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AUKING MINING LIMITED Capital/Financing Update 2010

Mar 10, 2010

64355_rns_2010-03-10_7a3db363-6ca0-4be7-b5ee-c4619f152c24.pdf

Capital/Financing Update

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ASX/Media Announcement

11[th] March 2010

GEM COPPER GOLD PROSPECT – INTERIM RESULTS INDICATE SHALLOW MINERALISATION CONTINUITY

Key Points

  • Results have been received from the RC drill out currently underway at the Gem Copper Gold Prospect. Results confirm mineralised (>0.5% Copper) intervals at shallow levels over 400 metres strike length.

  • Ten holes reported, remaining eleven to be completed on central and southern portions in late March to define strike length of mineralised zones to 500 metres with depth continuity from surface to 100 metres.

  • Results include:

GR024 - 12m @ 1.08% copper and 0.58 g/t gold from 16m

GR029 - 12m @ 0.51% copper and 0.68 g/t gold from 58m including 4m @ 1.18% copper and 0.08g/t gold from 58m including 1m @ 1.60% copper and 5.62g/t gold from 68m GR030 - 9m @ 1.66% copper and 0.46 g/t gold from 15m

China Yunnan Copper Australia Limited (ASX:CYU) today announced further encouraging results from its drilling programme at the Gem Copper Gold Prospect in the Cloncurry district.

Following the success and information generated from previous drilling campaigns, CYU commenced a 21 hole RC drill programme totalling 2,600m in late January 2010 designed to define a maiden inferred JORC resource. The drilling programme has experienced a number of delays due to the heavy wet season and to date ten (10) holes have been completed for a total of 1,134m ( Table 1 ).

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Table 1: Gem Drillhole Locations

Hole ID *East ** North* RL(m) Azi(⁰) Dip (⁰) Depth (m)
GR023 419,458 7,758,890 190 90 -55 82.00
GR024 419,452 7,758,850 192 90 -55 106.00
GR025 419,405 7,758,890 190 90 -55 148.00
GR026 419,387 7,758,840 190 90 -55 190.00
GR027 419,443 7,758,570 193 90 -56 70.00
GR028 419,441 7,758,490 190 90 -58 52.00
GR029 419,415 7,758,490 190 90 -57 100.00
GR030 419,415 7,758,490 190 90 -74 130.00
**GR031 ** 419,405 7,758,570 192 90 -60 88.00
**GR032 ** 419,356 7,758,570 192 90 -60 168.00
1,134.00

*** Easting and Northing UTM MGA Zone 54 – GDA94.**

Significant intersections from previously reported GR001 to GR022 are referred to in Table 2 as well as results returned for the ten (GR023 to GR032) RC holes ( Table 2 ) drilled in the current campaign.

In summary previous best results are 38m @ 1.25% copper and 0.20 g/t gold from 33m , GR003; 8m @ 0.89% copper and 0.25g/t gold from 183m, GR015 and 6m @ 1.57% copper and 0.19g/t gold from 53m, GR021. From the recent drilling a significant near surface intersection was returned in the north of the prospect of 12m @ 1.08% copper, 0.58 g/t gold from 16m down hole depth, GR024 including two high grade zone of 5m @ 1.03% copper, 1.18g/t gold from 16m down hole depth and 4m @ 1.72% copper, 0.25 g/t gold from 23m down hole depth. In the south of the prospect significant near surface intersections were returned of 12m @ 0.51% copper, 0.68 g/t gold from 58m down hole depth, GR029, and 9m @ 1.66% copper, 0.46g/t gold from 15m down hole depth, GR030.

