ZEOTECH LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

Summary & Highlights

Laconia Resources Ltd

ASX Code: LCR, LCROA ABN: 29 137 984 297 www.laconia.com.au

Capital Structure 456.2 million shares 186.8 million listed options 20.5 million unlisted options

• Permission to Drill (Ordene Initio) granted at Kimsa Orcco Copper-Gold-Silver Project in Peru

• DIA approval granted at Kimsa Orcco Project

• Social Licence secured over the Kimsa Orcco Project

• Copper-gold-silver zone at the project expanded to include Rosita, Favi, Indigena and Española 2 prospects

• 800m Strike high-grade copper-gold-silver veining now recognised

Corporate

Board of Directors

Matthew Howison Non-Executive Chairman

Ian Stuart Managing Director

Matthew Edmondson Non-Executive Director

Company Secretary

Matthew Edmondson

• Two Tranche Capital Placement of $885,500 announced - Tranche 1 completed

• Further sales consideration of $150,000 as part of Lennons Find Project disposal transaction

Planned Activities for June 2014 Quarter

• Channel sampling at surface and in the underground adits to further define the copper-gold-silver mineralisation at the Southern Kimsa Orcco Prospects

• Surface channel sampling and mapping to further validate the porphyry potential at the Project

• Site visits by potential Joint Venture partners

• Preparation for maiden drilling program to evaluate copper-goldsilver mineralisation at Favi, Indigena, Española 1, Española 2, Fortuna and Rosita prospects

Phone Number: +61 8 9486 1599 Fax Number: +61 8 9486 7899

Laconia Resources Ltd – March 2014 Quarterly Report

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Kimsa Orcco Project - Peru

(Kimsa Orcco Project – Patacancha Tenements 100% Laconia Resources Ltd; Huaco Cucho Tenements subject to 80% earn in option)

Permission to Drill Granted (Ordene Initio)

Subsequent to the Quarter end Laconia was granted Permission to Drill (Ordene Initio) from the Peruvian regulator the Ministry of Energy and Mines (MINEM) by Directoral Resolution Nº 0106-2014-MEM/DGM[1] .

This follows Laconia’s gaining of all necessary environmental approvals and Social Licence over its immediate area of impact of its Kimsa Orcco Project comprising its 100 per cent owned Patacancha tenements and the contiguous Huaco Cucho tenements, over which Laconia has an option to earn an 80 per cent indirect interest[2] .[ .] The Kimsa Orcco Project collectively covers over 8,387 hectares of highly prospective geology in the Peruvian Andes, (refer Figure 1).

Also subsequent to the Quarter end, exploration activities commenced with sampling and geological mapping programmes currently in progress. These activities are being coordinated in conjunction with drilling company site visits as part of the drill tender process.

DIA Approval for Drill Permitting at Kimsa Orcco Project

During the Quarter, Laconia announced it had received it’s Declaración de Impacto Ambiental (DIA) ( Environmental Impact Statement ) from MINEM[3] . Laconia advised it has received a Resolution, No 0032014-MEM-DGAAM approving its DIA from the Peruvian Ministry of Energy and Mines and the Department of Environmental Affairs.

The DIA includes social stakeholder mapping, baseline studies of flora and fauna, anthropological and hydrological studies. With this approval by the MINEM, Laconia plans to commence work on improving access, infrastructure and establishment of drill pads.

The drilling permitting process also requires community agreements. There are three communities in the locality of the Project, and all three communities have now reached agreement with Laconia.

1 Refer ASX Release 24 April 2014

2 Refer ASX Release 26 March 2013

3 Refer ASX release dated 29 January 2014

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Figure 1: Laconia’s Kimsa Orcco Permits and Interests

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Expansion of the Fortuna Prospect north into Rosita

During the quarter additional high-grade copper-gold-silver values were identified at the Rosita Prospect[4] , 150 metres north of the Fortuna Prospect, one of the Southern Kimsa Orcco prospects.

The Rosita prospect, like the Fortuna prospect, is identified as a polymetallic vein system with high grade copper, gold and silver. Significant zinc, lead and tellurium results are also returned in some samples. The veins at Rosita are oriented parallel to the those identified at the Fortuna Prospect, leading the Company to conclude that the Rosita Prospect may be a northern exposure of an extensive set of related veins throughout the greater Fortuna area, which are largely obscured by scree slopes and present attractive exploration targets.

