AuKing Mining Limited Prospectus

4.2 Climate, Geography and Infrastructure The East Kimberley has a tropical monsoon climate receiving about 90% of its rainfall during the short wet season, from November to April, when cyclones are common and the rivers flood. In the dry season, from May to October, south-easterly breezes bring sunny days and cool nights. Halls Creek has a mean annual rainfall of 575.6 mm. The Kimberley is one of the hottest parts of Australia. Halls Creek’s average annual maximum temperature is 33.6 °C and average minimum is 20.0 °C. The hottest part of the year is November before the rains break, when the average maximum temperature is 38.3 °C (BOM, 2020). Physiographically the Koongie Park Project lies across the watershed between the Laura River flowing to the southwest, the Margaret river flowing to the west, and the Elvire River flowing to the east. Elevations range from 380m to 480 m above sea level with variable topography: flat, undulating, low rounded boulder-strewn hills, and subdued strike ridges. The more rugged Halls Creek Ridges lie to the southeast. Much of the surrounding region comprises extensive black-soil plains supporting grasslands and providing excellent grazing for the pastoral industry. Vegetation in the project area comprises mostly spinifex grass, Acacia scrub and eucalyptus species. Halls Creek functions as a hub for the local indigenous population and as a support centre for cattle stations in the area. The Koongie Park Project lies on the Lamboo, Moola Bulla, Burks Park Koongie Park pastoral stations. The Koongie Park Project also lies on the lands of the Ngarrawanji, Koongie-Elvire and Jaru Traditional Owners within the jurisdiction of the Kimberley Land Council. The project area can be accessed by air services to Kununurra or Broome and then by road (Great Northern Highway). Air charter services can land at the small Halls Creek aerodrome. Generally access within the project area is good via station tracks, fence lines and old exploration grid lines. An exploration camp has been established in Halls Creek comprising an office, accommodation, storage shed and core processing facilities. Infrastructure in the area is limited, with basic services and supplies available in Halls Creek. 4.3 Exploration History Mapping by the Geological Survey of Western Australia (GSWA) in 1962 identified the gossan outcrops which are now known as the Onedin and Sandiego prospects. Pickands Mather explored for base metals over the area south of Halls Creek from 1963 to 1972. Between 1972 and 1977 Kennecott pegged tenements over known Cu-Pb-Zn-Ag gossans at Koongie Park, around the Onedin and Sandiego areas, and undertook geological and structural mapping, rock chip and soil sampling, diamond and percussion drilling. From 1978 until 1979 Newmont continued to drill test known mineralisation and magnetic anomalies coincident with electromagnetic (EM) conductors along strike of known mineralisation. Extensive trenching, percussion and diamond drilling, detailed EM, ground magnetic surveys, and low-level aeromagnetic surveys failed to locate significant extensions to base metal prospects. In 1980, North Broken Hill concentrated on testing the supergene enriched zone of the base metal mineralisation at the Sandiego prospect. From 1983 to 1988 Asarco carried out RAB drilling, including limited work on supergene gold potential at Sandiego. From 1988 to 1989 RTZ Mining / BP Minerals in JV with Asarco continued testing for gold potential by re-assaying split core samples for gold. This work located several low order gold anomalies in the Sandiego area. A group of six tenements were initially purchased by AAR from RTZ Mining in March 1990, with three additional mining leases pegged and granted in 1994. The six originally granted mining leases were explored by AAR in joint venture with Billiton Australia (now Anglo Gold) from 1989-1994. Billiton earned its equity but was forced to sell their interest to AAR under a pre-emptive rights clause, when Acacia Resources purchased all of Billiton’s assets in Australia in 1994. Billiton undertook aeromagnetic and radiometric surveys. Minor geochemical sampling done during this time produced modest gold bearing results. In 1995, Lachlan Resources (a subsidiary of Barrick Gold) signed a joint venture agreement over the area and continued exploration until 2002. During 1996 and 1997 Lachlan and AAR carried out extensive resource definition type drilling and developed geological and structural interpretations for both Onedin and Sandiego base metal deposits. AAR obtained 100% ownership of the project due to the withdrawal of Lachlan Resources from the joint venture in 2002. In 2006, following a substantial improvement in base metal commodity prices, AAR commenced its first drilling program in its own right. AAR then established a maiden mineral resource estimates for the Sandiego and Onedin deposits reported in conformance with the JORC Code (2004) 3 . In October 2008 AAR completed a study on the economics of underground mining of the Sandiego deposit 4 . Further drilling occurred in 2007-2009 with subsequent resource updates reported in conformance with the JORC Code (2004). Some 245 RC and diamond drill holes encompassing 50,417 m have been drilled on the project by AAR. This effort focused on resource, metallurgical and geotechnical drilling at the Sandiego and Onedin base metal deposits. Since 2011 AAR focused on gold exploration, with little exploration for base metals occurring on the property. 3. Anglo Australian Resources NL, Report on Activities for the Quarter Ended 31 December 2006, announced on the Australian Stock Exchange on 31 January 2007. 4. Anglo Australian Resources NL, Report on Activities for the Quarter Ended 30 September 2008, announced on the Australian Stock Exchange on 30 October 2008. AuKing Mining Limited | PROSPECTUS 45