AuKing Mining Limited Prospectus

Section 7 - Historical and Pro-forma Financial Information 7.1 Introduction This Section sets out the historical and pro-forma financial information. The basis for preparation and presentation of this information is also set out below. The historical and pro-forma financial information has been prepared in accordance with the recognition and measurement criteria of Australian Accounting Standards and the accounting policies as described below. The historical and pro-forma financial information is presented in an abbreviated form insofar as it does not include all the disclosures and notes required in an annual financial report prepared in accordance with Australian Accounting Standards and the Corporations Act 2001. 7.2 Historical Financial Information The historical financial information set out below comprises the reviewed consolidated Balance Sheet as at 30 June 2020. 7.3 Pro-Forma Financial Information The pro-forma financial information set out below comprises the reviewed Pro-Forma consolidated Balance Sheet as at 30 June 2020 showing the impact of the proposed Public Offer and Koongie Park KP Transaction. 7.4 Pro-forma Balance Sheet The Pro-Forma Balance Sheet have been derived from the reviewed consolidated Balance Sheet as at 30 June 2020 adjusted for the following transactions as if they had occurred at 30 June 2020 (pro-forma transactions): (a) the consolidation of the Company’s existing 932,584,461 shares on a 200:1 basis down to 4,662,923. (b) the issue of 30,000,000 Ordinary Shares at an issue price of $0.20 per share through the Public Offer. (c) estimated costs of the Offer of $1,000,000, which includes the issue of 187,500 Broker Success fee Shares at an issue price of $0.20 per share. Costs are allocated between the cost of raising additional share capital and the cost of re-quotation if the existing shares. As such, $812,169 have been accounted for as capital raising costs through equity and $187,831 have been expensed to profit or loss. (d) the issue of 7,500,000 Ordinary Shares to the JCHX Group at an issue price of $0.20 per share in full and final satisfaction of all loan monies and accrued interest. (e) the issue of 2,519,930 Ordinary Shares to AKN Directors at an issue price of $0.20 per share in full satisfaction unpaid directors’ fees and salaries, and the issue of 615,690 Ordinary Shares to AKN Employees at an issue price of $0.20 per share in full satisfaction of unpaid fees and salaries. (f) Material transactions occurring since 30 June 2020 which comprise: • the recognition of Convertible Note and Tighe Loan monies received after 30 June 2020; • the recognition of interest accruing on all Convertible Note and loan amounts since 30 June 2020 to the expected transaction date of 30 April 2020; • the recognition of unpaid directors and AKN employee’s fees and salaries; • Reversal of the foreign currency translation reserve on the wind up of the Chilean subsidiary China Yunnan Copper Australia Chile Limitada. (g) the issue of 3,553,333 Ordinary Shares to the Long Term Convertible Note holders at an issue price of $0.15 per share in full and final satisfaction of all Long Term Convertible Note principal amounts, and the issue of 6,250,000 Ordinary Shares to the Short Term Convertible Note holders at an issue price of $0.12 per share in full and final satisfaction of all Short Term Convertible Note principal amounts. continued 7. H istorical and Pro Forma Financial Information 140