AuKing Mining Limited Prospectus

A U K ING M INING L IMITED I NDEPENDENT T ECHNICAL A SSESSMENT R EPORT – W ESTERN A USTRALIAN M INERAL A SSETS CSA Global Report Nº R278.2020 IV on different ore types from Onedin and Sandiego to underpin a mineral processing flowsheet for economic study work. Mapping by the GSWA in 1962 identified the gossan outcrops which are now known as the Onedin and Sandiego prospects. Since then the main project area has seen exploration by Pickands Mather, Kennecott, Newmont, North Broken Hill, Asarco, RTX Mining, BP Minerals and Billiton Australia, with AAR holding the ground since 1989. Since 2011, AAR has focused on gold exploration, with little exploration for base metals occurring on the property. CSA Global considers that historical exploration has been of sound quality and forms a strong basis for continued exploration. However, is has not been exhaustive and significant opportunities remain for the discovery of more VMS-style mineralisation with the Koongie Park tenements. The Koongie Park Formation hosts numerous base metal occurrences and has long been considered the most prospective geological unit on the property attracting the bulk of the historical exploration. The surface and shallow depth of the property has been effectively explored by a number of different companies over many decades using a broad variety of approaches and techniques. Following review of the exploration database CSA Global considers the entire area of the Koongie Park Formation within the tenements to be underexplored at depth and highly prospective for the discovery of further VMS base metal mineralisation. Shallow drilling across the Koongie Park project is considered to be ineffectual for discovering deep VMS deposits which do not surface due to the substantial depletion of base metals in the regolith which has occurred. AuKing proposes to design future drilling to intersect target zones at least 100 m below surface in fresh rock. Litho-geochemistry using suitable pathfinder elements of fresh (unoxidised) drillhole samples would be an effective exploration tool, as it can significantly enlarge the ore target. Litho-geochemistry could uncover significant geochemical haloes associated with mineralisation and be used to vector towards a major deposit. CSA Global recommends using electromagnetic (EM) geophysical methods to drive future exploration for new discoveries. The Koongie Park mineralisation is highly conductive, the country rock is highly resistive, known mineralisation has responded to EM surveys and many VMS deposits have been detected with EM surveys globally. An experienced geophysicist should be engaged to design deep penetrating EM geophysical surveys based on an assessment of available technology and the results of historical surveys in the most geologically prospective parts of the Mimosa Member of the Koongie Park Formation. The highest-ranking conductors detected should be tested by diamond drilling intersecting targets at least 150 m below surface. AuKing has informed CSA Global that it will undertake scoping study work on the Onedin and Sandiego deposits to examine potential for economic development and pathways to development. This may include infill diamond drilling, updating Mineral Resources, metallurgical testwork, mining studies, processing studies, environmental studies, and economic assessments. An early component of the scoping study will be a detailed assessment of the existing metallurgical testwork results, geometallurgical analysis of the drill core data and desktop review of potential mineral processing pathways. This work will cover both the primary sulphide mineralisation and the secondary mineralisation of the transitional and oxide zones. The appropriate metallurgical testwork will be designed and commissioned, with a campaign of diamond drilling implemented to provide the fresh core sample vital for reliable and meaningful testwork results. The drillholes will be purpose designed to develop a set of composite samples representative of the geometallurgical mineralisation types and grades within the deposits. AuKing provided CSA Global with a copy of their planned expenditure for its projects for an initial two‐year period following the planned capital raising. The proposed budgets are considered consistent with the exploration potential of AuKing’s projects and considered adequate to cover the costs of the proposed programs. The budgeted expenditure is also sufficient to meet the minimum statutory expenditure on the tenements. 6. Independent Technical Report continued 72