AuKing Mining Limited Prospectus

AuKing Mining Limited Solicitor’s Report on Tenements HopgoodGanim Lawyers Page 5 of 46 obligations and may seek a pro-rata reimbursement of the fine from AAR based on the number of days in the Commencement Tenement Year that elapsed prior to 22 November 2020. Amounts reimbursed by AAR will not count towards AKN Sub’s earn- in expenditure. (b) AAR will not be liable to AKN or AKN Sub if a Precious Metals Tenement is forfeited due to non-compliance with the expenditure condition applicable to the Commencement Tenement Year or the Prior Tenement Year. 3.20 In respect of the 2020 expenditure year: (a) AAR has under-expended on the following Precious Metals Tenements and applied for exemptions from the expenditure conditions, which have not yet been determined. (1) E80/4957 was under-expended by $21,100 for the year ending 10 November 2020. AAR applied for an exemption on 8 January 2021 and the exemption application is pending. The timeframe for third parties to object to the exemption application closed on 19 February 2021 and there are no third party objections to the exemption application. If the exemption application is refused and a fine is issued, AAR will be responsible for payment of the fine this non- compliance relates to the Prior Tenement Year under the Earn-in Agreement. (2) E80/5076 was under-expended by $14,457 for the year ending 26 November 2020. AAR applied for an exemption on 22 January 2021 and the exemption application is pending. There are no third party objections to the exemption application. The timeframe for third parties to object closes on 5 March 2021. (3) E80/5087 was under-expended by $12,747 for the year ending 27 November 2020. AAR applied for an exemption on 22 January 2021 and the exemption application is pending. There are no third party objections to the exemption application. The timeframe for third parties to object closes on 5 March 2021. (4) E80/5127 was under-expended by $42,780 for the year ending 26 November 2020. AAR applied for an exemption on 22 January 2021 and the exemption application is pending. There are no third party objections to the exemption application. The timeframe for third parties to object closes on 5 March 2021. (5) E80/5263 was under-expended by $25,329 for the year ending 3 December 2020. AAR applied for an exemption on 1 February 2021 and the exemption application is pending. There are third party objections to the exemption application. The timeframe for third parties to object closes on 15 March 2021. (6) With respect to paragraphs 3.20(a)(2) to 3.20(a)(5) above, if an exemption application is refused and a fine is issued, then AKN Sub will be responsible for payment of that fine (as the relevant non-compliance relates to the Commencement Tenement Year for the purpose of the Earn-in Agreement) but may seek a pro rata reimbursement from AAR under the Earn-in Agreement. (b) E80/4389 was under-expended for the year ending 16 September 2020. AAR applied for exemption from the expenditure condition for the year ending 16 September 2020 but it was refused on 22 February 2021. There are currently no Ministerial or third party forfeiture proceedings on foot. Ministerial forfeiture proceedings will likely commence soon. Under the Earn-in Agreement, AAR will be responsible for payment of any fine issued as this non-compliance relates to the Prior Tenement Year. (c) P80/1802 and P80/1803 were under-expended for the year ending 27 June 2020. AAR applied for exemptions from expenditure conditions for the year ending 27 June 2020 but the applications were refused. Ministerial forfeiture applications were commenced continued 9. S olicitor’s Report on Koongie Park Tenements 160