ZEOTECH LIMITED — Interim / Quarterly Report 2014

Jan 30, 2014

Summary & Highlights for the December Quarter 2013

Laconia Resources Ltd

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

Capital Structure 373.7 million shares 186.8 million listed options 20.5 million unlisted options

Board of Directors

Matthew Howison Non-Executive Chairman

Ian Stuart Managing Director

Matthew Edmondson Non-Executive Director

• Field reconnaissance by consultant geologist confirms the copper potential at the Northern Kimsa Orcco Prospects (formerly the Huaco Cucho Project)

• Technical data supports intact high sulphidation system with high copper porphyry potential

• Subsequent to quarter end, DIA approval received from the Peruvian Ministry of Energy and Mines (MINEM) for Kimsa Orcco Project (formerly the Rasuhuilca and Huaco Cucho Projects)

Community Agreements progressed at Kimsa Orcco Project

• Access, Exploration and Infrastructure agreement reached with Huacaña Community

• Positive progress with remaining community group demonstrating Laconia’s successful community relations strategy

Corporate

• Disposal of Lennons Find Project completed including receipt of $250,000 with additional $150,000 to come in Q1 2014

Company Secretary

• Corporate office relocation and reduction in overheads

Matthew Edmondson

Planned Activities for March 2014 Quarter

• Completion of remaining community agreement process

• Call for tenders from drilling contractors

• Finalise preparations for maiden drilling program to focus on Española 1, Fortuna and Rosita prospects

• Channel sampling of underground adits at Española 1, Fortuna, Rosita and Rasuhuilca prospects

• Historical data compilation and planning of surface channel sampling to further validate the porphyry potential

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

Laconia Resources Ltd – December 2013 Quarterly Report

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Kimsa Orcco Project (formerly Rasuhuilca and Huaco Projects) - Peru (Kimsa Orcco Project – Patacancha Permits 100% Laconia Resources Ltd; Huaco Cucho Permits subject to 80% earn in option)

DIA Approval for Drill Permitting at Kimsa Orcco Project

Subsequent to the Quarter end, Laconia announced it had received it’s Declaración de Impacto Ambiental (DIA) ( Environmental Impact Statement ) from the Peruvian regulator, the Ministry of Energy and Mines (MINEM)[1] . Laconia advised it has received a Resolution, No 003-2014-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, which of the three such agreements necessary to commence drilling, only one remains. This final community agreement is being negotiated at present. Upon agreement Laconia can obtain an Ordene Initio ( Permission to begin drilling ). Laconia will update the market as it finalises its final drilling plan. The DIA allows for up to 20 drillholes with an initial drilling campaign of a maximum of 3,600m envisaged.

Name Change of Rasuhuilca and Huaco Cucho Projects to Kimsa Orcco Project

During the DIA process Laconia changed the name of its 100% owned Rasuhuilca Project, and combined the project area with the 80% Earn In Option Huaco Cucho Project, to avoid confusion with community groups and Government Departments due to another project already termed Rasuhuilca. For this reason, the 100% Laconia owned Patacancha permits that host known epithermal copper-gold-silver and with potential for a deeper Copper-Gold Porphyry system, plus the Huaco Cucho permits over which the Company has an 80% Earn In Option Agreement, will from now on be referred to collectively as the “Kimsa Orcco Project.” The name is formed from Quechan words, meaning Three Peaks, in reference to the three ridge lines that form the topographic highs around the locality of the Rasuhuilca Prospect, the Española 1 Prospect, and towards the southern vent and Marcelita Prospect.

The Kimsa Orcco Project consists of two large areas of alteration zones. For ease of discussing the geology in future reports, the area is divided into the Northern Kimsa Orcco Prospects and the Southern

1 Refer ASX release dated 29 January 2014

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Laconia Resources Ltd – December 2013 Quarterly Report

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Kimsa Orcco Prospects. All of the 100% Laconia Resources Ltd Patacancha Permits plus the 80% Earn In Option Huaco Cucho Permits No 1, No 2 and Once encompass the Southern Kimsa Orcco Prospects. The balance of the 80% Earn In Option Huaco Cucho Permits surround the Northern Kimsa Orcco Prospects. The location and names of the Laconia interests are demonstrated in Figure 1 below.

