ZEOTECH LIMITED — Capital/Financing Update 2012

Sep 12, 2012

==> picture [595 x 108] intentionally omitted <==

13 September 2012

PLACEMENT AND FULLY UNDERWRITTEN NON-RENOUNCEABLE, PRO-RATA RIGHTS ISSUE

On 3 September 2012, Laconia Resources Limited (the Company ) announced to the Australian Securities Exchange ( ASX ) the details of a placement of 23,643,751 fully paid ordinary shares to sophisticated and professional investors under the Company's 15% placement capacity to raise approximately $0.47 million ( Placement ) and 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 Placement has now completed and all shares were allotted today.

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.

Event	Date
Announcement of Rights Issue and 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

==> picture [595 x 113] intentionally omitted <==

• 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.

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 following the Placement 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 to the nearest whole number.

Cleansing Statements

The Company gives notice pursuant to section 708A(5)(e) and section 708AA(2)(f) (as notionally modified by CO 08/35) of the Corporations Act 2001 (Cth) ( Corporations Act ) that:

• (a) the Company will offer the shares for issue without disclosure to investors under Part 6D.2 of the Corporations Act as notionally modified by CO 08/35;

• (b) as at the date of this notice the Company has complied with:

• (i) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

==> picture [595 x 74] intentionally omitted <==

2

• (ii) section 674 of the Corporations Act as it applies to the Company;

(c) as at the date of this notice, there is no excluded information of the type referred to in sections 708AA(8) and 708AA(9) of the Corporations Act as notionally modified by CO 08/35;

• (d) as at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708A(7) of the Corporations Act) that is reasonable for investors and their professional advisers to expect to find in a disclosure document; and

• (e) the issue of the new shares under the Rights Issue is not expected to have any impact on the control of the Company.

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 contract your stockbroker, accountant, taxation adviser, financial adviser or other professional adviser.

ENDS

==> picture [595 x 74] intentionally omitted <==

3

For further information please contact:

Ian Stuart Sam Burns Managing Director Media and Investor Relations Laconia Resources Six Degrees P: +61 8 9486 1599 M: 0400 164 067 E: istuart@laconia.com.au E: sam.burns@sdir.com.au www.laconia.com.au

About Laconia Resources

Laconia Resources is a Perth-based emerging precious and base metals exploration and development Company with a South American focus. The recently acquired Rasuhuilca gold-silver development project in Peru complements the Company’s existing portfolio of precious and base metal projects in Western Australia. A Feasibility Study was completed at Rasuhuilca 2008 and Laconia aims to bring it into production as a highgrade, small-tonnage operation, and utilise the project’s revenues to unlock its exploration upside.

In Western Australia, the Company has a portfolio of advanced mineral projects in the Murchison and Pilbara regions, across 35 granted tenements covering an approximate 955km[2] . The Company has determined JORC compliant resources at its projects at Lennons’ Find, (Cu-Ag-Pb-Zn-Au), and most recently at Rasuhuilca in Peru (Au-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.

==> picture [595 x 74] intentionally omitted <==

4