ZEOTECH LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

`

Laconia Resources Ltd

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

Capital Structure 530.6 million listed shares 343.7million listed options

Board of Directors

Matthew Howison Non-Executive Chairman

Ian Stuart Managing Director

Summary

• Laconia has given notice of termination[1] on its option agreement[2] 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 Licenses contiguous to Laconia’s 100% controlled Patacancha tenement package

 The Company is investigating all avenues for advancing its mineral assets, however, taking into consideration the protracted downturn and subdued sentiment for natural resources the Company has been strategically reviewing its entire tenement package both in Australia and Peru including joint venture agreements.

Matthew Edmondson Non-Executive Director

Company Secretary

Matthew Edmondson

• 1 Refer ASX release 18 March 2015

• 2 Refer ASX release 26 March 2013

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

Laconia Resources Ltd – March 2015 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Kimsa Orcco Project – Peru

Kimsa Orcco Project – Patacancha Tenements 100% Laconia Resources Ltd

The Company is investigating all avenues for advancing it mineral assets, however, taking into consideration the protracted downturn and subdued sentiment for natural resources the Company has been strategically reviewing its entire tenement package both in Australia and Peru including joint venture agreements.

As part of this strategic review Laconia has given notice of termination on its 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 Licenses contiguous to Laconia’s 100% controlled Patacancha tenement package.

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-project in the Ayacucho region of Southern Peru across four 100% Laconia Resources Ltd permits covering 27.65 km[2] . Laconia’s permits lie over the 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.

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 field work was completed during the Quarter.

Goldsworthy Project – Base Metals, Pilbara, WA

(E45/3904 100% Laconia)

No field work was completed during the Quarter.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources Ltd – March 2015 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

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)	PatacanchaN° 1	100%owned	NotApplicable
Peru(Ayacucho)	Patacancha N° 2	100% owned	Not Applicable
Peru(Ayacucho)	Patacancha N° 3	100% owned	Not Applicable
Peru (Ayacucho)	PatacanchaN° 4	100%owned	NotApplicable
Peru (Puno)	Jess Gold1	100%owned	NotApplicable
Peru (Aricash)	Jess GoldII	100%owned	Disposed
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)	Disposed
Peru (Ayacucho)	Huaco Cucho N o2	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Tres	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Cuatro	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Cinco	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Seis	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Siete	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Ocho	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Nueve	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Diez	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Disposed
Peru (Ayacucho)	Huaco Cucho Once	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Disposed
Western Australia (Pilbara)	E45/3904	100% owned	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%).

==> picture [596 x 64] intentionally omitted <==

Laconia Resources Ltd – March 2015 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Outlook for June 2015 Quarter

Kimsa Orcco Project

• Taking into account the continued depressed market outlook and difficult capital market conditions for base metals Laconia has taken all steps to minimise costs and is looking at every avenue to preserve the inherent value we see in the Kimsa Orcco Project. While capital markets continue to discount exploration activity we believe joint venture arrangements will ultimately extract shareholder value.

Western Australian Projects

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

Laconia continues to investigate and evaluate all opportunities both in Australia and internationally that will be value accretive to shareholders.

*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

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.] . Laconia’s permits lie over the 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.

==> picture [596 x 64] intentionally omitted <==

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 2015

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 (GST, Other Income) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	(5) ‐ ‐ (99) ‐ ‐ ‐ ‐ (5)	(252) ‐ ‐ (344) ‐ 3 ‐ ‐ 11
	(109)	(582)
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)	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
	‐	‐
	(109)	(582)

• 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)	(109)	(582)
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	‐ ‐ 85 ‐ ‐ ‐	235 ‐ 170 ‐ ‐ ‐
	85	405
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	(24) 30 ‐	(177) 183 ‐
	6	6

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
			Nil
			‐
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.

Appendix 5B Page 2

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities (director related interest free
	facility)	170,000	170,000
3.2	Credit standby arrangements
		‐	‐

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	5
	‐
	‐
	30
Total	35

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)	6	23
	‐	7
	‐	‐
	‐	‐
Total: cash at end of quarter(item 1.22)	6	30

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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
		See Annexure “A
		”

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 Performance Rights Performance Shares 7.2 Changes during quarter (a) Issued during quarter (b) Exercised during quarter (c) Lapsed during quarter	10,200,000 14,500,000	Nil Nil	Exercise Price $0.00 Exercise Price $0.00	Expiry 31 Dec 2015 (5,100,000) Expiry 31 Dec 2016 (5,100,000) Expiry 20 June 2017
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	530,633,165	530,633,165

• See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.5 +Convertible debt securities (description) 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	343,788,417 6,000,000	343,788,417 Nil	Exercise price 6.0 cents 1.4 cents	Expiry date 30 September 2018 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.

Sign here: ................................ Date: 30 April 2015 (Company secretary)

Print name: Matthew Edmondson

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

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.

Appendix 5B Page 6

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

	Annexure “A”
Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest (presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%
Peru (Ayacucho)	Option to acquire 80% indirect ownership interest ( presently 0% beneficial interest)	100%	0%

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 7