ZEOTECH LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

30 April 2013

Summary & Highlights for the March Quarter 2013

High-Grade Copper Identified at Rasuhuilca Project, Peru

Laconia Resources Ltd

ASX Code: LCR ABN: 29 137 984 297

• High Grade Copper Identified at Española 1 Prospect in an historical underground adit that intersected 24.9 m at 3.88 % Cu, 2.98 g/t Au and 66.63 g/t Ag including 15.5 m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag . Highlight individual results include;

• 2.1m @ 8.4 % Cu, 6.13g/t Gold and 111.7g/t Silver

www.laconia.com.au

Capital Structure

274.7 million shares (26.5 million escrowed)

70 million unlisted options

• 2.2m @ 6.8 % Cu, 6.47g/t Gold and 141.8g/t Silver

• o 1.1m @ 9.7 % Cu, 8.7g/t Gold and 152.8g/t Silver

• Five Exploration Targets Identified at Rasuhuilca in 100% Laconia Permits with the calculated potential ;

• 365,850t – 792,400t at 2.40 – 3.10 g/t Au, 84.9 – 122.4 g/t Ag

The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in estimation of a Mineral Resource.

Exploration tenement position expanded at the Rasuhuilca Project

• In February, Laconia formalised a seven year Option Agreement over 5,622 hectares of additional contiguous exploration licences;

Board of Directors

Matthew Howison Chairman

Ian Stuart Managing Director

Dr. Saliba Sassine Non-Executive Director

Vincent Algar Non-Executive Director

Company Secretary

Matthew Edmondson

• Immediately adjacent to its current 2,765ha Rasuhuilca Project;

• Providing exposure to the entire surrounding epithermal volcanic system considered highly prospective for gold, silver and copper mineralisation

•  Option Agreement allows Laconia to acquire an 80% interest in companies that hold 11 licences

• Completion of Option Agreement was announced on 26th March, 2013

Corporate

• Rationalisation of WA tenements at 701 Mile completed

• Significant advances made on securing long term community and access agreements to Rasuhuilca Project Licence Area.

Planned Activities for June 2013 Quarter

• Further Data review and target generation for Laconia 100% licences and the 11 permits subject to the Option Agreement

• Re-interpretation of geological modeling for the Rasuhuilca deposit, and a resource update

• Finalise Community Agreements on Rasuhuilca and Option licences to allow the commencement of drilling

Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Rasuhuilca Gold-Silver Project, Southern Peru

(100% Laconia)

During the quarter ended 30 March 2012, Laconia Resources Limited (ASX:LCR) (the Company) was pleased to have built on significant progress already made at the Rasuhuilca Project with additional encouraging historical exploration results.

During the quarter, Laconia also took steps to expand its footprint in the highly prospective Andean volcanic arc of southern Peru. Laconia has agreed to enter into an Option Agreement to acquire an 80% interest in companies that hold 11 licences across 5,622 hectares immediately adjacent to its current 2,765 hectare Rasuhuilca Project.

Laconia remains focused on the Company’s strategy to progress the known gold-silver resource to development stage in the short term, while also undertaking exploration activity to define further regional drilling targets. Similar to the Company's 100%-controlled Rasuhuilca Project, the new licences are considered highly prospective for epithermal and porphyry style gold-silver-copper mineralisation. The option period is for seven years and involves minimal initial outlay[1] .

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Figure 1: Diagram showing location of Laconia's current Project and new earn-in option licence outlines. Stipple boundaries show areas of intense alteration and primary exploration targets.

1 Refer to ASX Release 7 November 2012.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Laconia will earn an 80% interest in the licences following execution of the Option Agreement and by completing undertakings in the agreement including final option exercise payment and completion of a Detailed Feasibility Study.