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Figure 1: Laconia’s Kimsa Orcco Permits and Interests

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Laconia Resources Ltd – December 2013 Quarterly Report

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Field Visit by Experienced Consultant Geologist confirms Copper Potential

In October 2013, as part of preparation for site visits by potential partners and/or investors, Laconia engaged the services of a consultant geologist with Porphyry Copper experience, Mr Stephen McCaughey to undertake field reconnaissance[2] . Mr McCaughey is an Australian geologist based in Peru with over 20 years of experience in exploration including 14 years with BHP. He has considerable experience in copper and gold exploration within South America (Peru and Chile), Australia and Sweden and has a proven track record of exploration success including the major Antapaccay porphyry copper deposit (now owned by Xstrata) in Southern Peru.

Mr McCaughey’s main focus included a review of the distinct alteration zones visible in satellite imagery in Figure 1 at the Northern Kimsa Orcco Prospects.

The following key observations were made from the field reconnaissance:

• The distribution and the size of the cluster of alteration zones was highlighted by the consultant geologist as being comparable to other important world class Porphyry Copper systems in known districts. Figure 2 below illustrates the alteration zone distribution at the Kimsa Orcco Project.

• Alteration assemblages that were observed to potentially contain sericite (phyllic alteration) and a lack of preserved lithocap at the Northern Kimsa Orcco Prospects indicate the area is significantly deeper in the typical Porphyry profile. This supports our belief that the Northern Kimsa Orcco Prospects are proximal to the Porphyry stock. See figure 3 for a photograph of rocks believed to contain sericite at the Northern Kimsa Orcco Prospects.

• Striations observed in rocks at the south end of the central valley between the Southern Kimsa Orcco Prospects and the Northern Kimsa Orcco Prospects indicates significant effects of glaciation. This is the mechanism that likely caused the removal of the lithocaps in the Northern Kimsa Orcco Prospects area, exposing a much deeper part of the system. Figure 4 is a photo of the striations that were observed at the south end of the large glacial valley traversing the Kimsa Orcco Project. The valley aspect and striation directions are consistent with a glacier that removed material from the south towards the north. In the background, looking about north, the central valley can be seen, continuing north and past the limit of the Kimsa Orcco Project.

• 2 Refer ASX release dated 4 December 2013

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Laconia Resources Ltd – December 2013 Quarterly Report

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Figure 2: 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

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Laconia Resources Ltd – December 2013 Quarterly Report

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A
B
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Figure 3: A. Strong clay-pyrite alteration of intermediate composition volcanic tuffs. Pyrite is both disseminated and as veins. Possible sericite-mica alteration. B. Disseminated sulphides in strongly clay altered volcanic tuffs with possible sericite.

• Glacial removal of material has resulted in a significant drop in elevation between the centres in the Northern Kimsa Orcco Prospects, and the alteration zone at the Southern Kimsa Orcco Prospects. Figure 5 below demonstrates the significant difference in elevation between the Southern Kimsa Orcco Prospects (Cerro Rasuhuilca) and the Northern Kimsa Orcco Prospects (Antaripa Alteration Zone), as a long section.

• The central valley at the Northern Kimsa Orcco Prospects is infilled with younger alluvial material, and there is potential for the Huaco and Antaripa alteration zones to be two exposures of one larger alteration zone.

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Laconia Resources Ltd – December 2013 Quarterly Report

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N
Striations
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Figure 4: Glacial striations on an outcrop at the Kimsa Orcco Project that indicate a sense of movement from the south towards the north.

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Laconia Resources Ltd – December 2013 Quarterly Report

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Figure 5: Cerro Rasuhuilca – Antaripa Alteration Zone long section. This long section is drawn along the glacial valley floor, as marked by the yellow line. The long section contains significant vertical exaggeration to allow for a practical illustration.

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Laconia Resources Ltd – December 2013 Quarterly Report

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Further Data Compilation Highlights Polymetallic Nature of the Fortuna Prospect

During the quarter, Laconia released results of historic adit channel sampling by Buenaventura Ingenieros SA at the Fortuna 4760 Level which returned:

• 0.7 m at 15 % Cu, 3.68 g/t Au, 500.14 g/t Ag and 414 g/t Te in sample 29530

• 0.8 m at 13.1 % Cu, 1.96 g/t Au, 423.01 g/t Ag, 0.11 % Pb and 268 g/t Te in sample 29532

• 0.7 m at 3.4 % Cu, 2.0 g/t Au, 500.14 g/t Ag, 0.33 % Pb, 0.68 % Zn and 86 g/t Te in sample 29550

