AUKING MINING LIMITED — Call Transcript 2010

Aug 22, 2010

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ASX/Media Announcement

23[rd] August 2010

CHINA YUNNAN COPPER AUSTRALIA LIMITED (CYU) provides the opportunity to listen to an audio broadcast with Jason Beckton, Managing Director in a presentation titled "Copper Cobalt Sulphide Discovery – Mt Dorothy" .

To listen copy the following link into your web browser : brr.com.au/event/67953

The presentation details are as follows:

• Copper Cobalt Sulphide Discovery – Mt Dorothy" .

• Monday, 23 August 2010 9:30am AEST

• A transcript of the broadcast is included below

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Yours Sincerely

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Jason Beckton Managing Director - CYU

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BOARDROOM RADIO INTERVIEW WITH JASON BECKTON, MANAGING DIRECTOR, CHINA YUNNAN COPPER AUSTRALIA LIMITED

RADIO INTERVIEW WITH JASON BECKTON, MANAGING DIRECTOR, CHINA YUNNAN COPPER AUSTRALIA CONDUCTED ON THURSDAY, 19 AUGUST 2010

• Q1 Hello, and welcome to Boardroom Radio. I’m speaking with Jason Beckton who’s the Managing Director of China Yunnan Copper Australia. Jason, thanks for your time and good to be speaking with you.

• A1 Thank you, James.

• Q2 The Company has put out a great release today from your Mary Kathleen JV with Goldsearch. You’ve got some good copper results. Before we get into that, can you tell me about the target that you were drilling and what were your expectations going into it?

• A2 Well, this target was highlighted to us by our friends at Goldsearch in the joint venture as one of their top line initiatives to carry on with CYU and so, the first things first, we collated the historic information because it was previously tested further south by MIM Exploration who did come up with some higher grade up to 1 per cent copper numbers on the primary structure – what we’re calling the primary Mount Dorothy structure. We followed that but saw opportunities to follow what are secondary structures that splay off to the north which are like in a Kalgoorlie goldfield sense: you don’t follow the primary structure, you follow the secondary splays where you get the most dilation. So we saw an opportunity here to follow a structural target and, after some high-quality surface mapping by our team, we were able to construct a drill target list.

Q3 Okay. Now, from the release, the results look pretty good. Can you tell me how you’re going about interpreting these hits and talk to me about some of the highlights in there?

• A3 All right. Well, there’s two types of intercepts. One is the sulphide copper cobalt intercepts; there’s chalcocite, chalcopyrite and cobalt which we think – and we don’t know yet; we’ll do the petrography work that it’s cobalt-iferous pyrite. So they’re different phases in the same ore zone. And that’s surrounded by an envelope of lower-grade native copper mineralisation in the felsics which is really what was identified previously by MIM. And the reason this is the best hole in our Company’s three-year history is that the sulphides weren’t known or drilled previously, so this is a real breakthrough for this Prospect on what was previously thought to be just a native copper prospect and it remains open to the north. So very exciting - one hole doesn’t make an ore body, but an excellent result for us. And we don’t normally see sulphides of this style this close to surface.

Q4 Well, it sounds like some of these results have come in not as a surprise but are revealing something about the Project to you. How has it helped your understanding of the mineralisation and, I guess, how do you work up the Project from these results?

• A4 Well, we have existing datasets for three things. We had the surface mapping, which we improved, and we had the geophysics from the previous MIM guys, and we also had some of the previous MIM drilling. So what we’ve done is 20 years

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	later we’ve added another phase of drilling. And, frankly, it was a surprise
	because I was expecting really to prove up a native copper zone. And, obviously,
	all native copper zones do have sulphide feeders but, in some cases, those
	feeders are very narrow and very deep, whereas this is very, very thick at, we
	think, probably a true width of over 30/40 metres. And so we think that,
	potentially, this sulphide feeder, which we were expecting far deeper, not this
	close to surface, is a through-going structure to the north, and potentially there’s
	other splays further off the primary structure as well. So, for us, it’s very exciting,
	because it’s not correct to think that we drill for low-grade targets. Obviously, we
	always look for high-grade targets, but to find high grade at this robust width this
	shallow has serious implications for the Prospect.
Q5	All right, Jason. Well, certainly a really exciting bit of exploration work
	going on there. Appreciate you taking the time to tell us a little bit about the
	results and how you’ve interpreted and we look forward to following some
	more progress.
A5	Thanks, James. We’ll be obviously drilling it shortly again after reviewing things in
	three dimensions and, you know, there should be steady news flows from here on
	in on the Mount Dorothy JV.
Q6	All right, Jason. Well, listen, thanks again for taking the time to tell us a bit
	more about it.
A6	Thank you. Bye bye.

INTERVIEW CONCLUDED

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