AUKING MINING LIMITED — Capital/Financing Update 2016

Sep 19, 2016

ASX RELEASE – $1.77M RIGHTS ISSUE OFFER

20 September 2016

ABN 27 099 098 192

CYU is a resource exploration and development company seeking to become a midtier copper/gold producer.

Issued Capital: 591,276,475 Ordinary shares

2,000,000 Performance shares

Revised announcement to correct ex entitlement date

CYU advises that the date on the timetable for shares commence trading on an “ex” basis was incorrectly shown on the announcement lodged earlier today. The correct date is 23 September 2016 and not 22 September 2016 as advised earlier and has been corrected on the timetable on page 2 below.

• Chinalco Yunnan Copper Resources Limited (CYU) nonrenounceable entitlement offer to existing shareholders:

  • One (1) new fully paid ordinary share for every two (2) held

  • Issue price of 0.6 cents ($0.006) per new share

  • To raise up to $1.77m before costs of the offer (if fully subscribed)

Directors: Zhihua Yao Chairman Paul Williams Managing Director Zewen (Robert) Yang Executive Director Xiancheng Wang Non-Executive Director

Company Secretary: Paul Marshall

CHINALCO YUNNAN COPPER RESOURCES LTD

Suite 6, Level 11, 320 Adelaide Street BRISBANE Q 4000 Ph: +61 7 3211 9013 Email: admin@cycal.com.au

Contact Paul Williams Managing Director paul.williams@cycal.com.au Mobile: +61 419 762 487

• Offer underwritten up to a maximum of $1,384,615.38 by the Company’s second-largest Shareholder, Bienitial International Industrial Co., Ltd

• Offer also partially underwritten by Managing Director, Paul Williams, to a maximum $100k.

• The Offer will be available to all eligible CYU shareholders in Australian and New Zealand who hold shares as at 7:00pm (Sydney time) on the record date of 26 September 2016.

• Funds raised from the Offer are to be used primarily towards costs such as due diligence in respect of opportunities CYU is looking to pursue and related expenses and project-related acquisition costs and fees that may be payable upon securing an opportunity.

• A Prospectus, along with an Entitlement and Acceptance Form, will be dispatched to eligible CYU shareholders on 29 September 2016.

ASX Release 20 September 2016 $1.77M Rights Issue Offer

Chinalco Yunnan Copper Resources Ltd (ASX:CYU) announces a non-renounceable entitlement offer to eligible shareholders, on the basis of 1 new fully paid ordinary share (New Shares) for every 2 shares held, at an issue price of $0.006 per New Share to raise up to approximately $1.77 million before costs (Offer). The Offer will be available to all eligible shareholders who hold shares as at 7:00pm (Sydney time) on the record date of 26 September 2016. 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 $1,384,615.38 million (230,769,230 New Shares), representing approximately 78% of the total Offer, by the Company’s second-largest Shareholder, Bienitial International Industrial Co., Ltd ( BIC ). The Offer is also partially underwritten up to $100,000 (16,666,667 New Shares), representing approximately 5.6% of the total Offer, by the Company’s Managing Director, Paul Williams. Williams has further undertaken, on a best endeavours basis, to identify recipients for the balance of any Offer shortfall. These underwriting arrangements mean 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). Full details of the Offer are set out in the Prospectus. The Prospectus, along with an Entitlement and Acceptance Form, will be dispatched to eligible shareholders on 29 September 2016.

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 4.1 of the Prospectus. These funds are intended to be utilised primarily towards costs such as: due diligence in respect of opportunities CYU is looking to pursue and related expenses; project-related acquisition costs and fees that may be payable upon securing an opportunity, depending on the nature of the acquisition terms that are negotiated; administration costs; and general working capital.

The proposed timetable for the Offer is set out below:

Announcement of the Offer	Prior to commencement of trading on 20
	September 2016
Prospectus lodged with ASIC and ASX together with Appendix 3B	20 September 2016
Notice sent to Eligible Shareholders with information on the Offer	21 September 2016
Shares commence trading on an “ex” basis (“ex” date)	23 September 2016
Record Date to determine Entitlements under the Offer	26 September 2016 (7:00pm Sydney time)
Prospectus and Entitlement and Acceptance Forms dispatched to Eligible	29 September 2016
Shareholders and announced to the market
Opening Date of Offer	29 September 2016 (9:00am Sydney time)
Closing Date of Offer	14 October 2016 (5:00pm Sydney time)
New Shares quoted on a deferred settlement basis	17 October 2016
Notification of undersubscriptions to ASX	19 October 2016
Expected date of Issue of New Shares applied for under the Offer and any	21 October 2016
Shortfall
Deferred settlement trading ends	24 October 2016
Expected date of dispatch of transaction confirmation statements	24 October 2016

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ASX Release 20 September 2016 $1.77M Rights Issue Offer

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

If the Offer is fully subscribed, 295,638,237 New Shares will be issued under the Offer. The New Shares will be issued for $0.006 each. Upon completion of the Offer, the issued capital of the Company will comprise approximately 886,914,712 shares.

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 24 October 2016. An Appendix 3B applying for quotation of the New Shares will be lodged separately with the ASX.

CYU Managing Director, Paul Williams, encourages shareholders to participate in the Offer. He said the additional funds raised would enable CYU to continue with its stated aims into 2017 and that it is pleasing having the underwriting support from JCHX Group subsidiary BIC demonstrating the shareholder’s ongoing faith in advancing CYU’s projects.

On behalf of the Board

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Paul Williams Managing Director paul.williams@cycal.com.au +61 419 762 487

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