AuKing Mining Boosts Rare Earths Exploration at Fully Owned Tundulu Project in Malawi with $5 Million Oversubscribed Funding

Strategic Move into Rare Earths at Tundulu Amid Rising Global Demand for Critical Minerals

AuKing Mining's acquisition of the Tundulu Rare Earths Project marks a strategic portfolio shift towards critical minerals during a period of increasing global demand and geopolitical supply concerns. Located in southern Malawi, Tundulu lies within an emerging world-class rare earth district near Lindian Resources' Kangankunde Project (261 million tonnes at 2.61% TREO) and the Songwe Hill Project (21 million tonnes at 1.41% TREO), positioning AuKing within a mineralised belt of regional importance. The acquisition was announced on 17 April 2026, with Tundulu ranking among Malawi's largest and most underexplored rare earth systems, offering significant discovery potential within a known mineralised province.

The project’s strong foundation is based on extensive historical drilling initially targeting phosphate, which unexpectedly revealed high-grade rare earth mineralisation. This provides a solid basis for applying modern rare earth-focused exploration techniques, distinguishing Tundulu from greenfield projects and offering AuKing a compelling entry point supported by proven mineralisation and geological precedent.

$3 Million Capital Raise and $5 Million Oversubscribed Placement Propel Exploration Expansion

During the June quarter, AuKing secured $3 million in firm commitments to support the Tundulu acquisition and rapid exploration progress. Post-quarter, the company completed an oversubscribed $5 million placement backed by family offices, global institutions, and sophisticated investors, reflecting strong confidence in its growth strategy. The oversubscription underscores investor appetite for AuKing’s rare earth exploration thesis and validates management’s strategic capital allocation toward Tundulu.

Funds from both raises will finance an expanded drilling program, including diamond drilling initiation, enhancing the company’s capacity to pursue further growth. This capital boost reflects management’s confidence in Tundulu’s exploration potential and commitment to advancing from initial reverse circulation reconnaissance to deeper, targeted diamond drilling to better define mineral resources and test deeper carbonatite targets.

Reverse Circulation and Step-Out Drilling Confirms Carbonatite Mineralisation at Three Complexes

AuKing commenced drilling at Tundulu in the June quarter, completing nearly 3,000 metres of reverse circulation drilling shortly after acquisition. Post-quarter step-out drilling confirmed extensive carbonatite intersections beyond the historic Nathace Hill, with successful results at Kamilala Hill and Tundulu Hill significantly expanding the system’s interpreted footprint. This success supports the project’s valuation thesis by demonstrating mineralisation extends beyond the historical core and validates the multi-target exploration model underpinning Tundulu’s district-scale potential.

Drilling has now confirmed carbonatite across three of six interpreted complexes within the Tundulu area, boosting confidence in the project’s district-scale exploration potential. Carbonatite presence at topographic highs Nathace Hill, Kamilala Hill, and Tundulu Hill suggests a more extensive mineralised trend than previously defined. Remaining undrilled targets at Makhanga Hill, Namuka Hill, and Ichigwakalu Hill are highly prospective, offering substantial exploration upside if drilling extends to these areas.

High-Resolution Airborne Magnetic and LiDAR Survey Reveals Large Unexplored Areas

In the June quarter, AuKing completed a high-resolution airborne drone magnetic and LiDAR survey over a significant portion of Tundulu, marking the first on-site activity since acquisition and a key step ahead of planned drilling. Conducted at 50-metre line spacing and approximately 35-metre terrain clearance, this modern geophysical dataset refines exploration targeting and advances understanding of subsurface architecture beyond historical data that supported limited drilling.

The survey shows historical drilling tested only a small part of the Tundulu intrusive complex, with large areas beneath shallow post-mineral sedimentary cover remaining unexplored. An independent consultant, formerly Chief Geophysicist for Rio Tinto’s global exploration group, conducted a peer review confirming that the central Nathace Hill area remains open in multiple directions for mineralisation extension. The largely unexplored areas beneath sedimentary cover represent a major exploration frontier within the 5-kilometre diameter carbonatite complex.

