AUKING MINING LIMITED — Capital/Financing Update 2008

Sep 30, 2008

ASX/MEDIA ANNOUNCEMENT

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1[st] October 2008

HIGH GRADE GOLD VALUES CONFIRMED IN PENTLAND PROJECT

• Over minimum 500m strike length from surface sampling

• Drilling due to commence in October

Key Points

• Total of 36 collected samples average 7.2 g/t gold.

• Follow-up sampling has confirmed the presence of high-grade polymetallic mineralization in the historic Toomba workings.

• � A newly completed IP geophysical survey has identified coincident anomalies which will be developed into drill targets.

• � Intention to drill the Toomba Prospect during October.

China Yunnan Copper Australia Limited (ASX:CYU) today announced that followup sampling over the Toomba Prospect has confirmed the presence of high grade gold and significant base metal grades reported previously. A geophysical survey has generated coincident anomalies that indicate the potential for mineralisation to be found at depth.

The Toomba Prospect of the Pentland Project was identified from reconnaissance mapping, sampling and data collation of previously collected samples. The sampling and mapping program is continuing and drill targets are being generated in preparation for drilling planned for October.

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– Pentland Project EPM 11487, EPM 12900, EPM 12901

Mapping and sampling of the historic Toomba workings (Refer Figure 2) has confirmed the greater than one ounce gold values and strong base metal anomalies in spoil reported historically. Peak values include 44g/t gold, 128 g/t silver, 6570 ppm copper, 3.41% lead and 4.8% zinc.

Sampling of the previously unrecognised Central Zone has confirmed the potential for further poorly exposed or blind targets within the prospect.

	Sample Number	Easting GDA94_55 Northing GDA94_55	Au ppm	Ag ppm Cu ppm Pb ppm Zn ppm
Old Toomba Workings	378001	353300 7763145	44 3.05 14.5 10.1 8.18	14.4 539 3390 2590 38.8 2380 1.03% 1.20% 56.9 4470 1.11% 4260 11.2 29 3720 5420 12.3 669 2880 3080
	378002	353299 7763144
	378003	353303 7763148
	378004	353300 7763150
	378005	353306 7763155
	378006	353306 7763151	23.5 1.27 12.05 1.27 41.5	33.6 265 1.15% 2.26% 22.1 5710 5210 950 30.4 57 6870 2.33% 27.9 4200 4520 64 29.7 110 1.41% 3070
	378019	353330 7763192
	378020	353328 7763191
	378021	353332 7763190
	378022	353330 7763190
	378023	353329 7763193	21.3 1.42 2 0.28 15.15	46.2 6570 3.41% 3.17% 20.5 2740 4660 1380 1.1 15 288 61 1.3 48 440 175 37 739 5110 6890
	378024	353332 7763193
	378025	353331 7763225
	378026	353330 7763225
	378027	353337 7763236
	378028	353334 7763242	20.4 1.17 0.33 0.27 0.75	25.2 4430 2590 4.80% 2.2 41 669 118 1.1 30 194 221 0.2 57 132 480 14.5 20 494 18
	378029	353367 7763311
	378030	353367 7763311
	378031	353365 7763304
	378032	353373 7763342
	378033	353370 7763345	1.53 0.89 2.22 3.64 2.41	71.8 1560 1.43% 6530 85.9 4350 1.64% 2.18% 2.1 19 215 47 128 1010 2.36% 2.06% 38.3 86 1.12% 2190
	378034	353375 7763342
	378035	353377 7763369
	378036	353403 7763432
	378037	353271 7763052
	378038	353271 7763052	0.69	1.3 7 372 60

Table 1: Results from sampling over the Old Toomba Workings.