The material terms of the Option Agreement, including the undertakings referred to above, are summarised below:

• The main terms of the Option Agreement are summarised as follows:

• Seven year Option Agreement to acquire an 80% ownership interest in Sallka Uno y Dos S.A.C. (“SALLKA”) and Andes Exploration of Peru Numero Dos S.A.C. (“ANDES DOS”), the companies holding the 11 Licences;

• The Option Agreement is subject to the following conditions precedent: (i) Sallka formalizing its 100% ownership title over 2 of the 11 Licences before May 31, 2013; and (ii) ANDES DOS formalizing its 100% ownership title over 9 of the 11 Licences;

• Up front consideration of US$150,000 comprising US$60,000 paid to date leaving a balance of US$90,000 due by the date in which the conditions precedent are fulfilled;

• Five annual option payments to the Vendors for a minimum of US$250,000 and maximum of US$300,000 calculated by an agreed mechanism linked to the degree of the positive percentage increase in the price of gold. The first annual payment is due in March 2014;

• Final option payment of a minimum of US$5M and maximum of US$6M to acquire 80% ownership interest, calculated by an agreed mechanism linked to the degree of the positive percentage increase in the price of gold;

• Post-acquisition, the Vendors to retain 2.25% net smelter royalty;

• Laconia is to spend $1.3M per annum of exploration over the 11 Licences. The first expenditure commitment is due by mid-2015; and

• Laconia is to manage and operate the exploration program.

The formal Option Agreement will be subject to all necessary regulatory approvals.

Ongoing exploration data review

During the quarter, the Company’s continuing data review of high quality historical exploration in the 100% Laconia permits, undertaken by previous owners Cominco and Buenaventura has identified Exploration Targets at 5 prospects at the Rasuhuilca Project[2] . The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

In addition, high grade copper with gold and silver mineralisation has been identified in channel sampling of the underground adit at the Española Prospect[3] . The zone, from the start of the adit, spans for 24.9 metres, and contains 3.88 % copper, 2.98 g/t gold and 66.63 g/t silver . There is also a higher grade zone contained within the intersection, of 15.5 metres that has 6.54 % copper, 4.77 g/t gold and 103.86 g/t silver . The copper is hosted in enargite with sub-ordinate covellite that forms part of a hydrothermal breccia pipe at this location.

The areas highlighted for priority exploration through surface, underground and diamond drill core sampling include; the western extension of the Rasuhuilca Vein system (Condor and Huallatas), the Olga vein to the northwest of Rasuhuilca, the Española 1 Vein to the east of Rasuhuilca, and the Marcelita vein to the southeast of Rasuhuilca. These prospects and the calculated exploration potential for gold and silver for each one are shown in Figure 2. The vein systems are all individual components of the greater

2 Refer to ASX Release 4th February, 2013.

3 Refer to ASX Release 27th February, 2013

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

mineralised system, and highlight the potential for definition of a larger resource base, through systematic exploration. The project currently has an Inferred Resource estimate of 360,000t @ 1.97g/t gold and 179g/t silver (at a 2.5 g/t gold-equivalent cut-off[4] ).

The Company completed the acquisition of the Rasuhuilca advanced gold-silver development project in Peru in June 2012[5] and has made significant progress towards potentially expanding the current resource in a short timeframe and utilising effective low cost exploration methods. The acquisition has established Laconia as an emerging precious metals producer and will complement the Company’s existing portfolio of precious and base metals projects in WA.

Rasuhuilca Project Target Generation

Laconia is continuing to review previous exploration work undertaken at Rasuhuilca by Cominco and Buenaventura. The review of the 4 permits held 100% by Laconia is nearing completion, and the focus is now on the review of data and target generation in the 11 permits that Laconia recently acquired access to, through an Option Agreement (see Figure 1). High quality data also exists for the new permits, including surface channel samples, underground channel samples, diamond core drilling and geological mapping. Review of this data has commenced and will be ongoing over the next quarter.

Target generation in the 100% Laconia permits has been very successful with 5 areas defined for resource definition work (figure 2), and multiple other zones that are conceptual in nature, or have only surface sampling and require more exploration to properly evaluate their potential.

The additional realisation of high grade copper results in the historical data package has expanded the scope of work to include exploration for a porphyry copper system underlying the epithermal mineralisation already identified at the project.

Identified Targets

The Exploration Targets6 are summarised as follows and presented in Table 1;

• Target 1 - Condor Zone (60,000 - 167,000t at 1.1 - 1.45 g/t Au, 184.5 - 244.8 g/t Ag)

• Condor is a zone of breccia carrying high-grade silver with sub-ordinate gold at the western end of the 7

• current Rasuhuilca Resource .