Table 2: Significant Drill Intersections – nominal 0.1% Cu cutoff (previously reported Italics )

Hole Id From To Width Cu(%) Au(g/t) Comment
GR001 42.00 43.00 1.00 0.13 _<0.01 _
GR001 55.00 76.00 21.00 0.12 0.05
including 55.00
60.00
61.00
68.00
73.00
57.00
61.00
66.00
69.00
76.00
2.00
1.00
5.00
1.00
3.00
0.19
0.08
0.16
0.12
0.20
0.08
0.14
0.05
0.02
0.10
0.10g/t Au cut-off
GR002 No Significant Intersections
GR003 0.00 1.00 1.00 0.10 0.39 0.10g/t Au cut-off
GR003 33.00 71.00 38.00 1.25 0.20
including 45.00 67.00 22.00 1.96 0.29 1% Cu cut-off
GR003 85.00 86.00 1.00 0.01 0.10 0.10g/t Au cut-off
GR004 59.00 60.00 1.00 0.12 _0.02 _
GR004 80.00 81.00 1.00 0.47 0.27
GR004 141.00 142.00 1.00 0.18 0.02
GR005 39.00 40.00 1.00 0.11 _<0.01 _
GR005 120.00 121.00 1.00 0.01 0.10 0.10g/t Au cut-off
GD006 42.00 43.00 1.00 0.17 0.03
GD006 47.75 48.25 0.50 _0.32 _ _<0.01 _
GD006 61.50 62.50 1.00 0.44 0.13
GD006 87.00 88.00 1.00 _0.01 _ 0.13 0.10g/t Au cut-off
GD006 96.50 101.50 5.00 0.62 0.05
including 98.50 101.50 3.00 1.23 0.07 1% Cu cut-off
100.75 101.50 0.75 4.27 0.03

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Hole Id From To Width Cu(%) Au(g/t) Comment
GD006 159.00 160.00 1.00 0.16 _0.01 _
GD006 171.00 172.00 1.00 0.13 <0.01
GR007 44.00 45.00 1.00 0.18 _0.01 _
GR007 50.00 51.00 1.00 0.21 0.01
GR008 20.00 22.00 2.00 _0.34 _ 0.06
GR008 27.00 33.00 6.00 0.46 0.05
including 30.00 32.00 2.00 0.49 0.07 2m@ 1.06% Zn
GR008 72.00 73.00 1.00 0.16 0.16
GR008 86.00 87.00 1.00 0.19 0.09
GR008 138.00 139.00 1.00 0.21 _<0.01 _
GR008 150.00 151.00 1.00 0.12 0.05
GR008 179.00 180.00 1.00 0.14 0.05
GR009 1.00 5.00 4.00 1.16 0.12
including 1.00 3.00 2.00 2.07 0.21
GR009 30.00 31.00 1.00 0.12 _0.01 _
GR009 35.00 36.00 1.00 0.28 0.05
GR009 100.00 108.00 8.00 0.28 0.12
including 105.00 106.00 1.00 1.54 0.56
GR009 117.00 118.00 1.00 0.06 0.24 0.10g/t Au cut-off
GR009 145.00 146.00 1.00 0.20 0.06
GR009 149.00 150.00 1.00 0.35 0.29
GR010 15.00 17.00 2.00 0.45 _<0.01 _
GR010 28.00 29.00 1.00 0.14 _0.01 _
GR010 36.00 38.00 2.00 0.39 0.03
GR010 48.00 53.00 5.00 0.18 0.07
GR010 67.00 68.00 1.00 0.11 0.04
GR011 5.00 7.00 2.00 0.15 _0.01 _
GR011 16.00 24.00 8.00 0.16 0.13
including 18.00 19.00 1.00 0.30 0.69
GR012 25.00 26.00 1.00 0.35 _0.01 _
GR012 30.00 31.00 1.00 0.14 0.06
GR012 51.00 54.00 3.00 2.36 0.40
including 51.00 53.00 2.00 3.42 0.57 1% Cu cut-off
GR012 58.00 60.00 2.00 0.18 0.05
GR012 64.00 67.00 3.00 0.27 _0.02 _
GR012 91.00 92.00 1.00 0.13 0.11
GR012 147.00 148.00 1.00 0.01 0.14 0.10g/t Au cut-off
GR013 0.00 7.00 7.00 0.36 0.07
GR013 11.00 12.00 1.00 0.43 0.24
GR013 26.00 42.00 16.00 0.38 0.69
including 31.00 32.00 1.00 2.53 0.24
37.00 38.00 1.00 1.60 9.98
GR013 58.00 59.00 1.00 0.15 0.03
GR014 24.00 26.00 2.00 0.18 _0.01 _
GR014 29.00 30.00 1.00 0.40 _<0.01 _
GR014 34.00 35.00 1.00 0.21 <0.01
GR015 168.00 170.00 2.00 1.04 0.36
including 168.00 169.00 1.00 1.97 0.69
GR015 183.00 191.00 8.00 0.89 0.25
including 185.00 191.00 6.00 1.10 0.28 0.5% Cu cut-off
188.00 190.00 2.00 2.35 0.62 1% Cu cut-off
GR016 No Significant Results
GD017 27.00 28.00 1.00 0.11 _0.07 _
GD017 61.00 67.00 6.00 0.36 0.06
including 63.00 63.50 0.50 2.57 0.53
GD017 70.00 70.50 0.50 0.91 <0.01
GD018 36.50 37.50 1.00 0.70 0.16
GD018 43.00 65.00 22.00 0.46 0.60

