AuKing Mining Limited Prospectus

Principle number Best practice recommendation Compliance (yes/no) Explanation 4 Safeguard integrity in corporate reporting 4.1 The Board of a listed entity should: a. have an audit committee which: 1. has at least three members, all of whom are non-executive Directors and a majority of whom are independent Directors; and 2. is chaired by an independent Director, who is not the chair of the Board; and and disclose: 3. the charter of the committee; 4. the relevant qualifications and experience of the members of the committee; and 5. in relation to each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or b. if it does not have an audit committee, disclose that fact and the processes it employs that independently verify and safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the external auditor and the rotation of the audit engagement partner. No The Board has not formally established an audit and risk committee as the Directors consider that the Company is not of a size nor are its affairs of such complexity as to justify the formation of an audit and risk committee. The Board considers that it is able to efficiently and effectively oversee, without establishing a separate audit and risk committee, the corporate reporting process, and the Company’s risk management framework. In doing so, the Board will be guided by the Corporate Governance Charter, which can be accessed on the Company’s Website. The Company will review this position annually and determine whether an audit and risk committee needs to be established. The Company believes that given the size and scale of its operations, non-compliance by the Company will not be detrimental to the Company. 11. Corporate Governance continued 222