Mineralisation is hosted by a set of at least three significant veins that trend east-west for a minimum of 90 metres, and dip steeply to the north, with a trajectory for intersecting the large regional Huaco Fault at the west end of the prospect. The geology at the Rosita and Fortuna prospects is shown in Figure 2, with the best surface sample and drill intercepts marked.

Previously released highlight results from Rosita Prospect include:

• 0.4 m at 1.29 % Cu, 1.53 g/t Au and 65 g/t Ag in surface channel sample 67258

• 0.3 m at 5.63 % Cu, 2.36 g/t Au and 132 g/t Ag in surface channel sample 67259

• o 0.3 m at 1.33 % Cu, 4.49 g/t Au and 196 g/t Ag in surface channel sample 67260 o 0.5 m at 1.62 % Cu, 16 g/t Au and 220 g/t Ag in surface channel sample 67261

• 0.3 m at 4.5 % Cu, 1.11 g/t Au, 288 g/t Ag, 0.11 % Zn and 92 g/t Te in adit channel sample 29979

• 1 m at 2.9 % Cu, 4.58 g/t Au, 46.6 g/t Ag and 96 g/t Te in adit channel sample 29981

• 1.5 m at 1.3 % Cu, 1.43 g/t Au, and 49.6 g/t Ag in adit channel sample 29974

• 5.15 m at 0.36 % Cu, 0.18 g/t Au and 0.64 g/t Ag from 62.6 m in diamond drill hole SDB 04 2002

• 0.3 m at 0.45 % Cu, 0.12 g/t Au, 9.07 g/t Ag and 0.35 % Zn from 104.9 m in diamond drill hole SDB 04 2002

• 0.6 m at 1.3 % Cu, 0.71 g/t Au, and 21.83 g/t Ag from 153.75 in diamond drill hole SDB 04 2002

• 7.7 m at 0.44 % Cu, 0.11 g/t Au and 5.99 g/t Ag from 20.3 m; including 1.7 m at 1.06 % Cu, 0.14 g/t Au and 7.18 g/t Ag from 24.7 m in diamond drill hole SDB 06 2002

• 8 m at 1.12 % Cu, 0.26 g/t Au and 12.76 g/t Ag from 73 m; including 0.75 m at 8.9 % Cu, 1.57 g/t Au and 104.15 g/t Ag from 80.25 m in diamond drill hole SDB 06 2002

• 0.35 m at 2.3 % Cu, 0.84 g/t Au and 37.37 g/t Ag from 92.35 m in diamond drill hole SDB 06 2002

• 1 m at 1.87 % Cu, 0.22 g/t Au and 26.43 g/t Ag from 104 m in diamond drill hole SDB 06 2002

4 Refer ASX release 28 January 2014

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Figure 2: Plan View of the Rosita Prospect with the 4730 adit, showing surface and adit sample locations (coloured by copper content) and the drill hole locations. The drill holes are annotated with the significant down hole intersections (true widths not known). Possible extensions to the drill hole intersections are shown as dashed lines with question marks. Grid used is PSAD56, Zone 18 South. See ASX release dated 17 December 2013 for detailed Fortuna Exploration Results.

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The geology at the Rosita prospect has been interpreted as a cross section from the surface mapping and sampling, and from the diamond drill hole SDB 06 2002. This is shown in Figure 3.

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Figure 3: Cross Section View of the Rosita Prospect at about 632,200 E, showing drill hole SBD 06 2002 with the geology as a graphic log. The drill hole is annotated with the significant intersections. Grid used is PSAD56, Zone 18 South. Possible depth extensions of these three veins are marked with the dashed lines. The section line location is shown in Figure 2.

Extension of the Española 1 Prospect Trend North into Indigena, Española 2 and Favi Prospects

During the quarter, further high-grade copper-gold-silver values in surface channel samples from Buenaventura Ingenieros SAC exploration were identified extending 400 metres north of the Española 1 prospect. This extension includes the Indigena vein, the Española 2 vein and the Favi vein.

