CONICO LTD — Interim / Quarterly Report 2021

Jul 29, 2021

June 2021 Quarterly Activities Report

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30 July 2021

HIGHLIGHTS:

• Approval of exploration activities at Ryberg and Mestersvig received from Greenland Ministry of Mineral Resources ( refer ASX Announcement, 28[th] April 2021).

• Senior management met with key Government Officials in Nuuk, Greenland to provide an update on the 2021 exploration program.

• Reconnaissance field visit undertaken to Mestersvig targeting REE and base metal mineralisation within the Werner Bjerge Alkaline complex.

• Geophysical interpretation commissioned on Fugro’s September 2012

• survey covering the Werner Bjerge Alkaline complex.

• Contracts with key suppliers including drillers, vessels, helicopter and

• aeromagnetic survey companies executed.

• Planning and mobilisation completed ahead of planned departure for the Ryberg Project.

• Placement completed for a total of $2,528,648 (before expenses).

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

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Ryberg and Mestersvig Approvals

The Company received ( CNJ ASX Announcement 28 April 2021) notification that exploration activities at the Ryberg and Mestersvig Projects in Greenland (figure 1) had been issued by the Ministry of Mineral Resources.

Key activities that were approved included:

• Miki Prospect: (magmatic sulphide Cu-Ni-Co-Pd-Au), diamond drilling following up geochemical and electromagnetic geophysical anomalies identified in 2017 and 2020.

• Sortekap Prospect : (orogenic Au & magmatic sulphide Ni-Co-Pt), diamond drilling following up on surface geochemistry and a Induced Polarisation (IP) anomaly identified in 2020 ( CNJ ASX announcement on 22 Dec 2020).

• Mestersvig : Surface sample of rare earth elements (“REE”) and base metal sulphide bearing rocks together with an interpretation of high-resolution electromagnetic data.

Key Contracts Executed

Contracts with key suppliers were also executed during the quarter and equipment was mobilised to the staging point in Reykjavik. These suppliers included:

• Cartwright Drilling Inc. (diamond drilling)

• NRG Exploration CC (aeromagnetic survey)

• BlueWest Helicopters Greenland Aps (helicopter)

• IceTugs ehf (vessel)

Nuuk Visit by CNJ Representatives

In early May 2021, Thomas Abraham-James and Operations Manager Höskuldur Jónsson met with representatives from the Mineral Licencing and Safety Authority, Municipality of Sermersooq, consuls for the United Kingdom and Iceland, and various representatives from Greenlandic enterprises. This meeting allowed the CNJ representatives to discuss the 2021 field activities in person and elaborate on the Company’s objectives, all of which were met with enthusiasm and support.

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Ryberg Project, Greenland (100% Conico)

The Ryberg Project (figure 3) covers 4,521km[2] on the east coast of Greenland, 400km west of Iceland. It contains magmatic sulphide mineralisation (the Miki Prospect) and orogenic gold (the Sortekap Prospect).

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Key contracts were signed in the quarter and Thomas Abraham-James was based in Iceland to make final preparations for departure. Diamond drill rigs and aeromagnetic survey equipment was mobilised from the Company´s staging location in Reykjavik, Iceland prior to its planned departure in late June. After a brief delay due to permitting issues with the vessel, the vessel finally left on 13 July 2021 (CNJ ASX Announcement 14/7/2021).

Figure 2 : CNJ staff and contractors in Reykjavik ahead of departure on 12/7/2021).

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The drill targets are:

• Miki Prospect (magmatic sulphides, Cu-Ni-Co-Pd-Au)

• (i) Two EM surveys completed in 2017 and 2020 identified conductors interpreted to represent sulphide accumulations at the base of a magma conduit.

• Sortekap Prospect (orogenic Au

& magmatic sulphides Ni-Co-Pt) (i) The 2020 IP survey highlighted a significant anomaly (figure 4) interpreted to be sulphides along an intrusion associated with a significant geological structure (fault/shear). Previous work has identified gold and nickel sulphides at surface within close proximity of the IP anomaly which will drilled in multiple locations in 2021.

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Figure 3 : Ryberg Project showing EM conductors and surface rock chip results.

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Figure 4 : IP anomaly at the Sortekap Prospect, Ryberg Project.

Mestersvig Project, Greenland (100% Conico)

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The Mestersvig Project (figure 5), covering 1,447km is located on the east coast of Greenland and is 600km northwest 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).

Following the meeting with officials in Nuuk, a brief reconnaissance sampling and mapping program was undertaken at Mestersvig where approximately 47 surface samples were taken at strategic locations along the Werner Bjerge Alkaline Complex targeting REE mineralisation and base metal sulphides within the recently granted, Special Mineral Exploration Licence 2021/24.

