AuKing Mining Limited Prospectus

5.1 Introduction An investment in the Shares being offered under this Prospectus is not risk free. The future performance of AKN and the future investment performance of the Shares may be influenced by a range of factors. Many are outside the control of the Board. Prior to making any decision to accept the Offer, investors should carefully consider the following risk factors applicable to the Company. Some or all of your investment may be lost as a result of an occurrence of one or more of these factors. Careful consideration should be given to the following risk factors, as well as the other information contained in this Prospectus and the Applicant’s own knowledge and enquiries, before an investment decision is made. In particular there are risks associated with the KP Transaction, specifically in relation to the success of the Company which may adversely impact the value of an investment in the securities of the Company (see below in Section 5.3). In addition, there are other general investment risks, many of which are largely beyond the control of the Company and its Directors (Section 5.2). However, the risks described below are not to be taken as exhaustive. The specific risks considered, and others not specifically referred to, may in the future materially affect the financial performance of the Company and the value of the Offer Securities offered under this Prospectus. Some of the risks may be mitigated by the Company using safeguards and appropriate systems and taking certain actions. The Company aims, and will aim, to manage these risks by carefully planning the Company’s activities and implementing risk control measures. However, some of the risks identified below are highly unpredictable and the Company is limited in the extent to which they can effectively manage them or they are outside the control of AKN and not capable of mitigation. Investors should bear in mind that this Prospectus (including this Section 5) has been prepared without taking into account each Applicants’ individual financial objectives, financial situation and particular needs. Applicants should seek professional investment advice if they have any queries in relation to making an investment in the Company. 5.2 General risks (a) Trading Price of Shares and Offer Options There are a number of risks associated with any stock market investment. The market price of the Shares and Offer Options can be expected to rise and fall in accordance with general market conditions and factors and there can be no certainty that, in the event the Company’s securities are re-admitted to Official Quotation, an active market for the Shares and Offer Options will develop. The Company’s operating results, economic and financial prospects and other factors will affect the trading price of the Shares and Offer Options. In addition, the price of the Shares and Offer Options are subject to varied and often unpredictable influences on the market for equities, including but not limited to general economic conditions including the performance of the Australian dollar on world markets, inflation rates, foreign exchange rates and interest rates, variations in the general market for listed stocks in general, changes to government policy, legislation or regulation, industrial disputes, general operational and business risks and hedging or arbitrage trading activity that may develop involving the Shares and Offer Options. In addition factors that in the future may impact specifically on the share prices of listed companies identified as being part of or involved in the resources and energy may impact likewise on the price of the Shares and Offer Options. In particular, the share prices for many companies have been and may in the future be highly volatile, which in many cases may reflect a diverse range of non-company specific influences such as global hostilities and tensions relating to certain unstable regions of the world, acts of terrorism and the general state of the global economy. No assurances can be made that the Company’s market performance will not be adversely affected by any such market fluctuations or factors. 5. Investment Risks 56