CONICO LTD — Interim / Quarterly Report 2024

Jan 30, 2025

ASX Announcement

December 2024 Quarterly Activities Report

1. Key Activities

Mt Thirsty PGE-Ni-Co-Mn-Sc Project, Western Australia (50% owned)[1]

• The Board continued to investigate strategic and technical options for the Mt Thirsty Joint Venture (Conico Ltd (ASX: CNJ) (50%) and Horizon Minerals Ltd (ASX: HRZ) (50%) (“JV Partners”).

• A number of options are being investigated, including further drilling, to increase the indicated JORC Resources on the tenement as well as updating the 2023 Scoping Study that has not been released to the market due to the high proportion of inferred JORC Resource that were included in the financial projections.

Mestersvig and Ryberg Projects, Greenland (100%)

• The arbitrator in dispute with drilling contractor Cartwright Drilling regarding invoices from 2022 field season, handed down a decision that Longland and Conico are jointly and severally liable to the drilling contractor.

• The Company is considering options to appeal the arbitrator’s decision and discussions continue to reach a negotiated settlement with the drilling contractor.

• Conico is also examining opportunities to advance both Mestersvig and Ryberg with interest from a number of parties in response to the rising awareness of the mineral prospectivity of Greenland.

Other Exploration Opportunities

• The Board has also assessed a number of new mineral exploration opportunities both onshore and abroad and continues to evaluate a number of promising projects for acquisition.

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

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

@conico_ltd @ConicoLtd conico-limited

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About Mt Thirsty

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Figure 1: Mt Thirsty Joint venture location diagram.

The Mt Thirsty Co-Ni-Mn-Sc project (figure 1) is situated 16 km north-northwest of Norseman, Western Australia (50% Horizon Minerals, 50% Conico Limited) and is supported by a network of existing infrastructure (road, rail, port, and power).

The Project hosts the Mt Thirsty cobalt-nickel-manganese-scandium deposit, with a current JORC Resource of 66.2 million tonnes @ 0.06% cobalt; 0.43% nickel and 0.45% manganese (see Annexure B for a breakdown of the JORC Resource categories and see ASX Announcement: CNJ 26/4/2023). A Pre-Feasibility Study ( PFS ) was previously completed on the existing resource of 26.9Mt at 0.126% cobalt, and 0.54% nickel (ASX Announcement: CNJ 20/02/2020).

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Figure 2: Mt Thirsty cobalt nickel project including an outline of tenement holdings and mineral resources.

Previous drilling identified scandium within the resource, of up to 78 metres @ 46.4 g/t Sc from 3 metres (CNJ, ASX Announcement, 23 January 2023), which was previously untested for Scandium oxide and may provide a valuable by-product revenue stream.

The previously released PFS employed atmospheric leaching as the extraction method, resulting in lower metal recoveries and was also completed during a period of subdued commodity prices, which understated the Project’s potential to provide a low-cost, ethical and sustainable source of cobalt and nickel outside of the Democratic Republic of the Congo and Russia.

Since the completion of the PFS, a number of project optimisation opportunities have subsequently been identified which may have a material impact on the Project economics, including the adoption of HPAL and the production of a precursor cathode active material (“pCAM”) product. The Mt Thirsty cobalt-nickel-manganese-scandium project is uniquely positioned containing all three of the principal constituents to produce the preferred 811 nickel-cobalt-manganese pCAM product (eight parts nickel, one part cobalt, and one part manganese).

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The adoption of pCAM provides the ability to produce a high value product which typically receives a pricing premium over the intermediatory product (MHP / MSP) the Project was previously envisaged to produce. As such the production of pCAM has the potential to increase both payable metal content and as a result also increase revenue.

Mestersvig and Ryberg Projects, Greenland (CNJ: 100%)

No field activities were undertaken at the Mestersvig and Ryberg Projects during the quarter.

2. Business Development

The Board continues to assess new opportunities in mineral exploration both in Australia and Offshore. The Board intends to update the market as soon as any material information in respect to these initiatives is available.

3. Corporate

Update on Dispute with Drilling Contractor

The Directors previously advised in the December 2022 quarter that Cartwright Drilling Inc (“Cartwright”), a drilling company incorporated in Newfoundland (Canada) that had been engaged to undertake diamond drilling at the Ryberg and Mestersvig Projects over the 2022 Greenland field season, had commenced an arbitration process in Newfoundland to resolve a dispute in respect to invoices received by Conico from Cartwright for the 2022 field season, which Conico has refused to pay.

