AUKING MINING LIMITED — Capital/Financing Update 2009

Jan 4, 2009

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ASX/MEDIA ANNOUNCEMENT

5th January 2009

Drilling Results - Gold Mineralisation at the Toomba Prospect - Pentland Project

Key Points

� 4m at 13.9 g/t gold from 43m, PC005 (including 1m at 50.59g/t Au, 0.5% Cu, 1.5% Pb and 3.3 % Zn).

� 4m at 0.6 g/t gold from 82m, PC014 (including 1m at 1.6g/t Au, 0.14% Cu, 0.6% Pb and 0.5 % Zn).

China Yunnan Copper Australia Limited (ASX:CYU) is pleased to announce encouraging results from its first pass reverse circulation drilling programme at the Toomba prospect. The prospect has not been previously drilled. The RC drilling programme was undertaken in October - November 2008 consisting of 16 holes for a total of 1887m. Further drilling is being planned to generate sufficient understanding and extent in mineralisation for preparation of a maiden gold resource estimate during 2009.

The Toomba prospect is considered to have many features that correlate to the proposed models of Mt Leyshon, Kidston or Ravenswood-style mineralisation. The Toomba prospect in particular has extensive historic workings and traces of mineralisation over an area of 1.5 x 1km². These early drill results will be extended at depth to test a link between structural mineralisation intercepted to date and potential high tonnage intrusive mineralisation at depth.

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Figure 1: Pentland Location Map
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Figure 2: Toomba Prospect Location Map showing District Geology

The prospect was identified from reconnaissance mapping, sampling and data collation of previously collected samples.

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Toomba comprises four parallel NNE-trending vein structures and zones of veinlets up to 500m long within an area 1km by 750m. Recently several further mineral occurrences have been discovered 800m north and along strike of the historical workings.

The mineralisation occurs within a previously unrecognised outlier of the Amarra Granite within the Grasstree Leucogranite. The southern edge of the prospect is overlain by the Tertiary Campaspe sediments. The granite host rocks are mostly phases of the Ordovician-Devonian Lolworth Batholith, which have been intruded by Permo-Carboniferous granites and sub-volcanics of the Mundic Igneous Complex. This is significant since this phase of intrusions is thought to be genetically related to most major mineralisation in the area, including Mt Leyshon, Kidston and Ravenswood.

Mapping and sampling of the historic workings confirmed the reported greater than one ounce gold values and strong base metal anomalies in spoil reported historically. Sampling was carried out on veins in outcrop and on material found in the mullock heaps around the historic mine workings. The main mineralisation takes the form of coarse-grained banded quartz – sulphide veins with abundant iron oxides hosted within a sericite altered granite. Previously reported CYU surface rock-chip/grab samples returned peak values of 44g/t gold, 128g/t silver, 0.65% copper, 3.41% lead and 4.8% zinc.

A recent IP geophysical survey undertaken by CYU generated three distinct classes of anomalies over Toomba. A group of NW trending planar anomalies appear to correspond to the regional tectonic fabric 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 larger, disseminated or breccia-hosted mineralisation at depth .

These styles of mineralisation usually have some common features including the presence of lower-Palaeozoic intrusions, such as the Ravenswood-Lolworth Batholith; subvolcanic to granitic permo-carboniferous intrusions and strong structural features, often with co-genetic strain fabrics, such as en-echelon vein sets. All of these features are seen in or around the Toomba prospect.

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Table 1: Toomba Prospect Significant Drill Results. Significant results have been received from north south trending structures (All results reported above 0.1 g/t Au and no more than 1 m internal dilution in average intercepts).

Results from the recent RC drilling ( Table 1 ) have confirmed anomalous gold mineralisation with the best intersections in holes PC005 and PC014.

The structures intercepted generally occur at relatively shallow depths (35 – 80m) from surface. This confirms the presence of this potentially high-grade mineralisation continuing to depth. Detailed modelling of the grades and alteration will help target the potential bulk-volume breccia or stockwork type target proposed at depth.

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Figure 3: Toomba Prospect RC Drillhole Locations. Note the East West separation from significant intercepts is 500m. Continuity in these structures is probably in a North South orientation. Significant mineralisation has been returned from holes PC005 and PC014.

HOLE_ID	EAST NORTH RL(m)	AZI(Grid) DIP DEPTH	Zone
PC001 PC002 PC003 PC004 PC005 PC006 PC007 PC008 PC009 PC010 PC011 PC012 PC013 PC014 PC015 PC016	353290 7763024 418 353602 7763080 449 353786 7763114 460 353610 7763194 451 353412 7763411 431 353395 7763357 427 353351 7763241 427 353404 7763078 431 353401 7763077 431 353312 7763098 421 353453 7762849 429 353810 7763127 461 353914 7763355 476 353859 7763213 465 353251 7762849 414 353430 7762842 418	324° -63° 118 270° -60° 100 270° -60° 115 90° -65° 100 270° -65° 100 269° -65° 100 267° -70° 100 270° -60° 7 270° -60° 241 335° -60° 125 270° -60° 247 90° -55° 125 270° -60° 115 270° -60° 100 270° -55° 91 -90° 103	Main Workings Central Toomba East Central Main Workings Main Workings Main Workings Main Workings Main Workings Main Workings Main Workings Toomba East Toomba East Toomba East Main Workings Central
Coordinates: UTM, MGA 94 / Zone 55		1887 Total Metres

Table 2: Toomba Prospect RC drill-collar location. PC016 is a water bore drilled for probable future diamond drilling purposes.

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Figure 4: An example section from Toomba Prospect for PC005. Footwall sheeted vein sets are characterized by sericite alteration and minor mineralisation. Diamond drilling at depth and along strike will be proposed to improve geological confidence in this potential new gold discovery.

About CYU

CYU listed on the ASX on 29 October 2007. 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, Ravenswood-Pentland Province and the Clermont area in Queensland.

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Statement of Compliance

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.

For further information please contact;

Mr Jason Beckton Kevin Kartun Managing Director Account Director CYU Financial & Corporate Relations 0438 888 612 (02) 8264 1003

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

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