AuKing Mining Limited Prospectus

Principle number Best practice recommendation Compliance (yes/no) Explanation 1.7 A listed entity should: a. have and disclose a process for periodically evaluating the performance of its senior executives at least once every reporting period; and b. disclose for each reporting period whether a performance evaluation was undertaken in accordance with that process during or in respect of that period. No The Board did not conduct a performance evaluation of senior executives during the last 12 months and has not adopted a performance evaluation policy. The Company believes that the small size of the executive team and the current scale of the Company’s activities makes the establishment of a formal performance evaluation procedure unnecessary. Performance evaluation is a discretionary matter for consideration by the entire Board. In the normal course of events the Board reviews performance of the Management, Directors and the Board as a whole. Achievement of goals and business development and compliance issues are evaluated regularly on an informal basis. 2 Structure the Board to add value 2.1 The Board of a listed entity should: a. have a nomination committee which: 1. has at least three members, a majority of whom are independent Directors; and 2. is chaired by an independent Director; and disclose: 3. the charter of the committee; 4. the members of the committee; and 5. as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or if it does not have a nomination committee, disclose that fact and the processes it employs to address Board succession issues and to ensure that the Board has the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively. No The Board has no formal nomination committee. Acting in its ordinary capacity from time to time as required, the Board carries out the process of determining the need for, screening and appointing new Directors. In view of the size and resources available to the Company, it is not considered that a separate nomination committee would add any substance to this process. The Board Charter sets out the processes the Company employs as regard appointments to the Board and matters regarding successions. The Board Charter is available on the Company Website. AuKing Mining Limited | PROSPECTUS 219