During the December quarter, the dispute continued through the arbitration process in Newfoundland, Canada. As announced to the ASX on 19 December 2024, the arbirtaror handed down a decision that Longland and Conico are jointly and severally liable to Cartwright in the amount of C$951,420.87 (approximately A$1,048,8827), being C$727,955.53 on oustanding invoices related to drilling at Ryberg only plus contractual interest to date of C$223,465.34, plus additional contractual interest to the date of payment. Additionally, that Longland is liable to Cartwright in the amount of C$391,247.41 (approximately A$431,303) in relation to invoices for drilling and related activities at Mestersvig. Further, that the counterclaim by Longland is dismissed.

The Company is considering options to appeal and for a judicidial review of the arbitrator’s decision in the Supreme Court of Newfoundland and Labrador. In

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conjunction, the Company hopes to reach a negotiated settlement of the dispute with Cartwright and update shareholders as these matters progress.

Exploration

Exploration activities for the quarter was negligible, with exploration expenditure of $1k related to project maintenance costs. 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. Consulting Fees of $7k, as per agreement, were paid during the quarter to a company of which Mr G T Le Page is a director.

2. Management Fees of $30k, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors.

3. Legal fees of $8.75k were paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners.

For and on behalf of the board,

Guy T Le Page, GAICD, FFIN, MAusIMM

Director

Guy Le Page is a director of Conico and was authorized to sign this announcement.

For any queries regarding this announcement please contact Guy Le Page on +61 (8) 6380 9200.

- END -

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ANNEXURE A

Interests in Mining Tenements

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Interest held at Acquired during Disposed during
Tenement Location
end of quarter the quarter 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%
PA 63/2266 WA 50%
MEL 2017/06 Greenland 100%
MEL-S 2019/38 Greenland 100%
MEL 2020/64 Greenland 100%
MEL-S 2021/24 Greenland 100%
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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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ANNEXURE B

Mt Thirsty Joint Venture Mineral Resources (50%)

Mineral	Cut-off	Wet Tonnes	Moisture	Dry Tonnes	Co	Ni	Mn	Fe
Resource	(Co%)	(Mt)	(% wet t)	(Mt)	(%)	(%)	(%)	(%)
Mt Thirsty Indicated	0.06	31.20	27%	22.8	0.121	0.53	0.79	21.30
Mt Thirsty
Main	0.06	3.50	27%	2.5	0.103	0.45	0.66	19.10
Inferred
Mt Thirsty
Main Sub	0.06	34.70	27%	25.4	0.119	0.52	0.77	21.10
Total
Mt Thirsty
North	0.06	2.00	27%	1.5	0.092	0.55	0.48	19.40
Inferred
Total	0.06	36.70	27%	26.9	0.117	0.52	0.76	20.90

Refer to ASX Announcement 9/9/2019 for full details of the Mineral Resource Estimate.

Mt Thirsty Joint Venture Ore Reserve (50%)

Mineral	Cut-off	Wet Tonnes	Moisture	Dry Tonnes	Co	Ni	Mn	Fe
Resource	(Co%)	(Mt)	(% wet t)	(Mt)	(%)	(%)	(%)	(%)
Mt Thirsty Probable	Approx. 0.07% Co (Variable)	25.90	27%	18.8	0.126	0.54	0.80	21.60

Refer to ASX Announcement 20/2/2020 for full details of the Ore Reserve Estimate.

Regarding the above Mineral and Ore Reserve Statements, the Company confirms it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimates in the previous announcement continue to apply and have not materially changed.

DISCLAIMER

This report contains forward-looking statements that involve several 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 materialize, 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.

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.

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REFERENCES TO PREVIOUS ANNOUNCEMENTS

In relation to the details of the PFS announced on 20/02/2020, Conico confirms that all material assumptions underpinning the production target and forecast financial information from the production target, as reported on 20/02/2020, continue to apply and have not materially changed. A proportion of the production target uses inferred mineral resources. There is a low level of confidence associated with inferred mineral resources and there is no certainty that further exploration will result in the determination of indicated mineral resources or that the production target itself will be realised.