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Hole Id From To Width Cu(%) Au(g/t) Comment
including 43.00 49.00 6.00 0.76 0.17
44.50 47.50 3.00 1.29 0.22 1% Cu cut-off
56.00 57.00 1.00 0.23 0.22
62.50 65.00 2.50 1.54 3.96 1% Cu cut-off
62.50 63.50 1.00 3.96 0.27
64.00 65.00 1.00 0.73 11.50
GD018 74.00 76.00 2.00 0.25 1.26
GD018 86.00 87.00 1.00 0.12 0.10
GD018 94.00 95.00 1.00 0.14 0.05
GR019 46.00 47.00 1.00 0.27 0.03
GR019 51.00 53.00 2.00 0.27 0.09
GR019 58.00 64.00 6.00 0.33 0.16
GR019 76.00 77.00 1.00 0.41 0.04
GR020 No Significant Intersections
GR021 44.00 45.00 1.00 0.48 0.06
GR021 55.00 58.00 3.00 3.08 0.35
GR021 103.00 104.00 1.00 0.19 _0.01 _
GR021 115.00 116.00 1.00 0.19 _0.04 _
GR021 124.00 131.00 7.00 0.34 0.17 Open at Depth
GR022 No Significant Intersections
GR023 25.00 27.00 2.00 0.21 <0.01
GR024 16.00 28.00 12.00 1.08 0.58
including 16.00 21.00 5.00 1.03 1.18 0.5% Cu cut-off
23.00 27.00 4.00 1.72 0.25 0.5% Cu cut-off
GR024 30.00 31.00 1.00 0.10 0.07
GR025 88.00 90.00 2.00 0.65 **1.61 **
GR025 102.00 103.00 1.00 0.14 0.04
GR025 105.00 106.00 1.00 0.12 0.03
GR025 108.00 109.00 1.00 0.06 0.11 0.10g/tAu cut-off
GR025 111.00 112.00 1.00 0.13 **0.97 **
GR025 131.00 133.00 2.00 0.11 0.06
GR026 100.00 101.00 1.00 0.14 0.01
GR027 6.00 10.00 4.00 0.25 <0.01
GR027 18.00 19.00 1.00 0.19 0.01
GR027 22.00 23.00 1.00 <0.01 0.10 0.10g/tAu cut-off
GR027 32.00 33.00 1.00 0.72 0.01
GR027 43.00 44.00 1.00 0.11 <0.01
GR027 51.00 53.00 2.00 0.17 <0.01
GR027 60.00 64.00 4.00 0.17 <0.01
GR028 1.00 4.00 3.00 0.16 0.11
GR028 11.00 12.00 1.00 0.36 0.01
GR028 21.00 22.00 1.00 0.21 0.01
GR028 40.00 41.00 1.00 0.11 0.09
GR029 9.00 12.00 3.00 0.15 0.04
GR029 36.00 38.00 2.00 0.74 1.89
including 36.00 37.00 1.00 1.36 3.76 1% Cu cut-off
GR029 46.00 47.00 1.00 0.13 0.07
GR029 53.00 55.00 2.00 0.39 0.77
including 53.00 54.00 1.00 **0.54 ** 1.49 0.5% Cu cut-off
GR029 58.00 70.00 12.00 0.51 0.68
including 58.00 62.00 4.00 1.18 0.08 1% Cu cut-off
68.00 69.00 1.00 1.60 **5.62 ** 1% Cu cut-off
GR029 86.00 88.00 2.00 1.86 0.08
including 86.00 87.00 1.00 3.41 0.13 1% Cu cut-off
GR030 15.00 24.00 9.00 1.66 0.46
including 15.00 19.00 4.00 3.20 **0.94 ** 1% Cu cut-off
GR030 34.00 36.00 2.00 0.19 0.07
GR030 43.00 46.00 3.00 0.21 0.07