• 0.6 m at 3.2 % Cu, 2.37 g/t Au, 485.84 g/t Ag, 0.59 % Zn and 86 g/t Te in sample 29556

• 0.8 m at 0.75 g/t Au, 528.14 g/t Ag, 1 % Pb, 4.4 % Zn and 61 g/t Te in sample 29527

The Fortuna Prospect lies about 600 m to the east of the Rasuhuilca Prospect[3] in the Huaco Cucho No. 2 permit that is one of the 11 permits of the signed Option Agreement.[4] Mineralisation is hosted by a set of at least two parallel veins that trend east-west for a minimum of 90 metres, and dip steeply to the north, also intersecting the large regional Huaco Fault at the west end of the prospect. The veining is dominantly silicification with alunite alteration, and sulphides that include pyrite, marcasite, enargite, sphalerite and galena in order of decreasing abundance. Information about surface sampling and 5 diamond drill holes that were drilled in 2002 by Buenaventura Ingenieros SA at Fortuna Prospect has been presented previously, in an ASX release dated 9[th] April, 2013.

The surface geology of the Fortuna Prospect, surface channel sampling locations and diamond drillhole locations are shown in Figure 6. Significant intersections, calculated as weighted averages of down hole length to grade, of copper, gold and silver are annotated on the drill holes. True widths of the veins are not yet estimated, and all values presented here are down hole intersection lengths. There are sections of core logged as containing disseminated pyrite that were not sampled in the original drill program. Further potential therefore exists for low-grade gold and silver mineralisation in zones of broad alteration with disseminated pyrite.

The two veins at the Fortuna Prospect were identified through surface channel sampling and diamond core drilling, and now within the adit at the 4760 level, that has also been channel sampled (Figure 6). The continuity of the veins to depth is confirmed by intersection of both mineralised structures in the adit, some 30 - 40 metres below surface. The secondary parallel vein under cover of scree slope was confirmed by the diamond drilling and the 4760 level adit, and it lies about 20 metres to the north of the

3 Refer ASX release 1 June 2012

4 Refer ASX release 26th March 2013

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Laconia Resources Ltd – December 2013 Quarterly Report

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mapped Fortuna vein. There is further potential for mineralised veins that do not crop out, as the Fortuna area is dominated by scree slopes, with minimal outcrop.

Adit channel sampling results have further characterised the high grade gold and silver veins at Fortuna Prospect as being poly-metallic in nature[5] , with some very high-grade copper results, plus significant lead, zinc and tellurium. Copper is hosted in the mineral enargite, that was mined economically at the El Indio deposit in Chile. Zinc is hosted in the mineral sphalerite and the host for lead is galena, or ionic substitution into the mineral alunite. Samples that contain elevated copper also have elevated tellurium. Tellurium (Te) is a metalloid element that is exceedingly rare in the Earths’ crust. It has commercial uses in metal alloys, in cadmium-tellurium (CdTe) solar panels and as part of semi-conductors that are used in electronic devices, such as memory chips and re-writeable DVDs. Tellurium metalloid is often produced as a by-product while extracting copper during refining, and as such, may be a significant attribute of the mineralisation.

The polymetallic mineralisation may indicate the Fortuna area is a Cordillera Base Metal Lode, also referred to as Butte-Type Vein Deposits. This type of mineralisation forms when the late stage veining of Porphyry Copper Systems overprints a previously existing epithermal vein, or as carbonate replacement in areas of carbonate rocks. At the Kimsa Orcco Project, the polymetallic mineralisation appears to be late brecciation of the High Sulphidation Epithermal veins, to introduce a sulphide matrix that has elevated lead and zinc, in addition to high grade copper ( Fontbote, L, Bendezu, R; 2009 ). Tellurium may be associated with Cordillera Base Metal Lode mineralisation, or be an attribute of the gold mineralisation of the high sulphidation epithermal veining. This requires further work to determine.

Figure 7 shows a cross section through the middle of the Fortuna Prospect, with the geological logging included as a graphic log down the drill hole. Significant down hole intersections are labelled on the drill hole, and demonstrate the location of the two veins. The location of the cross section is also marked on Figure 6, with A and A’ indicating the start and finish of the section.