Historical Drilling Highlights High-Grade Rare Earth Mineralisation with Valuable Element Profile

Tundulu benefits from a solid geological base with historical drilling revealing high-grade rare earth mineralisation across the property. Of 24 historical drill holes ending in mineralisation, eight exceeded 2% total rare earth oxide (TREO), indicating economic-grade mineralisation. These results provide AuKing with a quantifiable mineralisation model and exploration success rate to guide future drilling and risk assessment.

The mineralisation is enriched in valuable heavy and medium rare earth elements, with low uranium and thorium content. This composition is commercially advantageous, as heavy rare earths command premium prices and are critical for defence, aerospace, and high-performance magnets. Low radioactive element levels reduce environmental processing complexity and improve project economics, offering a materials-science edge for AuKing’s development and capital-raising efforts.

Malawi Ministry of Mining Approves Export of Drill Samples, Advancing Assay Process

AuKing secured export approval from the Malawi Ministry of Mining for initial drill samples from Tundulu, marking a key regulatory milestone toward laboratory assay commencement. This approval reflects successful regulatory engagement and enables shipping samples offshore for advanced assaying, essential for translating drill core into quantitative mineralisation data to inform resource estimation and development planning.

Laboratory assay timing depends on standard analytical turnaround and sample preparation, typically spanning weeks to months. With export approvals secured, administrative bottlenecks are cleared, allowing assay progression. Investors will anticipate assay results from the initial drilling campaigns, which will provide critical data on grade, thickness, and elemental composition of carbonatite intersections encountered during June quarter drilling.

Exploration Licence Transfer Under Review with Alternative Earn-In Agreement in Place

AuKing’s legal advisors report that documentation for transferring the Tundulu exploration licence (EL 0731/24) to TREL has been completed and submitted to the Malawi Minerals and Environmental Resources Authority (MMRA) under the Malawi Mines and Minerals Act 2023 and is under review. Approval timing remains at MMRA and Ministry discretion, creating uncertainty regarding final licence transfer and ownership certainty, a key milestone for investors.

To mitigate regulatory timing risks and ensure uninterrupted exploration, on 5 June 2026, AuKing entered an earn-in agreement with Tusker Minerals Limited (ASX:TSK) and its Malawi subsidiary Green Exploration Limited. This agreement provides an alternative route for AuKing to acquire 100% of the Tundulu licence and authorises exploration activities pending final transfer approval. The earn-in structure de-risks the project by enabling immediate exploration and development while formal licence transfers proceed, with payments contingent on milestones or schedules. This alignment supports continued advancement of Tundulu.

District-Scale Exploration Model Positions Tundulu for Multi-Year Rare Earth Discovery Program

AuKing’s strategy treats Tundulu as a district-scale opportunity rather than a single deposit, with at least six interpreted carbonatite complexes across multiple topographic highs within the 5-kilometre intrusive complex. Confirmation of carbonatite mineralisation at three complexes expands the known mineral system beyond Nathace Hill, validating a multi-target exploration model. This district-scale approach suggests potential for multiple discrete mineral bodies, supporting either separate mining operations or a consolidated plan targeting multiple orebodies sequentially.

The independent peer review by a former Rio Tinto Chief Geophysicist supports AuKing’s exploration priorities and confirms the airborne survey interpretation. This multi-complex model and underexplored property areas position Tundulu as a multi-year exploration program requiring multiple drilling phases, capital allocation decisions, and resource estimation before development assessment. The oversubscribed capital raise post-quarter reflects investor recognition of this opportunity and willingness to fund extended exploration.

Strong Operational Execution and Regional Positioning Drive Ongoing Rare Earth Exploration Momentum

AuKing’s operational achievements during and after the June quarter demonstrate effective project management by rapidly advancing Tundulu from acquisition to on-ground activities, including airborne surveys, drilling commencement, regulatory approvals, and capital raising within a short timeframe. This disciplined execution fosters investor confidence in delivering the expanded drilling program funded by the recent $5 million placement.

Positioned within southern Malawi’s emerging rare earth district near Lindian Resources’ projects and active regional operators, AuKing benefits from established exploration infrastructure, regulatory precedent, and market recognition of the province’s rare earth potential. With 100% ownership and enhanced capital resources, AuKing is well placed to accelerate exploration and potentially establish Tundulu as a significant regional rare earth discovery within 12 to 24 months as drilling, assays, and resource estimation progress.