ZEOTECH LIMITED — Capital/Financing Update 2014

Mar 10, 2014

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11 March 2014

High-grade Copper at Favi Prospect, Peru Sampling extends Española 1 Vein 400 m Northward Highlights

• Historic exploration results at the Favi prospect at the Kimsa Orcco Project in Peru contain more high-grade copper, gold and silver assays, extending the copper zone northward by 400 m from the Española 1 prospect

• Results consolidate understanding of broad region of copper mineralisation present at Kimsa Orcco

• Surface sample results at Favi include:

• 1.6 m at 8.8 % Cu, 0.66 g/t Au and 95.5 g/t Ag

• 0.55 m at 5.9 % Cu, 6.07 g/t Au, 0.19% Pb and 179.3 g/t Ag

• 0.35 m at 12.9 % Cu, 2.27 g/t Au, and 273 g/t Ag

• 0.5 m at 6.9 % Cu, 0.89 g/t Au, and 146.4 g/t Ag

• 0.55 m at 7.5 % Cu, 11.84 g/t Au and 241.94 g/t Ag

• 0.4 m at 4.2 % Cu, 2.52 g/t Au and 81.28 g/t Ag

• 0.4 m at 1.9 % Cu, 1.59 g/t Au, 0.48 % Pb and 96.6 g/t Ag

• A Declaración de Impacto Ambiental (DIA) ( Environmental Impact Statement) has been approved[1] , and Drill Permitting documentation lodged[2]

Laconia Resources Limited (ASX: LCR) (“ Laconia ” or “ the Company ”) is pleased to announce that additional outstanding high-grade copper-gold-silver values have been identified extending 400 metres north of the Española 1 prospect within the Company’s flagship Kimsa Orcco Project (formerly the Rasuhuilca and Huaco Cucho Projects) in Peru.

The Española 1 vein system was originally recognised as a gold and silver prospect, but was increased in priority in Laconia’s exploration plan when it established there was an historic adit channel sampling intersection of 24.9 metres at 3.88 % Cu, 2.98 g/t Au and 66.63 g/t Ag,

1 Refer ASX release 29 January 2014

2 Refer ASX release 5 March 2014

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including 15.5 m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag[3] hosted in a breccia pipe and enargite-covellite veining. Further compilation of historic results from Buenaventura Ingenieros SAC work, into modern geological software by Laconia, includes mapping and surface channel sampling of a series of copper-gold-silver rich veins and breccias extending 400 metres north. This extension includes the Indigena vein, the Española 2 vein and the Favi vein.

At Kimsa Orcco, a central region containing copper-rich mineralisation has now been recognised through the systematic review of data with the benefit of up-to-date 3D computer software. This has consolidated Laconia’s understanding of the broad zone of mineralisation and its geological controls.

The Española 1 prospect lies in the 100% Laconia owned tenements (Patacancha 3), and the newlyidentified extension to the north is within the Huaco Cucho No 1 and No 2 tenements, part of a package of 11 tenements over which Laconia has acquired an option (see ASX announcement dated 26 March, 2013). The extension of the Española 1 vein system to the north vastly increases the potential for a larger area containing near-surface copper-gold-silver mineralisation at the project. This is further supported by the copper-gold-silver vein systems identified at Fortuna and Rosita Prospects[4] . To date 834 metres of strike of silica-pyrite-enargite veining hosting high grade coppergold-silver has been identified across the Southern Kimsa Orcco Prospects.

Laconia Managing Director Ian Stuart said: “The Company continues to identify further high-grade copper-gold-silver mineralisation from our Kimsa Orcco Project. The project clearly contains a large, highly mineralised system and our understanding and knowledge of the wider system continues to grow through the systematic processing and follow up of the excellent historical data. The presence of high-grade copper, in conjunction with the gold and silver epithermal veins already identified, adds significantly to the potential of Laconia’s project interests.”

Government Drill Approvals Progress

The Company has had its Declaración de Impacto Ambiental (DIA) ( Environmental Impact Statement ) approved by the Peruvian regulator, the Ministry of Energy and Mines (MINEM)[5] .

3 Refer ASX release 27 February 2013

4 Refer ASX releases 17 December 2013 and 28 January 2014

5 Refer ASX release 29 January 2014

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Laconia recently advised that it has reached agreement with the community of Tintay and has achieved the necessary Social Licence required for its Kimsa Orcco Project[6] . The Tintay community is the third of three community groups Laconia has had to consult in order to gain Social Licence within the immediate area of impact of its 100 percent-owned Kimsa Orcco Project and the contiguous Huaco Cucho concessions, over which Laconia has an option to earn an 80 percent indirect interest[7 ] . These projects and concessions collectively cover over 8,387 hectares of highly prospective geology in the Peruvian Andes.

