ZEOTECH LIMITED — Capital/Financing Update 2015

Nov 12, 2015

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

13 November 2015

Dear Shareholder,

RIGHTS ISSUE - NOTIFICATION TO INELIGIBLE SHAREHOLDERS

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 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 ordinary 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. 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.

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 Shares to which they would otherwise be entitled.

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).

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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 currently on 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
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.

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 on +61 8 9486 7066. For other questions, you should seek professional advice.

Yours sincerely

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Neville Bassett Company Secretary

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