AuKing Mining Limited Prospectus

Topic Summary For more information (l) Material arrangements AKN has entered various material arrangements which are important to the future of the Company. Key material arrangements are set out in Section 12 of the Prospectus. Any failure by counterparties to these arrangements, or any other arrangements identified in this Prospectus, to perform their obligations under such material arrangements may have a material adverse effect on the Company, and there can be no assurance that the Company would be successful in attempting to enforce any of its rights through legal action. (m) Mining Tenements The Company’s future exploration and development activities are dependent upon the grant, or as the case may be, the maintenance of appropriate licences, concessions, leases, permits and regulatory consents which may be withdrawn or made subject to limitations. The maintaining of tenements, obtaining renewals, or getting tenements granted, often depends on AKN being successful in obtaining the required statutory approvals for its proposed activities and that the licences, concessions, leases, permits or consents it holds will be renewed as and when required. For several years, while generally kept in good standing, the statutory exploration commitments across the existing portfolio of tenements comprising the Koongie Park Project have, in many cases, not been met by the current holder. Even though the Company intends to commit significant exploration expenditure at Koongie Park there is significant risk associated with the Company’s ongoing ability to retain the portfolio in its current form. Furthermore, no assurance that tenement renewals will be given as a matter of course and there is no assurance that new conditions will not be imposed in connection with any renewal. (n) Resource estimation Mineral resource estimates and exploration targets are expressions of judgement based on knowledge, experience and industry practice. There are inherent risks associated with such estimates, including that ore eventually recovered may be of a different grade, tonnage or strip ratio from those adopted in the model used. These estimates also depend to some extent on interpretations and geological assumptions which may ultimately prove to be unreliable. Fluctuations in commodity prices, costs and other market factors may subsequently alter a resource estimation. Accordingly, adverse changes to the assumptions underpinning mineral resource estimates or exploration targets would likely negatively impact the value of the Koongie Park Tenements and thereby the Company’s prospects. (o) Environmental risks – exploration and mining activities The operations and proposed activities of AKN will be subject to environmental laws and regulations. As with most exploration projects and mining operations, AKN’s activities are expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. AKN will attempt to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws. 1. Investment Overview continued 18