• Target 2 - Huallatas Prospect (94,000 - 200,000t at 2.3 - 2.4 g/t Au, 37.7 - 78.2 g/t Ag)

Huallatas is series of gold-silver mineralised lodes in silicification alteration assemblages on the western 8 extension of the vein system that hosts the Rasuhuilca Resource .

• Target Area 3 - Olga Prospect (42,500 - 50,000t at 2.4 - 2.55 g/t Au, 81.1 - 90.5 g/t Ag)

Olga Prospect is a vein carrying gold and silver that has surface sampling and underground development and sampling9 and is located 1.5 km to the northwest of the Rasuhuilca Resource.

4 All cut offs based on an Xg/t Au Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below will be appropriate following further metallurgical test work.

5 Refer to ASX Release 1 June 2012.

6 The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource

7 Refer ASX Release 16 August 2012

8 Refer ASX release 13 November 2012

9 Refer ASX release 13 November 2012

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

• Target 4 - Española 1 Prospect (54,000 - 154,000t at 3.75 - 3.9 g/t Au, 57.7 - 79.2 g/t Ag) Española 1 Prospect has surface sampling and sampling of underground development. It consists of two intersecting vein sets that host gold and silver mineralisation. Española also hosts high-grade copper, localised in enargite-rich breccias.

• Target 5 - Marcelita Prospect (114,500 - 220,000t at 2.48 - 4.4 g/t Au, 71.9 - 127 g/t Ag) Marcelita Prospect is located 4.5 km to the South East of the Rasuhuilca vein system. It consists of at least three parallel north-south trending veins and silica alteration, and one breccia pipe that is the Elsa 10

• Breccia .

10 Refer ASX release 16 August 2012

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

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Figure 2: Prospects and Targets at Rasuhuilca Project. The base map shows the lithologies of the project, and the three major regional faults that are present in the project area. The grid used is PSAD56 Zone 18 South. Refer to ASX Release dated 4[th] February 2013, for full details of each prospect.

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Table 1: Rasuhuilca Exploration Targets[11]

Prospect	Strike Length (metres)	Average Width of Mineralisation (metres)	Specific Gravity	Strike Length Sampled (metres)	Total Number of Samples	Number of samples within Explorati on Target	Percentage of Strike Length Sampled	Gold Grade (g/t) Minimum Maximum	Gold Grade (g/t) Minimum Maximum	Silver Grade (g/t) Minimum Maximum	Silver Grade (g/t) Minimum Maximum	Silver: Gold Ratio	Exploration Target Tonnage Minimum Maximum	Exploration Target Tonnage Minimum Maximum
**Condor **	100	20	2.6	80	266	99	80%	1.11	1.45	184.5	244.8	169:1	59,900	167,400
Huallatas	380	11	2.6	100	257	122	26%	2.34	2.40	37.7	78.18	28:1	94,700	200,200
Olga	240	2	2.6	140	75	75	58%	2.40	2.55	81.1	90.5	77:1	42,600	49,900
Española 1	255	4	2.6	205	165	76	80%	3.76	3.88	57.7	79.2	24:1	53,950	154,200
Marcelita	975	2	2.6	675	123	123	69%	2.48	4.37	71.9	127	27:1	114,700	220,700
TOTALS:								2.40	3.10	84.9	122.4		365,850	792,400

11 The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if future exploration will result in the estimation of a Mineral Resource.

High Grade Copper Identified

The Española 1 Prospect lies about 900 m to the north east of the Rasuhuilca deposit. Mineralisation is hosted by a set of two veins of different orientation, plus tectonic and hydrothermal breccias. Historic channel sampling at the Española 1 Prospect includes sampling at the surface and in an adit at the 4805 level. Figure 3 shows the adit entrance, and the channel sampling used to compile the mineralisation intercepts.

During a site visit undertaken in February 2013 by LCR’s exploration geologist, verification of the mineralisation at the entrance of the 4805 level adit and on surface where the veins and breccias outcrop was conducted. Information obtained from the site visit verifies that the historic results are accurate, and that the host mineral for the copper is enargite.