All necessary documentation seeking formal approval to drill from the Peruvian regulator, MINEM has been lodged[8] . Drill approval is expected after a 30 day statutory review period. This period has commenced.

Geology of the Indigena, Favi and Española 2 Prospects

The location of all prospects identified as containing high-grade copper-gold-silver intersects is shown in Figure 1, with reference to the location of the Rasuhuilca Deposit trend. The architecture of the copper zone is dominated by three regional faults, the Huaco Fault, the Huarmicocha Fault and the San Valentin Fault. These faults appear to be a major controlling factor on the location of highgrade copper at the Project, and the area is interpreted to be one of at least two volcanic centres at the Southern Kimsa Orcco prospects.

Española 1 was the first locale in the Project to be noted to host high-grade copper in the minerals enargite and covellite, located in an adit intersection of 24.9 metres at 3.88 % Cu, 2.98 g/t Au and 66.63 g/t Ag, including 15.5 m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag[ 9] (see Figure 2 for the adit channel sampling that is the basis for this intersection).

The Española 1 prospect lies about 900 m to the east of the Rasuhuilca Prospect in the Patacancha 3 tenement, which is one of the four 100% Laconia-owned tenements. Gold and silver mineralisation at Española 1 prospect is hosted by a set of two veins of different orientation, plus tectonic and hydrothermal breccias. Historic channel sampling includes sampling at surface and along 168 metres of adit driven at the 4805 level. An Exploration Target for gold and silver was calculated for the Española 1 prospect of 54,000 to 154,000 tonnes at 3.75 – 3.9 g/t Au, 57.7 – 79.2 g/t Ag[10] .

6 Refer ASX release 4 March 2014

7 Refer ASX Release 26 March 2013

8 Refer ASX release 5 March 2014

9 Refer ASX releases 27 February 2013

10 Refer ASX release 4 February 2013

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The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will

result in the estimation of a Mineral Resource.

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Figure 1: Plan View of the Southern Kimsa Orcco prospects that are prospective for high-grade copper. prospects previously identified were the Española 1, the Fortuna and the Rosita prospects. The addition of the northern extension at Indigena, Española 2 and Favi prospects consolidates a region at the Project for targeting high-grade copper-gold-silver mineralisation. Grid used is PSAD56, Zone 18 South.

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4

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Figure 2: Plan View of the high-grade copper intersection in adit channel sampling at the Española 1 Adit (4805 level). The samples shown in this figure form the basis for the intersection of 24.9 metres at 3.88 % Cu, 2.98 g/t Au and 66.63 g/t Ag, including 15.5 m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag, previously quoted in ASX releases. Grid used is PSAD56, Zone 18 South.

Since completion of the Option Agreement for access to the Huaco Cucho Tenements, Fortuna then Rosita prospect historic channel sampling and diamond drilling results were compiled by Laconia and the trend of high-grade copper intersections continued into these prospects. Recent Company database additions have incorporated results from the Huaco Cucho No 1 tenement, and this has revealed a significant northern extension of the veining hosting copper at the Española 1 prospect, through the Indigena vein, the Española 2 vein and the Favi vein.

The Indigena vein and Española 2 veins are of a similar orientation to the Española 1 vein. The Favi vein to the north of the Indigena and Española 2 veins is of a similar orientation to the Fortuna and Rosita vein sets. Both Indigena and Española 2 veins strike about northwest – north, and dip steeply to the west, as does Española 1 vein. The exposure of these veins extends for 215 metres north

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5

and 100 metres north, respectively. The Favi vein is roughly east-west in strike, and dips to the north overall, at about 75 – 85 degrees, in a very similar aspect to the Fortuna and Rosita veins (that are 500 – 650 metres to the south). The Favi vein exposure can be traced over 320 metres. These veins and the channel sampling conducted at surface by Buenaventura Ingenieros SA geologists, are shown in Figure 3. Surface samples are coloured by copper content, and the northern extension of the Española 1 trend is shown on the plan as green enargite veining.

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Figure 3: Plan View of the Indigena, Favi and Española 2 prospects extending to the north from the Española 1 prospect, showing surface channel sample locations (coloured by copper content). Grid used is PSAD56, Zone 18 South.

The conclusion drawn by the Company is that there are two dominant structural trends in this central zone of the Southern Kimsa Orcco prospects that are enriched with copper, one being a vein set with a north – northwest strike with a steep west dip (Española 1, Indigena and Española 2 veins), and the other being an east-west strike, with a steep dip to the north (Fortuna, Rosita and Favi veins).