At Kimsa Orcco, a central region containing copper-rich mineralisation has now been recognized at the Southern Kimsa Orcco prospects, through the systematic review of data with the benefit of up-to-date 3D computer software. This has consolidated Laconia’s understanding of the broad zone of mineralisation and its geological controls.

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The location of all prospects identified as containing high-grade copper-gold-silver intercepts is shown in Figure 4. The architecture of the copper zone is dominated by three regional faults, the Huaco Fault, the Huarmicocha Fault and the San Valentin Fault. These faults appear to be a major controlling factor on the location of high-grade copper at the Project, and the area is interpreted to be one of at least two volcanic centres at the Southern Kimsa Orcco prospects.

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Figure 4: Plan View of the Southern Kimsa Orcco prospects that are prospective for high-grade copper. Prospects previously identified were the Española 1, the Fortuna and the Rosita prospects. The addition of the northern extension at Indigena, Española 2 and Favi prospects consolidates a region at the Project for targeting high-grade copper-gold-silver mineralisation. Grid used is PSAD56, Zone 18 South.

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Española 1 was the first locale in the Project to be noted to host high-grade copper in the minerals enargite and covellite, located in an adit intersection of 24.9 metres 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[ 5] .

Since completion of the Option Agreement for access to the Huaco Cucho Tenements, Fortuna then Rosita prospect historic channel sampling and diamond drilling results were compiled by Laconia and the trend of high-grade copper intersections continued into these prospects. Recent Company database additions have incorporated results from the Huaco Cucho No 1 tenement, and this has revealed a significant northern extension of the veining hosting copper at the Española 1 prospect, through the Indigena vein, the Española 2 vein and the Favi vein.

The Indigena vein and Española 2 veins are of a similar orientation to the Española 1 vein. The Favi vein to the north of the Indigena and Española 2 veins is of a similar orientation to the Fortuna and Rosita vein sets. Both Indigena and Española 2 veins strike about northwest – north, and dip steeply to the west, as does Española 1 vein. The exposure of these veins extends for 215 metres north and 100 metres north, respectively. The Favi vein is roughly east-west in strike, and dips to the north overall, at about 75 – 85 degrees, in a very similar aspect to the Fortuna and Rosita veins (that are 500 – 650 metres to the south). The Favi vein exposure can be traced over 320 metres. These veins and the channel sampling conducted at surface by Buenaventura Ingenieros SA geologists are shown in Figure 5. Surface samples are coloured by copper content, and the northern extension of the Española 1 trend is shown on the plan as green enargite veining.

5 Refer ASX releases 27 February 2013

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Figure 5: Plan View of the Indigena, Favi and Española 2 prospects extending to the north from the Española 1 prospect, showing surface channel sample locations (coloured by copper content). Grid used is PSAD56, Zone 18 South.

The conclusion drawn by the Company is that there are two dominant structural trends in this central zone of the Southern Kimsa Orcco prospects that are enriched with copper, one being a vein set with a north – northwest strike with a steep west dip (Española 1, Indigena and Española 2 veins), and the other being an east-west strike, with a steep dip to the north (Fortuna, Rosita and Favi veins).

The zone within the three regional faults that contains all of these veins also corresponds to the area identified as the key target for drill testing the extent of copper mineralisation.

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The consolidation of an area of copper mineralisation at the Project further adds to the Company’s confidence that there may be an El Indio-style enargite deposit in addition to a deeper mineralised porphyry system at the Kimsa Orcco Project. Figure 6 below outlines the exploration model currently being applied at Kimsa Orcco Project over both the Southern and Northern prospects.

Work planned at Southern Kimsa Orcco prospects includes drill testing of the strike extent of copper-goldsilver veins and breccias, using diamond drilling, plus testing concealed areas between the known veins for further mineralised structures. Final drill plan details will be selected following completion of 3D geological modeling of the area. Surface geochemical studies are also planned over the Favi Vent zone, and at the Northern Kimsa Orcco prospects, to further characterise the zones of alteration, and allow finer vectoring to the centre of the altered systems, in preparation for drill testing for copper porphyry mineralisation.