The copper appears to be associated with WNW - WSW orientation structures, at an angle to those veins hosting gold-silver. The gold-silver veins at Española 1 Prospect are dominated by various types of breccia, with alteration including massive silicification and quartz-alunite alteration. The adit development at Española 1 Prospect on the 4805 level explored two vein sets, which are described in detail below. The surface geology and channel samples that are significant for copper mineralisation at Espanola Prospect are shown in Figure 4.

The dominant structure at the prospect is the Española vein that strikes about 320 degrees, to the northwest, for a length of at least 125 metres. The vein may continue under cover, as the surface expression ends where scree covers the geology at the southeast end. At the north end of the vein, it continues into the prospect named “Favi” that largely lies in the newly accessed Option permit, Huaco Cucho No. 2. Data review of the Favi Prospect is currently underway. Española vein dips about -80 degrees to the west.

A secondary structure at the Española 1 Prospect is the Punto Triple vein that strikes north-south for a distance of at least 50 metres. It has a similar dip to the Española vein, dipping at -76 degrees to the west. The adit development has followed one part of the Punto Triple vein system, from where it intersects the Española vein, then heading towards the southwest. In addition to this vein, there is a series of veins to the proximal west, that have three distinctly different orientations, and which mimic the three regional faults (Huaco, Huarmicocha and the San Valentin Faults) that dominate the structural architecture of the project area (see Figure 2).

Both the Española and Punto Triple veins were explored by channel sampling of the 4805 level adit. Figure 5 is a cross section of the Exploration Target12 generated for gold and silver for the Española 1 Prospect, and shows the Española and Punto Triple veins. The copper mineralisation is restricted to the first 24.9 metres of the drive, but continues in surface samples towards the north. WNW and WSW trending small scale faults occur where there is copper mineralisation in the 4805 level adit, plus on the surface.

12 The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if future exploration will result in the estimation of a Mineral Resource.

Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

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Figure 3: Española 1 Prospect – 4805 level adit with high grade copper results. Further sampling is planned for the 4805 level adit, to test parts of the drive that were not sampled across the entire width. The grid used is PSAD56 Zone 18 South. See Release Dated 27[th] February, 2013 for full details.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

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Figure 4: Española 1 Prospect geology map showing the Española Trend and the Punto Triple Trend. The location of surface channel samples displayed by copper range is also shown. The grid is PSAD56 Zone 18 South. See Releases Dated 4[th] February, 2013 and 27[th] February, 2013 for full results at Española.

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Figure 5: Española 1 Prospect cross section – 4805 level adit and surface channel sample locations, displayed by gold range. This interpretation of two vein sets was used as the basis of quantitative analysis of the exploration potential of Española. Vein A is Española and Vein B is Punto Triple. The grid is PSAD56 Zone 18 South. See Release Dated 4[th] February, 2013 for full details.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Work Completed at the Rasuhuilca Project during the March Quarter 2013

• Continuing consultation with community groups

• Ongoing data review for the greater Rasuhuilca Project

• Identification of 5 Exploration Targets[13] with quantitative analysis of their potential

• Planning of diamond drilling at Condor, Huallatas, Olga, Española and Marcelita, to increase the confidence and size of the resource base for gold and silver

• Field verification of the copper mineralisation at Española 1 prospect

• ASTER analysis of the greater Rasuhuilca Project area, to determine alteration distribution around the volcanic centre

• Expansion of the exploration model and scoping of exploration works to test for a Porphyry Copper-Gold system

Work Planned at the Rasuhuilca Project for the June Quarter 2013

• Data review and target generation for the 11 Option permits

• Re-interpretation of geological modeling for the Rasuhuilca deposit, and a resource update

• Consultation with Community groups to secure long term access agreements ahead of the start of diamond drilling programs

About the Rasuhuilca Project

The project currently has an Inferred Resource estimate of; 360,000t @ 1.97g/t gold and 179g/t silver (at a 2.5g/t gold-equivalent cut-off[14] ). The Resource long-section is shown in Figure 6.

The Rasuhuilca Project is located approximately 500km southeast of the Peruvian capital, Lima, in the southern part of the country (see Figure 7). It is an advanced, high-grade gold and silver project with near-term development potential and significant exploration upside potential. The Company’s strategy is to utilise the potential revenues from the project once in production to fund further exploration, and increase the current resource base.

