ZEOTECH LIMITED — Capital/Financing Update 2015

Nov 12, 2015

Level 45, 108 St Georges Terrace, Perth, WA, 6000, Australia PO Box 1151, West Perth, WA, 6872, Australia T : +61 8 9486 7066 F : +61 9486 8066

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13 November 2015

Dear Shareholder

PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

We are writing to you as a registered holder of shares in Laconia Resources Limited ( Company ).

As announced to ASX on 9 November 2015, the Company is undertaking a pro rata nonrenounceable offer of ordinary fully paid shares ( Shares ) to eligible shareholders. The offer is on the basis of one (1) new share ( New Share ) for every three (3) Shares held by eligible shareholders of the Company as at 5.00pm WST on 19 November 2015 ( Record Date ) at an issue price of $0.002 per Share, to raise approximately $490,175 ( Offer ).

The Company is making the Offer available to eligible shareholders, being persons who are registered as shareholders of the Company on the Record Date and have a registered address in Australia or New Zealand. In calculating entitlements under the Offer, fractions will be rounded down to the nearest whole number. Shareholders who, at the Record Date, do not have an address registered in either Australia or New Zealand will not be eligible to participate in the Offer.

New Shares issued pursuant to the Offer will rank equally to existing Shares currently on issue. The Company has applied for official quotation of the New Shares. The Rights Issue is not underwritten.

An Offer Document in relation to the Offer has been lodged with ASX setting out the timetable for the Offer, as shown below. A copy of the Offer Document is available on the ASX website at www.asx.com.au (ASX code: LCR) and on the Company’s website at www.laconia.com.au.

Use of Proceeds

Proceeds from the Offer will be applied to maintain the company’s administration, meet its current commitments, working capital purposes and ensure the Company has sufficient funds to review new investment opportunities and the costs of the Offer. The cash costs of the Offer will be approximately $18,500 (assuming full subscription).

Capital Structure

The capital structure of the Company following completion of the Offer is summarised below:

Shares	Number
Shares on issue at date of the Offer	735,262,660
New Shares offered under the Offer2	245,087,553
Total Shares on issue at completion of the Offer1	980,350,213

Options	Number
Options currentlyon issue at date of the Offer	349,788,417
Listed Options exercisable at $0.06 on or before 30 September 2018	343,788,417
Unlisted Options exercisable at $0.014 on or before 30 September 2018	6,000,000
Options offered under the Offer	Nil
Total Options on issue at completion of the Offer	349,788,417

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Level 45, 108 St Georges Terrace, Perth, WA, 6000, Australia PO Box 1151, West Perth, WA, 6872, Australia T : +61 8 9486 7066 F : +61 9486 8066

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Performance Shares	**Number **
Performance Shares on issue	14,500,000
Performance shares offered pursuant to the Offer	Nil
Total Performance Shares on issue after completion of the Offer	14,500,000

Notes:

1. The number of Shares on issue assumes that no Options currently on issue are exercised prior to the Record Date.

2. The number of New Shares issued assumes that the Offer is fully subscribed and that no Options currently on issue are exercised prior to the Record Date.

Timetable

The Offer is proposed to be conducted according to the following timetable:

The Offer is proposed to be conducted according to the following timetable:
Event	Date
Release of Offer Document, Appendix 3B & Section 708AA Notice to ASX	12 November 2015
Notice sent to Shareholders	13 November 2015
“Ex” Date (date from which Shares commence trading without the entitlement to participate in the Offer)	17 November 2015
Record Date 5.00pm (WST) (date for determining Entitlements of Eligible Shareholders to participate in the Offer)	19 November 2015
Offer Document with personalised entitlement and acceptance forms dispatched to Eligible Shareholders	24 November 2015
Offer Opening Date	24 November 2015
Last date to extend the Offer Closing Date	30 November 2015
Offer ClosingDate 5.00pm (WST)	3 December 2015
Securitiesquoted on a deferred settlement basis	4 December 2015
ASX notified of under subscriptions	8 December 2015
Issue date and deferred settlement trading ends	10 December 2015
Dispatch of HoldingStatements	10 December 2015
Trading of New Shares expected to commence	11 December 2015

Note: Subject to the Listing Rules and other applicable laws, the Directors reserve the right to vary these dates.

As soon as practicable following the Record Date, the Company will dispatch an Offer Document together with a personalised Entitlement and Acceptance Form to eligible shareholders. If you are eligible and wish to participate in the Offer, you will need to complete this personalised Entitlement and Acceptance Form and return it with the appropriate application monies to the Company’s share registry before 5.00pm (WST) on the anticipated closing date of 3 December 2015.

The Offer Document includes details of the Offer and the risks associated with investing in the Company. It is recommended that you read the Offer Document carefully and, if you are interested in participating in the Offer, seek independent professional advice.

For further information please contact the Company on (08) 9486 7066 during normal business hours.

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Neville Bassett Company Secretary

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