CONICO LTD — Interim / Quarterly Report 2022

Jan 30, 2022

ASX Announcement

31[st] January 2022

December 2021 Quarterly Activities Report

Highlights

Ryberg Polymetallic Project, Greenland (CNJ: 100%)

• Samples from 2021 drilling were delivered to a laboratory in Spain for preparation and then airfreighted to South Africa for analysis. Analytical results delayed due to Covid-19 related issues.

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• All drill-core from the 2021 season has been transported to Portugal with additional data gathering and sampling underway.

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• Geophysical data was delivered by the contractor, with interpretation ongoing.

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• Planning for 2022 season underway.

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Mestersvig Zn-Pb-Cu-Ag Project, Greenland (CNJ: 100%)

• Zinc price at a 5 year high has prompted a review of the Project and planning underway for drilling zinc targets in 2022.

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Mt Thirsty Ni-Co Project, Western Australia (CNJ: 50%)

• Discussions ongoing in respect to development and optimisation options for the Mt Thirsty Joint Venture.

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Corporate

• Shares distributed for the acquisition of Longland Resources released from voluntary escrow on 2 November 2021.

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• All AGM resolutions passed by a poll without amendment.

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Conico Ltd ABN 49 119 057 457 Level 15, 197 St George’s Terrace Perth, WA 6000 Australia

@conico_ltd @ConicoLtd conico-limited

+61 (0)8 9282 5889 info@conico.com.au www.conico.com.au

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Figure 1. Location maps for Conico’s Greenland and Australian projects.

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1. Exploration Activities

1.1. Ryberg Polymetallic Project, Greenland (CNJ: 100%)

• 1.1.1. Overview of Activities

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

Since concluding field activities, samples for assay were delivered to a laboratory in Spain for preparation, with pulps then air freighted to a laboratory in South Africa for analysis. The results were anticipated to be received in the quarter but have been delayed due to the ongoing Covid-19 pandemic and associated impact on the laboratory. While frustrating, the Company supports the preventative measures taken by the laboratory and adherence to South African regulations.

All drill-core obtained in the 2021 Ryberg field season was sea freighted to Lisbon, Portugal for further analysis, where Longland Resources Ltd’s (wholly owned CNJ subsidiary) CEO resides. Lisbon can be accessed year-round, and there is an abundance of available technical expertise (Figure 2). Further assessment of the drill-core includes structural logging, thin section analysis and further sampling – with all data then integrated into an industry specific database. Additional samples will be sent to a laboratory for analysis and results released to the market in due course.

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Figure 2: Ongoing core inspection at the facility in Lisbon.

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1.1.2. Regional Magnetic-Radiometric Geophysical Survey

During the quarter, the Company received all relevant data from the contractor who conducted 2021 regional magnetic-radiometric survey (Figure 3). This includes the data acquisition and processing report and a digital terrain model, all of which has since been sent to a geophysicist for interpretation.

The survey was flown by helicopter, traversing 24,315-line kilometres in an E-W orientation at 200m line spacing, with tighter infill line spacing of 100m flown over the Miki and Cascata Prospects. The data passed all quality control checks and is considered to be of high quality.

While the interpretation is awaited, there appear to be numerous features in the data that is of interest. This includes strongly magnetic units proximal to the Sortekap Prospect, and regional-scale geological structures. Further information will be released to the market upon completion of the interpretation.

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Figure 3: Total Magnetic Intensity received from the geophysics contractor.

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1.1.3. Planning for 2022 Field Season

Discussions are at an advanced stage with key contractors for the provision of services at Ryberg in 2022. The Company is well positioned to commence work with both fuel and drill rigs already on site. Focus has been placed on reducing helicopter usage and improving drill rate efficiency. Prospects to be targeted will be confirmed when the results of the regional geophysics and drilling have been received, both of which are anticipated to be released to the market in 1Q 2022.

1.2. Mestersvig Zn-Pb-Cu-Ag Project, Greenland (CNJ: 100%) 1.2.1. Overview of Activities

There has been renewed interest in the Mestersvig Project (Figure 4) since the price of zinc reached a 5-year high in December. The historic Blyklippen Mine that produced 545,000 tonnes of ore @ 9.9% zinc and 9.3% lead between 1956-1962 is situated within the tenement. Importantly, the mine operated year-round and previous explorers identified similar mineralisation along strike and 13km to the south. In 2021 Conico conducted a ground-borne gravity survey and identified a parallel mineralised system with surface samples grading up to 69.5% lead, 0.9% copper and 282g/t silver. The Company is well placed to conduct activities at Mestersvig in 2022, with planning at an advanced stage. There is fuel and accommodation already on site, a road to the drill locations, a harbour, and an airstrip at the nearby (<5km) Mestersvig airbase. Efforts are now focused on sourcing drill rigs.

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Figure 4: The Mestersvig Project area.

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1.3. Mt Thirsty Ni-Co Project, Western Australia (CNJ: 50%) 1.3.1. Overview of Activities

Discussions were ongoing during the Quarter with respect to various development and optimisation options for the Mt Thirsty Joint Venture (“MTJV”) including the potential simplification of the ownership structure to support the next development phase of the project. Given the increase in both cobalt (over US$70,000/tonne) and nickel prices (over US$22,000/tonne) over the quarter, the project economics have been significantly enhanced and the Company believes that Mt Thirsty has the potential to add significant shareholder value over 2022.

2. Corporate

2.1. Shares Released from Voluntary Escrow

A total of 108,038,019 fully paid ordinary shares were released from voluntary escrow on 2 November 2021. These shares were issued to the shareholders of Longland Resources Ltd when it was acquired by Conico is 2020.

2.2. AGM Resolutions Passed without Amendment

Voting at the Company´s AGM on the 25[th] of November passed all resolutions without amendment, the resolutions being:

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• Resolution 1 ) Adoption of remuneration report,

• Resolution 2 ) election of director and

• Resolution 3 ) ratification and approval of the issue of shares and options pertaining to the September 2021 placement.

For and on behalf of the board,

Guy T Le Page, FFIN, MAusIMM Director

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Exploration

Exploration expenditure for the quarter was $1.55 million, relating to the Ryberg drilling program, the heliborne magnetic survey and the processing of the acquired data. 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 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
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-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 Person´s 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	Name of entity
Conico	Ltd
ABN		Quarter ended (“current	quarter”)
49 119	057 457	31 December 2021
Consolidated statement of cash flows		Current quarter	Year to date (6
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) exploration & evaluation	(1,556)	(5,243)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(49)	(98)
	(e) administration and corporate costs	(156)	(364)
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	(1,761)	(5,705)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	(20)	(20)
	(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 (6
		$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	(20)	(20)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	-	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	(277)	(287)
	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)	-
3.10	Net cash from / (used in) financing	(335)	4,456
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	4,740	3,919
	period
4.2	Net cash from / (used in) operating	(1,761)	(5,705)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(20)	(20)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(335)	4,456
	(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 (6
		$A’000	months)
			$A’000
4.5	Effect of movement in exchange rates on	12	(14)
	cash held
4.6	Cash and cash equivalents at end of	2,636	2,636
	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	2,636	4,740
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	2,636	4,740
	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		116
	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.

1. 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	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
8.1	Net cash from / (used in) operating activities (item 1.9)	(1,761)
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)	(1,761)
8.4	Cash and cash equivalents at quarter end (item 4.6)	2,636
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	2,636
8.7	Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.5
	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 capital raising during the first quarter
	of 2022, on terms and conditions 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 first quarter of 2022 is expected to have lower cash outflows than the last quarter of 2021..

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: 31 January 2022

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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