AuKing Mining Limited Prospectus

2 2. Additional information - the AmmLeach® Process Set out below is additional information in respect of the AmmLeach® process. 2.1 Introduction 1 The AmmLeach® process was originally developed by UK-based and AIM-listed Alexander Mining plc (now called eEnergy Group plc) ( Alexander ) as part of that company’s proposed development of the Leon copper/silver project in the Salta Province of north-western Argentina. The process utilises ammonia-based chemistry to selectively extract metals from ores. The AmmLeach® process consists of the same three major stages as acid-based processes – that is, leaching, solvent extraction and electrowinning. The leaching occurs in two steps – an ore-specific pre-treatment which converts the metals into a soluble form and the main leaching step, which uses recycled raffinate from the solvent extraction stage. Solvent extraction is then used to separate and concentrate the metals while also changing from ammoniacal media to acid sulphate media from which metals can be directly electrowon using industry standard unit operations. The difference between the AmmLeach® process and acid leaching is that the leaching is conducted in moderately alkaline solution with ammonia present as a complexant. The use of alkaline conditions allows the use of the AmmLeach® process in high-carbonate ores where acid consumption is prohibitive. 2.2 Application at other projects AmmLeach® was the metallurgical process adopted by Alexander as part of a feasibility study that was completed for the proposed development of Leon, Argentina in 2007. Included in the feasibility study project economics were life of mine metal recoveries of 75% for copper and 70% for silver and a project payback of 1.5 years. 2 Alexander signed a mandate with Standard Bank plc, London, to assist with establishing a project loan facility. 3 Following a change of national government in Argentina in October 2007, a 10% export tax on mining operations was imposed – contrary to the 30 year tax stability law of 1989. 4 Alexander continued to seek financial support for the project 4 but it was eventually put into care and maintenance. 5 In 2016, after securing certain licence rights to utilise AmmLeach® in Australia, Accudo proceeded with a testwork program at a copper project in north-western Queensland in the Mount Isa region. Specific details of the project and the activities of Accudo are commercial-in- confidence. However, Accudo has advised the Company that the tests demonstrated successful extraction of copper under a range of AmmLeach® conditions and comparable recoveries to acid leaching with excess sulphuric acid. Accudo representatives have further advised that a commercial transaction involving the use of the AmmLeach® process could not be concluded with the project owners at the time due to an inability to secure project equity funding. 1 “ New leaching technology”, Alexander Mining plc announcement dated 27 July 2007, (https://investegate.co.uk/Index.aspx?searchtype=3&words=AXM&pno=5) , included in accordance with ASIC Corporations (Consent to Statements) Instrument 2016/72 and consent has not been obtained for this statement. 2 ”Corporate update", Alexander Mining plc announcement dated 18 September 2007, (https://investegate.co.uk/Index.aspx?searchtype=3&words=AXM&pno=5) , included in accordance with ASIC Corporations (Consent to Statements) Instrument 2016/72 and consent has not been obtained for this statement. 3 “ New leaching technology”, Alexander Mining plc announcement dated 27 July 2007, (https://investegate.co.uk/Index.aspx?searchtype=3&words=AXM&pno=5) , included in accordance with ASIC Corporations (Consent to Statements) Instrument 2016/72 and consent has not been obtained for this statement. 4 “Leon Project Update”, Alexander Mining plc announcement dated 26 February 2008, (https://investegate.co.uk/Index.aspx?searchtype=3&words=AXM&pno=5) , included in accordance with ASIC Corporations (Consent to Statements) Instrument 2016/72 and consent has not been obtained for this statement. 5 “Operations Update”, Alexander Mining plc announcement dated10 March 2009, (https://investegate.co.uk/Index.aspx?searchtype=3&words=AXM&pno=5) , included in accordance with ASIC Corporations (Consent to Statements) Instrument 2016/72 and consent has not been obtained for this statement.