AUKING MINING LIMITED — Capital/Financing Update 2016

Dec 14, 2016

Chinalco Yunnan Copper Resources Limited ABN 29 070 859 522

Suite 6, Level 11, 320 Adelaide Street Brisbane QLD 4000 GPO Box 216 Brisbane QLD 4001 Tel: +61 7 3041 1306

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15 December 2016

ASX ANNOUNCEMENT

Sale of Mount Isa Tenement holdings

Please find attached a copy of a release made today to the ASX by Hammer Metals Ltd (ASX Code - HMX) relating to that company’s acquisition of all of CYU’s existing mining tenement holdings in the Mount Isa region.

These tenement holdings comprise CYU’s 100% interest in EPMs 12205, 14019 and 14022, together with a 51% joint venture interest in EPM 14467 (under the Mt Frosty Joint Venture with Mount Isa Mines Ltd – a Glencore Group company). All mining information, data, core samples and other materials relating to these mining tenements will also be sold to HMX.

Under the sale, CYU will receive 1,500,000 ordinary shares in HMX which will be capable of being traded on the ASX, save for a voluntary escrow commitment by CYU until October 2017. The sale is conditional upon the following:

• Completion of due diligence by HMX in relation to the tenures;

• Indicative approval being obtained from the Department of Natural Resources and Mines for the transfer of these interests to take place; and

• Consent being secured from Mount Isa Mines in respect of the proposed transfer of the 51% interest in EPM 14467 and to certain changes requested by HMX to be made to the existing Mt Frosty Joint Venture agreement.

It is expected that these conditions will be satisfied either late this year or into early 2017. In the event that the Mount Isa Mines consent cannot be obtained, the sale will still proceed but on the basis that the 51% of EPM 14467 is excluded and the total purchase price is reduced to 1,250,000 ordinary HMX shares.

CYU has previously advised shareholders and the ASX of its intentions to pursue other project interests in Africa and potentially elsewhere. As a result, it is inconsistent to continue holding these tenures. If all the sale conditions are satisfied this will bring an end to CYU’s activities in Mount Isa.

We will keep the market informed as the sale with HMX progresses, with financial close expected to occur early in 2017.

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Paul Williams Managing Director 0419 762 487

ASX Announcement (ASX: HMX)

December 15[th] 2016

Copper and High Grade Gold Tenement Acquisition

Hammer Metals Limited (ASX:HMX) has signed an agreement with Chinalco Yunnan Copper Resources Ltd (ASX:CYU) to acquire 100% of CYU’s tenement interests in the Mount Isa district.

The acquisition secures a range of prospective copper-gold targets that are considered to significantly enhance Hammer’s current tenement portfolio in the Mount Isa region.

The acquisition includes a 100% interest in EPM’s 14019, 14022 and 12205 which cover the previously defined Elaine-Dorothy copper-gold resource of 27 Mt at 0.53% Cu and 0.08g/t Au (CYU ASX release 18/10/2012), the GEM copper-gold resource (CYU ASX release 9/06/2010) and the Elaine uranium prospect (CYU ASX release 24/03/2010) as well as a range of other copper-gold drill intersections at the Mt Dorothy, Pindora and Prince of Wales prospects. The tenements also cover strike extensions of mineralised trends and favourable host rocks identified within Hammer’s adjacent tenements.

Hammer will initially focus on assessing the potential of several high-grade gold intercepts within the ElaineDorothy deposit to form higher grade internal lodes. Significant gold intercepts from previous diamond drilling include:

• 30m @ 6.73g/t Au from 508 metres in MKED009 and

• 26 metres at 1.7g/t Au, 0.24% Bi from 160 metres, including 9 metres at 3.63g/t Au, 0.60 % Bi from 177 metres in MKED026.

• (Refer to CYU ASX releases dated November 7[th] 2011 and June 13[th] 2012 for details of the intersections.)

The acquisition also includes CYU’s 51% interest in EPM 14467 (Mt Frosty), located adjacent to the Mary Kathleen uranium mine and which covers the Blue Caesar, Jubilee and Koppany copper prospects. The tenement is currently in joint venture with a third party. The acquisition of the interest is contingent on Hammer reaching agreement with the third party within 45 days of signing the purchase agreement on acceptable revised commercial terms to the current JVA.

Consideration for the acquisition is the issue to CYU of 1,500,000 ordinary shares in Hammer Metals Limited, voluntarily escrowed until October 17[th] 2017. If the acquisition of the 51% interest in EPM 14467 does not proceed the consideration is reduced to 1,250,000 shares. The acquisition is subject to normal commercial terms including completion of due diligence and the receipt of indicative approval for the transfers from the Department of Natural Resources and Mines.

Hammer has built up a strategic tenement position covering approximately 2,600km[2] within the Mount Isa region holding 100% interests in the Kalman (Cu-Au-Mo-Re) deposit, the Overlander North and Overlander South (Cu-Co) deposits and the Millennium (Cu-Co-Au) deposit.

Alexander Hewlett, CEO of Hammer Metals said that: “This acquisition significantly enhances Hammer’s Mount Isa project by acquiring additional copper-gold resources and a range of advanced copper-gold targets. Evaluating the potential of the Elaine Dorothy deposit for high grade gold zones is of particular interest”

For further information, please contact:

Alex Hewlett M: +61 (0) 419195087 Executive Director

info@hammermetals.com.au

Russell Davis Executive Chairman

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ASX Announcement (ASX: HMX)

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Figure 1: Project Location

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Figure 2: Plan of the Elaine Project Area, Showing Cu-Au Resource, U-REE Prospect and Drill Traces

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Competent Persons Statement

The information in this report that relates to Sampling Techniques and Data and Exploration Results is based on information compiled by Mr John Downing, a Competent Person who is a Member of the Australian Institute of Geoscientists and a long-term contractor to Hammer. Mr Downing has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. John Downing 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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