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5 Refer ASX release 17 December 2013

Laconia Resources Ltd – December 2013 Quarterly Report

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Figure 6: Plan View of the Fortuna Prospect with the 4760 adit, showing surface 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). A possible eastern extension to the drill hole intersections is shown as dashed lines with question marks. Adit sampling is show in the detailed inset at the bottom of the figure. Grid used is PSAD56, Zone 18 South. The upper detection limit used for Lead (Pb) was 1%. Samples that returned greater than this amount of lead are labelled >1% Pb.

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Laconia Resources Ltd – December 2013 Quarterly Report

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Previously released[6] significant Diamond drilling results from the Fortuna Prospect are:

• 5.75 m at 2.0 % Cu, 0.7 g/t Au and 97.31 g/t Ag from 31.15 m in drillhole SBD 01 2002; including 1 m at 7.2 % Cu, 2.45 g/t Au and 387.38 g/t Ag from 32 m

• 3.1 m at 2.27 % Cu, 3.43 g/t Au and 130.56 g/t Ag from 61.6 m in drillhole SBD 05 2002; including 0.5 m at 12.1 % Cu, 19.8 g/t Au and 708.75 g/t Ag from 61.6 m; and including 0.3 m at 2.72 % Cu, 1.09 g/t Au and 114.85 g/t Ag from 64.4 m

• 0.15 m at 4.11 % Cu, 0.44 g/t Au and 365.5 g/t Ag from 11.95 m in drillhole SBD 01 2002

• 6.3 m at 0.46 % Cu, 1.84 g/t Au and 28.28 g/t Ag from 2.2 m in drillhole SBD 02 2002; including 1.6 m at 1.46% Cu, 6.71 g/t Au and 72.0 g/t Ag from 4.4 m

• 12.6 m at 0.3 % Cu, 0.11 g/t Au and 43.93 g/t Ag from 27.9 m in drillhole SBD 05 2002; including 2.6 m at 0.9 % Cu, 0.19 g/t Au, 64.78 g/t Ag, 0.11 % Pb and 0.25 % Zn from 29 m

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Figure 7: Cross Section View of the Fortuna Prospect at about 632,200 E, showing drill hole SBD 05 2002 with the logged geology as a graphic log. The drill holes are annotated with the significant intersections. Grid used is PSAD56, Zone 18 South. Possible depth extensions of these two veins are marked with the dashed lines.

6 See ASX release 9th April, 2013

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Laconia Resources Ltd – December 2013 Quarterly Report

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The copper mineralisation at Fortuna Prospect 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 8 below outlines the exploration model currently being applied at Kimsa Orcco Project. Copper and other base metals at the Fortuna Prospect is interpreted to have been mobilised through the major regional Huaco Fault from a source at depth, to be deposited in the east-west trending Fortuna vein that intersects this major structure (see Figure 6 for the location of the Huaco Fault).

Work planned at the Fortuna Prospect includes drill testing of the strike extent using diamond drilling, upon receipt of the necessary approvals. Final drill plan details will be selected following completion of 3D geological modeling of the area.

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Figure 8: Schematic diagram of the Ccarhuaraso 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.

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Laconia Resources Ltd – December 2013 Quarterly Report

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About the Kimsa Orcco Project (formerly Rasuhuilca and Huaco Cucho Projects)

The Project currently has an Inferred Mineral Resource estimate of; 360,000t @ 1.97g/t gold and 179g/t silver (at a 2.5g/t gold-equivalent cut-off)[7] . Note: [All cut-offs based on an Xg/t Au Eq are conceptual in nature only[8] . There has been insufficient metallurgical testwork to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut-offs used will be appropriate following further metallurgical testwork.]

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 and silver project with near-term development potential and significant exploration upside potential.

This Mineral Resource statement is based on historical data and classified as Inferred Mineral 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[9] 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).

Work Completed at the Kimsa Orcco Project during the December Quarter 2013

• Continuing consultation with community groups

• Access and infrastructure agreement signed with Huacaña community

• Field visits to investigate the northern areas of the permits and to show potential investors the site geology

• Continuing data compilation and review

7 Refer ASX Release 25 January 2012

8 Gold Equivalent Calculation

Gold equivalent (Au Eq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent Gold grade. These results are taken from the Rasuhuilca zone JORC Code Inferred Resource and no allowance is made for metallurgical recoveries. No definitive metallurgical test work has been conducted on the project at this stage of its development, however, it is the Company’s opinion that the elements expressed here have a reasonable potential to be recovered as evidenced in similar deposit styles in Peru. Gold Equivalent conversion factors and long term price assumptions used are as follows: Gold Equivalent Formula = Au ppm + (25/1350) x Ag ppm Price Assumptions: Au(US$1,350/oz), Ag(US$25/oz)

9 Refer ASX Release 4 July 2012.

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Laconia Resources Ltd – December 2013 Quarterly Report

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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

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

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.

