AuKing Mining Limited Prospectus

5. Details of the Shares to be issued to JCHX upon conversion of the JCHX Loan are set out in Section 12.9. JCHX has agreed to a two (2) year voluntary restriction from trading in respect of these Shares. In addition, some of these Shares may be classified as Restricted Securities. 6. Details of the Shares to be issued to certain AKN Directors and Employees are set out in sections 10.8, 12.13 and 12.14. The AKN Directors receiving these Shares have agreed to a two (2) year voluntary restriction from trading. 7. 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. 8. Assumes all Approval Resolutions are passed (including the resolution to consolidate the existing shares on the basis of 200:1) and assuming the Minimum Subscription under the Public Offer is achieved and that no Oversubscriptions are issued. If the Maximum Subscription is raised, the number of Shares on issue following the Public Offer will be 60,289,376. Note also, that of these shares, a total of 10,019,930 shares will be the subject of two-year voluntary restriction agreements. Some of the shares the subject of voluntary restriction may also be classified as Restricted Securities. Details of the Shares the Company expects to be Restricted Securities are set out in section 13.7. 9. Based on Offer Price and total number of Shares on completion of the Public Offer. 10. Up to a maximum of 17,500,000 Offer Options may also be issued under the Public Offer. Details of the Offer Options are set out in Section 13.5. Proposed Use of Funds Pursuant to the Public Offer, AKN will raise a minimum of $6 million if the minimum subscription is achieved. It is proposed that these funds, will be utilised as follows: Proposed use of Funds Event 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 costs (excluding brokerage) 4 $400,000 $nil $400,000 Total Expenditure $4,100,000 $1,900,000 $6,000,000 5 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. 5. Note – any funds raised over and above $6,000,000 will be applied by the Company to accelerating activities at Koongie Park. On completion of the Public Offer and the KP Transaction, the Company has budgeted a program to expend up to $2.25 million over the next two years on project-related activities. 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. AuKing Mining Limited | PROSPECTUS 5