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 Criteria Commentary Orientation of data in relation to geological structure The orientation of the drillholes is orthogonal to the strike of mineralisation and limits the amount of bias in drill sampling as much as possible. The Competent Person considers the orientation of drillholes with respect to the attitude of the lithologies and/or structures hosting mineralisation was sufficient to support the reporting of the Mineral Resource. Sample security Following the sampling procedures carried out at the drill site, the samples were transported by company personnel to the project sample yard in Halls Creek, where the diamond core samples were prepared, and all samples bagged and ticketed. All samples were placed in large poly-weave bags for road transportation to the analytical laboratory in Perth by a local courier service. T he Competent Person considers the security of sample data through the sampling and analytical processes was sufficient to support the reporting of the Mineral Resource. Audits or reviews All historical drill samples were geologically relogged in 2006 by CSA Global personnel, to remove inconsistencies in logging as had been noted by AAR personnel. No reviews are known to have been carried out for sampling procedures. The Competent Person was provided a level of comfort following a review of reports compiled during the time of drilling and sample analyses. Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section) Criteria Commentary Mineral tenement and land tenure status The Koongie Park tenure package comprises 10 tenements with two mining leases and eight exploration licences. The total tenement area is approximately 507 km 2 . AuKing Mining Limited (AuKing) has purchased the rights to base metal for these tenements from the holder AAR. The rights to gold deposits is retained by AAR, with the rights to gold associated with predominantly base metal deposits with AuKing. The primary mineral assets, the Onedin and Sandiego copper-zinc-gold- silver deposits, lie within the granted mining leases M80/277 and M80/276, which expire in 2031. Exploration done by other parties The Koongie Park project area has been explored for base and precious metals on an intermittent basis since 1972. In 1972–1977, Kennecott pegged tenements over known copper-lead-zinc gossans as part of its Gordon Downs 3 project. Work included geological and structural mapping, rock chip and soil sampling, diamond and percussion drilling. This work outlined significant base metal mineralisation hosted by chert, banded iron formations and carbonate rich assemblages at Onedin, Sandiego, Hanging Tree and Gosford. Drilling immediately followed at these four prospects, with 29 RC holes with diamond tails, with the most significant deposit defined from this work at Sandiego. During 1978–1979, Newmont continued testing the known mineralisation, using extensive trenching, percussion and diamond drilling, detailed geophysics including ground magnetic surveys and low level aeromagnetic surveys, which failed to locate significant extensions of the mineralisation in the known prospects. In 1980, North Broken Hill concentrated on testing the supergene enriched zone at the base at the Sandiego prospect. In 1983–1988, Asarco Australia Ltd carried out rotary air blast (RAB) drilling in the Mimosa sub- member, along strike of the known mineralisation, locating several significant geochemical anomalies, although not of sufficient grade to support a Mineral Resource estimate. The drilling was to fixed depth and only the bottom of the hole was sampled. Asarco also completed limited work on the supergene gold and base metal potential at Sandiego. This work indicated a resource at Sandiego of 0.33 Mt of supergene ore at 6.7% Cu and 288 g/t Ag and 4.3 Mt of primary ore grading 0.5% Cu, 0.8% Pb, 7.9% Zn and 31 g/t Ag. Limited testing was undertaken for gold in the sulphide deposits. In 1988–1989, BP Minerals and RTZ Mining went into a joint venture (JV) with Asarco and continued testing the gold potential by re-assaying split core samples for gold, which did not identify any significant base metal mineralisation. RTZ Mining sold the property to AAR in 1989. In 1989–1994, Billiton Australia and AAR identified extensions of known mineralisation at Onedin. Billiton carried out a broad-based exploration program including limited RC and diamond drilling. A grade-tonnage estimate for the Onedin prospect was prepared, for 1 Mt @ 11% Zn, 1% Cu and 1% Pb. AuKing Mining Limited | PROSPECTUS 131