AuKing Mining Limited Prospectus

AuKing Mining Limited Solicitor’s Report on Tenements HopgoodGanim Lawyers Page 25 of 46 (a) dumping or discharging waste (which may affect the public or cause pollution) (sections 49A and 50 of the EP Act); (b) committing ‘material environmental harm’ (environmental harm that is not trivial or negligible, or involves actual or potential property loss of more than $20,000) (section 50B of the EP Act); (c) committing ‘serious environmental harm’ (environmental harm that is irreversible or on a wide scale, or in an area of high conservation value or significance, or results in actual or potential property loss of more than $100,000) (section 50A of the EP Act); and (d) the unauthorised clearing of native vegetation (section 51C of the EP Act). 4.78 The EP Act provides for certain defences to these offences (sections 74-76 of the EP Act). 4.79 We have not conducted searches of the EPA website and list of proposals to confirm if the Koongie Park Project has been referred to the EPA. 4.80 We have not conducted searches of current and historical environmental and planning approvals relating to the Tenements. 4.81 Some of the standard and specific conditions attached to the Tenements impose environmental requirements upon the holders of the Tenements. The more important of these obligations include compliance with the relevant mining proposal and mine closure plans obtaining the consent of an officer of DMIRS or the Minister before interfering with the surface of land (under an approved works programme) or carrying out activities on or near specified sites or reserves, rehabilitating the land within six (6) months and removing waste. Contaminated Sites 4.82 We have not carried out any contaminated sites searches or considered any potential contaminated sites issues on the Tenements because environmental due diligence is outside the scope of this report. We provide the following information as a guide only to the law regarding contaminated sites. 4.83 In general terms, the Contaminated Sites Act 2003 (WA) ( CSA ) requires a person to report any area known or suspected to be contaminated, or commit an offence punishable by fines of up to $250,000.00, and a daily penalty of $50,000.00 (section 11 of the CSA). 4.84 The CEO of the Department of Environment and Conservation ( DEC ) must classify the contaminated site. If the site is classified as requiring remediation, responsibility to remediate generally lies with the person responsible for causing the contamination. 4.85 Occupiers of land who seek to change the use of contaminated land assume liability for any remediation required to enable the new use (section 26 of the CSA). If the Tenements have contaminated sites, and remediation is required by the DEC, the holder may become responsible for remediation of that contamination. Overlapping Tenements and Tenure 4.86 The Mining Act provides that the granted area of a mining lease, exploration licence or a prospecting licence will not include any land the subject of a current mining tenement (other than a miscellaneous licence). However, a miscellaneous licence may be granted over another miscellaneous licence or another tenement and vice versa. 4.87 Section 117(2) of the Mining Act provides that each grant of a mining tenement shall be deemed to contain an express reservation of the rights to which the holder of the existing continued 9. S olicitor’s Report on Koongie Park Tenements 180