This Resource statement is based on historical data and classified as Inferred Resource as there was a lack of independent QA/QC data available at the time of resource estimation. Independent sampling has since been completed by Laconia[15] to confirm the tenor of the historic data. The Company plans to review the resource (category and size) so it can confidently be used as the basis for mine planning activities, with an internal review of a feasibility study completed by previous owners (2008) already underway.

Rasuhuilca Project – Further Exploration Potential

The Rasuhuilca Project is situated on the collapsed rim of the Rasuhuilca strato-volcano within a highly visible zone of secondary potassic alteration. Laconia aims to target the following mineralisation styles:

13 The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if future exploration will result in the estimation of a Mineral Resource.

14 All cut offs based on an Xg/t Au Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below will be appropriate following further metallurgical test work.

15 Refer to ASX Release 4 July 2012.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

• The network of outcropping gold-silver veins in lower temperature acidic outflow zones (silicaalunite-sulphide alteration);

• Large-scale, sub-horizontal disseminated gold-silver mineralisation within outflow zones;

• High-grade bonanza gold veins beneath the acidic outflow zones;

• Copper-gold mineralisation within buried intrusive stocks, or gold-silver-zinc mineralisation in skarns surrounding buried intrusive stocks.

Diamond drilling program

An initial phase comprising 2,200m of diamond drilling will commence upon finalization of secure community access agreements and receipt of approval from Peruvian authorities. In the interim, the drilling program will be reviewed in light of a regional review incorporating the new tenement package currently being finalised at the moment. It is likely the drilling program will be expanded to test targets identified by the data review. The drilling scope required for permitting has been expanded and lodged with the relevant Peruvian authorities.

The program is designed to test mineralisation between the existing underground development levels, and thus further validate the existing resource model. The Company believes there is good potential to grow the resource base and plans to test the Rasuhuilca vein both along strike and down dip in this program.

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Figure 6: Long section of Rasuhuilca resource model with current and planned development.

Mining Study

A study of the economics of an underground operation at Rasuhuilca was completed by previous owners in 2008. While the study is no longer current, Laconia believes that many of the basic tenets of the study are relevant in terms of geology, mine design, metallurgy, logistics and environmental permitting.

The feasibility study review is currently on hold and is expected to be resumed in the final quarter of 2013.

The review of mineralisation potential to date indicates a reasonable expectation to increase resources and the expected mine life (calculated on the single Rasuhuilca vein, currently at 4 years) with incremental feed expected to be provided from other vein systems nearby. These nearby vein systems will be subject to upcoming exploration activity.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

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Figure 7 : Rasuhuilca Project location map.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Australian Exploration Activities

Lennons Find Project – Precious and Base Metals, East Pilbara WA

(95% Laconia)

M45/368 (95%), E45/3293 (100%)

The project covers 116km[2] of Archaean terrain and is located approximately 40km from Marble Bar on the southern edge of the Mt Edgar Granitoid Complex, in the East Pilbara region of Western Australia. The Project is located on a granted mining lease. Outcropping gossanous veins with elevated base metals grades are present in the project area and occur at a consistent horizon along a 16.5km strike length of the Duffer Formation. It is this horizon which is the current focus for Laconia’s base metal exploration.

The Company has a current focus on its Peruvian assets. Preliminary economic analysis of the Resources at Lennons Find strongly support a small scale silver focused open pit mining operation, with additional work required to expand the resource base and advance the metallurgical processing pathway.

The Company is completing low level desktop work on Lennons Find at present to advance the value of the asset to shareholders. Limited work was conducted during the period.

Yandicoogina Project (E45/3293)

No work was completed at Yandicoogina during the quarter.

701 Mile Project – Precious and Base Metals, Northern Gascoyne, WA (E52/2702, E52/2664 100% Laconia Mineral rights, including manganese and iron; E52/2232, E52/2688 80% Laconia Mineral rights excluding manganese and iron and 70% manganese and iron rights)

E52/2232, E52/2688-I

About the 701 Mile Project

The 701 Mile Project consists of four granted exploration licences covering a contiguous area of 944.5 km[2] , and is located approximately 80km south east of Newman in WA. At the beginning of the quarter the Company held an 80% interest in all minerals rights other than manganese and iron. for tenements E52/2232 and E52/2688.