Since the acquisition of the Kimsa Orcco (formerly Rasuhuilca and Huaco Cucho) Project, 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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Laconia Resources Ltd – December 2013 Quarterly Report

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Community Agreement Progress

During the quarter Laconia reached an agreement for rights to access, exploration and infrastructure on land within the Huacaña community, Peru[10] . The Huacaña community is one of three community groups within the immediate area of impact of the Kimsa Orcco Project.

This follows an agreement Laconia has reached with the Yanama community[11] . Laconia has now reached agreement with two communities and is advanced in concluding negotiations with the remaining community group.

The Company is progressing with its final community agreement whilst it finalises regulatory approval to commence drilling.

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.

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

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

During the quarter Laconia agreed to an Amended and Restated Binding Terms Sheet for the sale of its 12 interests in the Lennons Find Project to Musketeer Mining Limited (“MML”). As announced by Laconia , part of the transaction required the immediate payment of $250,000 to Laconia which was received on 31 December 2013 as well as payment of some future consideration. The future consideration comprises:

1. payment of $75,000 on or before 28 February 2014; and

2. payment of $75,000 plus Interest on or before 31 March 2014; plus

10 Refer ASX Release 17 October 2013

11 Refer ASX Release 1 July 2013

12 Refer ASX Announcement 2 January 2014

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

2. a) issuing Laconia the number of issued 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 been granted a first ranking mortgage over exploration permit E45/3293 and mining lease M45/396 to secure the outstanding purchase consideration due by the purchaser at 1, 2, and 3 above.

The Company previously announced on 20 June 2013 that it had entered into a Binding Terms Sheet with Musketeer Minerals Pty Ltd and had received a non-refundable deposit of $100,000. Musketeer Minerals Pty Ltd subsequently assigned it interests in the Binding Terms Sheet to Musketeer Mining Limited on 4 October 2013.

Laconia also retains the right to appoint one Non-Executive director to the board of Musketeer Mining Limited’s board or to a shell company at Laconia’s election.

Mooletar Iron Ore Project, Mount Magnet, WA

(100% Laconia)

E58/391, M58/110, P58/1385-1388, P58/1408-1411, P58/1495, P58/1499.

No work was completed this quarter. All tenements were surrendered during the quarter.

Changes to the Board of Directors

Subsequent to the Quarter Mr Matthew Edmondson was appointed as a Non-Executive Director of the Company on 24 January 2014 following the resignation of Mr Vincent Algar effective 28 January 2013.

Mr Edmondson’s professional experience spans 25 years and has involved commercial management, corporate regulation, governance and public accounting in Australia and the United Kingdom. More recently, Mr Edmondson has provided commercial management, company secretarial, financial and administrative services to a number of clients including ASX listed and private clients.

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Laconia Resources Ltd – December 2013 Quarterly Report

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Mr Edmondson is a Chartered Accountant and Chartered Secretary. Mr Edmondson has held the position of Company Secretary of Laconia since July 2012 and has been a member of the Audit Committee since September 2012.

Subsequent to quarter end, Mr Algar who has been a Non-Executive Director resigned to focus on his developing consulting and advisory practice.

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.

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Laconia Resources Ltd – December 2013 Quarterly Report

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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
Peru(Ayacucho)	Patacancha N° 2	100% owned
Peru (Ayacucho)	PatacanchaN°3	100%owned
Peru (Ayacucho)	PatacanchaN° 4	100%owned
Peru (Puno)	Jess Gold1	100%owned
Peru (Aricash)	Jess GoldII	100%owned
Peru(Moquegua)	Jess Iron 1	100% owned
Peru (Ayacucho)	Huaco Cucho N o1	Option to acquire 80% indirect ownership interest (presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o2	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o3	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o4	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o5	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o6	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o7	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o8	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o9	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o10	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Peru (Ayacucho)	Huaco Cucho N o11	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)
Western Australia (Pilbara)	E45/3904	100% owned – IGO Limited can earn in up to 80% (presently 100% beneficial interest)
Western Australia (NorthernGascoyne)	E52/2688-I*	80% owned **

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Location	Mining Tenement	Ownership	Acquired or Disposed
Western Australia (Pilbara)	M45/368	95% interest	Disposed
Western Australia (Pilbara)	E45/3293	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1385-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1386-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1387-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1388-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1408-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1409-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1410-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1411-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1495-I*	100% interest	Disposed
Western Australia (Mount Magnet)	P58/1499-I*	100% interest	Disposed
Western Australia (Mount Magnet)	E58/391	100% interest	Disposed
Western Australia (Mount Magnet)	M58/110-I*	100% interest	Disposed

• 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%).

