AuKing Mining Limited Prospectus

12.13 AKN Director Fees and Salaries Settlements At the beginning of 2019, the Board of AKN resolved that in order to preserve available cash funds, the Existing Directors would take significant reductions in the fees and salaries that were paid to them until such time as the Company was in a better position financially to meet these costs. In the case of non-executive directors (Dr Peng and Mr Wang), no directors fees have since been paid by the Company. In the case of executive directors (Mr Williams and Mr Yang), at least a 25% reduction has been applied to their salary entitlements and, during significant periods, no salaries were paid. The Company has entered into respective agreements with each of these persons that the Company will satisfy its obligations to pay the moneys owing to them for unpaid fees and salaries by the issue of ordinary shares. The following number of Shares are to be issued: a. Dr Peng – 420,000 Shares b. Mr Williams – 1,114,445 Shares c. Mr Yang – 635,485 Shares d. Mr Wang – 350,000 Shares. Each of the Existing Directors have agreed to enter into a voluntary restriction agreement that will restrict trading in these Shares for a 24 month period from the date of Official Quotation of the Company’s shares on the ASX. 12.14 AKN Employees Salary Entitlements In order to preserve available cash funds, employees of the Company (Paul Marshall, Michael Harvey and Audrey Guo) voluntarily agreed to reduce their salary entitlements by 25% as from 1 January 2018 on the agreed understanding that when the Company undertook a significant transaction and capital raising, that the shortfall could be made up in the form of Shares. The Company has entered into respective agreements with each of Mr Marshall, Mr Harvey and Ms Guo that in exchange for the issue by the Company of Shares, they would be paid by the issue of ordinary shares. The following number of Shares are to be issued: a. Mr Marshall – 262,170 Shares b. Mr Harvey – 189,060 Shares c. Ms Guo – 164,460 Shares 12.15 Access deeds Each of the Directors, proposed Directors and the Company Secretary have entered into a Deed with the Company whereby the Company has provided certain contractual rights of access to books and records of the Company to those officers and to effect and maintain insurance in respect of directors and officers liability and provide certain indemnities to each of the officers, to the extent permitted by law. AuKing Mining Limited | PROSPECTUS 239