CNJ: Mt Thirsty Exploration Update

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ASX Announcement

16 June 2022

MT THIRSTY EXPLORATION UPDATE

• Geological review continues following recent PGM discovery by Galileo Min- ing Ltd (ASX: GAL) at Callisto.
• Highly experienced team of independent technical experts appointed to sup- port target generation.
• Multipurpose diamond and reverse circulation drill rig confirmed for maiden 5,000 metre program.
• Pending the receipt of PoW applications and heritage approvals, drilling is expected to begin in late July.
• Galileo's Callisto discovery only 200 metres from northern tenement boundary held by the MTJV.
• Continuity of the prospective mineralised horizon onto MTJV tenure supported by geology & geophysics.
• Prospective mineralised horizon remains untested with a further 1.5km extend- ing onto MTJV tenure.

Conico Limited (ASX: CNJ) (Conico or the Company) is pleased to provide an update on the Mt Thirsty Joint Venture (the MTJV) following from the recent palladium-platinum-gold-copper-nickel discovery by Galileo Mining Ltd (ASX: GAL) (Galileo) located less than 200 metres from the northern tenement boundary held by the MTJV. The MTJV is located 16 kilometres North-Northwest of Norseman, Western Australia and is owned by Greenstone Resources Limited (50%) and Conico (ASX: CNJ) (50%).

Following the recent Callisto discovery by Galileo (GAL, ASX Announcement 11 May 2022) the MTJV have subsequently appointed an independent team of multidisciplinary technical experts to support the target generation process and in doing so providing the best chance of defining projected along strike extensions to Callisto, consisting of:

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• Steve Beresford. Career geologist and academic with over 25 years' experience in the exploration and target generation of sulphide hosted deposits, having formally held the Chief Geologist role for IGO, First Quantum Minerals and MMG. More re- cently, Mr Beresford was appointed Chairman of the Board for the Centre of Explo- ration Targeting where he is considered a foremost expert on nickel mineral systems and exploration targeting models. Mr Beresford holds a PhD (Geology) from the Uni- versity of Canterbury.
• Tony Donaghy. Expert in the global search for nickel, copper, cobalt, and platinum group elements, having formally held senior roles with BHP, Anglo American and Fal- conbridge. Mr Donaghy has over 25 years' experience covering grassroot target generation and exploration, supported by a multidisciplinary approach understand- ing the importance of geology, geochemistry, and geophysics. More recently, Mr Donaghy currently serves as the Technical Director for CSA Global, an internationally renowned geological and mining consultant. Mr Donaghy holds a BSc (Hons) (Geol- ogy & Geophysics) from the University of Tasmania.
• Barry de Wet. Geophysicist with over 45 years' multi-disciplinary experience in mineral exploration, including the exploration and extension of the Platreef orebody in South Africa through the application of MVI and Falcon AGG inversions. Mr de Wet was formally the Chief Geophysicist for both BHP and Ivanhoe and during such time gained considerable experience in acquisition, processing, and identification of tar- gets from magnetics, gravity, induced polarisation, and seismic data. Mr de Wet holds a BSc (Geology and Geophysics) from the University of Pretoria and an MBA (equiv) from the University of South Africa.

In conjunction with the MTJV geological teams, this team will leverage of the extensive geological database of historical information to form a multidisciplinary approach to exploration at the MTJV by reviewing the potential lithological, structural, geochemical and geophysical controls on mineralisation.

EXPLORATION UPDATE

• Multidisciplinary geological review targeting Platreef analogues expected to be completed early-July
• Program of Work (PoW) applications submitted with DMIRS and are anticipated within the next 2-4 weeks
• Notification of ground disturbing activities submitted with Ngadju, and heritage ap- proval expected in July

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• Multipurpose diamond and reverse circulation drill rig confirmed for an initial 5,000 metre program
• Pending the receipt of PoW applications and heritage approvals, drilling is expected to begin in late July

BACKGROUND & TECHNICAL DISCUSSION

Galileo recently announced (GAL, ASX Announcement, 11 May 2022) the completion of six reverse circulation drillholes at Callisto targeting a mineralised sulphide unit on the contact between an ultramafic sill and a package of sedimentary rocks. An initial appraisal of the results from Callisto by Galileo indicates similarities in mineralisation style to the Platreef deposits on the northern limb of the Bushveld Complex in South Africa. The Platreef deposits are very large in nature and have combined indicated resources of >700Mt at a 1 g/t 3PE+Au cut off1 and contain palladium, platinum, gold, rhodium, copper, and nickel. Significant intercepts from the discovery hole NRC266 drilled by Galileo on their tenure, include2:

• 33 metres @ 2.00g/t 3E3 (1.64g/t Pd, 0.28g/t Pt, 0.09g/t Au), 0.32% Cu & 0.30% Ni from 144m, including;
  o 6 metres @ 2.69g/t 3E (2.21g/t Pd, 0.37g/t Pt, 0.11g/t Au), 0.41% Cu & 0.36% Ni from 159m; and

1. 1 metre @ 3.21g/t 3E (2.66g/t Pd, 0.41g/t Pt, 0.14g/t Au), 0.48% Cu & 0.46% Ni from 176m.

Importantly for the MTJV, Galileo's recent discovery at Callisto is only 200 metres from the northern tenement boundary held by the MTJV with the extension of the prospective min- eralised horizon onto MTJV tenure supported by geophysics & lithology (GSR, ASX An- nouncement, 16 May 2022). Despite extensive shallow drilling over the Mt Thirsty resource area (JORC Inferred and Indicated Resources of 26.9Mt at 0.126% cobalt, and 0.54% nickel, see Annexure A), the prospective eastern margin remains untested (Figure 1) with only 3.5% of all holes drilled at Mt Thirsty penetrating deeper than 100 metres, also noting Galileo's discovery hole was from 144 metres downhole. As such, an initial review indicates that a further 1.5km of the prospective mineralised horizon may extend onto the MTJV tenure.

For and On Behalf of the Board

- END -

Guy Le Page, FFIN, MAusIMM

Executive Director

1. Platreef Integrated Development Plan 2020. Ivanhoe Mines Ltd.
2. ASX: CNJ 12/05/2022
3. 3E = Palladium (Pd) + Platinum (Pt) + Gold (Au) in g/t

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Figure 1: MTJV tenure with TMI1VD magnetic image

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ABOUT MT THIRSTY

The Mt Thirsty Joint Venture (MTJV) is located 16 kilometres North-Northwest of Norseman, Western Australia (50% Greenstone Resources, 50% Conico).

The Project contains the Mt Thirsty cobalt-nickel oxide deposit with a JORC Resource of 26.9Mt at 0.126% cobalt, and 0.54% nickel4. A Pre-Feasibility Study (PFS) of the Project was completed and announced to the ASX on 20 February 2020. In addition to the Co-Ni oxide deposit, the Project also hosts nickel sulphide mineralisation potential.

Figure 2: Location of Mt Thirsty project

4 ASX: CNJ 09/09/2019

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