Corporate

Office Re-location

During the quarter, the Company relocated its West Perth office due to endeavour to better control its fixed overhead.

Board Continues Review of Operations

As an integral part of the Company’s ongoing operations review, the Board has continued to reduce its current cost structures and expenditure commitments where possible.

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Laconia Resources Ltd – December 2013 Quarterly Report

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Outlook for March 2014 Quarter

Kimsa Orcco Project

• Completion of remaining community agreements to allow the commencement of Laconia’s maiden drilling program at Kimsa Orcco Project (formerly Rasuhuilca and Huaco Cucho Projects)

• Call for tenders from drilling contractors

• Finalise preparations for maiden drilling program to focus on Española 1 Prospect, Fortuna and Rosita prospects

• Channel sampling of underground adits at Española 1, Fortuna, Rosita and Rasuhuilca Prospects

• Historical data compilation and planning of channel sampling to further validate the Porphyry potential

Western Australian Projects

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

*ENDS***

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

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Laconia Resources Ltd – December 2013 Quarterly Report

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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 Statements

The information in this report that relates solely to the Rasuhuilca Mineral Resource is based on, and fairly represents, information and supporting documentation prepared by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew was a Principal of Optiro Pty Ltd at the time of preparation and has sufficient experience that is 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’. Mr Andrew consents to the inclusion in this presentation the matters based on his information in the form and context in which it appears.

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 ASX on 27 February 2013, “High-Grade Copper Results Highlight Rapidly Growing Potential of Copper-Gold-Silver Project, Peru” lodged with ASX on 9 April 2013, “Porphyry Copper Potential Confirmed By Field Work in Peru” lodged with ASX on 4 December 2013 and “High Grade Copper, Bonanza Precious Metal Results at Fortuna” lodged with the ASX on 17 December 2013. 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 December 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 (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	(303) ‐ ‐ (216) ‐ 1 ‐ ‐ (17)	(501) ‐ ‐ (574) ‐ 3 ‐ ‐ (41)
	(535)	(1,113)
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)	‐ ‐ ‐ 250 3 ‐ ‐ ‐ ‐	‐ ‐ ‐ 350 11 ‐ ‐ ‐ ‐
	253	361
	(282)	(752)

• See chapter 19 for defined terms.

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

1.13 Total operating and investing cash flows (brought forward)	(282)	(752)
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	‐ ‐ ‐ ‐ ‐ ‐	805 ‐ ‐ ‐ ‐ (77)
	(282)	728
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	(282) 690 ‐	(24) 432 ‐
	408	408

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
			30
			‐
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
	200
	‐
	‐
	150
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)	342 66 ‐ ‐	330
		360
		‐
		‐
Total: cash at end of quarter(item 1.22)	408	690

• 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

Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed See Annexure “A” 6.2 Interests in mining tenements and petroleum tenements acquired or increased 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed See Annexure “A” 6.2 Interests in mining tenements and petroleum tenements acquired or increased 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed See Annexure “A” 6.2 Interests in mining tenements and petroleum tenements acquired or increased 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed See Annexure “A” 6.2 Interests in mining tenements and petroleum tenements acquired or increased 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed See Annexure “A” 6.2 Interests in mining tenements and petroleum tenements acquired or increased 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	373,722,597	373,722,597
	7,381,506	7,381,506	$0.10	$0.10
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.

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Sign here: ............................................................ Date: 31 January 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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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

This is the Annexure marked “A” of 1 page referred to in the Appendix 5B Mining exploration entity quarterly report for the period ended 31 December 2013.

Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
M45/368 E45/3293 P58/1385 P58/1386 P58/1387 P58/1388 P58/1408 P58/1409 P58/1410 P58/1411 P58/1495 P58/1499 E58/391 M58/110	All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights All mineral rights	95% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 7