AUKING MINING LIMITED — Capital/Financing Update 2011

Aug 14, 2011

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ASX/Media Announcement 15[th] August 2011:

Wide copper – cobalt - rare earth – gold zone confirmed at Elaine - Mary Kathleen JV with Goldsearch Limited.

Resource definition drilling planned to end of 2011

• 188m @ 0.35% Cu, 174ppm Co, 0.02g/t Au, MKED008 from 415m depth

• • 108m @ 1,241ppm TREO, 0.02 kg/t U3O8, 0.08 kg/t ThO2, MKED008 from 313m depth

• • 122.7m @ 0.55% Cu, 317 ppm Co, 0.08g/t Au, MKED007 from 487m depth inc: 104m @ 0.58% Cu, 293ppm Co, 0.09g/t Au, MKED007 from 505m depth inc: 14m @ 0.74% Cu, 407ppm Co, 0.22g/t Au, MKED007 from 518m depth inc: 10m @ 1.00% Cu, 366ppm Co, 0.13g/t Au, MKED007 from 550m depth

• Elaine Drilling to restart end of August, continuing to end of 2011.

• Revised JORC compliant resource estimate, incorporating Elaine JORC inferred REE + uranium resource (83,000t @ 3,200 ppm TREO and 0.28 kg/t U3O8) and newly discovered copper+cobalt sulphide zone, expected by Q1 2012.

Chinalco Yunnan Copper Resources (CYU) and Goldsearch Limited (GSE) have finalised results for the recently completed diamond drill program at the Elaine prospect that forms part of the Mary Kathleen Joint Venture Project ( Figure 1 ) at Mt Isa, Queensland. GSE has a 30% interest in the Joint Venture and CYU holds 70%. Delineation drilling will commence in late August and continue to the end of the year to define the extent of this mineralised system to a JORC resource standard.

A total of 1,781.3 metres were drilled in four diamond drill holes ( Table 1 and Figure 2 ) during June to July 2011 to test an underexplored area of copper, rare earths, uranium and thorium geochemical anomalies.

Table 1: Elaine Diamond Drill Collar Locations – June/July 2011

Hole ID	East(m)	North(m)	RL(m)	Azi(AMG)	Dip (°)	Depth(m)
MKED005 MKED006 MKED007 MKED008	398,228 398,189 398,203 398,127	7,699,521 7,699,536 7,699,552 7,699,502	444 450 451 427	177 177 332 325	-75 -60 -75 -60	267.1 299.9 609.7 604.6
*DATUM = UTM GDA94 Zone 54						1,781.3

Following up from previously announced copper results for MKED007 of 346.70m @ 0.28% Cu, 220ppm Co, 0.03g/t Au from 263m down hole depth ( including 122.7m @ 0.56% Cu, 317 ppm Co, 0.08g/t Au from 487m down hole depth), final assay results have been returned for the entire drill program.

Further broad zones of significant primary copper mineralisation have been returned, highlighted by 104m @ 0.58% Cu, 293 ppm Co, 0.09g/t Au in MKED007 from 505m down hole depth which includes an elevated gold zone of 14m @ 0.74% Cu, 407ppm Co, 0.22g/t Au in MKED007 from 518m down hole depth and 10m @ 1.00% Cu, 366ppm Co, 0.13g/t Au in MKED007 from 550m down hole depth. MKED008 also returned a broad zone of copper mineralisation of 188m @ 0.35%

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Cu, 174ppm Co, 0.02g/t Au from 415m down hole depth. Summaries of significant copper-cobaltgold intersections based on a nominal 0.2% Cu cutoff are tabulated in Table 2 below.