During the quarter, the Company acquired a 70% interest in manganese and iron rights for tenements E52/2232 and E52/2688 and 100% of all mineral rights for tenements E52/2702, E52/2664.

The tenements were acquired from Shaw River Manganese Limited, as released to the market in an announcement dated 13[th] February, 2013[16] . Figure 8 shows the Laconia tenements at 701 Mile.

16 See ASX Release dated 14th February 2013

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

The region hosts a number of significant discoveries, which include base metals deposits at ‘Kumarina’ and ‘Abra’ as well as Independence Group’s (ASX:IGO) Karlawinda Gold Project. Independence Group recently reported an Inferred Mineral Resource at the Karlawinda Gold Project of 18.5Mt @ 1.1g/t gold for 674,300 ounces of contained gold[17] .

Laconia’s exploration programs at the 701 Mile Project to date (auger geochemical programs, geological mapping and aeromagnetic interpretation) indicate that the project has considerable potential for various mineralisation styles including structurally controlled polymetallic lodes and veins associated with faults and the margins of mafic intrusives.

The project is proximal to the regional scale Tangadee Lineament and is hosted within sedimentary rocks and mafic intrusives of the Collier Basin. Large areas of the tenement are overlain by shallow cover including alluvial wash, calcrete and sand and auger drilling was conducted in these areas to penetrate this cover to obtain meaningful geochemical samples.

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Figure 8: Tenement location plan. Existing tenements at the beginning of the quarter are shown with red outline. New tenements acquired during the quarter are shown with grey outline. Grid used is GDA94, Zone 51.

Mooletar Iron Ore Project, Mount Magnet, WA

(100% Laconia)

E58/391, M58/110, P58/865, P58/1055-1056, P58/1385-1388, P58/1408-1411, P58/1495, P58/1499, M58/266 (application), M58/349 (application)

During the quarter, a rationalisation of the licences at Mooletar was undertaken. This included the reduction of a number of Prospecting licences to reduce the overall administrative overhead, and focus the licences suite to the prospective magnetite horizon. In addition, the Company completed the

17 Refer to Independence Group NL ASX announcement 28 June 2012.

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

acquisition of E58/391, adding 5km of strike length to the current known magnetite horizon. The new licence addition has not been explored using modern geochemical techniques for gold mineralisation despite its close proximity to the Mt Magnet goldfield. The company has chosen to rationalise its position at Mooletar to reduce holding cost and maximise exposure to gold and magnetite potential.

About the Mooletar Iron Project

The Mooletar project lies approximately 330km east of Geraldton by sealed highway, and approximately 125km from the proposed rail line in the Mid-West infrastructure corridor that would access the Oakajee port infrastructure. The Project is 100% owned by Laconia and comprises an area of 39.3km[2] over the eastern limb of the Archaean Mount Magnet greenstone belt. The greenstone belt hosts the Mt Magnet Gold Mine and associated gold deposits to the east of the Mooletar project licences.

The project covers a 5km strike length of banded iron formations (BIF) and has an updated Exploration Target of 230-270 million tonnes of iron at 30-35% Fe[18] . The Exploration Target was confirmed as a result of two drill programs and a detailed mapping program completed over the project area. It was confirmed by independent consultants, BM Geological Services Pty Ltd[19] .

Results from Davis Tube Recovery (DTR) test work[20] indicated that a high grade magnetite product may be achieved with grades up to 70.4% Fe and low levels of phosphorus and silica. The Company has completed a scoping study to evaluate its exploration and development potential.

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Figure 7: Mooletar Project location and regional infrastructure (present and proposed).

Barramine Project – Gold and Base Metals, East Pilbara, WA

E45/3312, E45/3233, E45/3234

All interest in the Barramine project was disposed of by Laconia Resources during the Quarter to Shaw

River Resources, as announced in a release dated 13[th] February, 2013[21]

18 Refer to ASX announcement 18 November 2010.

19 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.