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The zone within the three regional faults that contains all of these veins also corresponds to the area identified as the key target for testing the extent of copper mineralisation in Laconia’s maiden drill program, due to start as soon as drill approval is received.

Planned Exploration Work

Work planned at Southern Kimsa Orcco prospects includes drill testing of the strike extent of coppergold-silver veins and breccias, using diamond drilling, plus testing concealed areas between the known veins for further mineralised structures. Final drill plan details will be selected following completion of 3D geological modeling of the area. Surface geochemical studies are also planned over the Favi Vent zone, and at the Northern Kimsa Orcco prospects, to further characterise the zones of alteration, and allow finer vectoring to the centre of the altered systems, in preparation for drill testing for copper porphyry mineralisation.

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Figure 4: Schematic diagram of the porphyry exploration model at the Kimsa Orcco Project, showing alteration and metal zonation. Some examples of prospects already identified are shown.

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7

Exploration Results Summary

The overall geological setting is a volcanic system in the Andean highlands (named Ccarhuaraso) that has an extensive area of alteration and High Sulphidation Epithermal mineralisation. There is potential for a Porphyry Copper-Gold body at depth.

Results presented in this release are from 108 surface channel samples conducted by Buenaventura in 1999. Adit channel samples (previously released on the 27th February, 2013) are collected at intervals between 2 and 5 metres apart, with some zones between the veining remaining unsampled. The adit channel sampling was done in 2002. Surface channel samples were collected as cut channel samples over lengths of 0.3 to 2.0 metres, between 2 and 30 metres apart, cut perpendicular to geological structures (veins or faults).

Surface channel samples were submitted to Intertek Bondar Clegg (Bolivia) in 1999. Sample preparation techniques used at the laboratory are not known, but the analysis method used for gold was Atomic Absorption Spectrometry (AAS) with Fire Assay on 50 gram aliquots to 2 ppb detection limits. AAS was also used for silver, or by Inductively Coupled Plasma - Mass Spectrometry (ICPMS) + 35 elements (Ag, Cu, Pb, Zn, Mo, N, Co, Cd, Bi, As, Sb, Hg, Fe, Mn, Te, Ba, Cr, V, Sn, W, La, Al, Mg, Ca, Na, K, Sr, Y, Ga, Li, Nb, Sc, Ta, Ti, Zr). Sample chain of custody documentation was not undertaken, or not acquired in the data package.

Geological mapping of surface rock exposures and interpretation by Buenaventura and Laconia geologists has been used to compile the information in this release. Results for the Española 1 adit channel sampling were composited based on a nominal cut-off of greater than 1 g/t gold, or 60 g/t silver or 0.1 % copper, and then calculated as a weighted average of sample length versus sample grade, divided by the entire composite length. No surface channel sample results were composited.

Background

Laconia completed the acquisition of the four Patacancha Tenements in the Kimsa Orcco Project[11] in the Southern Andes of Peru in June 2012. Kimsa Orcco Project is an advanced, high-grade gold and silver project which contains existing development levels and cross-cuts. In March 2013, the Company signed a formal option agreement ("the Option Agreement") to add 5,622 hectares, covering 11 Huaco Cucho exploration tenements adjacent to its 100% owned Patacancha Tenements. The combined 100% Laconia Patacancha Tenements and the 80% Option Agreement

11 Refer ASX Release 1 June 2012

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Huaco Cucho Tenements form the Kimsa Orcco Project. The Option Agreement is for seven years and involves minimal initial outlay.

Previous explorers were aware of the potential scale and size of the Ccarhuaraso Volcanic system and its Porphyry Copper-Gold potential due to its geological similarities to the El-Indio deposit in Peru (Caddy, 1996.) . El Indio contained some 23.2 Mt at 6.6 g/t Au, 50 g/t Ag and 4% Cu including a bonanza gold zone of 200 kt at 209 g/t Au ( Sillitoe, 1999) . The Company has consequently expanded its compilation of historical data to include any available copper sampling undertaken across the Project licences with the view that the Project contains a buried and fully intact Epithermal/Porphyry system. Figure 4 shows a schematic of the exploration model now being used by Laconia. It contains examples of known vein and breccia systems on the Project and the current understanding of how they relate to the Epithermal/Porphyry model.

Laconia continues the process of identifying and verifying all existing and available data from sampling conducted by the Cominco SA and Buenaventura Ingenieros SA companies and will continue with its process of re-sampling to “twin” existing surface and underground samples and drill holes. New sampling work will be undertaken and together the data will provide increased confidence for upgrading resource estimates.

References

Caddy, S.W., 1996, “Preliminary Structural Analysis, Mineral Alteration Zoning, Target Concepts, and Recommended Exploration Approach, Jarhaurazo District, Southern Peru”; unpublished Internal Consulting Report for Echo Bay Exploration Inc.

