AuKing Mining Limited Prospectus

Principle number Best practice recommendation Compliance (yes/no) Explanation 7.2 The Board or a committee of the Board should: a. review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound and that the entity is operating with due regard to the risk appetite set by the Board; and b. disclose, in relation to each reporting period, whether such a review has taken place. No The Company’s Risk Management Policy sets the framework for risk management and review of the risk management framework at least annually. The Risk Management Policy has been described in recommendation 7.1. The Board as a whole addresses individual risks as required on an ongoing basis. 7.3 A listed entity should disclose: a. if it has an internal audit function, how the function is structured and what role it performs; or b. if it does not have an internal audit function, that fact and the processes it employs for evaluation and continually improving the effectiveness of its governance, risk management and internal control processes. No The Company is committed to understanding and managing risk and to establishing an organisational culture that ensures risk management is included in all activities, decision making and business processes. The company does not have a formal internal audit function due to its size and business needs. Under the Company’s Audit and Risk Committee Charter, the Board is charged with the review of the Company’s internal controls, A copy of the Company’s Audit and Risk Committee Charter and the Risk Management Policy is available on the Company Website. 7.4 A listed entity should disclose whether it has any material exposure to environmental or social risks and if it does, how it manages or intends to manage those risks. Yes The Company’s Risk Management Policy acknowledges that it has an obligation to Shareholders, employees, contractors, and other stakeholders and the Audit and Risk Management Charter provides for the communication of the Company’s risk management philosophy, policies and strategies to such stakeholders. 11. Corporate Governance continued 226