) (item 2.1(d))
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(3,944)
8.4	Cash and cash equivalents at quarter end (item 4.6)	4,740
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	4,740
8.7	Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.2
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7	as “N/A”.
	Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1 Does the entity expect that it will continue to have the current level of net operating
	cash flows for the time being and, if not, why not?
	Answer: The entity does not expect the current level of net operating cash flows to continue
	for the time being as the majority of these outflows were related to the 2021
	Greenland field work which was completed in September 2021.
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise	further
	cash to fund its operations and, if so, what are those steps and how likely does it
	believe that they will be successful?
	Answer: It is the present intention of the Board, subject to suitable market conditions
	prevailing at the time, to possibly undertake a pro-rata rights issue to shareholders
	during the first quarter of 2022, on terms that are yet to be determined.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes the entity expects to be able to continue its operations and to meet its business objections as cash outflow for the upcoming quarters will be significantly lower than the current quarter.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

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.

Date: 29 October 2021

Authorised by: Aaron Gates

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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