ZEOTECH LIMITED — Capital/Financing Update 2011

Aug 7, 2011

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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: info@laconia.com.au

ASX/Media Release

8 August 2011

$7.5M Joint Venture for Mooletar Iron Ore Project

Highlights

• Laconia Resources has entered into a $7.5M JV with Chinese syndicate, Sinoz Mining Investment Group, for the exploration and development of the Mooletar Iron Ore Project.

• The project is located near Mt Magnet in Western Australia’s mid west iron ore precinct.

• The JV is a three-stage agreement which is designed to deliver a JORC Code Indicated Resource and Mining Licence at the project.

• Laconia will manage exploration and hold a 20% free carried interest in the project up until a decision to mine.

• The Company views the agreement as a significant validation of the Mooletar Project’s development potential.

Perth based exploration company Laconia Resources Limited (ASX: LCR) is pleased to announce that it has entered into a $7.5 million Joint Venture (JV) Agreement with Chinese syndicate, Sinoz Mining Investment Group Pty Ltd (Sinoz), for the exploration and development of its Mooletar Iron Ore Project, near Mt Magnet in the Mid West iron ore precinct of Western Australia.

Under the Joint Venture Agreement, Sinoz will invest $7.5 million within 24 months, over three stages, as set out below;

Stage 1: An initial $1 million to fund an exploration program at the Mooletar Project

Stage 2: A further $1.5 million, which will give Sinoz a 50% interest in the JV

Stage 3: A further $5 million, which will give Sinoz an 80% interest in the JV

Laconia is delighted to have entered into the JV Agreement and views it as a significant validation of the Mooletar Project’s development potential.

Sinoz is a Chinese syndicate led by the Zhejiang Changhong Steel Pty Ltd steel manufacturing company and the Lishui Chengxiang Mining Pty Ltd mining company, as well as Sydney-based property development group Austino Holdings Pty Ltd.

Sinoz will now undertake a due diligence program and, subject to its satisfactory completion, exploration will commence at Mooletar with immediate effect thereafter.

Sinoz will provide the initial $1 million within one month of obtaining approval for establishment of the JV, and Laconia will undertake an RC drilling program of a minimum of 20 holes for 2,500 metres. Laconia will also receive a payment of $250,000 of the initial $1 million investment as partial reimbursement for expenditure on the project to date.

After the completion of Stage 2 (the expenditure of $2.5 million in aggregate), in 12-18 months, Laconia will aim to deliver a JORC Code Inferred Resource for the Mooletar Project. Sinoz will then invest the remaining $5 million into the JV, within 12-24 months of executing the JV Agreement. These funds will be used for further exploration at Mooletar, to deliver a JORC Code Indicated Resource and seek a Mining Licence for the project.

Laconia will manage the exploration at the project and hold a 20% free carried interest in the project up until a decision to mine is reached. At that point if it elects not to contribute to fund the development of the project, Sinoz will pay Laconia 10% of the net value of the project (as mutually agreed by an independent valuation).

The JV will pertain solely to iron ore rights at the Mooletar Project, and Laconia will retain the mineral rights to gold and all other minerals.

The JV Agreement will be subject to Foreign Investment Review Board approval and other requisite approvals.

Laconia managing director Ian Stuart said: “We are delighted to have entered into this joint venture to take the Mooletar Project forward. The funding provided by our JV partners will allow us to complete detailed exploration and development at Mooletar and unlock the significant development potential of the project for the benefit of our shareholders.”

About the Mooletar Project

Laconia has defined an Exploration Target of 216-264 million tonnes of iron at the Company’s Mooletar Project near Mt Magnet in the Murchison region of Western Australia.

The Exploration Target was confirmed as a result of two drill programs at the project and a detailed mapping program completed over the project area.

The Exploration Target was confirmed by independent consultants, BM Geological Services Pty Ltd. (see ASX announcement, 17 August 2010). Details of the Exploration Target are outlined below:

 Exploration Target range of 216- 264 million tonnes at an average grade of 30-35% Fe[1]

Two distinct high grade Banded Iron Formation (BIF) units have been identified over a 5km portion at the Mooletar project, 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, 18 November 2010).

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. The Company has completed a scoping study to evaluate its exploration and development potential.

1 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.

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] of folded Archaean greenstone belt. It is situated over the eastern limb of the Mount Magnet greenstone belt and has a 5.2km long strike length, of two thick parallel bands of BIF mineralisation.

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 E: istuart@laconia.com.au E: james@mandatecorporate.com.au www.laconia.com.au

About Laconia Resources

Laconia Resources is a Perth-based advanced exploration company, with interests in iron ore, gold and base metals. The Company has a portfolio of advanced gold and base metals projects near Kalgoorlie and in the Murchison and Pilbara regions in Western Australia, across 35 granted tenements covering an approximate 955km[2] .

Laconia has a significant base metal ground position in the Pilbara including the Lennons Find Project. Lennons Find is an advanced base metal exploration project, which has a JORC Code Inferred Resource of 853,000 tonnes grading 7.7% Zn, 1.8% Pb, 0.7% Cu and 115g/t Ag.

The Company is focused on targeted exploration of its project areas, and further definition and expansion of its Resource base at its advanced projects.

About Sinoz Mining Investment Group Pty Ltd

Sinoz Mining Investment Group is a Chinese syndicate which has interests and expertise in mining, steel making and investment. It is led by the Zhejiang Changhong Steel Pty Ltd steel manufacturing company and the Lishui Chengxiang Mining Pty Ltd mining company, as well as Sydney-based property development and investment group Austino Holdings Pty Ltd.

It seeks to develop mutually beneficial partnerships and joint venture arrangements with natural resources-based companies to assist the development of these companies projects.

Competent Persons Statement

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.”

Mooletar Project Location Map

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