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Hole Id From To Width Cu(%) Au(g/t) Comment
GR030 44.00 47.00 3.00 0.16 0.13 0.10g/tAu cut-off
GR030 84.00 88.00 4.00 0.88 0.14
including 85.00 86.00 1.00 2.48 0.40 1% Cu cut-off
GR030 105.00 106.00 1.00 0.13 <0.01
GR030 108.00 109.00 1.00 0.12 0.03
GR030 114.00 115.00 1.00 0.10 <0.01
GR031 No Significant Results
**GR032 ** 52.00 53.00 1.00 <0.01 0.13
GR032 69.00 70.00 1.00 0.04 0.13

Drilling results to date support the current in-house 3D geological model with the mineralisation zones occurring either side of a sub-vertical post-mineralisation dyke which follows the same structural paths of mineralisation. Although this post mineral dyke seemingly stopes out mineralisation in parts, it will be used as a major indicator in locating mineralisation at Gem. A conventional relogging exercise and interpretation of the main mineralised zone and accompanying dykes has been created using plans and sections corrected in 3D in 20 metre slices.

The prospect drilling program is approximately half complete (1,134m out of 2,600m planned) with the undrilled central portion of the prospect as depicted by letters P, Q etc ( Figure 1 ) to recommence later this week. In total 41 holes will allow a length continuity of 500 metres and depth continuity from surface to 100 metres to be defined between the currently drilled northern and southern portions ( Figure 1 ). On receipt of subsequent laboratory results, an inferred estimate will be completed in April/May.

About CYU

CYU is an Australian company formed to explore for and develop minerals in Australia and overseas. Cornerstone investor, Yunnan Copper Industry (Group) Co Ltd (YCI), is one of China’s largest copper producers. YCI’s largest shareholder is Chinalco.

CYU has goals of resource definition and development for its three target commodities Copper, Gold and Uranium and to achieve this is targeting high quality copper, gold and uranium projects in Queensland, Chile and China.

CYU is also;

  • Compiling information for a maiden resource estimate for Elaine Dorothy U REE.

  • Currently diamond drilling the Pentland Gold Project with ActivEX limited.

  • In a purchase agreement for the Humito Copper Porphyry project in Chile.

  • Farming into to the Mary Kathleen Project in Mt Isa with Goldsearch Limited.

  • In a Memorandum of understanding for project generation in Yunnan Province, China with cornerstone investor YCI.

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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

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Richard Hatcher, who is a Member of the Australian Institute of Geologists and is Exploration Manager of China Yunnan Copper Australia Ltd. Mr Hatcher 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 Hatcher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

See Figure 1 to 5 below.

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Figure 1. Gem – Current Drillhole Location Map. To be drilled are holes C, F, G, H in the south and J, L, 0, M, N, P, and Q in the central portion.

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Figure 2: Gem – Section 7,758,840mN. Additional examples of blind mineralisation are expected to be defined as per the grade and width of GR024 at shallow levels.

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Figure 3: Gem – Section 7,758,560mN. Section is 280 metres south of Figure 2 (Section 8,840mN) with drilling in the intervening central portion underway.

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Figure 4: Gem – Section 7,758,480mN, 80 metres south of Figure 3, Section 8560mN. Sections from Figures 2, 3 and 4 cover approximately 400 metres strike length with further drilling to define the central portion and southern extension (Figure 1) underway.

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Figure 5. CYU project locations - Mt Isa and Cloncurry.

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