ZEOTECH LIMITED — Capital/Financing Update 2012

Jul 3, 2012

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Laconia Resources Limited ACN 137 984 297

Level1, 41-43 Ord St West Perth WA 6005

T: +61 8 9486 1599 E: info@laconia.com.au

ASX/Media Release

4 July 2012

Rasuhuilca Gold-Silver Project Advances

Highlights

• An underground check sampling program successfully completed on existing development levels at the Rasuhuilca gold-silver development project in Peru.

• Results include:

• 12.5m @ 5.99g/t gold and 373 g/t silver from 4923 Level, and;

• o 10.5m @ 1.88g/t gold and 61 g/t silver from 4890 Level.

• Results support initial pre-acquisition sampling results.

• 2,200 metre, underground diamond drilling program from existing development levels due to commence in August, subject to permitting.

• Existing 2008 Feasibility Study currently under review and will updated following results of underground diamond drilling.

• Company aims to bring the project into rapid production and use revenues to unlock its major exploration upside.

Perth based exploration company Laconia Resources Limited (ASX: LCR) is pleased to provide the following update on activities at its 100% owned Rasuhuilca gold-silver project in Peru.

Laconia recently completed the acquisition of the Rasuhuilca project[1] . It is an advanced, high grade gold and silver project with existing production levels and cross-cuts (Figure 2), and outstanding near-term development potential. The Company plans to rapidly bring the underground mine into production.

1 Refer to ASX announcement 1 June 2012.

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Channel sampling validation checks completed (see Appendix 1 for a full table of results)

Laconia has successfully completed a limited program of underground check sampling (in line with recommendations from consulting group Optiro Pty Ltd). Comprehensive sampling of all ore drives and crosscuts had been undertaken by previous owner MPG (Minera Peru Gold SAC). Laconia now advises the grade tenor of the previous channel sampling by MPG of epithermal gold-silver vein mineralisation has in general been confirmed by its own sampling program.

The comparisons between Laconia’s and the earlier MPG sampling results are presented below in Figure 1 and in also Appendix 1.

Significant Results Include:

Mine	Laconia	North	East	RL	Length	Laconia	Laconia
Level	Sample	(m)	(m)	(m)	(m)	Au	Ag
	No					g/t	g/t
4923	2901	8,416,703	631,631	4,924	1.00	3.46	312
4923	2903	8,416,702	631,629	4,924	0.90	3.68	329
4923	2904	8,416,701	631,628	4,924	1.50	1.90	188
4923	2905	8,416,700	631,627	4,924	1.05	14.06	1408
4923	2906	8,416,699	631,627	4,924	1.05	10.64	485
4923	2907	8,416,699	631,625	4,924	1.05	8.56	423
4923	2908	8,416,698	631,625	4,924	0.95	8.50	572
4923	2909	8,416,697	631,624	4,924	1.55	10.97	281
4923	2912	8,416,694	631,622	4,924	0.90	4.15	186
4923	2913	8,416,698	631,620	4,924	0.80	1.09	110
4923	2914	8,416,699	631,621	4,924	1.00	1.68	178
4923	2915	8,416,699	631,622	4,924	0.90	1.03	108
4890	2931	8,416,693	631,618	4,892	1.60	2.91	106
4890	2932	8,416,694	631,618	4,893	1.30	3.06	364
4890	2933	8,416,696	631,618	4,893	1.90	2.24	63

Table 1: Significant Laconia results from Underground channel sampling. [Samples represent gold greater than 1 g/t and/or silver greater than 60 g/t.]

Note 1: Laconia samples were assayed at CERTIMIN S.A., in Lima Peru. Au by Fire assay and AAS read, >10ppm Au was re-calculated by gravimetric method. Silver assays by Digest concentrate. HCL+HNO3 in 3:1 mix with Aqua Regia and AAS read, >300ppm Ag was subject to extended digest and AAS read, >1000ppm Ag was re-calculated by gravimetric means

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Figure 1: Length weighted composites comparing Laconia channel sampling results versus channel sampling by previous owner MPG.

