ZEOTECH LIMITED — Interim / Quarterly Report 2012

Mar 5, 2012

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LACONIA RESOURCES LIMITED

ABN 29 137 984 297 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2011

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 2011 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 2011

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 2011

DIRECTORS’ REPORT

Your directors are pleased to present their report on Laconia Resources Limited for the half-year ended 31 December 2011.

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:

		2011
	Revenues		Results
	$		$
Laconia Resources Limited	384,078		(968,056)

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

Lennons Find Base Metals Project

Laconia completed a 42 hole, 1,939 metre Reverse Circulation (RC) drill program at the Lennons Find project, with high grade silver and zinc mineralisation intersected[1] .

Exploration work at the Project provided a major resource upgrade[2] .

Peru

The Company entered into an agreement to acquire the Rasuhuilca advanced gold-silver development project in Peru.

Rasuhuilca is a high-grade gold and silver project with near-term development potential and major exploration upside.

701 Mile Project,

An extensive auger drilling and soil sampling program has been completed at the 701 Mile project. This comprised of 751 auger holes and 384 soil samples for a total of 1,135 samples submitted for geochemical analysis[2] .

High grade Silver assays were obtained with grades up to 23.9 g/t silver. 751 auger holes and 384 soil samples were completed[4] .

2 ASX Announcement 3 November 2011

1 ASX Announcement 3 October 2011

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LACONIA RESOURCES LIMITED ABN 72 112 320 251

Barramine Project

Laconia Resources was granted $150,000 in funding for the Barramine project, in a co-founding arrangement under the WA State Government Exploration Incentive Scheme (see ASX announcement, 20 June 2011). Laconia will be required to match the $150,000 funding grant on a dollar for dollar basis on direct drill spending.

Laconia has identified four primary drill targets at its Barramine project from the Company’s detailed geochemical and geophysical surveys, that will test Mississippi Valley Type deposits (MVT) and Volcanic Massive Sulphide (VMS) style deposits within the project area for base metal (Cu, Pb and Zn) and precious metal (Au and Ag) mineralisation.

Mooletar Iron Ore Project

During the quarter Laconia entered into a $7.5M JV with Chinese syndicate, Sinoz Mining Investment Group, for the exploration and development of the Mooletar Iron Ore Project, near Mt Magnet in the Mid West iron ore precinct of Western Australia.

Competent Persons Statements

Information in this report relating to the Lennons Find, Barramine and 701 Mile Projects have been compiled Mr Ernie Poole. Mr Ernie Poole who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. Mr Poole is a full time employee of Laconia Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposits 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 it appears in this report.

Lennons Find Resource Estimate

Mr Michael Andrew who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. Mr Andrew is a full time employee of Optiro Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposits 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 it appears in this report.

Mooletar Magnetite

Information in this report relating to the Mooletar Magnetite Project and has been complied by Mr Darryl Mapleson. Mr Darryl Mapleson who is a member of Australasian Institute of Mining and Metallurgy has compiled the information within this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves. Mr Mapleson 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. The potential quantity and grade of the Mooletar Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a mineral resource.

Peru

A review of available data was conducted by Mr Michael Andrew, a Principal of Optiro Pty Ltd. Mr Michael Andrew who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. Mr Andrew is a full time employee of Optiro Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposits 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 it appears in this report.

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LACONIA RESOURCES LIMITED

ABN 72 112 320 251

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 6.

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

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Ian Stuart

Managing Director Perth, 6 March 2012

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6 March 2012

LACONIA RESOURCES LIMITED

31 DECEMBER 2011

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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 OF LACONIA RESOURCES LIMITED Basic and diluted loss per share (cents)	2011 $ 2010 $ 384,078 91,499 (413,275) (370,100) (21,197) (7,444) (768,409) (349,616) (149,253) (146,238) - (14,680)
	(968,056) (796,579) - -
	(968,056) (796,579)
	(1.2) (1.1)

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

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LACONIA RESOURCES LIMITED

31 DECEMBER 2011

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

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 Issued capital Reserves Accumulated losses TOTAL EQUITY	31 December 30 June 2011 $ 2011 $ 1,173,794 2,254,218 64,237 28,175
	1,238,031 2,282,393
	70,502 91,700 3,882,500 3,882,500
	3,953,002 3,974,200
	5,191,033 6,256,593
	75,659 173,163
	75,659 173,163
	75,659 173,163
	5,115,374 6,083,430
	8,895,639 8,895,639 223,826 223,826 (4,004,091) (3,036,035)
	5,115,374 6,083,430

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

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LACONIA RESOURCES LIMITED

31 DECEMBER 2011

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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 BALANCE AT 1 JULY 2011 Loss for the period TOTAL COMPREHENSIVE LOSS BALANCE AT 31 DECEMBER 2011	Contributed Equity Share-based Payments Reserve Accumulated Losses Total $ $ $ $ 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
	8,895,639 223,826 (3,036,035) 6,083,430 - - (968,056) (968,056)
	- - (968,056) (968,056)
	8,895,639 223,826 (4,004,091) 5,115,374

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 2011

STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests Payments to suppliers and employees Interest received Research and development tax concession received Net cash outflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for plant and equipment Net cash outflow from investing 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	2011 $ 2010 $ (929,277) (439,536) (535,830) (523,396) 52,001 91,260 332,682 -
	(1,080,424) (871,672)
	- (15,112)
	- (15,112)
	(1,080,424) (886,784) 2,254,218 3,982,140
	1,173,794 3,095,356

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

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LACONIA RESOURCES LIMITED

31 DECEMBER 2011

NOTES TO THE FINANCIAL STATEMENTS

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

This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2011 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This condensed consolidated 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 2011 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 .

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 2011, the Company 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 2011.

It has been determined by the Company 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 Company accounting policies.

The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2011. 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 Company accounting policies.

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LACONIA RESOURCES LIMITED

31 DECEMBER 2011

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 2011 $ 2010 $ 332,682 - 51,396 91,499
	384,078 91,499
	(435,727) (349,616) (532,329) (446,963)
	(968,056) (796,579)
	31 December 2011 $ 30 June 2011 $ 3,946,592 3,909,925 1,244,441 2,346,668
	5,191,033 6,256,593
	18,373 142,574 57,286 30,589
	75,659 173,163

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LACONIA RESOURCES LIMITED

31 DECEMBER 2011

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTE 3: EQUITY SECURITIES ISSUED

NOTE 3: EQUITY SECURITIES ISSUED	D
2011 Shares 2011 $ Issues of ordinary shares during the half-year Issued as consideration for tenement acquisition - - - - Movements of options during the half-year Issued, exercisable at 15 cents, expiring 31 August 2013	2011 Shares 2011 $ - -	2010 Shares 2010 $ 950,000 83,500
	- -	950,000 83,500
		Number of options 2011 2010 - 200,000
		- 200,000

NOTE 4: CONTINGENCIES

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

NOTE 5: SUBSEQUENT EVENTS

During February 2012 the Company completed a placement of 33.65 million ordinary shares raising $1.35 million before costs.

No other matter or circumstance has arisen since 31 December 2011, 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 2011

DIRECTORS’ DECLARATION

In the directors’ opinion:

1. the financial statements and notes set out on pages 7 to 13 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 2011 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, 6 March 2012

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6 March 2012