ZEOTECH LIMITED — Capital/Financing Update 2014

Sep 8, 2014

Suite 2, Level 1, 47 Havelock Street West Perth WA 6005 Australia

PO Box 1151 West Perth WA 6872 Australia Tel: +61 8 9486 1599 Email: info@laconia.com.au

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8 September 2014

Dear Shareholder,

RIGHTS ISSUE - NOTIFICATION TO INELIGIBLE SHAREHOLDERS

As announced on 28 August 2014, the Board of Laconia Resources Limited (“ Laconia ” or “ the Compan y”) has resolved to undertake a non-renounceable rights issue of up to 345,516,141 new fully paid shares in the Company ( New Shares ) at an issue price of $0.005 on the basis of five (5) New Shares for every seven (7) shares held on 11 September 2014 ( Record Date ), together with one (1) free attaching option exercisable at $0.06 each on or before 30 September 2018 for every one (1) New Share subscribed for and issued ( New Option) ( Rights Issue or Offer ).

The Rights Issue is being made to all holders of fully paid ordinary shares in the capital of the Company ( Shares ) named on its register of members at 5.00pm (WST) on the Record Date whose registered address is in Australia or New Zealand ( Eligible Shareholders ).

New Shares will rank equally with all Shares already on issue. The New Options are the same class as the Company’s existing listed Options that trade under ASX Code “LCROA”. The New Options will be listed on ASX.

The Rights Issue is not underwritten. CPS Capital Group Pty Ltd has been appointed Lead Manager to the Rights Issue.

An Offer Document relating to the Rights Issue ( Offer Document) will be sent to Eligible Shareholders on 12 September 2014. A copy of the Offer Document is available on the ASX’s and the Company’s website.

Ineligible shareholders

A Shareholder who has a registered address outside Australia and New Zealand (Ineligible Shareholder) will not be eligible to participate in the Offer. You are not eligible to participate in the Offer and you will not be sent a copy of the Offer Document. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand compared with the small number of Ineligible Shareholders and the number and value of Options to which they would otherwise be entitled.

Use of Funds

The Rights Issue will raise a maximum of $1,727,580 before costs of the Offer. The Company intends to apply the funds raised from the Rights Issue to:

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• (a) fund the Company’s next phase of exploration drilling and drill targeting at its Kimsa Orcco copper-gold-silver Project in Peru;

• (b) fund the issue costs associated with the Offer; and/or

• (c) 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 anticipated 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 Performance Rights 483,722,597 323,377,849 14,500,000 10,200,000 345,516,141 345,516,141 -
	829,238,738 668,893,990 14,500,000 10,200,000

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

Further information

The Rights Issue is made to Shareholders with registered addresses in Australia and New Zealand.

Full detail of the Rights Issue will be contained in the Offer Document that will be mailed to all Eligible 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 Secretary, Mr Matthew Edmondson on +61 8 9486 1599. For other questions, you should contact your stockbroker, accountant, taxation adviser, financial adviser or other professional adviser.

Yours sincerely

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Matthew Howison

Chairman

LACONIA RESOURCES LIMITED

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