ZEOTECH LIMITED - Capital/Financing Update 2010

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Laconia Resources Limited ACN 137 984 297

Level 1, 41-43 Ord Street West Perth WA 6005

T: +61 8 9486 1599

E: [email protected]

ASX/Media Release

18 November 2010

216-264Mt EXPLORATION TARGET CONFIRMED AT MOOLETAR IRON PROJECT

Exploration Target of 216-264Mt @ 30-35% Fe confirmed at Mooletar Project in the Murchison region of WA
Exploration Target helps confirm the strong iron exploration potential of the Mooletar project
Two high grade Banded Iron Formation (BIF) units identified over a 5km portion at the project
Exploration Target was confirmed as a result of two drill programs and geological mapping completed over the project
Company now plans to use the results of the completed scoping study to fully evaluate the project’s exploration and development potential
Mooletar project is located within the mid-west iron ore infrastructure corridor

Perth based exploration company Laconia Resources Limited (ASX: LCR) is pleased to announce that an Exploration Target of 216-264 million tonnes of iron has been confirmed at the Company’s Mooletar Project near Mt Magnet in the Murchison region of Western Australia.

The Exploration Target helps confirm the strong iron exploration potential of the Mooletar project, and was confirmed as a result of two drill programs at the project earlier this year and a mapping program completed over the project in October.

The Exploration Target was confirmed by independent consultants, BM Geological Services Pty Ltd. Details of the Exploration Target are outlined below;

• Exploration Target of 240 million tonnes at an average grade of 30-35% Fe

The Exploration Target sits within a tonnage range of 216- 264Mt, which is ±10% of the estimate of 240Mt.

Two distinct high grade Banded Iron Formation (BIF) units have been identified over a 5km portion at the Mooletar project, and have been mapped. The Company now plans to use the completed scoping study to fully evaluate its exploration and development potential.

The Mooletar Project lies approximately 330km east of Geraldton and approximately 125km from the proposed rail line in the mid-west infrastructure corridor that would access the Oakajee port infrastructure. The project area is also accessible by sealed roads (see Mooletar project location map attached).

The project is 100% owned by Laconia and comprises an area of 75km[2 ] covering folded Archaean greenstone belt terrain. The extensive BIF’s identified at Mooletar occur within the Luke Creek Group of the Murchison Supergroup stratigraphy.

The magnetite bearing BIF units which outcrop in the area are 5-40 metres thick and form part of the Golconda Formation. They are interbedded with 10-50 metre wide mafic and ultramafic extrusive and intrusive rocks, forming a 200 metre wide package.

In addition to the Exploration Target, positive results from initial metallurgical test work at the Mooletar Project have confirmed the potential for the project to produce a high grade magnetite concentrate (see ASX announcement, 17 August). Results from Davis Tube Recovery (DTR) test work indicated that a high grade magnetite product may be achieved with grades up to 70.4%Fe and low levels of phosphorus and silica.

This initial metallurgical test work was conducted on selected holes to confirm the potential to produce high grade magnetite concentrate.

ENDS

For further information please contact:

Ian Stuart James Moses Managing Director Media and Investor Relations Laconia Resources Mandate Corporate P: +61 8 9486 1599 M: 0420 991 574 M: +61 419 394 919 E: [email protected] E: [email protected] www.laconia.com.au

Mr Darryl Mapleson who is a member of Australasian Institute of Mining and Metallurgy has compiled the information within this report that relates to mineralisation. Mr Mapleson has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion of this information in the form and context in which is appears in this report. “Note: The potential quantity and grade of the Mooletar Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a mineral resource.”

About Laconia Resources

Laconia Resources is a Perth-based gold and base metals exploration company which listed on the ASX on October 16 last year.

The Company has a portfolio of advanced gold, base metals and uranium projects near Kalgoorlie and in the Murchison and Pilbara regions in Western Australia, across 32 granted tenements covering 855km[2] .