Sillitoe, R.H., 1999, "Styles of high sulphidation gold, silver and copper mineralisation in the porphyry and epithermal environments"; in G. Weber, ed., Pacrim ’99 Congress Proceedings: Australasian Institute of Mining and Metallurgy, pp29-44.

*ENDS***

For further information please contact:

Ian Stuart

Managing Director

Laconia Resources Limited

P: +61 8 9486 1599

E: istuart@laconia.com.au

or visit our website at www.laconia.com.au

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About Laconia Resources Limited

ASX Listed Laconia Resources Limited (ASX: LCR) is a Perth-based precious and base metals exploration and development Company with a Latin American focus. The Company’s flagship Kimsa Orcco Project in Peru is an advanced copper-gold-silver project in the Ayacucho region of Southern Peru, across four 100% Laconia Resources Ltd permits covering 27.65 km[2] and a further 11 contiguous permits through an 80% earn in option agreement, covering 56.22 km[2] . The total area of 83.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal copper gold and silver.

In Western Australia, the Company has mineral projects across two granted tenements covering an approximate 98.7 km[2] in the Pilbara and Northern Gascoyne regions.

Competent Persons Statement

The information in this announcement that relates to Exploration Results at the Indigena, Española 2 and Favi Prospects is based on information compiled by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar is a consultant for Laconia Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Algar consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results at the Española1, Fortuna and Rosita Prospects is extracted from reports titled “High-Grade Copper Identified” lodged with the ASX dated 27 February 2013, ”High Grade Copper, Bonanza Precious Metal Results at Fortuna” lodged with the ASX on 17 December 2013 and “High-grade Copper System Expanded North to Rosita, Peru” lodged with the ASX dated 28 January 2014. These reports were based upon information compiled by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar is a consultant for Laconia Resources Limited. Mr Algar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the

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Competent Person’s findings are presented have not been materially modified from the original market announcements. The information in this report that relates solely to the Exploration Targets is based on, and fairly represents, information and supporting documentation prepared by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar was a Non-Executive Director and a consultant for Laconia Resources Limited at the time of preparation and has sufficient experience that is relevant to the style of mineralisation and type of deposit 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’. Mr Algar consents to the inclusion in this presentation the matters based on his information in the form and context in which it appears.

