DGAP-News: Conico Ltd. / Key word(s): Drilling Result DRILLING INTERSECTS SULPHIDES AND MAGNETITE IN FIRST HOLE AT SORTEKAP (news with additional features) 2021-08-18 / 09:39 The issuer is solely responsible for the content of this announcement.

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ACN 119 057 457 AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

18 August 2021

HIGHLIGHTS

- Drill-hole SODD001 at the Sortekap Prospect is complete and preliminary investigations show the following zones of interest:

- From 59.2-112.2m downhole

- 2% chalcopyrite

- 121.9-180.0m downhole

- 80% magnetite + 5% disseminated sulphide (pyrrhotite + other)

- 180.7-193.4m downhole

- 80% magnetite

- From 195.2-196.5m downhole

- 30% pervasive sulphide (pyrrhotite + minor chalcopyrite)

- From 200.7-209.8m downhole

- 90% magnetite + 10% disseminated sulphide (pyrrhotite + minor chalcopyrite)

- 214.6-222.0m downhole

- 60% magnetite

- 222.0-223.2m downhole

- 1% disseminated? pentlandite

- 226.6-234.6m downhole

- 2% disseminated? pentlandite

- 234.6-236.7m downhole

- 80% magnetite

- The drill-hole targeted an Induced Polarisation (IP) anomaly from a survey conducted in 2020. The anomaly was satisfied by the presence of sulphide mineralisation identified at target depth.

- Drilling at SODD002 has commenced, targeting the IP anomaly and located 350m south of SODD001.

- Drill-hole MIDD007 at the Miki Prospect is complete, having successfully intersected the Miki Fjord Dyke and zones of copper sulphide mineralisation.

- The aeromagnetic-radiometric survey across the Ryberg Licence area is 100% complete and has identified numerous areas of interest, some of which will be drill-tested in the coming weeks.

Conico Limited (ASX: CNJ) ("Conico" or "the Company") and its wholly owned subsidiary Longland Resources Ltd (" Longland") is pleased to announce preliminary results from completed drill-holes SODD001 & MIDD007, located at the Sortekap and Miki Prospects respectively. Drilling has since commenced at hole SODD002 at Sortekap, and hole MIDD008 at Miki. In addition, the regional magnetic-radiometric survey is now 100% complete and has highlighted multiple areas of interest within the 4,521km^2 Ryberg Project area.

Longland CEO Thomas Abraham-James said: "The find at Sortekap is significant, we are seeing multiple styles of mineralisation all in one drill-hole. The IP survey coupled with surface geochemistry has successfully guided us to a very prospective location that also happens to have the most magnetic readings of all the Ryberg Project area - as indicated by the recently completed regional magnetic survey. This opens up a very large area of interest that we will now be assessing in earnest." Drill-hole SODD001 Drill-hole SODD001 represents the first to ever occur at the Sortekap Prospect, targeting nickel sulphide mineralisation as seen at surface, and a conductive anomaly seen in the 2020 Induced Polarisation (IP) survey. The drill-hole intersected complex geology with preliminary investigations identifying mineralisation in the form of sulphides and massive magnetite (Fig.7).

The collar of the hole was located on serpentinised ultramafic rock, transitioning to massive units of magnetite containing 5-10% disseminated sulphide most of which is chalcopyrite with subordinate pyrrhotite (Fig.1). The massive magnetite begins at 121.9m where it then persists to 236.7m downhole with intermittent pauses in between, after which it then only reappears intermittently. Given the geological setting and preliminary textural analysis, the magnetite is interpreted to be a product of hydrothermal activity overprinting serpentinised ultramafic rock, with extensive remobilisation and recrystallisation of metal-rich phases.

Further down the hole the massive magnetite unit contains relic enclaves of mineralised metavolcanics that host sulphide mineralisation in the form of visible pyrrhotite and chalcopyrite and other unidentified sulphide minerals (Fig.5). Within the massive magnetite unit, the metavolcanics reappear and host semi-massive pyrrhotite, chalcopyrite and possible other sulphide minerals persisting over 1.3m (Fig.2 & 3).

Toward the end of the hole, the magnetite is interspersed with metavolcanics that have undergone significant hydrothermal alteration, resulting in leaching of the host metavolcanic rock and mineralised veins containing sulphides and phyllosilicates (Fig.6).