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Figure 6: Schematic diagram of the epithermal and porphyry exploration model at the Kimsa Orcco Project, showing alteration and metal zonation. Some examples of mineralisation already identified in the Southern Kimsa Orcco Prospects are shown. Significant vertical exaggeration has been applied to this image for plotting purposes.

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About the Kimsa Orcco Project

The Kimsa Orcco Project is located approximately 500km southeast of the Peruvian capital, Lima, in the southern part of the country. It is an advanced, high-grade Copper-Gold-Silver project in the Ayacucho region of Southern Peru across four 100% Laconia Resources Ltd permits covering 27.65 km[2] and a further 11 contiguous permits through an 80% earn in option agreement, covering 56.22 km[2] . The total area of 83.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal copper gold and silver with near-term development potential and significant exploration upside potential.

Work Completed at the Kimsa Orcco Project during the March Quarter 2014

• Approval of Declaración de Impacto Ambiental (DIA) from MINEM

• Permission to Drill (Ordene Initio) granted (subsequent to quarter end) by MINEM

• Access and infrastructure agreement with Tintay community, thereby securing Social Licence over the Project area

• Continuing data compilation and review identifying further copper-gold-silver prospects

• Planning and budgeting of channel sampling programs

• 3D geological modeling commenced for drill planning at Southern Kimsa Orcco prospects

Kimsa Orcco Project – Further Exploration Potential

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

• 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; and

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

The Company believes there is potential for Porphyry Copper mineralisation at the Project. Figure 7 below shows the argillic alteration footprint at the Project relative to other known Copper deposits in the world.

Virtual Data Room

Since receiving unsolicited approaches from a number of major copper focused resource companies looking for advanced copper exploration properties, a number of companies have executed a confidentiality agreement have commenced their initial review of Laconia’s virtual date room.

A number of companies having signed Confidentiality Agreements have now moved to conduct sites visits to further evaluate the Project and complete Due Diligence. One of these site visits conducted late last year has furthered to initial discussions on potential corporate activity. Further site visits are planned this Quarter.

Since the acquisition of the Kimsa Orcco Project (formerly Rasuhuilca and Huaco Cucho Projects), Laconia has compiled a database that contains greater than 3,000 channel samples from approximately 5km of underground development and adits, and more than 40 diamond drill holes, plus associated survey and assay data from the Southern Kimsa Orcco Prospects. Increasingly, Laconia’s systematic review of data and field reconnaissance has highlighted the copper potential of the Northern and Southern Kimsa Orcco Prospects, in addition to the known gold-silver epithermal vein systems that are extensively developed at the southern Kimsa Orcco prospects.

With the benefit of up to date technology and processes, Laconia is the first worker to systematically collate all available information and construct three-dimensional models of mineralisation which support the views of previous workers, who likened the style and nature of the mineralisation at the Ccarhuaraso Epithermal System to the high grade El Indio deposit in northern Chile.

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Figure 7: Illustration of the alteration zone distribution at the Kimsa Orcco Project, relative to some known Porphyry Districts in the world, displayed at the same scale. Modified from Hedenquist JW et al; 2012; “Geology and Genesis of Major Copper Deposits and Districts of the World: A Tribute to Richard H. Sillitoe”; Society of Economic Geologists, INC. Special Publication Number 16; p. 2

Community Agreement Progress

During the March quarter, Laconia reached an agreement for rights to access, exploration and infrastructure on land within the Tintay community, Peru[6] . This was the final community agreement required to gain Social Licence for Laconia to work at the Kimsa Orcco Project.

This follows Laconia reaching an agreement for rights to access, exploration and infrastructure on land within the Huacaña community, Peru[7] in the December quarter. Prior to this, Laconia had already

6 Refer ASX release 4 March 2014

7 Refer ASX Release 17 October 2013

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reached an agreement with the Yanama community[8] . Laconia is very pleased to have now reached agreement with all three community groups in the vicinity of the Project.

Support from the Central and Provincial governments continues to assist Laconia in the objectives identified in gaining Social License with the Ministry of Mines and Energy. The National Water Authority and Ministry of Presidential Advisors – National Office of Dialog and Sustainability are also contributing with tangible community projects and assistance.

Australian Exploration Activities

701 Mile Project – Precious and Base Metals, Pilbara, WA

(E52/2688 80% Laconia: mineral rights excluding manganese and iron and 70% Laconia: manganese and iron rights)

No work was completed this quarter.

