DGAP-News: Conico Ltd. / Key word(s): Miscellaneous CASCATA-POTENTIAL VOLCANOGENIC MASSIVE SULPHIDE DISCOVERY (news with additional features) 2021-08-31 / 10:01 The issuer is solely responsible for the content of this announcement.

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ACN 119 057 457, AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT, 31 August 2021

HIGHLIGHTS

- The Cascata Prospect is a new discovery interpreted to be a likely volcanogenic massive sulphide (VMS). Over 6km of strike length has been traversed, with sulphides discovered consistently at surface. The area of interest is approximately 15km^2 and is all within the Company's existing Ryberg licence. Drilling has commenced.

- SODD003 (Sortekap Prospect) is complete and intersected 78m of prospective quartz veins hosting sulphide mineralisation within amphibolite. The target is gold, with previous surface samples in the vicinity grading up to 2.7g /t gold.

- SODD002 (Sortekap Prospect) is complete and intersected 6% disseminated chalcopyrite + pyrrhotite over 7.1m from 188.5m downhole. Zones of disseminated pyrite were also encountered.

- 1 x drill rig has mobilised to an electromagnetic target at the Miki Prospect. Conico Limited (ASX: CNJ) ("Conico" or "the Company") and its wholly owned subsidiary Longland Resources Ltd ("Longland ") is pleased to announce that a new discovery interpreted as a likely volcanogenic massive sulphide (VMS) has been discovered and a drilling has commenced. SODD002 and SODD003 have been completed at Sortekap, and hole MIDD008 at the Miki Prospect.

Longland CEO Thomas Abraham-James said:

"The discovery of a potential new VMS occurrence at Cascata typifies the prospectivity of Greenland. Over 6km of strike has been traversed by foot with lithologies prospective for VMS accompanied by consistent sulphide mineralisation observed, justifying immediate drilling. Meanwhile we continue to see mineralisation in drill holes completed at Miki and Sortekap." The newly discovered Cascata Prospect Reconnaissance exploration was successful in identifying outcropping copper and iron sulphides, referred to as the Cascata Prospect (figure 1). The mineralisation is present as pyrite, chalcopyrite and bornite in massive, semi-massive, stockwork and disseminated forms, associated with black shales, rhyolitic volcanism, and underlying amphibolite (figures 2-7). Field investigations conducted thus far suggest that Cascata may potentially be a Volcanogenic Massive Sulphide (VMS) occurrence, with over 6km of strike length traversed by foot and an area of interest covering 15km^2.

Drilling has commenced at Cascata and is situated on the upper end of the stratigraphy. The prospect is situated within the existing Ryberg license and is readily accessible, located only 6km from the coast and has abundant fresh water sources.

Sortekap Prospect: Drill-hole SODD003

Drill-hole SODD003 targeted gold mineralisation hosted in amphibolite (figure 9) and was positioned to drill perpendicular to quartz veins where previous surface sampling returned grades of up to 2.7g/t gold.

The drill-hole was successful in passing through 78m of prospective quartz-bearing amphibolite, commencing at surface (figure 8). The quartz veins frequently contained trace/disseminated sulphides which is encouraging as published literature on the gold occurrences at Sortekap state that gold mineralisation is linked to the presence of trace sulphides (particularly arsenopyrite) in amphibolite. Sulphides encountered do include arsenopyrite, in conjunction with pyrite and chalcopyrite (figures 10-11).

The hole was terminated in serpentinite and the rig has since moved to the next drill-hole at the Miki Prospect, drilling an electromagnetic (EM) anomaly that was identified in the 2020 EM survey. Sortekap Prospect: Drill-hole SODD002

Located in the Sortekap Prospect, drill-hole SODD002 targeted an Induced Polarisation (IP) chargeable anomaly. The drill-hole was successful in intersecting sulphide mineralisation over multiple intervals, the most significant being 7.1m commencing at 188.5m downhole and consisting of 6% disseminated chalcopyrite and pyrrhotite. Deeper in the hole there are zones of up to 20% disseminated pyrite (figure 12).