This surface program was following up on the identification at Werner Bjerge of xenotime and mosandrite by previous explorers in the 1950’s and 1970s. Results from this sampling program are imminent.

Figure 5 : Mestersvig Project, showing surface samples and gravity coverage.

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The entire Mestersvig Project was planned to be flown by a high-resolution aeromagnetic survey, however a previous survey conducted by Fugro in September 2012 on the primary target, the Werner Bjerge Alkaline Complex (on behalf of the Greenlandic Government), was released as open file data in the quarter and is currently being interpreted by consulting geophysicist Kim Francombe. A report on this survey is due in late July/early August 2021.

Mt Thirsty Project, Western Australia

(50% Conico: 50% Barra Resources)

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Figure 6 : Mt Thirsty Cobalt-Nickel Project near Norseman, Western Australia.

The Mt Thirsty Cobalt Project (figure 6) 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.

In conjunction with 50% JV partner Barra Resources Ltd (ASX: BAR ), discussions were held with a number of key consultants in respect to examining different process options in addition to the potential to optimise downstream products as an extension to the Pre-Feasibility Study that was completed in March 2020 (ASX Announcement, 20 March 2020). The MTJV is also actively reviewing the potential for nickel sulphide mineralisation within the Mt Thirsty Sill based on encouraging results from EM surveys and previous drilling conducted in 2009.

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Corporate Activities

On 4 April 2021 Conico announced the completion of a Placement of 59,288,279 ordinary fully paid shares (“Shares”), together with one for two free attaching options to acquire Shares at 7 cents each on or before 20 January 2024 (“Options”) to Sophisticated Investors pursuant to s708 Corporations Act (Cwth) 2001 and Chapter 7.1 ASX Listing Rules at an issue price of $0.03 per Share, raising a total of $1,778,648 (before expenses of the Placement Offer).

The Options were approved by CNJ shareholders at the 2 June 2021 General Meeting, as was the placement of 25 million shares (together with one for two free attaching Options) at 3 cents each to Tasman Resources Limited (ASX : TAS ), the largest shareholder in the Company.

Total funds raised from the Placement and the TAS placement was $2,528,648 (before expenses).

For and on behalf of the board,

Guy T Le Page, FFIN, MAusIMM

Director

EXPLORATION

Exploration expenditure for the quarter was $1,691k, relating to the June 2021 Mestersvig field work, the current Ryberg drilling program and a heli-borne magnetic survey. There were no mining production or development activities during the quarter.

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 and disbursements 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 quarter	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-S 2019/38	Greenland	100%
MEL 2020/64	Greenland	100%
MPL 2019/39	Greenland	100%
MEL-S 2021/24	Greenland	100%	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.

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 forwardlooking 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 June 2021
Consolidated statement of cash flows		Current quarter	Year to date (12
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) exploration & evaluation	(1,333)	(2,025)#
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(46)	(156)
	(e) administration and corporate costs	(93)	(519)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	(14)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	80
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(1,472)	(2,634)
	activities
# - This does not include the amount of ~A$1,206,000 loaned to Longland Resources Ltd, prior to
the acquisition of Longland Resources Ltd, mainly to fund exploration.
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	(7)
	(b) tenements	-	-
	(c) property, plant and equipment	(37)	(37)
	(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 (12
		$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	-	(1,206)*
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	(37)	(1,250)
	activities
* -Loaned to Longland Resources Ltd during the quarter, prior to acquisition of Longland
Resources Ltd, mainly to fund exploration at Ryberg		and Mestervig.
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	2,528	8,675
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	(98)	(560)
	securities or convertible debt securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	(393)
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	2,430	7,722
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	3,014	171
	period
4.2	Net cash from / (used in) operating	(1,472)	(2,634)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(37)	(1,250)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	2,430	7,722
	(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	Current quarter	Year to date (12
		$A’000	months)
			$A’000
4.5	Effect of movement in exchange rates on	(16)	(90)
	cash held
4.6	Cash and cash equivalents at end of	3,919	3,919
	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	3,919	3,014
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	3,919	3,014
	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		117
	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.

1. 2. 3.	Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors. Director Fees and superannuation Legal Fees and disbursements were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.
4.	Placement fees and 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 development and 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.

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8. Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,472)
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) (1,472)
8.4 Cash and cash equivalents at quarter end (item 4.6) 3,919
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 3,919
8.7 Estimated quarters of funding available (item 8.6 divided by 2.6
item 8.3)
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:
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:
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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:

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: 30 July 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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