AuKing Mining Limited Prospectus

AuKing Mining Limited Solicitor’s Report on Tenements HopgoodGanim Lawyers Page 24 of 46 Programme of Works 4.69 An applicant for a mining lease, exploration licence (or any extension thereof) or prospecting licence must submit a work programme for the tenement (sections 82, 55A and 58 of the Mining Act and regulation 23A of the Mining Regulations). Furthermore, as mentioned above, it is a deemed standard condition of a mining lease, exploration licence and prospecting licence that the tenement holder does not use ground disturbing equipment until a programme of work has been lodged and approved in writing by the Minister. 4.70 The Mining Act and Mining Regulations do not prescribe any other requirements for a programme of works. The Mining Act is also silent about what effect failure to comply with a programme of works has on a mining lease exploration licence, or prospecting licence and the Mining Regulations do not prescribe a particular form of programme. Additionally, there are no conditions to the grant of any of the Tenements which require compliance with a programme of works. 4.71 Nevertheless, as a matter of policy, non-compliance with any aspect of a programme of works is likely to be viewed harshly and may be a factor influencing the Minister or mining warden upon exercise of their broad discretions under the Mining Act. For instance, non-compliance with any work programme may be a relevant factor when considering whether to extend the term of a particular tenement. WA Environmental requirements 4.72 We note that environmental due diligence is outside the scope of this report and we were not instructed to carry out any environmental due diligence. However, we provide the following information as a general guide to environmental requirements relating to the Tenements. 4.73 The Environmental Protection Act 1986 (WA) ( EP Act ) regulates activities that are likely to have an impact on the environment. 4.74 Part IV of the EP Act sets out the regime for the referral and assessment of proposals likely to have a significant effect on the environment. Section 38 provides that any person may refer a ‘significant proposal’ (being a proposal likely to have a significant effect on the environment) to the EPA for assessment. The words ‘significant effect’ are not defined by the EP Act and therefore assume their natural and ordinary meaning. 4.75 Upon referral the EPA will decide either that (sections 39A and 40 of the EP Act): (a) no assessment is required; (b) a public environment review is required; or (c) assessment on proponent information only is sufficient. 4.76 If the EPA assesses a proposal, it will prepare an assessment tenement report on the proposal and give that tenement report to the Minister (section 44 of the EP Act). After publishing the tenement report and consulting within the Government, the Minister will decide whether or not to implement the proposal and will publish a statement to that effect (section 45 of the EP Act). Where a proposal is approved, the proponent must implement the proposal in accordance with the statement (and any conditions thereto), otherwise it will commit an offence (section 47(1) of the EP Act). 4.77 Part V of the EP Act sets out pollution and environmental harm offences. Under this Part, it is an offence to intentionally or with criminal negligence cause pollution (whether waste, odour, noise, electromagnetic waves etc.) or emit unreasonable emissions from any premises (section 49 of the EP Act). The Part also sets out offences for: AuKing Mining Limited | PROSPECTUS 179