The hole was extended in length to a total depth of 356m in order to intercept the serpentinite seen in hole SODD001. This ties the geology of the two Sortekap drill-holes together, giving a firmer understanding of the regional stratigraphy. Miki Prospect: Drill-hole MIDD008 This hole targeted magmatic sulphides associated with the Miki Fjord Macrodyke (figure 16). From 78.9m to end of hole (312m), MIDD008 intercepted a quartz - potassic feldspar - mica assemblage (figures 13 to 14) that contains veinlets of molybdenite (between 1 - 2% when encountered), and trace occurrences of chalcopyrite (2% when encountered, figure 15).

Encountering such mineralisation is unexpected, but not surprising considering the location's proximity to nearby known systems such as the Flammefjeld porphyry molybdenum project located 38km to the west.

The drill-hole was terminated at 312m drilled depth while still in the altered country rock, with the rig being re-tasked to the Cascata Prospect.

By order of the board. / Guy T Le Page, FFIN, MAusIMM Executive Director

COMPETENT PERSONS STATEMENT

The information contained in this report relating to exploration results relates to information compiled or reviewed by Thomas Abraham-James, a full-time employee of Longland Resources Ltd. Mr. Abraham-James has a B.Sc. Hons (Geol) and is a Chartered Professional (CPGeo) and Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Abraham-James has sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the Joint Ore Reserve Committee (JORC) "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Abraham-James consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

FORWARD-LOOKING STATEMENTS This announcement contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Annex 1 


   Hole ID     Easting Northing  Elevation Dip Azimuth Length 
   MIDD001     565,714 7,571,884   298m    -80   215   217.0m 
   MIDD002     565,840 7,571,990   312m    -80   355   313.5m 
   MIDD003     565,734 7,571,883   298m    -80   215   180.0m 
   MIDD004     565,715 7,571,897   299m    -80   290   36.0m 
   MIDD005     565,797 7,571,960   311m    -70   285   381.0m 
   MIDD006     565,728 7,571,889   298m    -75   290   153.0m 
   MIDD007     566,497 7,573,151   386m    -70   290   278.0m 
   MIDD008     566,880 7,573,889   567m    -80   290   312.0m 
   MIDD009     565,910 7,571,891   318m    -90   000    N/A 
   SODD001     567,481 7,601,155  1,319m   -80   355   287.0m 
   SODD002     567,518 7,600,827  1,240m   -85   095   356.0m 
   SODD003     567,496 7,600,712  1,203m   -70   290   117.0m 
   CADD001     593,237 7,585,297   795m    -70   290    N/A

All coordinates are displayed in WGS84 UTM Zone 25N

Annex 2

JORC Code, 2012 Edition Section 1: Sampling Techniques and Data 


Criteria      JORC Code Explanation                                 Commentary 
Sampling      Nature and quality of sampling (e.g., cut channels,   * Sampling of MIDD008, SODD002 & SODD003 was 
techniques    random chips, or specific specialised industry        conducted using standard industry practices with 
              standard measurement tools appropriate to the         diamond drilling. Magnetic readings were taken 
              minerals under investigation, such as down hole gamma using a Reflex EZ-Trac downhole survey tool. 
              sondes, or handheld XRF instruments, etc.). These 
              examples should not be taken as limiting the broad 
              meaning of sampling. 
              Include reference to measures taken to ensure sample  * Drill-holes MIDD008, SODD002 & SODD003 were 
              representivity and the appropriate calibration of any angled to optimally intersect the interpreted 
              measurement tools or systems used.                    contact with an IP conductor or adjacent to 
                                                                    lithologies of interest. 
              Aspects of the determination of mineralisation that   * Mineralisation in drill-holes MIDD008, SODD002 & 
              are Material to the Public Report. In cases where     SODD003 has not been quantitively determined and is 
              'industry standard' work has been done this would be  awaiting assay. The determination in this report is 
              relatively simple (e.g., 'reverse circulation         qualitative, based on visual observation made by 
              drilling was used to obtain 1 m samples from which 3  the Competent Person who is a geologist on site. 
              kg was pulverised to produce a 30 g charge for fire 
              assay'). In other cases, more explanation may be 
              required, such as where there is coarse gold that has 
              inherent sampling problems. Unusual commodities or 
              mineralisation types (e.g., submarine nodules) may

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August 31, 2021 04:01 ET (08:01 GMT)