ZEOTECH LIMITED — Capital/Financing Update 2012

Sep 16, 2012

17 September 2012

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Mr Sam Sample & Mrs Sam Sample Unit 1 1 Sample Street Sampleton NSW 2000

Dear Shareholder,

LACONIA RESOURCES LIMITED RIGHTS ISSUE

NOTIFICATION TO SHAREHOLDERS

On 3 September 2012, Laconia Resources Limited (the Company) announced to the Australian Securities Exchange (ASX) the details of a non-renounceable pro-rata rights issue (Rights Issue) on the basis of 1 new ordinary share (New Share) for every 2 existing shares held in the Company as at 5:00pm (WST) on the Record Date to raise up to approximately $1.81 million.

The Rights Issue is fully underwritten by Indian Ocean Capital Pty Ltd.

An offer document relating to the Rights Issue (Offer Document) will be sent to Shareholders on 27 September 2012.

September 2012.
Event	Date
Announcement of Rights Issue, lodge Appendix 3B and Notice sent to Optionholders	14 September 2012
Notice sent to Shareholders	17 September 2012
Ex date	18 September 2012
Record date	24 September 2012
Dispatch of Offer Document (Offer opens)	27 September 2012
Close of Offer	15 October 2012
Securities quoted on a deferred settlement basis	16 October 2012
Notification to ASX of shortfall	17 October 2012
Despatch date/securities entered into Shareholders holdings	22 October 2012

• Subject to the Listing Rules, the Directors reserve the right to extend the closing date of the Rights Issue at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue for the New Shares.

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Use of Funds

The Company intends to apply the funds raised from the Rights Issue to:

• (a) fund the Company’s next phase of exploration, including its recently announced 2,200m underground diamond drilling programme at its Peru Rasuhuilca Project;

• (b) fund the issue costs associated with the Rights Issue;

• (c) assess and progress potential new opportunities; and/or

• (d) pay for additional liabilities and provide working capital.

It is important to recognise that the use of funds may be subject to change in line with results, circumstances and other opportunities.

Capital Structure

The capital structure of the Company on completion of the Rights Issue will be as follows:

Balance at the date of the Offer Document To be issued under the Rights Issue Balance after the Rights Issue	Number of Shares Number of Options Performance Shares Number of Convertible Notes 181,268,761 24,100,000 14,500,000 1 90,634,380 - -
	271,903,141 24,100,000 14,500,000 1

In calculating entitlements under the Rights Issue fractions will be rounded up or down to the nearest whole number.

Further information

The Rights Issue is made to Shareholders with registered addresses in Australia and New Zealand. Overseas Shareholders should contact the Company’s Share Registry, Security Transfer Registrars Pty Limited on +61 8 9315 2333.

Full detail of the Rights Issue will be contained in the Offer Document that will be mailed to all Shareholders who are registered on the Record Date. Shareholders eligible to participate should read the Offer Document carefully.

If you have any questions in relation to any of the above matters, please contact the Company’s Share Registry, Security Transfer Registrars Pty Limited on +61 8 9315 2333. For other questions, you should contact your stockbroker, accountant, taxation adviser, financial adviser or other professional adviser.

Yours sincerely

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Ian Stuart Manager Director LACONIA RESOURCES LIMITED

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