Phase 1 Diamond drilling program due to commence in August 2012

Laconia plans to commence its first phase of drilling at the Rasuhuilca project in August. The initial phase of drilling will be a 2,200 metre underground diamond drilling program, which is designed to test mineralisation between the existing mine levels and thus validate the existing resource model. The Company believes there is good potential to grow the resource base and has also planned extensional exploration drilling on the Rasuhuilca vein.

A contract to complete a Category One DIA (Environmental Impact Declaration) application has been awarded to environmental consultants Ximena Mining in Peru. The assessment is expected to be completed in seven weeks. Tenders have been called for from Peruvian underground drilling specialists and drilling will commence after the necessary drilling permits have been granted by the Peruvian Government.

Feasibility study to be reviewed

A Feasibility Study was completed at the Rasuhuilca project in June 2008. Laconia is planning to update and re-affirm the Feasibility Study results with a view to bringing the project into production as a high grade, small tonnage mining operation. The Company’s strategy is to utilise the potential revenues from the project to unlock the major exploration upside, and thereby increase the current resource base.

Rasuhuilca project exploration potential

The Rasuhuilca project is situated on the collapsed rim of the Rasuhuilca strato-volcano within a highly visible zone of secondary potassic alteration. Laconia aims to target the following mineralisation styles:

• The network of outcropping gold-silver veins in lower temperature acidic outflow zones (silicaalunite-sulphide alteration);

• Large-scale, sub-horizontal disseminated gold-silver mineralisation within outflow zones;

• High-grade bonanza gold veins beneath the acidic outflow zones;

• Copper-gold mineralisation within buried intrusive stocks, or gold-silver-zinc mineralisation in skarns surrounding buried intrusive stocks.

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Figure 2: Long Section of Rasuhuilca Resource model with current and planned development.

About the Rasuhuilca Project

The Rasuhuilca project is located in the Andean volcanic arc of southern Peru (see Figure 3, Project location plan) and comprises four concessions (Patacancha No. 1 to 4) over a total area of 2,765 hectares. These concessions cover a large part of an extensive high-sulphidation alteration system. The best known mineralised body in the project is the Rasuhuilca zone, which has been explored by underground development. Average grades from underground channel sampling are about 2 g/t Au and 185 g/t Ag.

The project has an Inferred Resource estimate[2] of; 360,000t @ 1.97g/t Au and 179g/t Ag (at a 2.5 g/t AuEq cut-off[3] ). The Resource statement is based on historical data. Independent sampling and drilling will be completed to confirm the tenor of the historic data and it is envisaged the Resource category and size will be upgraded, so that it can be used as the basis for mine planning activities.

Access to the project is via sealed highways through Nasca and Puquio, then minor roads. The final stage of approach to the project is via tracks from the nearby village of Chipao. Laconia plans to improve project access, and a short runway airstrip may also be constructed on the project area. There is a ready workforce, with prior experience in exploration and mining operations, in the nearby villages of Chipao and Andamarca.

ENDS

2 Refer to ASX announcement 25 January 2012.

3 All cut offs based on an Xg/t Au Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below will be appropriate following further metallurgical test work.

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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

Competent Persons Statement

Mr Ernie Poole who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to mineralisation and exploration. Mr Poole is a full time employee of Laconia Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposits 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 it appears in this report.

A review of available data was conducted by Mr Michael Andrew, a Principal of Optiro Pty Ltd. Mr Michael Andrew who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Mineral Resources or Ore Reserves. Mr Andrew is a full time employee of Optiro Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposits 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 it appears in this report.

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 its existing portfolio of precious and base metal projects in Western Australia.

A Feasibility study was completed at Rasuhuilca in 2008 and Laconia aims to bring it into production as a high-grade, small tonnage operation, and utilise the project’s revenues to unlock its exploration upside.

The Company has a portfolio of advanced mineral projects in the Murchison and Pilbara regions in Western Australia, 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), at 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.

