ZEOTECH LIMITED — Capital/Financing Update 2017

May 1, 2017

Level 4, 216 St Georges Terrace, Perth, WA, 6000, Australia PO Box 7315, Perth, WA, 6850, Australia T : +61 8 6268 2698 F : +61 6268 2699

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2 May 2017

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 26 April 2017, the Company is undertaking a pro rata non-renounceable 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 5 May 2017 ( Record Date ) at an issue price of $0.02 per Share, to raise up to $673,567 ( Offer ).

This letter is to inform you about the Offer and to explain why you will not be able to subscribe for New Shares under the Offer. This letter is not an offer to issue New Shares to you, nor an invitation for you to apply for New Shares.

You are not required to do anything in response to this letter.

The Offer is being made without a prospectus in accordance with section 708AA of the Corporations Act 2001 (Cth) (as amended by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84).

An Offer Document in relation to the Offer has been lodged with ASX and will be mailed to eligible shareholders.

Use of Proceeds

Proceeds from the Offer will be applied towards funding the proposed acquisition of a 100% interest in Kraaipan Founders Pty Ltd, to conduct evaluation and exploration programs on the proposed Kraaipan Gold-Nickel-PGM Project, costs of the issue and for general working capital. The cash costs of the Offer will be approximately $180,000 (assuming full subscription).

Information about the Offer

1. The Offer is being made 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.

2. The Offer opens on 10 May 2017 and is expected to close at 5.00pm (WST) on 19 May 2017.

3. The Offer is non-renounceable which means that entitlements to participate in the Offer are not tradeable on the ASX or otherwise transferable.

4. Up to 33,678,368 New Shares may be issued under the Offer (based on the current capital structure of the Company), resulting in total ordinary fully paid shares in the Company of up to 134,713,474 shares. New Shares issued under the Offer will rank equally with the Company’s existing fully paid ordinary shares.

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Level 4, 216 St Georges Terrace, Perth, WA, 6000, Australia PO Box 7315, Perth, WA, 6850, Australia T : +61 8 6268 2698 F : +61 6268 2699

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1. The Offer is being undertaken in conjunction with the placement to sophisticated investors to raise a combined fixed amount of $2,400,000 (before costs) and the Transaction ( Capital Raising ). Further details of the Transaction can be found in the Company’s Notice of General Meeting dated 15 March 2017 ( Notice of Meeting ) which is available free of charge on the Company’s website, http://www.laconia.com.au/investor-overview/asx-announcements/. The Notice of General Meeting can also be obtained on the ASX announcements platform at http://www.asx.com.au/asxpdf/20170317/pdf/43gwlz9c465ktt.pdf.

2. The successful completion of the Capital Raising is a condition precedent to the completion of the Transaction.

3. There is no minimum subscription under the Offer and the Offer is not underwritten.

4. The Company may at its discretion make a placement to professional and sophisticated investors of any entitlements under the Offer which are not taken up by shareholders (“ Shortfall ”). The Company will endeavour to ensure that no party will receive Shortfall Shares that would result in that party having a relevant interest in more than 19.9% of the total Shares on issue.

Ineligible shareholders

Shareholders who are not eligible to participate in the Offer are “Ineligible Shareholders”.

The restrictions upon eligibility to participate in the Offer arise because of the legal and regulatory requirements in countries other than Australia and New Zealand and the potential costs to the Company of complying with these legal and regulatory requirements compared with the relatively small number of shareholders in those countries, the relatively small number of existing Shares they hold and the relatively low value of New Shares to which they would otherwise be entitled.

The Company has determined, pursuant to ASX Listing Rule 7.7.1(a) and section 9A(3)(a) of the Corporations Act, that it would be unreasonable to make or extend offers to shareholders in certain countries under the Offer.

Unfortunately, according to our records, you do not satisfy the eligibility criteria for the Offer stated above. Accordingly, in compliance with ASX Listing Rule 7.7.1(b) and section 9A(3)(b) of the Corporations Act, the Company wishes to advise you that it will not be extending the Offer to you and you will not be able to subscribe for New Shares under the Offer. You will not be sent the documents relating to the Offer.

Further information

For further information, please see the Company’s announcements on ASX (www.asx.com.au) (ASX code: LCR) and on the Company’s website (www.laconia.com.au) or contact the Company on (08) 6268 2698 during normal business hours.

Yours sincerely

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Neville Bassett Company Secretary

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