20 Refer to ASX announcement 17 August 2010.

21 Refer to ASX announcement 14 February 2013

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Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Corporate

Peru Operations

Laconia Resources Limited formally announced the appointment of Nick Shakesby as Chief Operating Officer on the 16th January 2013. Mr Shakesby will oversee development of the Rasuhuilca gold-silver project in Peru. Mr Shakesby has more than 25 years' experience in mine development and operation in Latin America, the United States, Southeast Asia, Australia and Africa. Most recent experience includes, recovery planning and implementation and successfully bringing both precious metal and bulk commodity projects through to production in Africa and Peru respectively. Mr Shakesby is a qualified Mine Manager and holds an MBA from PACE University, New York.

Entitlement Share and Option Issue

On 29 April 2013 the Company announced it had resolved to undertake a shareholder entitlement offer and placement.

The proposed transaction comprises:

1. a proposed non-renounceable pro rata entitlement issue of 91,585,297 fully paid ordinary shares in the Company (Shares) at an issue price of $0.015 per Entitlement Shares , together with one free attaching option to acquire a Share (Option) for every two Entitlement Shares subscribed for, exercisable at $0.06 on or before 30 September 2018 (Entitlement Options), to shareholders of the Company, raising $1,373,780 (Entitlement Offer); and

2. a proposed placement of 45,792,649 Options, exercisable at $0.06 on or before 30 September 2018 (Placement Options) at an issue price of $0.001 per Placement Option, raising $45,793 (Placement), together Capital Raising.

Indian Ocean Capital Pty Ltd will act as Lead Manager for the Capital Raising. Further information regarding the Entitlement Issue, including the proposed timetable, will be announced once the prospectus and additional information is completed.

Given the uncertainty of capital markets at present the Board has also resolved to secure a short term funding facility.

Use of Proceeds

The Capital Raising proceeds will enable the Company to focus on finalising the necessary Community Access Agreements required prior to regulatory approval being granted to execute the planned drilling campaign, plus additional working capital. The funds will also be applied to completion of a resource update focusing on a review of the Rasuhuilca Gold-Silver Resource and inclusion of new Copper-GoldSilver targets defined recently by the Company.

Board Announces Review of Operations

As an integral part of the Company’s ongoing operations, and in recognition of the current uncertainty in global financial markets, the Board has resolved to a review of its current cost structures and implement certain cost saving measures including a temporary reduction of executive and non-executive remuneration. The Board remains committed to success at the flagship Rasuhuilca project and will announce details of the outcome of this review of operations once the review has been completed. During this period, the Company will also seek potential Joint Venture partners.

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10

Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Outlook for June 2013 Quarter

Rasuhuilca Project

• Final implementation of conditions subsequent of Final Option agreement of the Huaco Cucho Project licences

• Completion of community consultation and approval process

• Approval to undertake a diamond drilling program (2,200m) at Rasuhuilca Project, to validate and extend the existing underground resource potential, is being sought during the quarter

• Resource Upgrade of Rasuhuilca Vein and Exploration targets

• Ongoing collation of historical project exploration data and target generation on 11 new option leases for gold, silver and copper

Lennons Find

• Review of exploration potential to expand resources at Lennons Find and expand metallurgical and mining options to progress the project.

701 Mile

• Field reconnaissance and rock chip sampling with focus on the new tenements.

ENDS

For further information on Laconia Resources Limited please contact:

Ian Stuart

Managing Director Laconia Resources

P: +61 8 9486 1599

E: istuart@laconia.com.au

or visit our website at www.laconia.com.au

About Laconia Resources Limited

Laconia Resources is a Perth-based emerging precious and base metals exploration and development Company with a South American focus. The recently acquired Rasuhuilca gold-silver development project in Peru complements the Company’s existing portfolio of precious and base metal projects in Western Australia.

In Western Australia, the Company has a portfolio of advanced mineral projects in the Murchison and Pilbara regions, across 24 granted tenements covering an approximate 987 km2. The Company has determined JORC Compliant Resources at its Lennons Find Project, (Cu-Ag-Pb-Zn-Au), and more recently it’s Rasuhuilca Project in Peru (Au-Ag).

The Company is focused on the targeted exploration of its project areas, and further definition and expansion of its Resource base at its advanced projects.

