AuKing Mining Limited Prospectus

A U K ING M INING L IMITED I NDEPENDENT T ECHNICAL A SSESSMENT R EPORT – W ESTERN A USTRALIAN M INERAL A SSETS CSA Global Report Nº R278.2020 7 Table 3: Summary of AuKing’s Western Australian tenements Tenement no. Holder Area Commenced Expiry Annual rent Annual rates Minimum expenditure E80/4389 AAR 7 blocks 17 Sep 2010 16 Sep 2022 $4,305.00 $563.62 $70,000.00 E80/4766 AAR 1 block 13 Jun 2014 12 Jun 2024 $341.00 $562.00 $15,000.00 E80/4957 AAR 7 blocks 11 Nov 2016 10 Nov 2021 $1,631.00 $563.62 $30,000.00 E80/4960 AAR 27 blocks 24 Mar 2017 23 Mar 2022 $6,291.00 $2,173.95 $27,000.00 E80/5076 AAR 11 blocks 27 Nov 2018 26 Nov 2023 $1,518.00 $885.68 $20,000.00 E80/5263 AAR 47 blocks 4 Dec 2019 3 Dec 2024 $6,392.00 $3,784.29 $47,000.00 E80/5087 AAR 5 blocks 28 Nov 2018 27 Nov 2023 $6.90 $562.00 $15,000.00 E80/5127 AAR 57 blocks 27 Nov 2018 26 Nov 2023 $7,866.00 $4,589.46 $57,000.00 M80/276 AAR 220.50 ha 6 Apr 1989 5 Apr 2031 $4,375.00 $8,456.87 $22,100.00 M80/277 AAR 324.40 ha 6 Apr 1989 5 Apr 2031 $6,435.00 $12,397.05 $32,500.00 All tenements are granted and held 100% by AAR. ha = hectare, Block = 1 graticule block (DMIRS tenement system unit of area). Source: Austwide, 2020; DMIRS Tengraph. AAR purchased the Koongie Park project in 1989 from RTZ (Kennecott) and then organised a joint venture (JV) with Billiton Australia commencing December 1989. Under the agreement, Billiton could earn 51% by expending $1.3 million on exploration. Billiton earned its equity but was forced to sell its interest to AAR under a pre-emptive rights clause, when Acacia Resources purchased all of Billiton’s assets in Australia in 1994. In 1995, Lachlan Resources (Lachlan) signed a JV agreement over the area, whereby Lachlan had a three-year option to purchase 51% of the project from AAR with a minimum expenditure commitment of $400,000 in the first year. Lachlan exercised the option and continued exploration until 2002. In June 2002, Lachlan agreed to return all its rights and property in the Koongie Park project to AAR who has continued to hold 100% of the project to date. Numerous exploration licences surrounding the core mining leases have been acquired by AAR in recent years (Chellew, 2020). Consulting archaeologists were engaged by AAR to undertake an archaeological site avoidance survey of the two mining leases in 2008, with the objective to determine the presence of any Aboriginal heritage sites so that no Aboriginal sites are disturbed when work commences on the mining leases. Four Aboriginal archaeological sites were identified, all located in M80/276, with the remainder of the mining lease areas cleared (Nejman, 2008). Agreements are in place with the Kimberley Land Council and AAR for native title, heritage protection and mineral exploration over Ngarrawanji Lands, Koongi-Elvire Lands and Jaru (formerly Lamboo) Lands. AuKing has advised CSA Global that the proposed new JV between AAR and AuKing assumes all the rights and responsibilities under these agreements. 2.4 Regional Geology Rocks of the Koongie Park property are assigned to the Lamboo Province, which is of Palaeoproterozoic age (1910–1805 Ma). They formed within the northwest trending Halls Creek Orogen which is one of two Palaeoproterozoic orogens in the Kimberley region. The Halls Creek Orogen trends northeast, nearly orthogonal to the west-northwest trending King Leopold Orogen (Figure 3). The geology of the region is dominated by the Kimberley Craton in the north, with much younger (Phanerozoic) rocks of the Canning Basin to the south (Figure 3). Rocks exposed in the Kimberley Craton are mostly sediments of Palaeoproterozoic age comprising the Kimberley Group (1805–1740 Ma), the Speewah Group (1835– 1807 Ma) and several minor basins. Figure 5 illustrates the stratigraphy of the region. 6. Independent Technical Report continued 82