AUKING MINING LIMITED — Capital/Financing Update 2014

Jul 30, 2014

Chinalco Yunnan Copper Resources Limited ABN 29 070 859 522

Suite 4, Level 8, 320 Adelaide Street Brisbane QLD 4000 GPO Box 216 Brisbane QLD 4001 Tel: +61 7 3211 9013 Fax: +61 7 3010 9001

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31 July 2014

Dear Shareholder

Partially underwritten non-renounceable entitlement offer to raise approximately $6.27 million before costs of the offer.

On 30 July 2014, Chinalco Yunnan Copper Resources Ltd (ASX:CYU) ( Company ) announced a prorata, non-renounceable rights issue to eligible shareholders, on the basis of 3 new fully paid ordinary shares ( New Shares ) for every 4 shares held, at an issue price of $0.03 per New Share, to raise approximately $6.27 million before costs ( Offer ). The Offer will be available to all eligible shareholders who hold shares as at 7:00pm (AEST) on the record date of 6 August 2014. Following quotation, the New Shares will rank equally in all respects from the date of allotment with existing quoted shares on issue.

The Offer is underwritten up to $5.2 million (173,333,333 New Shares), representing approximately 83% of the total Offer, by China Yunnan Copper (Australia) Investment and Development Co. Ltd, the Company’s largest shareholder. The underwriting means that most of the funds sought under the Offer can be guaranteed and the Company will be able to implement its planned activities. A nominal $1 fee is being charged in relation to the underwriting provided.

The Offer is being undertaken pursuant to a prospectus issued under section 713 of the Corporations Act ( Prospectus ), which was lodged with ASIC and ASX on 30 July 2014. Full details of the Offer are set out in the Prospectus. It is available on the ASX website and also on the Company’s website, www.cycal.com.au. The Prospectus, along with an Entitlement and Acceptance Form, will be dispatched to eligible shareholders on 11 August 2014. Potential investors should consider the Prospectus in full in deciding whether to acquire the securities offered. Anyone who wants to acquire the securities offered will need to follow the instructions on the Entitlement and Acceptance Form that will accompany the Prospectus.

The Company has determined that only those shareholders with registered addresses in Australia or New Zealand will be eligible to participate in the Offer.

The funds raised under the Offer (after payment of costs) will be used to continue to develop the Company’s business and meet its strategic goals as identified in Section 1.5 of the Prospectus. More particularly, funds raised under the Offer have been earmarked for exploration activities in Australia where CYU’s current Mt Isa projects are held, and working capital purposes.

A proposed timetable for the Offer is set out below:

	Announcement of the Offer	30 July 2014
	Prospectuslodgedwith ASIC andASX	30 July2014
	Notice sent to Eligible Shareholders with information on the Offer	31 July 2014
	Shares commence trading on an“ex”basis (“ex”date)	1 August 2014
	Record Date to determine Entitlements under the Offer	6 August 2014 (7:00pm AEST)
	Prospectus and Entitlement and Acceptance Forms dispatched to Eligible Shareholders	11 August 2014
	Opening Date of Offer	11 August 2014 (9:00am AEDT)
	Closing Date of Offer	25 August 2014 (5:00pm AEST)
	NewShares quoted ona deferred settlement basis	26August2014
	Expected date of issue of New Shares applied for under the Offer and any Shortfall	1 September 2014
	Deferred settlement trading ends	1 September 2014
	Expected date of dispatch of transaction confirmation statements	2 September 2014
	Expected date for commencement of normal trading of New Shares issued under the Offer on the ASX	2 September 2014

Chinalco Yunnan Copper Resources Limited ASX: CYU www.cycal.com.au

These dates are indicative only and subject to change. The Company reserves the right, subject to the Corporations Act and the Listing Rules, to change any date including to extend the Closing Date of the Offer, to close the Offer early, to accept late acceptances either generally or in particular cases, or to withdraw or reduce the size of the Offer without notice. Any extension of the Closing Date will have a consequential effect on the issue date of New Shares.

Further information

The Company anticipates that up to 208,899,393 New Shares will be issued under the Offer. The New Shares will be issued for $0.03 each. Upon completion of the Offer, the issued capital of the Company will comprise approximately 487,431,917 shares.

Entitlements to New Shares pursuant to the Offer are non-renounceable and accordingly will not be traded on the ASX. Following quotation, the New Shares will rank equally in all respects from the date of allotment with existing quoted shares on issue. Fractional entitlements under the Offer will be rounded up to the nearest whole number.

Trading in the New Shares on the ASX is expected to commence on or about 2 September 2014. An Appendix 3B applying for quotation of the New Shares has been lodged with ASX. The Company encourages all eligible shareholders to participate in the Offer.

For further information, please contact Paul Williams, Managing Director on 61 7 3211 9013 or by email at paul.williams@cycal.com.au.

Yours sincerely,

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Paul Williams Managing Director Chinalco Yunnan Copper Resources Ltd

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