ASTRAL RESOURCES NL — Capital/Financing Update 2021

Feb 10, 2021

AuKing Mining Limited ABN 29 070 859 522

Suite 27, Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 216 Brisbane QLD 4001 Tel: +61 7 3535 1208

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11 February 2021

The Manager Listings Compliance ASX, SYDNEY

RE: KOONGIE PARK COPPER/ZINC TRANSACTION TO PROCEED - ASX REQUOTATION UPDATE

The Board of AKN is pleased to advise that “in principle” advice has been received from the ASX, following which AKN intends to proceed with its proposed Koongie Park copper/zinc transaction with Anglo Australian Resources NL (ASX:AAR) and capital raising. AKN will be required to meet all of the requirements for re-admission to ASX and re-quotation set out in Chapters 1 and 2 of the Listing Rules to ASX’s satisfaction.

AKN has previously announced details of the agreement to earn up a 75% interest in the Koongie Park copper/zinc project situated near Halls Creek in the south-eastern Kimberley Region of northern Western Australia. (See AKN announcement to ASX on 25 June 2020 for more details about the agreement).

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Figure 1 – Koongie Park Location

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The Koongie Park Earn-In is based upon the following business strategy that will be implemented by AKN:

• Optimising existing feasibility studies on the proposed mining of the well-established Sandiego deposit incorporating results from planned resource extension drilling targeting extensions along strike and at depth;

• Carrying out a detailed exploration program across the Koongie Park Project tenures to identify additional base metals deposits to complement the existing reported Sandiego and Onedin resources. This includes possible drilling at depth below both deposits to identify sulphide extensions to mineralisation below the existing known oxide and transitional ore zones; and

• Trialling and evaluating metallurgical processes (including the Ammleach® system) for the near surface oxide and transitional ores at the Onedin deposit at Koongie Park.

AKN now intends to proceed with the issue of a prospectus for the proposed raising of a minimum of $6M, with provision to accept over-subscriptions for a further $1M, in order to raise sufficient funds to enable AKN to carry out its earn-in obligations at Koongie Park. AKN will be making provision for a priority entitlement under the capital raising for existing shareholders who wish to participate in the raising.

AKN has engaged CSA Global to prepare an Independent Technical Report for inclusion in the prospectus document. Included in the CSA Global report will be an updated JORC (2012) resource estimate for Koongie Park – relating specifically to the Sandiego and Onedin deposits.

More specific details of the transaction and capital raising timetable will be provided shortly, but a summary of key events and their expected timing is as follows:

• Lodgement of prospectus with ASIC – late February/early March 2021

• Capital raising opens – mid March 2021

• Shareholder meeting (approving the transaction and related activities) – late March 2021

• Capital raising closes – late March 2021

• Transaction close and ASX re-quotation – early April 2021.

AKN will finalise the timing of these events in consultation with the lead manager to the proposed capital raising, Novus Capital Ltd.

It should be noted that the Koongie Park transaction represents a significant change to AKN’s activities, to which ASX will apply listing rule 11.1.3. Accordingly, AKN will need to recomply with the admission and quotation requirements in chapters 1 and 2 of the ASX Listing Rules in order to recommence trading. This therefore enlivens ASX’s discretions under listing rules 1.19 and 2.9 to grant or refuse admission and quotation in its absolute discretion, without giving any reasons.

Further information about the proposed capital raising and associated activities will be provided shortly.

This announcement is authorised by:

Paul Williams Managing Director p.williams@aukingmining.com +61 419 762 487

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