AuKing Mining Limited Prospectus

13.7 Restricted Securities The ASX will make a determination as to the securities of the Company that will be Restricted Securities. The Company intends to make submissions with respect to the securities to be classified as Restricted Securities, however, the number and length of restriction will ultimately be determined by the ASX. The Directors expect that ASX will classify the following securities as Restricted Securities: Description of Securities Number of Securities Period of Restriction Securities proposed to be issued in payment of interest on the JCHX Loan 1,000,000 24 months from the Re-admission Date Securities proposed to be issued to Existing Directors in lieu of unpaid Directors’ fees 2,519,930 24 months from the Re-admission Date Securities proposed to be issued to related parties on conversion of the Long Term Convertible Notes 388,333 24 months from the Re-admission Date Securities proposed to be issued to unrelated parties on conversion of the Long Term Convertible Notes 500,000 12 months from the date of issue of the respective Long Term Convertible Notes to the unrelated parties Securities proposed to be issued to related parties on conversion of the Short Term Convertible Notes 333,333 24 months from the Re-admission Date Securities proposed to be issued to unrelated parties on conversion of the Short Term Convertible Notes 2,166,666 12 months from the date of issue of the respective Short Term Convertible Notes to the unrelated parties Securities proposed to be issued to the Lead Manager as part of the Lead Manager’s fees 187,500 24 months from the Re-admission Date Securities proposed to be issued to members of Management in lieu of unpaid salaries and entitlements 615,690 12 months from the date the securities are issued to the members of Management Total 7,711,453 Based on the above information (assuming the Company’s submissions to ASX are successful and minimum subscription is achieved), the Company expects up to 13.95% of the Company’s Shares will be subject to ASX- imposed escrow for up to 24 months from date of re-listing. Chapter 9 of the Listing Rules precludes holders of Restricted Securities from disposing of or otherwise dealing with any of those securities or an interest in those securities or agreeing to dispose of those securities or an interest in those securities, for the relevant restriction periods. The holder will also be precluded from granting a security interest over those securities. In accordance with Chapter 9 of the Listing Rules, the Company may allow the removal of a holding lock on the Restricted Securities to enable the holders of the Restricted Securities to accept an offer under a takeover bid in certain circumstances or to have their Restricted Securities transferred or cancelled as part of a merger by way of scheme of arrangement under Part 5.1 of the Corporations Act . ASX may review these restrictions during consideration of the Company’s application for re-compliance with Chapters 1 and 2 of the Listing Rules. ASX may also, at its discretion, waive or vary the requirements in accordance with the Listing Rules in the event that an affected holder and the Company apply for a review of any escrow restrictions. 13. Additional Information continued 244