Goldsworthy Project – Base Metals, Pilbara, WA

(E45/3904 100% Laconia)

Independence Group NL (IGO) is currently managing exploration as part of an earn-in joint venture with Laconia.

Independence Group has been granted exclusive rights to explore for all minerals for a two year period from 10 May 2013 and may earn a 51% interest in the project by spending $150,000 (including a cash component of $10,000 already paid to Laconia). IGO may elect to earn an additional 29% of the Project by expenditure of an additional $300,000 within this period.

IGO agrees to free carry Laconia until it has elected to earn its 80% interest. Laconia can elect to contribute expenditure in the joint venture in proportion to its 20% interest or dilute under industry standards dilution formulas. If Laconia dilutes below a 5% interest Laconia’s interest will convert to a 1% net smelter royalty.

8 Refer ASX Release 1 July 2013

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Tenement Information as Required By Listing Rule 5.3.3

The following is a table setting out the information as required by ASX Listing Rule 5.3.3, namely:

1. mining tenements held at the end of the quarter and their location;

2. mining tenements disposed during the quarter and location; and

3. beneficial percentage interests held in farm–in or farm-out agreements at end of quarter; and

4. beneficial percentage interest in farm-in or farm-out agreements acquired or disposed of during the quarter.

Location	Mining Tenement	Ownership	Acquired or Disposed
Peru(Ayacucho)	Patacancha N° 1	100% owned	Not Applicable
Peru(Ayacucho)	Patacancha N° 2	100% owned	Not Applicable
Peru (Ayacucho)	PatacanchaN°3	100%owned	NotApplicable
Peru (Ayacucho)	PatacanchaN° 4	100%owned	NotApplicable
Peru (Puno)	Jess Gold1	100%owned	NotApplicable
Peru (Aricash)	Jess GoldII	100%owned	NotApplicable
Peru(Moquegua)	Jess Iron 1	100% owned	Not Applicable
Peru (Ayacucho)	Huaco Cucho N o1	Option to acquire 80% indirect ownership interest (presently 0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho N o2	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Tres	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Cuatro	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Cinco	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Seis	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Siete	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Ocho	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Nueve	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Diez	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Once	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Western Australia (Pilbara)	E45/3904	100% owned – IGO Limited can earn in up to 80%(presently100% beneficial interest)	Not Applicable
Western Australia (NorthernGascoyne)	E52/2688-I*	80% owned **	Not Applicable

• I = Iron Ore Endorsement

• ** Mineral rights held by Laconia Resources Ltd (80%) and Pandell Pty Ltd (20%). Manganese and iron ore rights held by Laconia Resources Ltd (70%) and Pandell Pty Ltd (30%).

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Corporate

Capital Placement

On 25 March 2014, Laconia announced that it has resolved to raise $885,500 before costs in a two tranche placement in accordance with Section 708 of the Corporations Act. CPS Capital Group Pty Ltd was appointed Lead Manager to manage the placement. Laconia advised that the funds would be used to primarily progress the exploration programs of the Company at its flagship Kimsa Orcco Project in Peru including meeting related option obligations9 as well as providing working capital.

On 28 March 2014, Laconia announced that it had completed Tranche 1 of the Placement raising $660,000 through the issue of 82,500,000 ordinary shares at an issue price of $0.008.

On 24 April 2014, Laconia announced a General Meeting would be held on 27 May 2014 for shareholders to consider approving Tranche 2 of the Placement to raise an additional $225,500 through the issue of:

1. 27,500,000 shares at an issue price of $0.008;

2. 55,000,000 options representing one free attaching option for every 2 shares issued under the Placement (including the 82,500,000 shares issued on 28 March 2014) with an exercise price of $0.06 on or before 30 September 2018; and

3. 55,000,000 options at an issue price of $0.0001 with an exercise price of $0.06 on or before 30 September 2018.

