AuKing Mining Limited Prospectus

Topic Summary For more information (e) COVID-19 impact risk The global economic outlook is facing uncertainty due to the current COVID-19 pandemic, which has been having, and is likely to continue to have, a significant impact on global capital markets, the price of commodities and foreign exchange rates. Upon commencement of operations by the Company at Koongie Park, should any company personnel or contractors be infected, it could result in the Company’s operations being suspended or otherwise disrupted for an unknown period of time, which may have an adverse impact on the financial condition of the Company. Supply chain and service disruptions resulting from the COVID-19 pandemic and measures implemented by governmental authorities (such as travel bans and quarantining) may, in addition to the general level of economic uncertainty caused by COVID-19 pandemic, also adversely impact the Company’s operations, financial position and prospects. (f) Exploration and evaluation risk The future value of the Company will depend on its ability to find and develop sufficient resources that are economically recoverable within the Koongie Park tenure portfolio. Mineral exploration and development is inherently highly speculative and involves a significant degree of risk. There is no guarantee that economic mineralisation will be found, and if found, that it will be economic to extract these resources or that there will be commercial opportunities available to monetise these resources. The circumstances in which a mineral deposit becomes or remains commercially viable depends on a number of factors. These include the particular attributes of the deposits, such as size, grade, metallurgy, strip ratios and proximity to infrastructure as well as external factors such as supply and demand. This, along with other factors such as maintaining title to tenements and consents, successful design construction, commissioning and operating of projects and processing facilities may result in projects not being developed, or operations becoming unprofitable. Furthermore, while the Company has confidence in the future prospects of the Koongie Park Tenements, should those tenements not prove profitable and the Company is unable to secure new exploration areas and resources, there could be a material adverse effect on the Company’s prospects and its future success. (g) Access to Accudo’s AmmLeach® Rights The IP Services Agreement between the Company and Accudo (see Section 12.3) provides for the Company to have access to Accudo’s rights to the AmmLeach® processing technology during the course of the conduct of the metallurgical testwork activities. In the event the testwork is successful and the Company seeks to proceed with further development at Koongie Park (using the AmmLeach® process), a further commercial agreement will need to be negotiated with Accudo. The Company believes that the development of a mining operation at Koongie Park (using the AmmLeach® processing technology) will be consistent with Accudo’s commercial objectives. However, there remains a risk that the Company and Accudo may not be able to reach agreement on suitable commercial terms. 1. Investment Overview continued 16