See Appendix 2 for Detailed JORC Table 1, Section 1 and Section 2

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11

APPENDIX 1 – Indigena, Española 2 and Favi – Surface Channel Sampling

Española 2, Indigena and Favi Prospect Surface Channel Samples

Sample ID	North	East	RL	Dip	Azimuth	Sample Length	Cu %	Au **g/t **	Ag g/t	Pb %
29268	8417155	632373	4756	18	241	0.85	3	2.93	79.06	-
29270	8417185	632358	4751	11	243	0.55	7.5	11.84	241.9	-
29271	8417189	632356	4750	11	244	0.41	4.2	2.52	81.28	-
29272	8417192	632355	4750	11	244	0.7	0.27	0.4	11.11	-
29277	8417241	632344	4748	0	240	0.8	0.03	2.88	136.3	0.01
29286	8417192	632197	4739	0	0	1.6	0.1	0.23	23.3	0.02
29287	8417163	632225	4740	0	0	1.3	0.61	0.18	26.2	0.02
29288	8417167	632243	4740	0	0	1	0.02	0.34	3.9	0
29289	8417169	632243	4740	0	0	1	0.04	0.47	7.1	0.01
29290	8417163	632265	4740	0	0	1.7	0.6	5.29	14.4	0
29291	8417258	632272	4740	0	230	1.2	0.34	0.8	54.1	0.01
29292	8417260	632262	4739	0	230	1.5	0.02	4.38	26.5	0.01
29293	8417291	632388	4756	0	245	0.6	1.5	1.49	32.4	0.01
29294	8417306	632375	4752	0	245	1.2	0.02	0.2	7	0.03
29295	8417321	632371	4750	0	245	0.6	0.99	0.36	37.2	0.02
29296	8417327	632367	4749	0	245	1	0.71	1.38	57.4	0.03
29297	8417332	632362	4748	0	245	0.9	0.07	0.09	2.2	0.01
29298	8417332	632364	4748	0	245	1	0.94	0.59	20.7	0.01
29300	8417339	632375	4752	0	245	0.5	6.9	0.89	146.4	0.06
29301	8417337	632376	4752	0	245	0.35	12.9	2.27	273	0.07
29302	8417315	632373	4751	0	245	1.05	0.02	0.12	1.8	0.01
29303	8417313	632374	4751	0	245	1.05	0.01	0.09	1.5	0.01
29304	8417358	632430	4765	0	240	1.5	0.02	0.15	1.7	0.01
29305	8417357	632429	4765	0	240	1.5	0.01	0.28	1.3	0.01
29306	8417357	632428	4764	0	240	1.5	0.01	0.21	0.8	0.01
29307	8417373	632412	4761	0	260	1.5	0	0.17	0.9	0.02
29308	8417373	632411	4761	0	260	1.5	0.01	0.09	0.7	0.02
29309	8417373	632410	4761	0	260	1.15	0.01	0.07	0.7	0.01
29310	8417373	632408	4761	0	260	1.15	0.01	0.06	0.7	0.01
29311	8417372	632407	4761	0	260	1.2	0	0.11	0.5	0.01
29312	8417386	632397	4758	0	220	0.8	0.06	5.36	65.9	0.13
29313	8417386	632397	4758	0	220	1.1	0.35	10.8	80.6	0.21
29314	8417385	632396	4757	0	220	1.2	0.08	8.48	65.4	0.42
29315	8417384	632395	4758	0	220	1.25	0.03	5.88	69.5	0.24
29316	8417413	632380	4754	0	240	1.5	0.01	0.17	1.6	0.01
29317	8417412	632377	4753	0	240	1.5	0.01	0.23	2	0.01
29318	8417373	632327	4740	0	245	0.7	0.12	0.73	36.9	0.03
29319	8417392	632319	4740	0	245	1.45	0.01	0.19	1.7	0.01
29320	8417385	632316	4739	0	165	1.6	8.8	0.66	95.5	0.02
29321	8417381	632318	4739	0	165	0.6	0.11	2.83	132.2	0.07
29322	8417385	632319	4739	0	165	0.55	5.9	6.07	179.3	0.19
29323	8417402	632315	4740	0	245	1.15	0.01	0.11	1.4	0.01
29324	8417401	632316	4740	0	245	1.15	0.02	0.13	1.6	0.01
29325	8417291	632252	4733	0	230	1	1.5	0.67	34.2	0.01
29326	8417288	632247	4733	0	230	1.3	0.15	0.67	16.1	0.01
29327	8417279	632218	4730	0	230	0.35	0.16	0.95	33.1	0.19
29328	8417303	632236	4730	0	230	0.4	1.9	1.59	96.6	0.48
29329	8417307	632233	4730	0	230	0.45	0.26	2.54	76.1	0.47
29330	8417322	632232	4730	0	230	1.1	0.2	1.52	24.7	0.01
29331	8417320	632230	4730	0	230	1.25	0.02	0.23	8.3	0.02
29332	8417313	632226	4729	0	230	0.35	0.33	3.4	41.7	0.05
29333	8417342	632227	4729	0	0	1.3	0.04	1	21.2	0.01

