AuKing Mining Limited Prospectus

Topic Summary For more information What are the key terms of the KP Transaction? Koongie Park Earn-in The Company has entered into an earn-in and joint venture agreement with AAR providing for a two-staged earn-in process whereby the Company can ultimately secure a 75% project interest in the Koongie Park Project. Upon satisfaction of the KP Transaction Conditions, the Company will pay an amount of $900,000 to AAR and upon making that payment will secure a 25% project joint venture interest in the Koongie Park Exploration Tenements. Stage 1 of the earn-in arrangement then involves a firm commitment by the Company to spend $1.5million on drilling, testwork and related exploration and analysis aimed at expanding the existing Koongie Park resources and to demonstrate a commercially viable processing solution on the Koongie Park ores. Stage 1 activities will be carried out over a 24 month period. Upon successful completion of stage 1, the Company will secure a 50% interest in the Koongie Park Joint Venture. At that time, AAR is also obliged to transfer M80/276 and M80/277 to the Koongie Park Joint Venture such that the Company will secure a 50% project joint venture interest in the Koongie Park Tenements. Stage 2 of the proposed Koongie Park Earn-in provides for the Company to secure a further 25% project joint venture interest in the Koongie Park Tenements (taking its total holding to 75%) by funding an additional $1.5million on project development activities over a further 12 month period. Unlike stage 1, the Company is not committed to this funding and can withdraw at any time during the stage 2 process. If this occurs, the Company will continue to hold a 50% joint venture interest in the Koongie Park Tenements. Under the proposed Koongie Park Earn-In, AAR has retained the rights to pursue gold and platinum group metals deposits within the Koongie Park Project area. The acquisition of all interests in the Joint Venture are subject to the Company obtaining any approvals that may be required by the Company at the relevant time under the Foreign Acquisition and Takeovers Act 1975 (Cth). Accudo Technical Services A focus of AKN’s efforts to demonstrate a commercially viable processing solution at Onedin is access to the AmmLeach® processing system. AmmLeach® is a proprietary system that uses an ammonia-based process for leaching oxide and transitional ores that can then be subjected to normal solvent extraction and electro-winning processing. AKN has entered an agreement with Accudo for application of the rights of Accudo in respect of intellectual property and know-how associated with the AmmLeach® process to allow AKN’s metallurgical testwork to be undertaken at Koongie Park ( “IP Service Agreement” ). The initial term of the IP Service Agreement is 2 years and an annual service fee of $130,000 is payable by AKN to Accudo. In the event the Company exercises its rights to proceed to Stage 2 of the Koongie Park Earn-in, the IP Service Agreement will be automatically extended for a further year. Sections 4.8, 12.1 and 12.2. 1. Investment Overview continued 12