ZEOTECH LIMITED — Interim / Quarterly Report 2011

Mar 1, 2011

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LACONIA RESOURCES LIMITED

ABN 29 137 984 297 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2010

This interim financial report does not include all the notes of the type normally included in an annual financial report. This report is to be read in conjunction with the Annual Report for the year ended 30 June 2010 and any public announcements made by Laconia Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

LACONIA RESOURCES LIMITED

31 DECEMBER 2010

Contents	Page
DIRECTORS’ REPORT	3
AUDITOR’S INDEPENDENCE DECLARATION	5
STATEMENT OF COMPREHENSIVE INCOME	6
STATEMENT OF FINANCIAL POSITION	7
STATEMENT OF CHANGES IN EQUITY	8
STATEMENT OF CASH FLOWS	9
NOTES TO THE FINANCIAL STATEMENTS	10
DIRECTORS’ DECLARATION	13
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS	14

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

DIRECTORS’ REPORT

Your directors are pleased to present their report on Laconia Resources Limited for the half-year ended 31 December 2010.

DIRECTORS

The names of the directors who held office during or since the end of the period are: Michael Sharwood

Ian Stuart Matthew Howison

REVIEW AND RESULTS OF OPERATIONS

A summary of revenues and results for the period is set out below:

		2010
	Revenues		Results
	$		$
Laconia Resources Limited	91,499		(796,579)

During the six months, the following exploration activities were undertaken:

Mooletar Project

A systematic review of the geology of Laconia’s projects and detailed geological mapping identified potential high-grade iron mineralisation along a 5.2km long strike length at the Mooletar Project, comprised of two thick parallel bands of Banded Iron Formation (BIF) mineralisation separated by a layer of thin BIF/Mafic rock types. Two distinct, separate high grade BIF units have been mapped over 5 kilometres at Mooletar .[1]

Barramine Project

Recently acquired geophysical data and interpretation from the Barramine Project has indicated a number of electromagnetic (EM) anomalies. A systematic sampling program was completed in September 2010. A total of 970 samples using various sampling media as defined from the geochemical sampling orientation survey conducted in May.

Detailed geochemical survey confirms potential for project to host significant base metal and gold mineralisation.

• Potential mineralisation styles include; Mississippi Valley Type (MVT) base metal mineralisation, Volcanic associated (VHMS) base metals mineralisation, and epithermal gold-silver mineralisation.

• Drill targets to be identified for planned drilling program to commence by end of Q2, 2011.

Extension of geochemical sampling grid completed in December 2010.[2]

Kookynie Project

Preliminary field mapping has been completed and a drill program designed and ready for implementation in Q1 2011.

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LACONIA RESOURCES LIMITED ABN 72 112 320 251

Competent Persons Statement

1Mr Darryl Mapleson who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this report that relates to mineralisation at the Mooletar Project. Mr Mapleson is a principal of BM Geological Services Pty Ltd and has sufficient experience 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 and consents to the inclusion of this information in the form and context in which is appears in this report.

2Dr Craig Rugless who is a member of Australasian Institute of Mining and Metallurgy has compiled the information within this report that relates to mineralisation at the Barramine Project. Dr Rugless is the technical director of Pathfinder Exploration Pty Ltd and has sufficient experience 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 Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion of this information in the form and context in which is appears in this report.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

This report is made in accordance with a resolution of directors.

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Ian Stuart

Managing Director Perth, 2 March 2011

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2 March 2011

LACONIA RESOURCES LIMITED

31 DECEMBER 2010

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

REVENUE EXPENDITURE Administration expenses Depreciation expense Exploration expenses Salaries and employee benefits expense Share-based payments LOSS BEFORE INCOME TAX Income tax benefit / (expense) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OFLACONIA RESOURCES LIMITED Basic and diluted loss per share (cents)	2010 $ 2009 $ 91,499 42,331 (370,100) (187,856) (7,444) (1,024) (349,616) (432,156) (146,238) (108,457) (14,680) -
	(796,579) (687,162) - -
	(796,579) (687,162)
	(1.1) (1.7)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Mining properties TOTAL NON-CURRENT ASSSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY	31 December 30 June 2010 $ 2010 $ 3,095,356 3,982,140 14,845 13,160
	3,110,201 3,995,300
	40,448 30,235 3,063,500 2,900,000
	3,103,948 2,930,235
	6,214,149 6,925,535
	52,006 64,993
	52,006 64,993
	52,006 64,993
	6,162,143 6,860,542
	8,076,639 7,993,139 208,780 194,100 (2,123,276) (1,326,697)
	6,162,143 6,860,542

The above statement of financial position should be read in conjunction with the accompanying notes.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED31 DECEMBER 2010