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Sample ID	North	East	RL	Dip	Azimuth	Sample Length	Cu %	Au **g/t **	Ag **g/t **	Pb %
29334	8417343	632216	4726	0	0	0.95	0.05	2.24	17.3	0.02
29335	8417352	632202	4722	0	0	1.2	0.15	0.39	8	0.01
29336	8417368	632195	4720	0	45	1.4	0.07	3.17	51.7	0.01
29337	8417350	632203	4723	0	0	0.55	0.11	0.54	5.8	0.05
29338	8417370	632178	4716	0	0	0.7	0.11	0.76	25.3	0.01
29339	8417356	632189	4719	0	0	1.5	0.25	0.65	13.2	0.01
29340	8417358	632189	4719	0	0	1.5	0.82	1.41	31.1	0.01
29341	8417386	632192	4719	0	0	0.5	0.04	0.68	7	0.01
29342	8417382	632183	4717	0	230	1.5	0.06	0.15	2.8	0.01
29343	8417381	632180	4716	0	230	1.5	0.01	0.05	0.8	0.01
29344	8417379	632177	4716	0	230	1.5	0.12	0.27	4.6	0.01
29345	8417410	632207	4725	0	0	0.5	0.02	0.33	2.4	0.01
29346	8417404	632209	4724	0	0	0.5	0.02	0.12	1.1	0.01
29347	8417402	632199	4722	0	0	1.15	0.03	0.17	3.5	0.01
29348	8417408	632183	4719	0	0	0.5	0.01	0.1	2	0.01
29350	8417405	632181	4718	0	0	0.35	0.08	2.06	52.3	0.02
29351	8417407	632167	4715	0	0	1	0	0.04	0.4	0.01
29352	8417401	632152	4710	0	0	0.6	0.01	2.38	44.7	0.03
29353	8417398	632183	4718	0	0	0.4	0.04	0.15	2.1	0.01
29354	8417396	632195	4721	0	0	1	0.07	0.24	3.6	0.01
29355	8417401	632207	4724	0	0	0.9	0.44	2.59	50.2	0.03
29356	8417400	632211	4724	0	0	0.8	1.8	13.61	80.9	0.02
29357	8417434	632234	4731	0	0	1.5	0.01	0.19	2.9	0.01
29358	8417445	632232	4731	0	0	1.5	0.02	0.09	1.8	0.01
29359	8417480	632232	4730	0	340	2	0	0.05	3.9	0.01
29360	8417484	632229	4730	0	340	2	0.02	0.21	5.3	0.01
29361	8417478	632222	4730	0	340	1.5	0.01	0.07	5.4	0.01
29362	8417480	632220	4730	0	340	1.5	0.01	0.21	6.2	0.01
29363	8417483	632220	4730	0	340	1.5	0.02	2.16	41.5	0.06
29364	8417465	632194	4722	0	60	1.5	0.06	0.16	15.9	0.01
29365	8417464	632192	4722	0	60	1.4	0.02	0.08	4.5	0.01
29366	8417463	632189	4722	0	60	1.5	0.02	0.39	23.6	0.01
29367	8417505	632064	4685	0	230	0.4	0	0.05	0.4	0.01
29368	8417502	632056	4683	0	230	0.4	0.11	0.06	2.6	0.04
29369	8417505	632044	4679	0	230	0.4	0.01	0.05	1.2	0
29370	8417504	632164	4716	0	230	0.4	0	0.19	1.1	0.02
29371	8417510	632161	4715	0	230	0.4	0	2.46	58.4	0.41
29372	8417405	632040	4687	0	0	0.3	0.08	2.45	35.8	0.74
29373	8417403	632041	4687	0	0	0.5	0	0.07	0.4	0.01
29374	8417399	632017	4681	0	0	0.7	0	0.25	2.3	0.03
29375	8417384	632045	4690	0	0	0.6	0	0.09	4.4	0.01
29376	8417385	632061	4692	0	0	0.4	0.04	2.69	78	0.01
29377	8417358	632054	4691	0	0	0.5	0.02	0.59	472	0.04
29378	8417361	632061	4692	0	0	0.4	0	0.42	14.2	0.05
29379	8417362	632067	4693	0	0	0.5	0.02	3.61	46.9	0.04
29380	8417372	632096	4698	0	0	1	0.01	0.07	9.7	0.01
29381	8417369	632083	4696	0	0	0.9	0	0.05	5.7	0.01
29382	8417367	632084	4696	0	0	1.2	0.02	0.16	17.3	0.01
29383	8417389	632019	4683	0	0	1.1	0.01	0.91	9	0.02
29384	8417361	632111	4700	0	0	0.8	0	0.08	0.6	0
29385	8417339	632134	4705	0	0	1	1.2	0.3	29.8	0.01
29392	8417497	632414	4770	0	0	0.6	0	0.28	1.1	0.01
29393	8417468	632332	4750	0	0	0.5	0.01	0.1	3.7	0.02
29394	8417468	632320	4748	0	0	0.7	0.1	0.19	9	0.01

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Sample ID	North	East	RL	Dip	Azimuth	Sample Length	Cu %	Au g/t	Ag **g/t **	Pb %
29395	8417520	632351	4762	0	320	1.6	0.02	0.45	5.5	0.11
29396	8417524	632349	4762	0	320	1.7	0.02	0.17	2.7	0.03

Note 1: Samples were collected by Buenaventura during 1999, and assayed at Intertek Bondar Clegg Bolivia, CIMM PERU SA, and C.H. Plenge Laboratory (Buenaventura). Gold (Au) was analysed by AAS with Fire Assay checks on 50 g aliquots to 2 ppb detection limits and AAS was used for Silver (Ag); or by ICP-MS + 35 elements. All assays are available in Annual Reports, and with original lab certificates. Buenaventura applied duplicate and triplicate samples with triplicates submitted to an umpire laboratory.

Note 2: Coordinate system used is PSAD56/UTM zone 18S EPSG 24878

APPENDIX 2 – JORC CODE, 2012 Edition, Table 1 (Section 1 and 2)

SECTION 1: Sampling Techniques and Data

SECTION 1: Sampling Techniques and Data	SECTION 1: Sampling Techniques and Data	SECTION 1: Sampling Techniques and Data
Criteria	JORC Explanation	Remarks
Sampling Techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Cut surface channel samples – 30 cm width. Cut underground channel samples – 30 cm width.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Buenaventura used a sample size of 3.5 kg per metre of channel sampling. They routinely submitted duplicate and triplicate samples. The employed umpire laboratories to check their results with triplicate samples, as well as re-submitting pulps.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Channel samples were collected using best method (ie. cut with a rock saw). Duplicates and triplicates of channel samples (adit and surface) were obtained through re-cutting a second or third sample in the same location. Channel samples were not split for the purposes of creating duplicates or triplicates. Sample preparation techniques are not known.
Drilling Techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	No drilling results are included in this release.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	No drilling results are included in this release.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	No drilling results are included in this release.

