AUKING MINING LIMITED — Capital/Financing Update 2009

Sep 7, 2009

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ASX Announcement

8 September 2009

NON ‐ RENOUNCEABLE RIGHTS ISSUE – NOTICE TO SHAREHOLDERS

The attached letter has today been despatched to all Shareholders of China Yunnan Copper Australia Limited.

For and on behalf of the Board

Paul Marshall Company Secretary

ASX Code: CYU

China Yunnan Copper Australia Ltd : ACN 070 859 522 : Street Level 5, 60 Edward St, Brisbane, QLD 4000 : Post GPO Box 5268, Brisbane QLD 4001 Phone 07 3303 0653 : Fax 07 3303 0601 : Web www,cycal.com.au : Email admin@cycal.com.au

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Mail Address Level 5 GPO Box 5268 60 Edward St Brisbane Qld 4001 Brisbane Qld 4000

ABN 29 070 859 522 Phone: (07) 3303 0653 Fax: (07) 3303 0601 Email: admin@cycal.com.au

8 September 2009

Dear Shareholder,

CHINA YUNNAN COPPER AUSTRALIA LTD NON ‐ RENOUNCEABLE RIGHTS ISSUE

On 1 September 2009, China Yunnan Copper Australia Limited (CYU) announced a capital raising of ‐ $4.6 million (before issue costs) by way of a 2 for 5 pro rata non renounceable rights issue (Rights Issue) to Shareholders at 15 cents per share.

CYU’s cornerstone shareholder, Yunnan Copper Industry (Group) Co Ltd (YCI) has agreed to take up its entitlement in full. YCI is China’s third largest copper producer. YCI provides ongoing support of CYU’s development into YCI’s international investment arm and mining house. YCI’s major shareholder is Aluminium Corporation of China (“Chinalco”). CYU directors (or their related entities) are also taking up the majority of their entitlements.

BBY Limited is Lead Manager and Underwriter to the issue. Funds will be used for further drilling, execution of corporate opportunities and working capital.

The opening date of the offer is 21 September 2009.

The Rights Issue Offer Document has been lodged with the Australian Securities & Investments Commission and ASX and is available on the ASX website and also on the Company’s website at www.cycal.com.au. The indicative timetable for the Rights Issue is as follows:

EVENT	DATE
Rights issue offer document lodged with ASX	1 September 2009
Notice with information on Rights Issue sent to Shareholders	8 September 2009
Shares commence trading on ASX on an ex rights basis	9 September 2009
Record date for participation in rights issue	15 September 2009
Dispatch of Offer Document and Acceptance Form	21 September 2009
Opening Date of Offer	21 September 2009
Closing Date of Offer	6 October 2009
Securities quoted on a deferred settlement basis	7 October 2009
Dispatch of shareholder statements for new shares under rights issue	14 October 2009
Normal trading resumes	15 October 2009

The timetable is indicative only and subject to change. Subject to the ASX Listing Rules, the Directors of the Company reserve the right to vary these dates, including the Closing Date, without prior notice.

The Rights Issue is for all CYU Shareholders on record as at 7pm on 15 September 2009 with registered addresses in Australia or New Zealand. Entitlements to new shares pursuant to the Rights Issue are non‐renounceable and accordingly will not be traded on the ASX. Accompanying this letter is an Appendix 3B notice.

The Offer Document containing the Entitlement and Acceptance Form will be despatched to all eligible shareholders of the Company registered at the Record Date on 21 September 2009.

On behalf of the Board

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Paul Marshall Company Secretary

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‐ China Yunnan Copper Australia Ltd – Non Renounceable Rights Issue

Appendix 3B Notice to Shareholders

‐ The following information with respect to the non renounceable rights issue of ordinary shares beingundertaken by China Yunnan Copper Australia Ltd is provided to Shareholders in accordance with the ASX Listing Rules. Full details of the Offer are contained in the Offer Document which will be despatched to all eligible shareholders of the Company registered at the Record Date on 15 September 2009.

The Prospectus has been lodged with ASIC and ASX and is available for viewing on ASX’s website and on the Company’s website www.cycal.com.au.

Class of securities issued or to be issued Number of securities issued or to be issued (if known) or maximum number which may be issued Principal terms of the securities Do the securities rank equally in all respects from the date of allotment with an existing class of quoted securities? Issue price or consideration Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Ordinary shares
	Approximately 31,046,457 New Shares at an issue price of $0.15 per New Share, on the basis of 2 New Shares for every 5 existing Shares held by Eligible Shareholders as at the Record Date. The total number of shares to be issued in accordance with the entitlement offer could increase by up to 7,511,428 in the event that all of the holders of vested options exercised their right to convert their securities to ordinary shares prior to the record date.
	Fully paid ordinary shares
	Yes
	$0.15 per share
	The Directors intend to apply the proceeds from the Issue to fund the costs of the Issue, to provide working capital to the Company and focus on exploring its tenements in Queensland for copper, gold and uranium and in addition evaluate other acquisition and joint venture opportunities to grow its business rapidly. Capital is required to enable the Company to continue to grow a new copper discovery at the Gem prospect. CYU is going forward with a program of geophysical and geological evaluation and drilling to continue to grow the knownextents ofthemineralisation.

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Dates of entering securities into uncertificated holdings or despatch of certificates Number and class of all securities quoted on ASX (_including_the securities to be issued pursuant to the rights issue) Number and class of all securities not quoted on ASX (_including_the securities to be issued pursuant to the rights issue) Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) Is security holder approval required? Is the issue renounceable or non-renounceable? Ratio in which the securities will be offered Class of securities to which the offer relates Record date to determine entitlements Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? Policy for deciding entitlements in relation to fractions	14 October 2009	14 October 2009	14 October 2009
	Number			+Class
	On issue: Rights issue: Total:		31,861,502 31,046,457 62,907,959	Ordinary Shares fully paid (CYU)
	Number		+Class
	45,754,571 18,428,571 350,000 350,000 350,000		Ordinary Shares fully paid escrowed to 29/10/09 29/10/10 $0.40 Options 20/12/09 $0.40 Options 20/12/09 $0.40 Options (vest 19/12/09) 20/12/09 $0.40 Options (vest19/12/10)
	N/A
	No
	Non-renounceable
	2 for 5
	Ordinary shares
	15 September 2009
	N/A
	Entitlements will be rounded up

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Names of countries in which the entity has security holders who will not be sent new issue documents Closing date for receipt of acceptances or renunciations Names of any underwriters Amount of any underwriting fee or commission Names of any brokers to the issue Fee or commission payable to the broker to the issue Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders If the issue is contingent on security holders’ approval, the date of the meeting Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders Date rights trading will begin (if applicable)	The Offer is not being extended to, and does not qualify for distribution or sale by, and no New Shares will be issued to Shareholders having registered addresses outside Australia and New Zealand.
	6 October 2009
	BBY Ltd
	The Underwriter will be paid by the Company an underwriting fee of 4% of the gross proceeds of the underwritten shares and a management fee of 2% of the Shares issued under the Offer.
	N/A
	N/A
	N/A
	N/A
	21 September 2009
	1 September 2009
	N/A

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Date rights trading will end (if N/A applicable) How do security holders sell N/A their entitlements in full through a broker? How do security holders sell part N/A of their entitlements through a broker and accept for the balance? How do security holders dispose N/A of their entitlements (except by sale through a broker)? Despatch date 14 October 2009

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