Conico : Mt Thirsty Drilling Scheduled to Start Early August

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ASX Announcement

20 July 2022

MT THIRSTY DRILLING SCHEDULED TO START EARLY AUGUST

• All relevant approvals have now been received with exploration scheduled to begin in early August
• Multipurpose diamond and reverse circulation drill rig secured for maiden 5,000 metre program
• Programme of Work applications covering both PGE (Platinum, palladium, rhodium, ruthenium, osmium and iridium) and LCT (lithium, caesium, tantalum) targets approved by DMIRS1
• Updated Heritage Agreement signed with Ngadju and heritage survey completed late last week
• Multi-disciplinarytarget generation process nearing completion, with further up- dates to follow
• Galileo's Callisto discovery only 200 metres from northern tenement boundary held by the MTJV
• Prospective mineralised horizon remains untested with a further 1.5km extending 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 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 (50%) and Conico Limited (ASX: CNJ) (50%). Following the recent Callisto discovery by Galileo (GAL, ASX Announcement 11 May 2022) the MTJV have subsequently sought to expedite the maiden exploration campaign testing for southerly extensions of the mineralisation on to the MTJV tenements.

• Department of Mines, Industry Regulation and Safety
  Conico Ltd
  ABN 49 119 057 457

Level 15, 197 St George's Terrace	[phone]	@conico_ltd
Perth, WA 6000	[e-mail]	@ConicoLtd
Australia	www.conico.com.au	conico-limited

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An updated Heritage Agreement with Ngadju covering all licences held by the MTJV has been entered into, with a detailed Archaeological and Ethnographic heritage surveys covering both PGE and LCT targets completed last week. Concurrently Programme of Work (PoW) applications were submitted with the Department of Mines, Industry Regulation and Safety and have subsequently been approved, allowing for up to 10,000 metres of drilling between the two PoW areas.

Finally, a large multipurpose diamond and reverse circulation drill rig has been en- gaged, which will be double-shifted and staffed by multipurpose drillers.

Further details in relation to initial drill targets and priorities are expected next week, with site access works and drill pad preparation also expected to begin next week, ahead of drilling commencing in early August.

Executive Director, Guy Le Page, commented:

"The joint venture partners are looking forward to commencing exploration targeting PGE and LCT mineralisation in early-August. We would also like to acknowledge the Ngadju who have continued to be a supportive partner, proactively working with the Joint-Venture partners to execute an updated heritage agreement and undertake a heritage survey with limited notice.

With the multidisciplinary drill target generation process now nearing completion, and targets being ranked and prioritised, we are excited to be testing the full potential of Mt Thirsty."

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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 minerali- sation 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 off2 and contain palladium, plat- inum, gold, rhodium, copper, and nickel. Significant intercepts from the discovery hole NRC266 drilled by Galileo on their tenure, include3:

• 33 metres @ 2.00g/t 3E4 (1.64g/t Pd, 0.28g/t Pt, 0.09g/t Au), 0.32% Cu & 0.30% Ni from 144m, including;

• 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 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 mineralised horizon onto MTJV tenure supported by geophysics & lithology (GSR, ASX Announcement, 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, Annexure A), the prospective eastern margin remains largely 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.

In addition to the untested PGE potential, the MTJV is undertaking a detailed geological review assessing the western margin of the Mt Thirsty licences for lithium-cae

• Platreef Integrated Development Plan 2020. Ivanhoe Mines Ltd.

• ASX:GAL 12/05/2022

• 3E = Palladium (Pd) + Platinum (Pt) + Gold (Au) in g/t

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sium-tantalum (LCT) potential, with historical drilling and mapping previously documenting pegmatites within the MTJV licence area. Importantly, 150 metres to the west of licences held by the MTJV is the Mt Thirsty pegmatite where Galileo previously reported a series of steeply dipping, north-south trending pegmatites. Six grab samples of micaceous (lepidolite) pegmatite were sampled by Galileo returning an average assay grade of 2.3% Li2O, 1.87% Rb and 476 ppm Ta2055.

This announcement is authorised by the Board of Directors.

- END -

Guy T. Le Page, MAusIMM, FFIN.

Executive Director

Conico Limited

• www.galileomining.com.au/wp-content/uploads/2018/05/GAL-Prospectus.pdf

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Figure 1: MTJV tenure with TMI1VD magnetic image.

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