AuKing Mining Limited Prospectus

(h) Additional Requirements for Capital Although the Directors believe that on completion of the Offer the Company will have sufficient working capital to carry out its short-term business objective, there can be no assurance that such objectives can be met without further financing or, if additional financing is necessary, that financing can be obtained on favourable terms or at all. The capital requirements of the Company depend on numerous factors. Upon completion of the Koongie Park Earn-in, the Company may require further financing in addition to amounts raised under the Public Offer. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed or is not available to obtain additional financing on acceptable terms, it may be required to reduce the scope of its operations and may not be able to take advantage of opportunities or respond to competitive pressures. Expenditures may need to be incurred that has not been taken into account in this Prospectus. Although the Company is not aware of any such additional expenditure requirements, if such expenditure is subsequently incurred, this may adversely affect the expenditure proposals of the Company and its proposed business plans. (i) Litigation Risks The Company may be exposed to possible disputes and litigation risks including intellectual property claims, contractual disputes, occupational health and safety claims and employee claims. If any such claim or dispute is proven, this may impact adversely on the Company’s operations, financial performance and financial position. The Company is not currently engaged in any litigation. (j) Force Majeure The Company, now or in the future may be adversely affected by risks outside the control of the Company including labour unrest, civil disorder, war, subversive activities or sabotage, extreme weather conditions, fires, floods, explosions or other catastrophes, epidemics, pandemics or quarantine restrictions. (k) Acquisitions As part of its business strategy, the Company may make acquisitions of, or joint venture arrangements with companies and projects that are complementary to the Company’s business. Any such future transactions are accompanied by the risks commonly encountered in making acquisitions of companies, and entering joint ventures. (l) Taxation The acquisition and disposal of Shares will have tax consequences, which will differ depending on the individual financial affairs of each investor. All potential investors in the Company are urged to obtain independent financial advice about the consequences of acquiring Shares from a taxation point of view and generally. To the maximum extent permitted by law, the Company, its officers and each of their respective advisers accept no liability and responsibility with respect to the taxation consequences of applying for Shares under this Prospectus. (m) Currently no market There is currently no public market for the Shares (due to the Company’s securities being suspended from quotation on the ASX), the price of the Shares is subject to uncertainty and there can be no assurance that an active market for the Shares will develop or continue after the Public Offer. In the event the Company’ securities are re-admitted to Official Quotation, the price at which the Shares trade on ASX may be higher or lower than the Offer price and could be subject to fluctuations in response to variations in operating performance and general operations and business risk, as well as external operating factors over which the Directors and the Company have no control, such as movements in mineral prices and exchange rates, changes to government policy, legislation or regulation and other events or factors. There can be no guarantee than an active market in the Shares will develop or that the price of the Shares will increase. There may be relatively few or many potential buyers or sellers of the Shares on ASX at any given time. This may increase the volatility of the market price of the Shares. It may also affect the prevailing market price at which Shareholders are able to sell their Shares. This may result in Shareholders receiving a market price for their shares that is above or below the price that Shareholders paid. 5. Investment Risks continued 58