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	Sample Number	Easting GDA94_55 Northing GDA94_55	Au ppm	Ag ppm Cu ppm Pb ppm Zn ppm
Central	378007	353613 7763161	3.17	21.6 114 1540 111
	378008	353614 7763161	3.01 0.29 0.09 0.16	19.5 88 775 202 2.6 45 145 10 5.5 31 16 9 0.7 8 353 7
	378009	353614 7763160
	378010	353616 7763156
	378011	353623 7763185
	378012	353609 7763142	0.06 0.39 8.03 0.65 9.65	0.9 56 179 52 0.8 21 53 10 3.6 49 298 39 0.2 31 891 25 2 11 469 35
	378013	353596 7763116
	378014	353582 7763087
	378015	353581 7763089
	378016	353613 7763115

Table 2: Results from sampling over the Central Zone.

This poorly exposed and previously unworked structure shows significant evidence of mineralisation. Highest gold values are in sulphidic vein material.

A geophysical (IP) survey over the prospect has not only identified multiple linear anomalies coincident with the known structures, but also well defined, broad anomalies at depth in the SW and near surface in the east of the grid that reinforces the potential for larger, bulk volume targets at depth

The Toomba Prospect comprises four parallel NNE vein structures and zones of veinlets up to 400m long within an area 1km by 750m. These mostly occur within an outlier of the Amarra Granite within the Grasstree Leucogranite. The southern edge of the prospect is overlain by the Tertiary Campaspe sediments.

Recent sampling over the Toomba Prospect (Tables 1 & 2 above) in the east of EPM 12900 has been successful in replicating the strongly anomalous gold and base metal values reported by previous companies. Sampling was carried out on veins in outcrop and on material found in the mullock heaps around the historic mine workings.

The recent IP geophysical survey generated three distinct classes of anomalies over Toomba. A group of NW trending planar anomalies appear to correspond to the regional tectonic fabric, as seen clearly in aeromagnetic surveys. Weaker, high-angle, planar anomalies are coincident with the known vein structures, especially the Old Toomba Workings. A group of broad anomalies occur at 150 to 200m depth in the SW and nearer surface in the east. These may represent

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larger, disseminated or breccia-hosted mineralisation at depth.

The Toomba Prospect comprises a series of four NNE trending vein structures over an area of 1km by 750m. Three groups of old workings are reported in the area: Toomba, Toomba East and Lady Barrington. The main mineralisation takes the form of coarse-grained banded quartz – sulphide veins with abundant iron oxides hosted within a sericite altered granite.

CYU has identified multiple shallow pits and shafts along a 500m strike length on the eastern side of Toomba (Figure 2 below). Previous records show that sampling in this area has returned gold values of up to 37.5g/t with 5,267ppm lead, 22,800ppm zinc and 1,483ppm copper.

Planned Exploration

Toomba

A drill rig has been contracted to start drilling in Toomba in mid October. Currently a 2000m program of reverse circulation holes is planned to test both the known high grade gold structures from surface and the geophysical anomalies to a depth of approximately 200m. In addition, results are pending from a close-spaced soil-sampling program testing for blind, near-surface mineralised structures.

About CYU

CYU listed on the ASX on 29 October 2007 by issuing 16,000,000 25c shares to raise $4 million. CYU is an Australian company formed to explore for and develop minerals in Australia and overseas. Cornerstone investor, Yunnan Copper Industry (Group) Co Ltd, is one of China’s largest copper producers. CYU is targeting high quality copper, gold and uranium projects with eleven wholly owned Exploration Permit for Minerals (EPM’s) in the Mt Isa Inlier, RavenswoodPentland Province and the Clermont Inlier in Queensland.

For further information please contact;

Mr Jason Beckton Managing Director CYU 0438 888 612

Kevin Kartun Account Director Financial & Corporate Relations (02) 8264 1003

or visit the website, www.cycal.com.au

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The information in this report that relates to Exploration Results is based on information compiled by Jason Beckton, who is a Member of the Australian Institute of Geologists and a Member of the Australasian Institute of Mining and Metallurgy, and is the Managing Director of China Yunnan Copper Australia Ltd. Mr Beckton has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results and Mineral Resources. ". Mr Beckton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 1. Current CYU project locations. The Toomba Prospect is within the Pentland Project.

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Figure 2: Toomba Prospect - detailed mapping is underway and drilling is due to commence mid October.

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