ZEOTECH LIMITED — Capital/Financing Update 2014

Sep 4, 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

Dear Optionholder

5 September 2014

RIGHTS ISSUE - NOTIFICATION TO OPTIONHOLDERS

We are writing to you in relation to your option holding in Laconia Resources Limited ( Company ).

The Company has announced to the Australian Securities Exchange ( ASX ) 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 the 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 ).

Optionholders

The terms and conditions of the options you currently hold do not entitle you to participate in the Rights Issue unless you exercise your options in time for new shares to be allotted and to be entered on the Company’s register of members on or before 5pm (WST) on the Record Date.

To exercise your options and thereby participate in the Rights Issue, you will need to deliver the following to the Company at Suite 2, Level 1, 47 Havelock Street, West Perth, WA 6005:

• a) notice of exercise of options on the reverse of your holding statement (attached to this letter); and

• b) payment for the exercise price in respect of those options to be exercised by way of a cheque made payable to “Laconia Resources Limited – In Trust for Options Account”.

To ensure that your shares are allotted prior to the Record Date, the above must be received by Laconia no later than 5pm (WST) on 10 September 2014 .

The Company has lodged an Offer Document in relation to the Rights Issue with ASX. Before deciding whether to exercise any or all of your options, you should read the Offer Document in its entirety.

The Company anticipates that the Offer Document will be dispatched to shareholders of the Company on or about 12 September 2014. The Offer Document outlines the Rights Issue in detail.

The Company has determined pursuant to Listing Rule 7.7.1(a) of the Listing Rules of ASX Limited that it is unreasonable to make an offer pursuant to the Rights Issue to Shareholders outside of Australia and New Zealand. Therefore, in compliance with ASX Listing Rule 7.7.1(b), the Company is not required to make offers pursuant to the Rights Issue to Shareholders registered outside of Australia and New Zealand. Accordingly an Option holder who is resident outside of Australia and New Zealand will not be able to participate in the Rights Issue upon exercise of their Options.

Further information

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

==> picture [84 x 33] intentionally omitted <==

Matthew Howison Chairman LACONIA RESOURCES LIMITED

==> picture [596 x 67] intentionally omitted <==