AUKING MINING LIMITED — Capital/Financing Update 2012

Mar 18, 2012

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ASX/Media Announcement 19 March 2012

ELAINE PROJECT UPDATE

• MKED019: 20m @ 0.75% Cu, 317ppm Co and 0.04g/t Au from 324m inc. 5m @ 1.22% Cu, 244ppm Co and 0.03g/t Au from 330m

• MKED021: 33m @ 0.60% Cu, 528ppm Co from 633m inc. 20m @ 0.71% Cu, 478ppm Co from 642m

• MKED019: 65m @ 2,188ppm TREO, 36ppm U3O8, 136ppm ThO2 from 464m.

• Mineralization now intersected along strike and down dip from current resource definition area.

• Resource estimate due out by end of Q1 2012. The Elaine mineralization within and adjoining the host Mary Kathleen shear is open to the east and west.

Chinalco Yunnan Copper Resources (CYU) and Goldsearch Limited (GSE) are pleased to provide an update on the current definition and extensional diamond drill program at the Elaine prospect that forms part of the Mary Kathleen Joint Venture Project ( Figure 1 ) at Mt Isa, Queensland. CYU hold 70%, GSE hold 30% interests in the Mary Kathleen Joint Venture.

Drilling re-commenced at Elaine in January 2012 and to date a total of 2,277.28m in 5 drill holes have been completed ( Figure 2 ). Drilling has consisted of a combination of extension of previous drill holes that terminated in mineralisation with a deeper penetrating rig and new drill holes stepping out to the northeast of the mineralised trend. Completed drill hole collar and survey information is provided in Table 1 .

Table 1: Elaine 2012 Diamond Drill Program – Holes to date

HOLE ID	EAST*	NORTH*	RL (m)	AZIMUTH**	DIP	DEPTH
MKED021 MKED022	398,498 398,496	7,699,639 7,699,645	397 397	295 312	-60 -62	711.98 725.90
MKED007(1) (2) MKED018(1) MKED019(1)	398,203 398,225 398,120	7,699,552 7,699,570 7,699,443	448 450 402	332 354 334	-75 -60 -69	164.30 123.30 551.80
* Datum is UTM MGA9 (1) Extensio 679.1m – (2) MKED00	4 Zone 54 ** Azimuth is UTM Grid North (MGA94 Zone 54) n of drill hole from previous depth: MKED007 from 609.7m – 774.0m, MKE 819.3m. 7 currently drilling			D018 from 630.3m – 753.3m, MKED019 from		2,277.28

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Figure 1. Tenement and prospect location plan of the Mary Kathleen Joint Venture Project. The Elaine prospect is located approximately 60km east of Mount Isa.

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Figure 2. Simplified map showing north side of the Elaine garnet hill. Mineralisation is expected to continue down the western side and on the southern side of the hill and merge with the U-REO Resources where untested copper outcrops occur.

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MKED019 was designed to test the western extension of the targeted sulphide anomaly. Drilling was suspended in December 2011 for MKED019 at 267.50m. The hole was initially re-entered and extended to 674.5m. Persistent visible mineralization was noted near the bottom of MKED019 and the hole was extended further to a final depth of 819.30m. MKED007 and MKED018 were also designed as extension to previous drilling to chase the open mineralization in MKED007 ( 122.9m @ 0.56% Cu, 317ppm Co from 487m OPEN) and test the eastern extension of the anomaly in MKED018. MKED021/MKED022 were also designed to target the eastern extension of the anomaly.

Final assays have been received for MKED019 to 679m and MKED020. Partial results have also been received for a zone of visible mineralization intersected in MKED021. Assays are pending for MKED007, MKED018 and MKED022. Several significant zones of copper mineralization have been intersected, highlighted by 34m @ 0.54% Cu, 258ppm Co, 0.02g/t Au , MKED019 from 322m down hole depth including 20m @ 0.75% Cu, 318ppm Co and 0.04g/t Au from 324m down hole depth and 33m @ 0.60% Cu, 528ppm Co, MKED021 from 642m down hole depth including 20m @ 0.71% Cu, 478ppm Co from 642m down hole depth.

