AuKing Mining Limited Prospectus

3.5 Planned expenditure Pursuant to the Public Offer, AKN will raise a minimum $6 million. It is proposed that these funds, together with the cash on hand of the Company as at 5 March 2021 (being approximately $365,000) will be utilised as follows: Item Proposed use of Funds Year 1 Year 2 Total $ Initial payment under Koongie Park Earn-in $900,000 $nil $900,000 Drilling, metallurgical testwork and other exploration activities $1,200,000 $1,050,000 $2,250,000 Administration costs and other expenses $450,000 $450,000 $900,000 Employment and consultant costs 1 $400,000 $400,000 $800,000 Repayment of the Tighe Loan 2 $150,000 $nil $150,000 Brokerage fees associated with the Public Offer 3 $600,000 $nil $600,000 Public Offer 4 $400,000 $nil $400,000 Total Expenditure $4,100,000 $1,900,000 $6,000,000 Notes: 1. Employment costs includes executive and administration salaries. 2. See section 12.12 for details of the Tighe Loan. 3. See section 12.4 for more details about the Lead Manager’s remuneration. This amount reflects the expected maximum to be paid by the Company to the Lead Manager up to 30 April 2021. 4. Balance of expected costs remaining at lodgement of Prospectus. Note – any funds raised under the Public Offer over and above $6,000,000 will be applied by the Company to accelerate activities on the Koongie Park Project. Notwithstanding the allocations set out above, in the event that circumstances change or other beneficial opportunities arise, the Directors reserve the right to vary the proposed use of funds to maximise the benefit to Shareholders. 3.6 Share capital structure post Issue Upon completion of the issue and allotment of the Offer Shares pursuant to this Prospectus and completion of the KP Transaction, the Company’s share capital structure will be as follows: Shareholder Number of Shares % Existing Shareholders 1, 2 4,662,923 8.43% AKN Shares to be issued upon conversion of debts 3 20,438,953 36.97% Shares issued pursuant to the Public Offer 30,000,000 54.26% Lead Manager success fee Shares 187,500 0.34% TOTAL 4, 5 55,289,376 100.00% Notes: 1. Excludes any Shares subscribed under the Offer by Existing Shareholders – these are included in the Offer Shares. 2. Assumes the existing Shares are consolidated on the basis of 200:1 3. Assumes approval from Shareholders to convert the JCHX Loan, Long Term Convertible Notes, Short Term Convertible Note and unpaid Director and employee fees and salaries – see sections 10.8, 12.9, 12.10, 12.11, 12.13 and 12.14 for further details. 4. Assumes the Public Offer is fully subscribed to the minimum amount of $6 million. A further 5.000.000 Offer Shares may be issued as Oversubscriptions, which would result in a total of 60,289,376 Shares on issue, with the Shares under the Public Offer representing 58.05%. 5. A maximum of 17,500,000 Offer Options may also be issued by the Company. 3. C ompany Overview and Koongie Park Transaction Rationale continued 40