Table 2: Elaine – Summary Significant copper-cobalt-gold intersections at a nominal 0.2% Cu cut-off

Hole ID	From(m)	To(m)	Width(m)	Cu(%)	Co(ppm)	Au(ppm)	CuEq* (%)
MKED005 including including	29.00 30.00 31.00	39.00 35.00 32.00	10.00 5.00 1.00	0.26 0.38 0.99	119 151 80	-0.01 -0.01 -0.01	0.30 0.44 1.02
MKED006 including	79.00 82.00	86.00 86.00	7.00 4.00	0.21 0.25	171 148	0.02 0.02	0.29 0.32
MKED006 including	143.00 144.00	148.00 145.00	5.00 1.00	0.30 0.80	103 107	0.00 0.01	0.34 0.85
MKED007	58.00	63.00	5.00	0.25	70	-0.01	0.27
MKED007	263.00	609.70	346.70	0.28	220	0.03	0.39
including including including	309.00 328.00 355.00 359.00 363.00 367.00 372.00	333.00 329.00 368.00 360.00 366.00 368.00 389.00	24.00 1.00 13.00 1.00 3.00 1.00 17.00	0.22 0.02 0.55 0.61 1.19 0.41 0.22	241 82 631 1,240 492 1,060 346	0.02 0.38 0.09 0.11 0.15 0.06 0.01	0.33 0.30 0.87 1.20 1.49 0.89 0.37
MKED007	487.00	609.70	122.70	0.55	317	0.08	0.73
including including	489.00 491.00 504.00 507.00	501.00 493.00 523.00 509.00	12.00 2.00 19.00 2.00	0.60 0.39 0.49 0.23	598 1,913 147 53	0.05 0.04 0.09 0.14	0.88 1.22 0.61 0.34
MKED007	505.00	609.00	104.00	0.58	293	0.09	0.76
including including including including including	511.00 518.00 522.00 525.00 527.00 529.00 543.00 549.00 550.00 551.00 599.00 602.00	512.00 532.00 526.00 526.00 528.00 531.00 545.00 579.00 560.00 555.00 608.00 606.00	1.00 14.00 4.00 1.00 1.00 2.00 2.00 30.00 10.00 4.00 9.00 4.00	2.29 0.74 1.13 1.26 0.13 1.52 2.69 0.72 1.00 0.95 0.85 0.72	274 407 147 353 2,160 416 90 337 366 245 310 290	0.38 0.22 0.55 1.84 0.05 0.08 0.21 0.08 0.13 0.11 0.12 0.09	2.65 1.05 1.54 2.58 1.06 1.74 2.86 0.91 1.24 1.12 1.06 0.90
MKED008	168.00 174.00 175.00	177.00 175.00 176.00	9.00 1.00 1.00	0.25 0.45 0.71	163 320 474	0.00 0.01 0.01	0.32 0.59 0.91
MKED008	217.00	224.00	7.00	0.35	231	0.03	0.47
MKED008	415.00	603.00	188.00	0.35	174	0.02	0.44
including	422.00 422.00 425.00 432.00	443.00 436.00 428.00 433.00	21.00 14.00 3.00 1.00	0.59 0.75 1.01 1.38	335 258 225 123	0.04 0.05 0.02 0.02	0.76 0.89 1.12 1.44
MKED008	448.00	586.00	138.00	0.37	178	0.02	0.46
including including including including	451.00 451.00 469.00 473.00 491.00 516.00 542.00	512.00 454.00 470.00 502.00 501.00 538.00 576.00	61.00 3.00 1.00 29.00 10.00 22.00 34.00	0.45 2.07 1.17 0.38 0.60 0.44 0.35	223 68 1,105 218 255 207 101	0.03 0.19 0.18 0.02 0.02 0.03 0.01	0.56 2.22 1.75 0.48 0.72 0.55 0.40

* Cu equivalent calculations represent the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowances are made for recovery losses that may occur should mining eventually result. However it is the

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company’s opinion that elements considered here have a reasonable potential to be recovered. Long-term price assumptions and copper equivalent conversion factors are summarised below:

Cu equivalent formula = Cu (%) + (Co (ppm) x 0.0004) + (Au (g/t) x 0.6391)

Price assumptions – Cu (US$4.02/lb), Co (US$16.78/lb), Au (US$1760/oz), Current market prices: 9am 12/08/2011

Assay results also returned significant rare earth oxide (REO) zones highlighted by 9m @ 2,164ppm TREO in MKED007 from 511m down hole depth , 7m @ 2,061ppm TREO in MKED008 from 226m down hole depth including 1m @ 8,286ppm TREO from 230m down hole depth and 108m @ 1,241ppm TREO in MKED008 from 313m down hole depth. TREO are comprised ~95% LREO (light rare earth oxides) dominated by Cerium (CeO2), Lanthanum (La2O3) and Neodymium (Nd2O3).