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

As previously announced by Laconia10, as part of the sale of its interests in the Lennons Find Project to Musketeer Mining Limited (“MML”), as at 31 December there was still outstanding consideration due to Laconia as follows:

1. $150,000 plus some interest and incidentals; and

9 Refer ASX Release 26 March 2013

10 Refer ASX Announcement 2 January 2014

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1. The issue to Laconia within 7 days of the purchaser or a shell company completing a Capital Raising, at Laconia’s election:

2. a) of fully paid ordinary shares equal to 10% of the issued shares of the purchaser or the shell company at the date of completion of a capital raising; or

3. b) if the Lennons Find Project is acquired by a company which is already listed on the Australian Securities Exchange (ASX), issuing Laconia 10% of any securities issued as consideration for the acquisition of the Lennons Find Project.

Laconia has now received the $150,000 plus interest and looks forward to balance of the consideration in the near future.

Outlook for June 2014 Quarter

Kimsa Orcco Project

• Channel sampling of underground adits and surface outcrop at Española 1, Fortuna, Rosita and mapping and sampling of outcrop at Northern Kimsa Orcco prospects

• Planning of geochemical sampling programs to further validate the Porphyry potential

• Completion of tender process and selection of drilling contractors

• Finalise preparations for maiden drilling program to focus on the copper-gold-silver mineralisation at the Southern Kimsa Orcco prospects

Western Australian Projects

• Project reviews will be undertaken, and costed work programs formed.

*ENDS***

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For further information on Laconia Resources Limited please contact:

Ian Stuart

Managing Director Laconia Resources Limited

P: +61 8 9486 1599

E: istuart@laconia.com.au

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

About Laconia Resources Limited

ASX Listed Laconia Resources Limited (ASX: LCR) is a Perth-based precious and base metals exploration and development Company with a Latin American focus. The Company’s flagship Kimsa Orcco Project in Peru is an advanced copper-gold-silver project in the Ayacucho region of Southern Peru, across four 100% Laconia Resources Ltd permits covering 27.65 km[2] and a further 11 contiguous permits through an 80% earn in option agreement, covering 56.22 km[2] . The total area of 83.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal copper gold and silver.

In Western Australia, the Company has mineral projects across two granted tenements covering an approximate 98.7 km[2] in the Pilbara and Northern Gascoyne region.

Competent Person Statement

The information in this report that relates to Exploration Results is extracted from reports titled “High-grade Copper Identified at Rasuhuilca Project, Peru” lodged with the ASX on 27 February 2013” and “High-grade Copper System Expanded North to Rosita, Peru” lodged with ASX on 28 January 2014. These reports were based upon information compiled by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar was a Non-Executive Director and consultant for Laconia Resources Limited at the time of preparation. Mr Algar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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’. Mr Algar consented to the inclusion in these reports of the matters based on his information in the form and context in which they appeared.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented has not been materially modified from the original market announcements.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

LACONIA RESOURCES LIMITED

ABN

29 137 984 297

Quarter ended (“current quarter”)

31 March 2014

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 (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	(600) ‐ ‐ (71) ‐ 3 ‐ ‐ 34	(1,101) ‐ ‐ (645) ‐ 6 ‐ ‐ (7)
	(634)	(1,747)
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)	‐ ‐ ‐ 75 ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ 425 11 ‐ ‐ ‐ ‐
	75	436
	(559)	(1,311)

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(559)	(1,311)
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 (provide details if material) Net financing cash flows	660 ‐ ‐ ‐ ‐ (57)	1,465 ‐ ‐ ‐ ‐ (134)
	603	1,331
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	44 408 ‐	20 432 ‐
	452	452

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

1.23 1.24	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
			60
			‐
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 reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		Item 1.23 includes aggregate amounts paid to directors including salary, director’s fees, consulting fees and superannuation
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

• 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
	225
	‐
	‐
	125
Total	350

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	9 443 ‐ ‐	342
		66
		‐
		‐
Total: cash at end of quarter(item 1.22)	452	408

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

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	456,222,597	456,222,597
	82,500,000	82,500,000	$0.008	$0.008
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas 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	20,500,000 186,877,849	‐ ‐	Exercise price 19.87 cents 6 cents	Expiry date 30 September 2014 30 September 2018
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 5).

• 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

==> picture [101 x 46] intentionally omitted <==

Sign here: ............................................................ Date: 30 April 2014 (Company secretary) Print name: Matthew Edmondson

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Notes

• 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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

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