Anglo Australian Resources NL : AKN - 30% Increase in Resources at Koongie Park

ASX/ NEWS RELEASE

7 April 2022

NOTIFICATION OF CROSS RELEASE - ANNOUNCEMENT

RELEASED BY AUKING MINING LIMITED

Anglo Australian Resources NL (ASX: AAR) (AAR or the Company) hereby attaches the following announcement as released by AuKing Mining Limited (ASX: AKN) (AKN) dated 7 April 2022. The announcement relates to the joint venture between AAR and AKN with respect to the Koongie Park Project.

Koongie Park Joint Venture

In February 2021, AAR entered into an earn-in and joint venture agreement ("JVA") with AKN providing AKN with the right to earn up to a 75% interest in the Koongie Park Project by completing exploration expenditure of $3m over a 3-year period. As announced on 4 February 2022, AKN has achieved this expenditure milestone and now holds a 75% interest in the Koongie Park Joint Venture.

Purchase and Sale Agreement

As announced on 5 April 2022, AAR and AKN have executed an agreement, whereby AKN will acquire the following interests from AAR:

•  AAR's remaining 25% participating interest in the Koongie Park Joint Venture; and

•  The gold and PGE rights held in respect of the Koongie Park tenures.

The purchase price payable by AKN to secure these rights is a total of A$6M payable in three components:

•  Completion cash consideration of A$3 million;

•  Deferred cash payment of A$1.5 million, payable on or before 31 October 2022; and

•  Equity consideration, comprising AKN shares to the value of A$1.5 million.

Completion of the transaction is subject to satisfaction or waiver of the following conditions precedent:

•  AKN raising a minimum of A$7 million pursuant to a capital raising on or before 16 May 2022; and

•  AAR obtaining approval from the Minister for Lands to transfer the lease of the operational headquarters in Halls Creek to AKN (or a nominated subsidiary).

For further details on the terms of the purchase and sale agreement, please refer to AAR's announcement dated 5 April 2022.

This announcement has been approved for release by the Company Secretary.

-- ENDS --

AKN delivers 30% increase in Koongie Park copper zinc project Mineral Resource Estimate

7 April 2022

AuKing Mining Limited

ABN 29 070 859 522

(ASX Code: AKN, AKNO)

Issued Capital:

75,589,651 Ordinary shares 21,500,000

Options (30 June 2023 @ 25c each)

Directors: Dr Mark Elliott Chairman Peter Tighe Non-Executive Director Ian Hodkinson Non-Executive Director Shizhou Yin Non-Executive Director

Chief Executive Officer:

Paul Williams

Company Secretary: Paul Marshall

Suite 27, Level 7, 320 Adelaide Street BRISBANE Q 4000 Ph: [phone] Email:[e-mail]: Paul Williams

Chief Executive Officer Email: p.williams@aukingmining. com

Mob: [phone]

Highlights:

•  Upgraded resource estimate for Koongie Park has been established as follows:

  8.9Mt @ 1.01% Cu, 3.67% Zn, 0.16g/t Au, 32g/t Ag and 0.77% Pb

•  Represents a 30% increase on the previously published resource estimate for the project

•  Upgrade follows the completion of 2021 drilling program - AKN engaged CSA Global to prepare an update to the existing JORC (2012) Mineral Resource Estimate for the Onedin and Sandiego deposits

•  Confidence in the existing Koongie Park Mineral Resource Estimate is now 97% in the Indicated classification. Metal values include:

  •  90k tonnes copper;

  •  326k tonnes zinc;

  •  46koz gold;

  •  9.1Moz silver; and

  •  68k tonnes lead.

  No provision made for cobalt and molybdenum discoveries in the updated resource estimate, pending additional drilling

•  Enhanced understanding of the structural geology around the Onedin and Sandiego deposits developed

•  High priority areas for expansion of existing resources and potential discovery of new VMS-style mineralised "shoots" near the two major deposits identified

•  Access approval granted for the proposed drilling at the Emull prospect - subject to final heritage survey clearance, drilling at Emull is expected to commence within the next 4-5 weeks

AKN Chief Executive Officer, Paul Williams said "AKN is very pleased to provide the updated JORC resource estimate for Koongie Park. The additional data obtained from recent drill programs conducted last year and the findings from a detailed AKN structural geology review have significantly improved the confidence in the geological models for Onedin and Sandiego. This has provided the basis for the 30% increase in tonnage and nearly 100% of the resource is now in the Indicated classification.

"The new Koongie Park Resource Estimate has provided many opportunities for AKN to target higher grade extensions and repetitions within favourable host rocks and structures in other areas adjacent to the Onedin and Sandiego deposits."

Updated Mineral Resource Estimate for Koongie Park:

AuKing Mining Limited ("AKN" or "the Company") is pleased to advise that it has completed an upgrade of its existing JORC (2012) Mineral Resource Estimate (MRE) at its Koongie Park copper/zinc project in north-eastern Western Australia (shown in Figure 1 below).

The Company has significantly increased its MRE by 30% and the new total resources estimate is as follows:

8.9Mt @ 1.01% Cu, 3.67% Zn, 0.16g/t Au, 32g/t Ag and 0.77% Pb

Figure 1 - Koongie Park project location

AKN engaged CSA Global to undertake an independent Mineral Resource Estimate (MRE) for the Onedin and Sandiego deposits. The new estimates are set out in Figures 2 and 3 below.