Table 2: Elaine 2012 Diamond Drilling - Summary of significant copper-cobalt-gold intersections at a nominal 0.2% Cu cut-off with a max 3m internal dilution.

Hole ID	From (m)	To (m)	Width (m)	Au (g/t)	Co (ppm)	Cu (%)	CuEq (%)
MKED019 inc. (0.5%)	33 48	62 57	29 9	0.02 0.04	154 178	0.36 0.55	0.42 0.61
MKED019	307	317	10	0.01	291	0.24	0.35
MKED019 inc. (0.5%) inc. (1%)	322 324 330	356 344 335	34 20 5	0.02 0.04 0.03	258 318 244	0.54 0.75 1.22	0.64 0.87 1.31
MKED019	668	673	5	0.05	132	0.38	0.43
MKED020	75	77	2	0.03	74.3	0.61	0.64
MKED021 inc. (1%) inc. (0.5%)	633 635 642	666 636 662	33 1 20	A/P A/P A/P	528 305 478	0.60 2.57 0.71	0.80 2.68 0.89
MKED022			A/P = Assays Pending

* 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 company’s opinion that elements considered here have a reasonable potential to be recovered. Long-term price assumptions and copper equivalent conversion factors are summarized below: Cu equivalent formula = Cu (%) + (Co (ppm) x 0.0004) + (Au (g/t) x 0.6279)**

Price assumptions – Cu (US$3.8902/lb.), Co (US$14.65/lb.), Au (US$1675.1/oz.), Market prices as at 3pm EPST 13/03/2012

Significant intersections of total rare earth oxide ( TREO ), uranium and thorium mineralization have also been returned ( Table 3 ), highlighted by 32m @ 2,447ppm TREO, 27ppm U3O8, 72ppm ThO2 , MKED019 from 408m down hole depth, 65m @ 2,188ppm TREO, 36ppm U3O8, 136ppm ThO2 MKED019 from 464m down hole depth and 0.5m @ 4,867ppm TREO, 12ppm U3O8, 15ppm ThO2 MKED020 (OPEN) from 474m down hole depth. MKED020 was suspended at the end of 2011 at 474.5m; extension of this drill hole is currently underway.

The uranium +/- rare earth mineralization is interpreted as a separate mineralizing event that overlaps the copper-cobalt-gold mineralization in places.

The light rare earth elements (LREE) of Cerium, Lanthanum and Neodymium comprise ~95% of the TREOs. Total rare earths calculations include Yttrium as well.

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Table 3: Elaine 2012 Diamond Drilling - Summary of significant intersections based on a at a 1,500ppm TREO cut-off, max 3m internal dilution.

Hole ID	From (m)	To (m)	Width (m)	TREO* (ppm)	U3O8 (ppm)	ThO2 (ppm)	Comment
MKED019	276	288	12	1,691	43	238
MKED019	408	440	32	2,447	27	72
MKED019	444	458	14	1,904	25	83
MKED019 inc. inc.	464 478 481	529 482 482	65 4 1	2,188 5,405 10,025	36 57 115	136 286 592
MKED019	541	550	9	3,338	80	390
MKED019	571	586	15	2,494	23	59
MKED019	636	640	4	3,602	154	462
MKED019	648	655	7	2,681	14	43
MKED020 MKED020 MKED020	409 419 474	410 420 474.5	2 2 0.5	2,425 2,518 4,867	83 50 12	20 23 15	OPEN MKED020 Extension underway
MKED021				Assays Pending
MKED022				Assays Pending

MKED019 and MKED021 have both intersected mineralization along strike and at depth from the current Exploration Target area providing support of the mineralized body to be open in all directions.

CYU and GSE are undertaking a resource evaluation for completion by end Q1 2012. The resource estimation is based on a 345m x 500m area (Figure 2) and to 450m depth (Table 4 ) with the existing Elaine Inferred Uranium resource (83Kt @ 0.28kg/t U3O8, 3200ppm TREO) defined by MKED001MKED003 not included.

Table 4: Elaine Resource Definition Diamond Drill Program – Holes drilled Nov 2010 - Jan 2012.