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Criteria	JORC Explanation	Remarks
Drill Sample recovery (continued)	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material	No drilling results are included in this release.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Surface and underground channel samples were plotted onto geological maps that were created using a consistent legend. No geotechnical logs are available for channel samples.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Logging is qualitative, with the exception of some quantitative logging of sulphide and alteration content. No routine photography of channel sampling is available.
	The total length and percentage of the relevant intersections logged	100% of surface channel samples presented in this release have mapping that can be applied as logging. .
Sub-sampling Techniques and Sample Preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	No core samples are reported in this release.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Surface and Adit channel samples were not split during any part of the process. They represent complete channels. Water was used during cutting, but then a dry sample collected using a hammer and maul.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Details on laboratory preparation of samples are not known. Accuracy of results is implied through performance of duplicate and triplicate samples and utilisation of umpire laboratories.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	For channel sampling standards and blanks were interleaved with the routine samples, every 20 thsample. For the channel sampling, duplicates were cut for every 20 thsample. Triplicates were cut and sent to an umpire lab, at a frequency of about 3%.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Duplicates and triplicates were collected through cutting another channel sample, not splitting the existing channel sample. 5% of total sample numbers were submitted as duplicates, and 2.5% were submitted as triplicates.
	Whether sample sizes are appropriate to the grain size of the material being sampled	Channel sample sizes were appropriate, as shown by good correlation between primary, duplicate and triplicate results.

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Criteria	JORC Explanation	Remarks
Quality of Assay Data and Laboratory Tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	For channel samples gold (Au) was analysed by AAS with Fire Assay checks on 50 g aliquots to 2 ppb detection limits and AAS was used for Silver (Ag). ICP-MS was used for the other elements (Cu, Pb, Zn, Mo, As, Sb, Bi, Hg, Te) – Diamond was +9 Suite / (Ag, Cu, Pb, Zn, Mo, N, Co, Cd, Bi, As, Sb, Hg, Fe, Mn, Te, Ba, Cr, V, Sn, W, La, Al, Mg, Ca, Na, K, Sr, Y, Ga, Li, Nb, Sc, Ta, Ti, Zr) – Adit Channel Samples was + 35 Suite. Digestion method is not known and so completeness oftechniqueis unknown.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools or other analysis methods were employed.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	For both channel sampling, standards and blanks were interleaved with the routine samples, every 20 thsample. For the channel sampling, duplicates were cut for every 20 thsample. Triplicates were cut and sent to an umpire laboratory (at a frequency of about 3%).
Verification of Sampling and Assaying	The verification of significant intersections by either independent or alternative company personnel.	No intersection verification at Indigena, Española 2 or Favi prospects has been done, though Buenaventura repeating Cominco sampling at other prospects, and Cambridge Mineral Resources repeated Cominco and Buenaventura sampling at a later date. Laconia repeated Cominco and Cambridge Mineral Resources sampling (33 samples) in the Rasuhuilca underground development, and the results showed the original sampling was repeatable.
	The use of twinned holes.	No twinned holes have been used to verify sampling and assaying.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Data has been compiled from good quality paper plans and digitally compiled at a later date. The data has been assimilated into the Company SQL database, and exported into Microsoft Access, after compilation and validation in Surpac and Mapinfo Software and checks against topography and the quality of repeated samplelocations.
	Discuss any adjustment to assay data.	There was re-calculation of assays reported as oz/t to g/t. The calculation was based on the imperial oz (28.34 grams to an ounce), ratherthanthe troy ounce (31.10 grams to anounce).
Location of Data Points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Cominco established professionally surveyed trigonometric points across the Rasuhuilca project. From these survey points, surface mapping and sampling was spatially referenced. Underground development at Rasuhuilca was surveyed by Cominco, with permanent survey points established in the adits. Following workers (Buenaventura, Cambridge Mineral Resources, Laconia Resources) utilised these survey points for spatial location of their work. Buenaventura used a company employed surveyor. Only the Rasuhuilca underground development sampling and surface samplinginforms aresource estimation.
	Specification of the grid system used.	All data was collected as, and remain in, PSAD56, Zone 18 South, EPSG24878.
	Quality and adequacy of topographic control.	Topographic surface uses 10 metre contours that have excellent correlationto groundfeatures.

