AUKING MINING LIMITED — Capital/Financing Update 2011

Jun 8, 2011

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ASX/Media Announcement

CYU Equity in Mary Kathleen Copper JV Increases to 70%

9 June 2011

Chinalco Yunnan Copper Resources Limited (ASX: CYU) advises that it has now earned a 70 per cent equity interest in the Mary Kathleen Joint Venture with Goldsearch Limited (ASX: GSE).

CYU previously announced commencement of drilling on the Mary Kathleen copper discovery at Elaine Dorothy (“Elaine”) and Mount Dorothy. Drilling expenditure in the current program has increased CYU’s total expenditure on the Joint Venture to over $1.5 million which completes the earn-in and triggers the 70 per cent equity ownership by CYU.

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Elaine Dorothy
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 prospects are located approximately 50 and 60 kilometres, respectively, east of Mount Isa.

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COPPER+REE+/-URANIUM – MOUNT ISA

Drilling is currently underway at the Elaine prospect targeting the extension of the JORC inferred uranium+REE resource and to test the recently defined copper-REE zone. Currently the third diamond drillhole (MKED007) of a six hole diamond drill program is nearing completion at ~300m depth.

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Figure 2. Prospect and drillhole location plan for the Elaine prospect of the Mary Kathleen Joint Venture Project with Goldsearch Limited. Further scout drilling is planned to be undertaken on the southern Cerium (Ce – REE) and Copper geochemical anomalies.

The first drill hole at Elaine ( MKED005 ), targeting the copper zone, has been submitted for analysis. Disseminated chalcopyrite+pyrite+pyrrhotite ( Plate 1 ) and massive calcite+chalcopyrite+pyrrhotite+pyrite veining ( Plate 2 ) have been observed throughout the drillcore.

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Plate 1. MKED005 – 38.75m – disseminated chalcopyrite+pyrite+pyrrhotite in a scapolite-diopside calc-silicate breccia.

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Plate 2. MKED005 – 111.45m – massive chalcopyrite+pyrrhotite+pyrite calcite vein.

Drill preparations are being finalised to extend the high grade copper, heavy rare earths, cobalt and silver zones at the Mount Dorothy prospect. A diamond / RC drill program is planned to overlap with the Elaine diamond drill program in mid – late June 2011.

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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Competent Person’s Statement

The information regarding to Exploration Activities in this report that relates to the Elaine (EPM 14022) and Mount Dorothy (EPM 14019) prospects, is based on information compiled by Jason Beckton, who is a Member of the Australian Institute of Geologists and is the Managing Director of Chinalco Yunnan Copper Resources 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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