At 239m the contact between the metavolcanic/ultramafic package and gneiss was reached. Accordingly, the hole was terminated at 287m downhole and drilling of SODD002 has since commenced.

Sortekap Discussion The IP survey is regarded as having successfully identified sulphide mineralisation, with drill-hole SODD001 intersecting sulphides within 10m of the interpreted chargeable anomaly (Fig.8). The IP anomaly will now be re-tested down-dip by at least two additional drill-holes, the first of which is currently underway (SODD002).

The consequent drill-holes are collared in Archaean greenstone amphibolite that is known to host gold in quartz veins at surface. Prior surface sampling yielded grade up to 2.7g/t, with the gold associated with trace sulphides. Each drill-hole will therefore be penetrating two zones of interest, the amphibolite for gold and then the deeper IP anomaly.

The magnetite encountered in SODD001 is massive in form, fine-grained and persists for a combined total of 89.4m downhole. It differs from known deposits in Australia where iron is present mostly in banded iron formation (BIF), instead the magnetite at Sortekap is the result of hydrothermal alteration of serpentinite and is more akin to the long-lived Cogne deposits in Italy, that produced magnetite from the Middle Ages to 1979. In addition to the magnetite, disseminated sulphide mineralisation is present and analysis is awaited to determine what other metals aside from iron may be present.

The preliminary findings at Sortekap are strongly encouraging and the presence of magnetite is something that the IP survey did not identify. The recently competed heli-borne magnetic survey has however identified Sortekap, and a location approximately 13km to the southeast, referred to as Pyramiden, as the most strongly magnetic locations within the entire Ryberg Project area. The combined area of interest covers 75km^2 and is regarded as being highly prospective for additional sulphide and magnetite mineralisation.

Initial reconnaissance of Pyramiden has occurred, with iron oxide readily observed. The geology is known to consist of Archaean metamorphic rocks (such as those seen at Sortekap in SODD001), overlain by 100 million-year old marine shales that have been intruded by mafic sills. Further reconnaissance of this locality is planned, with the intention of locating sites for drilling this field season.

Regional Magnetic-Radiometric Survey The regional heli-borne magnetic-radiometric survey has been successfully completed by New Resolution Geophysics (NRG) of South Africa (Fig.9). They utilised their 'Xcite' system, flying at 200m line spacing, and at 100m spacing over the Sortekap and Miki Prospects, as well at the Togeda Dyke. The data is of high quality, having undergone daily quality control checks by NRG technicians, and weekly checks by consulting geophysicist Kim Frankcombe in Perth.

The regional data represents the first geophysical survey to ever be conducted over the majority of the licence area. It is currently undergoing final processing and interpretation, however preliminary findings have already highlighted areas of significant interest, including magnetism at Sortekap and Pyramiden.

Drill-hole MIDD007 Drill-hole MIDD007 at the Miki Prospect successfully intersected the mafic Miki Fjord Dyke at 144m downhole, transitioning from the country rock gneiss (Fig.10). Preliminary investigation highlighted the presence of copper sulphides (chalcopyrite) present as blebs (up to 5mm diameter) and in veins associated with quartz-carbonate, both of which were in the gabbro (Fig. 11 & 12). The information learnt from this hole is valuable, assisting in determining the orientation of the dyke and will aid future drill-holes such as MIDD008 that has just commenced drilling approximately 800m north-northeast of hole MIDD007.

About the Miki Cu-Ni-Co-Pd-Au Prospect The Miki Prospect is within the Ryberg Project that is located on the east coast of Greenland, approximately 350km NW of Iceland. Conico subsidiary Longland is the 100% owner and operator of the licences that cover an area of 4,521km^2.

The Miki Prospect contains magmatic sulphide mineralisation associated with Tertiary mafic dykes/sills that have intruded Archaean basement gneiss and Cretaceous sediments. There are well developed showings of copper-palladium-gold-rich sulphides at surface, with mineralisation occurring as globular sulphides up to 15 cm in diameter consisting of pyrrhotite and chalcopyrite.

Grab samples by Longland from surface rocks returned up to 2.2% copper, 0.8% nickel, 3.3g/t palladium and 0.15 g/t gold. A second nickel-rich sulphide phase is also present, with surface samples grading up to 0.8% nickel and 0.1% cobalt.

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

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