AuKing Mining Limited Prospectus

(c) JCHX and Director Shares E ach of JCHX and the Existing Directors have agreed to enter into voluntary restriction agreements in respect of the total 10,019,970 Shares to be issued to them under the Approval Resolutions for the repayment of the JCHX Loan and director fees and salaries, some of which may also be classified as Restricted Securities by ASX. The voluntary restriction will be for a period of two years from the date of re-admission to Official Quotation of the Shares on the ASX. It is noted that Shares to be issued to convert the Williams Convertible Notes and the Yang Convertible Notes will not form part of the voluntary restriction arrangements, but may be partially escrowed by ASX. Further details are set out in section 13.7. The Company will apply for the Official Quotation of any Shares which are Restricted Securities and any Shares that are issued and allotted pursuant to the exercise of any of the Restricted Securities, at the end of their respective escrow period. 2.13 Dividend policy The Company is a junior explorer and anticipates that significant expenditure will be incurred in the evaluation and development of the Koongie Park Project. These activities, together with the possible acquisition of interests in other projects, are expected to dominate the period following the date of this Prospectus. Accordingly, the Company does not intend to declare a dividend in the coming financial year. Any future determination as to the payment of dividends by the Company will be at the discretion of the Directors and will depend on the availability of distributable earnings and operating results and financial condition of the Company, future capital requirements and general business and other factors considered relevant by the Directors. The Company gives no assurance in relation to the payment of dividends or franking credits attaching to dividends. 2.14 CHESS The Company participates in the Clearing House Electronic Subregister System, known as CHESS. ASX Settlement Pty Ltd, a wholly owned subsidiary of ASX, operates CHESS in accordance with the Corporations Act , the Listing Rules and the ASX Settlement Rules. Under CHESS, Applicants will not receive security certificates if they are issued Shares, but will receive a statement of their holding indicating the issue of Shares pursuant to acceptance of the Public Offer. If an Applicant is broker sponsored, ASX Settlement Pty Ltd will, after issue, send that Applicant a CHESS statement setting out the number of Shares allotted to the Applicant under the Prospectus. If an Applicant is registered on the Issuer Sponsored Subregister, the Applicant’s statement setting out the number of Shares allotted to the Applicant under the Prospectus will be dispatched by the Share Registry. A CHESS statement or Issuer Sponsored statement will be routinely sent to Shareholders at the end of any calendar month during which the balance of their shareholding changes. Shareholders may request a statement at any other time. However the Company may charge an administration fee for additional issuer sponsored statements. AuKing Mining Limited | PROSPECTUS 35