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Figure 3: Location plan, Rasuhuilca Project, Peru.

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Appendix 1: Underground channel sample validation at Rasuhuilca Underground mine. (Laconia Resources May 2012 channel sample assays compared with previous owner MPG channel sample assays)

Mine	Laconia	MPG		North	East	Rl	Length	Laconia	MPG	Laconia	MPG
Level	Sample	Sample		(m)	(m)	(m)	(m)	Au g/t	Au g/t	Ag g/t	Ag g /t
4923	2901	3091		8,416,703	631,631	4,924	1.00	3.46	3.10	312	321
4923	2903	3093		8,416,702	631,629	4,924	0.90	3.68	3.50	329	314
4923	2904	3094		8,416,701	631,628	4,924	1.50	1.90	2.39	188	182
4923	2905	3095		8,416,700	631,627	4,924	1.05	14.06	11.84	1408	523
4923	2906	3096		8,416,699	631,627	4,924	1.05	10.64	15.89	485	531
4923	2907	3097		8,416,699	631,625	4,924	1.05	8.56	8.34	423	445
4923	2908	3098		8,416,698	631,625	4,924	0.95	8.50	14.24	572	539
4923	2909	3099		8,416,697	631,624	4,924	1.55	10.97	23.24	281	433
4923	2910	2628		8,416,696	631,623	4,924	1.30	0.72	0.35	81	82
4923	2911	2629		8,416,695	631,622	4,924	1.30	0.63	0.30	88	71.9
4923	2912	3100		8,416,694	631,622	4,924	0.90	4.15	9.49	186	255
					Comp 1*		12.55	5.99	8.50	373	317
4923	2913	2420		8,416,698	631,620	4,924	0.80	1.09	2.00	110	130
4923	2914	2419		8,416,699	631,621	4,924	1.00	1.68	1.70	178	139
4923	2915	2418		8,416,699	631,622	4,924	0.90	1.03	0.35	108	134
					Comp2*		2.7	1.29	1.34	134	134
4890	2921	2448		8,416,681	631,647	4,892	1.00	0.32	0.30	41	43
4890	2922	2449		8,416,682	631,647	4,892	0.95	15.67	0.60	54	61
4890	2923	2450		8,416,683	631,647	4,892	1.00	0.96	1.55	33	53
4890	2924	2451		8,416,684	631,647	4,892	1.00	0.40	0.40	29	58
4890	2925	2452		8,416,685	631,647	4,892	1.50	0.24	0.25	60	66
4890	2926	2453		8,416,686	631,647	4,892	1.45	0.16	0.30	80	69
4890	2927	2454		8,416,687	631,648	4,892	1.35	0.37	0.35	63	59
4890	2928	2455		8,416,689	631,649	4,892	0.70	0.39	0.75	76	123
4890	2929	2456		8,416,690	631,649	4,892	1.55	1.14	1.45	89	102
					Comp3*		10.5	1.88	0.65	61	70
4890	2931	2461		8,416,693	631,618	4,892	1.60	2.91	2.20	106	227
4890	2932	2462		8,416,694	631,618	4,893	1.30	3.06	3.30	364	223
4890	2933	2463		8,416,696	631,618	4,893	1.90	2.24	2.70	63	72
					Comp4*		4.8	2.69	2.70	159	1.9
4890	2934	2472		8,416,695	631,608	4,893	1.30	0.29	0.20	45	50
4890	2935	2473		8,416,696	631,608	4,893	1.40	0.35	0.25	27	94
					Comp5*		2.7	0.32	0.23	36	73

Note 1: Comp 1* refers to the length weighted composite grade. Note 2: Laconia samples were assayed at CERTIMIN S.A., in Lima Peru. Au by Fire assay and AAS read, >10ppm Au was re-calculated by gravimetric method. Silver assays by Digest concentrate. HCL+HNO3 in 3:1 mix with Aqua Regia and AAS read, >300ppm Ag was subject to extended digest and AAS read, >1000ppm Ag was re-calculated by gravimetric means

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