Table 3: Elaine – Summary Significant TREO-molybdenum-tungsten intersections at a nominal 1,000ppm TREO cut-off

						TREO (ppm)
Hole ID	From (m)	To (m)	Width (m)	U3O8 (kg/t)	ThO2 (kg/t)		Mo (%)
MKED005	152.00	153.00	1.00	0.18	0.03	844
MKED005	195.00	213.00	18.00	0.00	0.01	50	0.02
MKED006 including	0.00 4.00	6.00 5.00	6.00 1.00	0.00 0.00	0.01 0.01	208 181
MKED006 including	61.00 61.00	63.00 62.00	2.00 1.00	0.01 0.01	0.02 0.04	1,761 2,701
MKED007 including	45.00 46.00	50.00 47.00	5.00 1.00	0.00 0.00	0.00 0.01	222 212
MKED007	448.00	449.00	1.00	0.09	0.34	1,866
MKED007	477.00	478.00	1.00	0.03	0.45	4,388
MKED007 including	511.00 577.00	520.00 578.00	9.00 1.00	0.04 0.03	0.11 0.04	2,164 3,465
MKED008	215.00	216.00	1.00	0.08	0.33	2,506
MKED008 including	226.00 230.00	233.00 231.00	7.00 1.00	0.02 0.02	0.11 0.48	2,061 8,286
MKED008	313.00	421.00	108.00	0.02	0.08	1,241
including	313.00 331.00 351.00 387.00	354.00 335.00 352.00 389.00	41.00 4.00 1.00 2.00	0.02 0.02 0.08 0.18	0.06 0.05 0.34 0.68	1,742 3,006 3,082 1,888
MKED008	500.00	501.00	1.00	0.02	0.07	1,536
MKED008 including	572.00 577.00 582.00	585.00 578.00 584.00	13.00 1.00 2.00	0.06 0.14 0.15	0.19 0.50 0.48	1,527 3,461 3,359

A small fixed loop EM (SAMSON) geophysical survey and DHEM (down hole EM) geophysical survey of MKED008 have been completed and final processing is being undertaken with early indication of a large +300m E-W striking body dipping steeply (-75°) to the south, open both directions and at depth. Based on the assay results and the geophysical surveys a new drilling program is being designed at a 100m x 100m drillout to achieve a comprehensive understanding of the tenement's resource potential. A drill rig has been confirmed to commence this drilling by 25 August 2011.

Drilling of two diamond holes for a total of 529 metres has also been concluded at the nearby Mt Dorothy prospect. This program entailed the testing of a large 3D conductivity anomaly. Both drillholes intersected oxidized breccia zones at targeted depths. Rare native copper and cuprite was visually identified along fracture surfaces, however no significant visual mineralisation was noted. The diamond core has been processed and sampled with all samples dispatched to ALS – Mt Isa. Results are pending.

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Elaine
Mount Dorothy
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Figure 1. Tenement location plan of the Mary Kathleen Joint Venture Project with Goldsearch Limited. The Mount Dorothy and Elaine Dorothy prospects are located approximately 50 and 60 kilometres, respectively, east of Mount Isa.

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Figure 2. Drillhole location plan - the Elaine prospect, Mary Kathleen JV Project with Goldsearch Limited. Note the area of the EM anomaly suggesting a target area for resource drillout of at least 300 metres strike.

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Figure 3: Elaine prospect - Section MKED007

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Figure 4: Elaine Prospect - Section MKED008

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Competent Person’s Statement

The information regarding to the Elaine Inferred Resource (EPM 14022) and to Exploration Activities on the Elaine Copper Prospect (EPM 14022) and the Mount Dorothy Prospect (EPM 14019), is based on information compiled by Richard Hatcher, who is a Member of the Australian Institute of Geologists and is the Exploration Manager of Chinalco Yunnan Copper Resources 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.

Enquiries:

Mr Jason Beckton Managing Director CYU 0438 888 612

Rudi Michelson Monsoon Communications 03 9620 3200

www.cycal.com.au

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