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 Estimation and modelling techniques Coffey updated the Mineral Resource in 2010 and authored a Mineral Resource report discussing all relevant sampling, geological, and statistical aspects supporting the Mineral Resource, along with discussion on grade interpolation and classification. Coffey reported a Mineral Resource which AAR reported to the market in 2010. Vulcan was used for the geological modelling, block model construction, grade interpolation and validation. Isatis was used for variography. A block model with block sizes 5 m (X) x 10 m (Y) x 10 m (Z) was constructed. Sub-celling was used. The block sizes are approximately half the tightest drill spacing. Blocks were flagged according to the weathering and mineralisation envelopes. Drill sample data were flagged by the mineralisation, lithological and weathering domain envelopes. Drillholes were sampled at 1 m intervals and the drill samples were composited to 2 m lengths. Composited sample data were statistically reviewed to determine appropriate top-cuts, with top- cuts applied for zinc, copper, silver, and gold where required. Log probability plots were used to determine the top cuts, and the very high-grade samples were reviewed in Datamine by the Competent Person to determine if they were clustered with other high-grade samples. Sample populations were split by the copper and zinc mineralisation domains, as supported by a statistical analysis of assay data. The composited drill samples were input into variogram modelling. Downhole and directional variograms were modelled for zinc and copper within the combined mineralisation domains and by weathering profile. Low relative nugget effects were modelled, with short ranges approximately 25 m for zinc and copper. Grade interpolation used ordinary kriging (OK) for the zinc, copper and lead grade variables and inverse distance squared (IDS) for the silver and gold grade variables. All sub-blocks were assigned the grade of their parent block. Cell discretisation was used in each estimate. A sample search ellipse of 20 m x 20 m x 8 m (perpendicular to strike) was used, with a minimum of eight samples and maximum of 36 samples used to interpolate grade into any one block. A minimum of seven samples per drillhole was used for grade interpolation. Search radii were increased, and the minimum number of minimum samples reduced in subsequent sample searches if cells were not interpolated in the first pass. Octant searches were not used. Grades were not estimated into the waste domains. The interpolated grades were validated by way of review of cross sections (block model and drill samples presented with same colour legend); swath plots, and comparison of mean grades from drillhole data with block model grades. The Competent Person considers the procedures used to construct the block model and interpolate grades are appropriate for the style of mineralisation and reflect industry accepted practices. Moisture Tonnages are estimated on a dry basis. Cut-off parameters The Sandiego Mineral Resource is reported above a cut-off grade of 3% Zn for the zinc and mixed zinc-copper zones; and above a cut-off of 0.8% Cu for the copper zone. Mining factors or assumptions In 2007, Holly Mining & Associates and Brian Speechley were commissioned by AAR to undertake a preliminary mining assessment of the Sandiego and Onedin deposits. This study established two potential mining operations: underground only at both Sandiego and Onedin; and an open pit operation at Onedin. No major mining problems were identified in this study; however, further work was subject to metallurgical recoveries. In 2008, internal mining study work by AAR focused on underground mining of the sulphide and transition zones at Sandiego, with construction of a 500 tpa processing plant (using flotation technologies) with a 4–5 year operating life with Onedin development having the capacity to extend project life to eight years mining Sandiego transition and sulphide ore. A conceptual study was also completed on open pit mining of Onedin base on conceptual metallurgical recoveries. In 2010, AAR engaged Dempers and Seymour (D&S) to complete a preliminary geotechnical model for Sandiego based on geotechnical diamond drilling results. The geotechnical assessment involved construction of a 3D Mining Rock Mass Model for the prospect and determination of preliminary geotechnical parameters for use in mine design studies. Raw data for the project comprised geotechnical and structural logging by D&S of 23 diamond holes. For the underground project, the rock mass has been classified into three geotechnical domains based on estimated Q’ values. Preliminary inter-ramp slope angles (excluding ramps) for the prospect were developed for use is pit design studies. In 2011, Minesure undertook a scoping study on mining the Sandiego deposit. It concluded that exploitation of the Koongie Park Sandiego deposit by open pit and underground mining methods AuKing Mining Limited | PROSPECTUS 135