HOLE ID	EAST*	NORTH*	RL (m)	AZIMUTH**	DIP	DEPTH
MKED004 MKED005 MKED006 MKED007 MKED008 MKED009 MKED010 MKED011 MKED012 MKED013 MKED014 MKED015 MKED016 MKED017 MKED018 MKED019 MKED020	398,054 398,228 398,189 398,203 398,127 398128 398127 398058 398095 398095 398155 397967 398057 398225 398225 398120 398236	7,699,540 7,699,521 7,699,536 7,699,552 7,699,502 7699506 7699506 7699621 7699705 7699705 7699725 7699617 7699618 7699570 7699570 7699443 7699529	389 444 447 448 418 418 418 391 387 387 394 377 391 450 450 402 442	177 177 177 332 325.5 010 007 003 350 350 001 358 306 354 334 334 339	-70 -75 -60 -75 -60 -56 -66 -67 -66 -66 -70 -60 -75 -60 -69 -69 -70	208.0 267.0 300.0 610.0 605.0 657.4 528.8 531.3 14.8 339.6 420.5 438.3 642.4 7.9 630.3 819.3 474.5
* Datum is UTM MGA9	4 Zone 54 ** Azimuth	is UTM Grid North (MGA94 Zone 54)				7,354.8m

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Figure 3. MKED004 and MKED009 confirming mineralisation continuing to surface. MKED019 completed for a final depth of 819.3m.

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Figure 4. Mineralisation confirmed at depth and open to the northeast. Significant increase in cobalt assays returned from interval.

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Figure 5. Long Projection 7,699,650N – Overall the shape of the Elaine discovery remains open to the west and east and at depth. A resource evaluation is being undertaken in Q1 2012.

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Photo 1: MKED019, ~335 metres - Phyrrhotite+pyrite+chalcopyrite mineralisation. Assays returned for interval = 1m @ 1.17% copper, 214ppm cobalt and 0.04 g/t gold (335m – 336m) .

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Photo 2: MKED021, ~642.5 metres - Facture controlled phyrrhotite+pyrite+chalcopyrite mineralisation. Assays returned for interval = 1m @ 1.61% copper, 823ppm cobalt and gold assays pending (642m – 643m) .

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CYU CHILE AND LAOS PROJECTS UPDATE

Chile

Copper is targeted at the Rio Tinto joint ventures in Chile at the Candelabro, Caramasa and Palmani porphyry properties. Surface mapping, sampling and geophysical surveys indicate these targets are highly prospective. Another CYU Chile project is the Humitos Copper Porphyry in the Copiapo District of north Chile. Drilling at Candelabro is near completion. Sample for first 300m of drill hole CAND005 submitted to ALS - Antofagasta with assays pending . Track and pad construction has been completed at Caramasa, which will be drilled after Candelabro. Road permitting has been completed at Palmani, preparations underway for drill road and pad construction.

Laos

Targeting results from the 2011 regional geochemical and geophysical surveys, Sanmu Mining (CYU is earning 51% equity) is currently undertaking the first phase of drilling at the Jiuzhai project and Xinzhai project, Northern Laos, respectively. The first hole at Jiuzhai project commenced in Dec 2011 and finished at a total depth of 240.74m. The second hole commenced in mid Feb 2012 and is expected to be completed by end of March. The drilling at Xinzhai project commenced in early Feb 2012 and finished at the depth of 376m. Several mineralized zones have been visually identified from this hole by a CYU senior geologist reviewing the drill program for CYU. All the core samples taken and sent to the Yunnan Nonferrous Metals Geology and Test Centre, Kunming, China. Assays results are pending.

About Chinalco Yunnan Copper Resources

Chinalco Yunnan Copper Resources Limited (CYU) explores and develops minerals in Australia, Chile and Laos. CYU is supported by cornerstone shareholder Yunnan Copper Industry (Group) Co Ltd (YCI); China's third largest copper producer. CYU acts as YCI's international investment arm and mining house.

Competent Person’s Statement

The information regarding the Exploration Activities on the Elaine Copper Prospect (EPM 14022) is based on information compiled by Mr 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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