ZEOTECH LIMITED — Capital/Financing Update 2017

Apr 30, 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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1 May 2017

ASX Market Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000

Notification under section 708AA (2)(f) of the Corporations Act 2001 (Cth)

Laconia Resources Limited (" Company ") gives notice under section 708AA (2)(f) of the Corporations Act 2001 (Cth) (" Corporations Act ") that:

1. The Company will offer approximately 33,678,368 fully paid ordinary shares (” New Shares ”) for issue without disclosure to shareholders under Part 6D.2 of the Corporations Act pursuant to a non-renounceable pro-rata rights issue announced to ASX on 26 April 2017 (" Rights Issue "). Under the Rights Issue eligible shareholders will be entitled to apply for one (1) New Share in the Company for every three (3) shares held at the record date at an issue price of $0.02 per New Share. The Rights Issue will raise approximately $673,567 before costs if fully subscribed.

2. As at the date of this notice:

3. a) the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company;

4. b) the Company has complied with section 674 of the Corporations Act being the requirement to meet its continuous disclosure obligations under the ASX Listing Rules; and

5. c) there is no "excluded information" within the meaning of sections 708AA(8) and 708AA(9) of the Corporations Act which is required to be disclosed under section 708AA(7)(d) of the Corporations Act.

6. The potential effect that the Rights Issue will have on the control of the Company is as follows:

7. a) if all shareholders of the Company on the record date of 5 May 2017 take up their entitlements under the Rights Issue, then the Rights Issue will have no effect on the control of the Company; and

8. b) if shareholders take up none or only some of their entitlements under the Rights Issue then the Rights Issue will have limited effect on control of the Company. The Company may at its discretion make a placement to professional and sophisticated investors of any entitlements which are not taken up by shareholders (“ Shortfall ”) and 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;

An Appendix 3B reflecting the revised capital structure following the Rights Issue has been released in conjunction with this announcement.

If you have any questions in relation to the Rights Issue, please do not hesitate to contact the Company on (08) 6268 2698.

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Neville Bassett Company Secretary