AuKing Mining Limited Prospectus

AuKing Mining Limited Solicitor’s Report on Tenements HopgoodGanim Lawyers Page 27 of 46 5.9 None of the information that we have obtained or instructions that we have received indicate that AAR (or previous holders of the Tenements) has breached any of the duties under the MSIA. Crown Reserves 5.10 The Mining Act restricts access to certain Crown lands, such as timber and forest reserves or Crown leasehold (amongst others) without approval. 5.11 The Mining Act permits mining tenements to be applied for and granted in respect of land that is subject to a Crown reserve (such as a national or marine park, nature or timber reserve or water management area), usually subject to the provision of written consent by the Minister and compliance with any specific procedures peculiar to the type of underlying reserves (sections 23, 24, 24A and 25 of the Mining Act). 5.12 Section 24(1)(e) of the Mining Act provides that areas covered by water reserves or other related reserves may be mined with the written consent of the Minister who will consult with the Minister responsible for the administration of that reserve (section 24(3A),(3B) of the Mining Act). 6. Native title Commonwealth native title law 6.1 The NT Act prescribes a regime by which persons claiming to hold native title may lodge a claim to that effect for determination; by which any future act affecting native title (such as the grant of mining tenements) may be validly undertaken; and by which registered claimants may be afforded certain procedural rights including the ‘right to negotiate’. 6.2 Under the NT Act, native title can be confirmed to have been either totally or partially extinguished by certain grants. These grants are called Previous Exclusive Possession Acts or Previous Non-Exclusive Possession Acts, respectively. 6.3 Previous Exclusive Possession Acts are considered to be so inconsistent with the continued enjoyment of native title rights that they completely extinguish native title, and once extinguished, native title cannot revive. Relevantly, a grant will be a Previous Exclusive Possession Act and therefore will have extinguished native title where it: (a) is valid; and (b) took place on or before 23 December 1996; and (c) consists of the grant or vesting of any of the following: (1) a Scheduled Interest; (2) a freehold estate; (3) a commercial lease that is neither an agricultural lease nor a pastoral lease; (4) an exclusive agricultural lease or an exclusive pastoral lease; (5) a residential lease; (6) a community purposes lease; continued 9. S olicitor’s Report on Koongie Park Tenements 182