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Criteria	JORC Explanation	Remarks
Data Spacing and Distribution	Data spacing for reporting of Exploration Results.	Surface channel samples are collected perpendicular to the vein walls, at spacings of 2 to 30 metres apart. Adit channel samples are collected perpendicular to the veins on the backs of the adit, or along the walls of the adit, at intervals of 2 – 5 metres apart along the backs, or as contiguous runs on the walls. Diamond drill core samples are collected over contiguous intervals of alteration as per logging. There are lengths of diamond core not sampled. Some sampled intervals were re-sampled as composites, oras single duplicate samples.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	No Mineral Resource or Ore Reserve calculations have been reported on the Indigena, Española 2 or Favi Prospects.
	Whether sample compositing has been applied.	No compositing was done for surface channel samples. Adit channel sampling techniques are explained in the Exploration Results Summary.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Surface and adit channel samples were collected perpendicular to vein walls, or across zones of alteration, and are representative of the mineralisation controls.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No drilling is reported in this release.
Sample security	The measures taken to ensure sample security.	No chain of custody was documented for Buenaventura Ingenieros SAC sampling.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	At a project scale, numerous repeat sampling exercises validate the sampling of previous workers.

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SECTION 2: Reporting of Exploration Results

SECTION 2: Reporting of Exploration Results	SECTION 2: Reporting of Exploration Results	SECTION 2: Reporting of Exploration Results
Criteria	JORC Explanation	Remarks
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The Kimsa Orcco Project is comprised of 4 Patacancha tenements that are 100% Laconia Resources owned, plus the 11 Huaco Cucho tenements that are subject to an Earn-in Agreement, for option of 80% interest over a 7 year period. The Indigena Prospect is within earn-in agreement tenements, Huaco Cucho No. 2 and No. 1. The Española 2 Prospect is within Huaco Cucho No. 2 and the Favi Prospect is within Huaco Cucho No. 2. The tenements are located on a high plateau within the Andes Mountain chain, in the Department of Ayacucho in Southern Peru. There are no historical sites, wilderness or national park issues known to Laconia Resources. Community agreements to address Native Title issues are completed; all 3 required agreements have beenachieved.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to _operate inthe area. _	Laconia knows of no impediment to obtaining a licence to operate in the area.
Exploration Done by Other Parties	Acknowledgement and appraisal of exploration by other parties.	The project area has previously been explored by COMINCO el Peru between 1985 and 1987, by Buenaventura Ingenieros SA from 1996 to 2003. Echo Bay undertook exploration in a JV partnership with Buenaventura between 1996 and 1999. Cambridge Mineral Resources (CMR) acquired the project in 2005 and started development and small-scale mining at the Marcelita 2 vein. Theymovedfocus to theRasuhuilcavein inSeptember 2006.
Geology	Deposit type, geological setting and style of mineralisation.	High sulphidation epithermal gold-silver veining and alteration halos, with localised enargite-rich breccias along fault controlled paths. Volcanic centre dated at1.4 – 1.6Ma.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length.	All tabulated exploration results are included in the release in appendix 1. Channel samples are presented with orientation data.
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should _clearly explain why this is the case. _	No information is excluded.
Data Aggregate Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are _usually Material and should be stated. _	Weighting is calculated as a function of each sample length multiplied by each grade, with the summed product divided by the total sample length, to present composited intervals. No top or bottom cut was applied.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	Where intercepts are reported as longer lengths of lower grade, it is clearly stated that the higher incepts within are part of the lower-grade intercept, not in addition to the low grade intercept.
	The assumptions used for any reporting of metal equivalent values should be _clearly stated. _	No metal equivalents are used for the exploration results at Indigena, Española 2 or Favi Prospects.

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Criteria	JORC Explanation	Remarks
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	Surface channel samples reflect vein true widths as they are cut perpendicular to the vein walls.
	If the geometry of the mineralisation with respect to the drill hole angle is known, its _nature should be reported. _	No drilling is reported in this release.
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	No drilling is reported in this release.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate _sectional views. _	Diagrams are provided that show all surface channel samples and known geology.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of _Exploration Results. _	All exploration results are presented in the Appendix 1, regardless of grade.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geological survey results, geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Discussion of the Indigena, Española 2 and Favi Prospects geology is included in the release. To date no economic or extractive measures such as bulk samples, metallurgical testing, bulk density, groundwater, geotechnical or rock samples have been done. Mineral species hosting base metals are identified in the release.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out _drilling). _	Drill testing is identified as future planned work. At present the amount and location of planned drill holes has not been identified, pending 3D geological modeling
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is _not commercially sensitive. _	The area of mineralisation is outlined in Figure 1.

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19