AuKing Mining Limited Prospectus

12.10 Long Term Convertible Notes The Company has previously entered into a series of agreements providing for the issue of convertible notes (or loans on substantially the same commercial terms as the convertible notes) which have now been varied to be as follows: a. a face value of $1 per note; b. interest is payable at 10% per annum, payable quarterly, in arrears; c. redeemable in cash or convertible into AKN shares on the maturity date of 30 April 2021 or upon Completion (whichever is earlier) at the election of the holder; and d. if converted into AKN shares, the issue price was to be calculated as a 25% discount to the 20 trading day VWAP for the Company’s shares prior to the date of conversion, however each of the holders have indicated their intention to convert their notes into Shares at an issue price of 15c per share. A total of 533,000 Long Term Convertible Notes has been issued by the Company to the following parties: a. Saralau Pty Ltd – 100,000 notes (Saralau Pty Ltd is unrelated to any Director or proposed Director of the Company); b. N&M Greenhalgh Super Fund – 200,000 notes (N&M Greenhalgh Super Fund is unrelated to any Director or proposed Director of the Company); c. Paul Williams Super Fund – 75,000 notes; d. Peter Tighe Super Fund – 150,000 notes; and e. Robert Yang Family Trust – 8,000 notes. This will give rise to the issue of 3,553,333 Shares. The issue of Shares as a consequence of conversion is the subject of resolutions for approval at the General Meeting. 12.11 Short Term Convertible Notes To assist the Company with the costs associated with this Prospectus, the General Meeting and other activities relating to securing approval from ASX for re-admission to Official Quotation, the Company has recently raised an additional $650,000 in funds by way of an issue of short-term convertible notes on the following terms: a. Face value of $1 per note; b. Interest is payable at 10% per annum, payable quarterly, in arrears; c. subject to Shareholder approval, convert into Shares upon the proposed re-admission of the AKN Shares to the ASX; d. redeemable in cash at any time on or before the maturity date of 31 December 2021; and e. if converted into AKN shares, the issue price is an effective price of 12c per Share (representing a discount of 40% to the issue price of Shares under this prospectus). AuKing Mining Limited | PROSPECTUS 237