BALANCE AT INCORPORATION Loss for the period TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period Share issue transaction costs BALANCE AT 31 DECEMBER 2009 BALANCE AT 1 JULY 2010 Loss for the period TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period Employee share options BALANCE AT 31 DECEMBER 2010	Contributed Equity Share-based Payments Reserve Accumulated Losses Total $ $ $ $ - - - - - - (687,162) (687,162)
	- - (687,162) (687,162) 8,785,152 - - 8,785,152 (592,413) - - (592,413)
	8,192,739 - (687,162) 7,505,577
	7,993,139 194,100 (1,326,697) 6,860,542 - - (796,579) (796,579)
	- - (796,579) (796,579) 83,500 - - 83,500 - 14,680 - 14,680
	8,076,639 208,780 (2,123,276) 6,162,143

The above statement of changes in equity should be read in conjunction with the accompanying notes.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests Payments to suppliers and employees Interest received Net cash outflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for plant and equipment Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Share issue transaction costs Proceeds from issue of shares Net cash inflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year CASH AND CASH EQUIVALENTS AT THE END OF THE HALF-YEAR	2010 $ 2009 $ (439,536) (1,268,606) (523,396) (279,270) 91,260 42,316
	(871,672) (1,505,560)
	(15,112) (17,374)
	(15,112) (17,374)
	- (592,413) - 6,373,152
	- 5,780,739
	(886,784) 4,257,805 3,982,140 -
	3,095,356 4,257,805

The above statement of cash flows should be read in conjunction with the accompanying notes.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

This general purpose financial report for the interim half-year reporting period ended 31 December 2010 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2010 and any public announcements made by Genesis Minerals Limited during the interim period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

Adoption of new and revised Accounting Standards

In the half-year ended 31 December 2010, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2010.

It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2010. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTE 2: SEGMENT INFORMATION

For management purposes, the Company has identified only one reportable segment being exploration activities undertaken in Australia. This segment includes activities associated with the determination and assessment of the existence of commercial economic reserves, from the Company’s mineral assets in this geographic location.

Segment performance is evaluated based on the operating profit and loss and cash flows and is measured in accordance with the Company’s accounting policies.

Exploration Segment Segment revenue Reconciliation of segment revenue to total revenue before tax: Interest revenue Total revenue Segment results Reconciliation of segment result to net loss before tax: Other corporate and administration Net loss before tax Segment operating assets Reconciliation of segment operating assets to total assets: Other corporate and administration assets Total assets Segment operating liabilities Reconciliation of segment operating liabilities to total liabilities: Other corporate and administration liabilities Total liabilities	Half-year 2010 $ 2009 $ - - 91,499 42,331
	91,499 42,331
	(349,616) (432,156) (446,963) (255,006)
	(796,579) (687,162)
	31 December 2010 $ 30 June 2010 $ 3,078,045 2,913,099 3,136,104 4,012,436
	6,214,149 6,925,535
	25,765 34,239 26,241 30,754
	52,006 64,993

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LACONIA RESOURCES LIMITED

31 DECEMBER 2010

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTE 3: EQUITY SECURITIES ISSUED

2010 Shares 2010 $ Issues of ordinary shares during the half-year Issued for cash at incorporation - - Issued for cash to promoters - - Issued as consideration for tenement acquisition 950,000 83,500 Issued for cash to seed investors - - Issued for cash at IPO - - Issued as consideration for tenement management services - - Share issue costs - - 950,000 83,500 Movements of options during the half-year Issued, exercisable at 15 cents, expiring 31 August 2013 Issued, exercisable at 20 cents, expiring 30 September 2014	2010 Shares 2010 $ - - - - 950,000 83,500 - - - - - - - -	2009 Shares 2009 $ 10 2 11,500,000 1,150 24,000,000 2,400,000 3,720,000 372,000 30,000,000 6,000,000 50,000 12,000 - (592,413)
	950,000 83,500	69,270,010 8,192,739
		Number of options 2010 2009 200,000 - - 20,500,000
		200,000 20,500,000

NOTE 4: CONTINGENCIES

There has been no change in contingent liabilities or contingent assets since the last annual reporting date.

NOTE 5: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2010, which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.

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LACONIA RESOURCES LIMITED 31 DECEMBER 2010

DIRECTORS’ DECLARATION

In the directors’ opinion:

1. the financial statements and notes set out on pages 6 to 12 are in accordance with the Corporations Act 2001 , including:

2. (a) complying with Accounting Standards,the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. (b) giving a true and fair view of the company’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

4. there are reasonable grounds to believe that Laconia Resources Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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Ian Stuart

Managing Director Perth, 2 March 2011

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2 March 2011