AKN delivers 30% increase in Koongie Park copper/zinc

project Mineral Resource Estimate

Zone	Classification	Tonnes (Mt)	Copper (%)	Zinc (%)	Gold (g/t)	Silver (g/t)	Lead (%)
Cu Dominant	Indicated	1.5	1.1	0.6	0.2	47	1.2
Inferred	-	-	-	-	-	-
Zn Dominant	Indicated	3.3	0.5	4.3	0.1	34	1.0
Inferred	-	-	-	-	-	-
Resource Total and Grades	4.8	0.7	3.2	0.1	38	1.1
Zone	Classification	Tonnes (Mt)	Copper (tonnes)	Zinc (tonnes)	Gold (oz)	Silver (Moz)	Lead (tonnes)
Cu Dominant	Indicated	1.5	16,500	9,000	9,600	2.27	18,000
Inferred	-	-	-	-	-	-
Zn Dominant	Indicated	3.3	16,500	141,900	10,600	3.61	33,000
Inferred	-	-	-	-	-	-
Total Metal Tonnes	33,000	150,900	20,200	5.88	51,000

Figure 2 - Onedin Mineral Resource Estimate and Metal Tonnes

Note: (1) Reported tonnes and grade are rounded

(2) Reporting cut-off grades of 0.4% Cu and 1% Zn have been applied to the Onedin deposit

Classification	Tonnes (Mt)	Copper (%)	Zinc (%)	Gold (g/t)	Silver (g/t)	Lead (%)
Cu Dominant	Indicated	1.7	2.3	0.8	0.3	18	0.2
Inferred	0.3	1.6	3.0	0.2	5	0.0
Sub Total	2.0	2.2	1.1	0.3	16	0.1
Zn Dominant	Indicated	2.0	0.6	7.3	0.1	35	0.7
Inferred	0.1	0.2	6.1	0.1	10	0.1
Sub Total	2.1	0.6	7.3	0.1	34	0.7
Resource Total and Grades	4.1	1.4	4.3	0.2	25	0.4
Classification	Tonnes (Mt)	Copper (tonnes)	Zinc (tonnes)	Gold (oz)	Silver (Moz)	Lead (tonnes)
Cu Dominant	Indicated	1.7	39,100	13,600	16,400	0.98	3,400
Inferred	0.3	4,800	9,000	1,900	0.05	0
Sub Total	2.0	43,900	22,600	18,300	1.03	3,400
Zn Dominant	Indicated	2.0	12,000	146,000	6,400	2.25	14,000
Inferred	0.1	200	6,100	300	0.03	100
Sub Total	2.1	12,200	152,100	6,700	2.28	14,100
Total Metal Tonnes	56,100	174,700	25,000	3.31	17,500

Figure 3 - Sandiego Mineral Resource Estimate and Metal Tonnes

Note: (1) Reported tonnes and grade are rounded

(2) Reporting cut-off grades of 0.8% Cu and 3% Zn have been applied to the Sandiego deposit

The considerable advances in the Koongie Park MRE are due largely to the following factors:

• (a) The results from AKN's drilling program at both Onedin and Sandiego completed in late 2021;

• (b) The findings from a recently completed structural geology study at Onedin and Sandiego commissioned by AKN; and

• (c) An overall improved understanding of the geological controls on mineralisation in this region.

Each of the above factors have provided the confidence to allow the updated Koongie Park MRE to be almost entirely (97%) included in the Indicated resource classification.

In addition, the new MREs allow for:

• • A slight increase in copper tonnes;

• • Significant increases in zinc and silver tonnes; and

• • Inclusion of lead tonnes in the MRE for the first time.

No provision has been made at this stage for the cobalt and molybdenum discoveries, pending further drilling and assessment of the potential extent of these minerals across the two deposits. [Note AKN is anticipating receipt of assays of the historical diamond drilling core samples from Sandiego, to assess potential extent of cobalt mineralisation across the deposit].

Improved Geological Model

Over the last 6 months, AKN's geology team has a developed a strong understanding of the controls of mineralisation and disposition of mineralised lodes around the Onedin and Sandiego deposits. AKN now recognises the Onedin and Sandiego deposits as volcanogenic massive sulphide (VMS) style deposits with the following alteration/metamorphic mineral assemblages:

• (a) Lower tenor, primary syn-depositional or stratabound disseminated sulphides; and

• (b) Higher grade, structurally controlled mineralised shoots representing both remobilised stratabound syngenetic mineralisation, possibly related to a late regional intrusion-related mineralising event.

Higher grade mineralised shoots are the result of reworked and remobilised primary stratabound base metals during deformation. During late-stage deformation, regional-scale granite intrusions likely provided the heat and fluids that remobilised the mineralisation from primary (stratabound) units, into structural traps such as anticlinal fold hinges. The structural framework for this is supported by the recent study commissioned by AKN (Davis 2022).

The improved geological model, upon which this latest Mineral Resource Estimate is based, widens opportunities to target higher grade extensions and repetitions within favourable host rocks and structures in other areas adjacent to the Onedin and Sandiego deposits and in other prospects across the Koongie Park tenure package.