The mineral resource estimates in this announcement were reported by the Company in accordance with ASX Listing Rule 5.8 on 9/9/2019. The Company confirms it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimates in the previous announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The ore reserve estimate in this announcement was reported by the Company in accordance with ASX Listing Rule 5.9 on 20/20/2020. The Company confirms it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimate in the previous announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

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

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Project and Discipline JORC Section Competent Employer Professional
Person Membership
Greenland Exploration Exploration Results Guy Le Page Director of Conico Ltd MAusIMM
Mt Thirsty Exploration Exploration Results Glenn Poole Employee of Horizon MAusIMM
Minerals Ltd
Mt Thirsty Resource Mineral Resources David Reid Golder Associates Pty Ltd MAusIMM
Estimation
Mt Thirsty Metallurgy Exploration Results and Peter Nofal AMEC Foster Wheeler Pty FAusIMM
Ore Reserves Ltd trading as Wood
Mt Thirsty Mining Ore Reserves Frank Blanchfield Snowden Mining Industry FAusIMM
Consultants Pty Ltd
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The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves for the Mt Thirsty Cobalt-Nickel Project and Exploration Results for the Greenland Projects is based on and fairly represents information compiled by the Competent Persons listed in the table above. The Competent Persons have sufficient relevant experience to the style of mineralisation and type

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of deposits under consideration and to the activity for which they are undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). For new information, the Competent Persons consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Previously announced information is cross referenced to the original announcements. In these cases, the company is not aware of any new information or data that materially affects the information presented and that the material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

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Rule 5.5

Appendix 5B

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

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Name of entity
Conico Ltd
ABN Quarter ended (“current quarter”)
49 119 057 457 31 December 2024
Consolidated statement of cash flows Current Year to Date
quarter (6 months)
$A’000 $A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (1) (64)
- -
(b) development
- -
(c) production
- -
(d) staff costs
(e) administration and corporate costs (155) (189)
1.3 Dividends received (see note 3) - -
1.4 Interest received - 1
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) - (58)
1.9 Net cash from / (used in) operating activities (156) (310)
1.8 – Details
Legal costs paid to third party lawyers in Canada regarding the Cartwright Drilling dispute (see
activities report)
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2. Cash flows from investing activities

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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 - -
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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

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Consolidated statement of cash flows Current Year to Date
quarter (6 months)
$A’000 $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)
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 - (25)
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) - -
3.10 Net cash from / (used in) financing activities - (25)
4. Net increase / (decrease) in cash and cash
equivalents for the period
4.1 Cash and cash equivalents at beginning of period 244 429
4.2 Net cash from / (used in) operating activities (156) (310)
(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 - (25)
(item 3.10 above)
4.5 Effect of movement in exchange rates on cash - (6)
held
4.6 Cash and cash equivalents at end of period 88 88
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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

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5. Reconciliation of cash and cash Current quarter Previous
equivalents $A’000 quarter
at the end of the quarter (as shown in the $A’000
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 88 244
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter 88 244
(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 associates 46
included in item 1
6.2 Aggregate amount of payments to related parties and their associates -
included in item 2
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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. Consulting Fees, as per agreement, were paid during the quarter to a company of which Mr GT Le Page is a director.

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

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7. Financing facilities Total facility Amount drawn
Note: the term “facility’ includes all forms of financing amount at at quarter end
arrangements available to the entity.
quarter end $A’000
Add notes as necessary for an understanding of the sources
$A’000
of finance available to the entity.
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 -
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• 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.

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

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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) (156)
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) (156)
8.4 Cash and cash equivalents at quarter end (item 4.6) 88
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 88
8.7 Estimated quarters of funding available (item 8.6 divided by 0.6
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:
The company’s expenditure was substantially for administration costs while the dispute with
the drilling contractor in relation to the Greenland projects continues, which is not typical of
the company’s regular operations, although a reduced level of administration costs are
expected to continue.
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:
Yes – the Company intends to raise further capital as required during the financial year and
is confident that capital will be available.
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 Company will continue to manage its outgoings consistent with its cash reserves
until further capital is raised.
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.
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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 2025

Authorised by: Brett Tucker, Company Secretary

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

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

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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