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11

Laconia Resources – January 2013 ASX/Media Release March 2013 Quarterly Report

Competent Persons Statements

Rasuhuilca Project, 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 and the Australian Institute of Geoscientists has compiled the information within this presentation that relates to 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.

Information in this report relating to the Rasuhuilca Project, Peru has been compiled by Mr Vincent Algar. Mr Algar, who is a member of the Australasian Institute of Mining and Metallurgy, has compiled the information within this presentation that relates to Exploration Results. Mr Algar is a Non-Executive Director and consultant 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 2012 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 and 701 Mile

Information in this report relating to the Lennons Find and 701 Mile have been compiled by Mr Vincent Algar. Mr Algar, who is a member of the Australasian Institute of Mining and Metallurgy, has compiled the information within this presentation that relates to Exploration Results. Mr Algar is a Non-Executive Director and consultant 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.

Mooletar Magnetite

Information in this report relating to the Mooletar Magnetite Project and has been compiled 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 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.

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12

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

LACONIA RESOURCES LIMITED

ABN 29 137 984 297	Quarter ended (“current quarter”)
29 137 984 297	31 March 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (R&D Tax Refund/GST) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	(496) - - (428) - 4 - - (27)	(1,002) - - (1,434) - 18 - - 196
	(947)	(2,222)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (19) - 61 25 - - -	(123) - (50) - 61 25 (210) - -
	67	(297)
	(880)	(2,519)

• See chapter 19 for defined terms.

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(880)	(2,519)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (Capital Raising Costs) Net financing cash flows	- - - - - (14)	2,285 - - - - (267)
	(14)	2,018
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(894) 1,315 -	(501) 922 -
	421	421

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		134
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.23 includes aggregate amounts paid to directors including salary, director’s fees, consulting fees and superannuation

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	350
	-
	-
	150
Total	500

Reconciliation of cash

Total Reconciliation of cash		500
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank	70	533
5.2 Deposits at call	351	782
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	421	1,315

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E45/3312-I E45/3233 E45/3234	All Mineral rights except Fe and Mn	100%	Nil
	E52/2702 E52/2664 E52/2232 E52/2688	All Mineral rights All Mineral rights Fe and Mn rights Fe and Mn rights *See Annexure “A”	Nil Nil Nil Nil	100% 100% 70% 70%

• See chapter 19 for defined terms.

Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	274,755,891	248,250,891
7.5 +Convertible debt securities (description)	1 Convertible Note, (escrowed to 20 June 2013) with an aggregate face value of $650,000 convertible as to principal to 6,500,000 Shares at a conversion price equal to $0.10 per Share and attracting interest at the rate of 10% per annum). The Note expires on 20June 2014.

• See chapter 19 for defined terms.

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	20,500,000 49,500,000	- -	Exercise price 20 cents 6 cents	Expiry date 30 September 2014 30 September 2018
	3,000,000 200,000 400,000		20 cents 15 cents 8 cents	31 March 2013 31 August 2013 16 May 2014
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 30 April 2013 (Company secretary)

Print name: Matthew Edmondson

Notes

• See chapter 19 for defined terms.

Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

This is the Annexure marked “A” of 1 page referred to in the Appendix 5B Mining exploration entity quarterly report dated 30 April 2013.

Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
Peru Tenement References Huaco Cucho 1 10009514X01 Huaco Cucho 2 10009513X01 Huaco Cucho 3 010152307 Huaco Cucho 4 010152407 Huaco Cucho 5 010152507 Huaco Cucho 6 010152607 Huaco Cucho 7 010152707 Huaco Cucho 8 010152807 Huaco Cucho 9 010152907 Huaco Cucho 10 010153007 Huaco Cucho 11 010153107	• Option agreement over 80% interest in companies holding 11 Mining Concessions in Peru • The Option Agreement is subject to the following conditions precedent: (i) Sallka Uno y Dos S.A.C (Vendor A). formalizing its 100% ownership title over 2 of the 11 Licenses before May 31, 2013; and (ii) Andes Exploration of Peru Numero Dos S.A.C formalizing its 100% ownership title over 9 of the 11 Licenses.	nil	Indirect 80%

• See chapter 19 for defined terms.

Appendix 5B Page 7