AuKing Mining Completes Issuance of 202.3 Million Shares and 35 Million Options Under ASX Section 708A Notice Post July Placement

AuKing Mining’s Operations at the Tundulu Project in Malawi

AuKing Mining Limited, an ASX-listed mineral exploration and development company, focuses its regional operations on the Tundulu project in Malawi, a key asset in its portfolio. The company continues to advance resource definition and development efforts at Tundulu, which anchors its southern African operations and aligns with its strategic emphasis on the African continent.

Recently, AuKing settled road maintenance service fees at Tundulu by issuing 2.3 million shares, reflecting a flexible approach to managing operational expenses in a remote mining jurisdiction. This equity-based settlement, common among exploration companies in emerging markets, may indicate the company’s liquidity considerations or a mutual agreement on valuation between AuKing and the service provider.

Details of the 200 Million Share Placement Announced on 14 July 2026

On 14 July 2026, AuKing Mining announced a significant capital raise through a placement of 200 million ordinary shares aimed at funding ongoing exploration and development activities. The placement was completed with share issuance on 22 July 2026, accompanied by a formal section 708A notice under the Corporations Act 2001. This placement constitutes the majority of the 202.3 million shares issued in the recent update.

While the company did not disclose the placement share price, recipient identities, or detailed use of funds beyond general exploration and development, investors can refer to the 14 July announcement for further information. The 22 July section 708A notice primarily confirms regulatory compliance and formal issuance rather than capital raise specifics.

Issuance of Placement Manager Options at $0.006 Strike Price

As part of the placement arrangement, AuKing issued 35 million options to placement managers, exercisable at a $0.006 strike price and expiring in December 2026. This six-month term aligns with common Australian market practices, allowing the company to conserve cash while providing managers potential upside through equity participation. The strike price reflects the company’s share price at the time of the placement.

The options represent a significant portion of the total securities issued, underscoring the value attributed to placement managers. The company did not disclose the allocation of options among managers or any attached performance conditions.

Compliance with Corporations Act Section 708A

AuKing Mining issued securities without disclosure under Part 6D.2 of the Corporations Act 2001, providing notice under section 708A(5)(e). This confirms the company’s adherence to continuous disclosure obligations under ASX listing rules and compliance with Chapter 2M of the Corporations Act, including sections 674 and 674A related to financial reporting and disclosure.

On 22 July 2026, the company filed Appendix 2A forms detailing the securities issuance, fulfilling ASX requirements for timely notification. This regulatory framework facilitates efficient capital raising for established listed entities while ensuring investors receive all material information via continuous disclosure.

Confidential Discussions on Rare Earth Project Acquisition in Malawi

AuKing disclosed ongoing confidential discussions regarding a potential acquisition of a rare earth project in Malawi. The talks remain preliminary with no guarantee of a binding agreement or announcement. This disclosure complies with sections 708A(7) and (8) of the Corporations Act, which mandate revealing excluded information not previously made public.

The potential acquisition is notable given the global demand for rare earth elements in renewable energy, advanced manufacturing, and defense sectors. Pursuing rare earth opportunities would mark a strategic expansion beyond the Tundulu project. However, investors are cautioned against assuming completion and should await further material updates.

Impact on Capital Structure and Shareholder Dilution

The issuance of 202.3 million shares and 35 million options significantly expands AuKing Mining’s capital base. The 200 million placement shares will materially increase total shares outstanding, potentially diluting existing shareholders unless offset by proportional value or earnings growth. The company has not disclosed pre- or post-issuance share counts or earnings per share impacts.

The 35 million options represent contingent equity claims exercisable only if the share price exceeds $0.006 before December 2026, potentially leading to further dilution. Shareholders should consider the dilution effects on ownership, voting power, and earnings per share. The company has not provided total outstanding shares and options post-issuance.

Placement Capital Raise Timeline and Disclosure Process

The placement was announced on 14 July 2026, with share issuance and section 708A notice filed on 22 July 2026. This timeline reflects standard market practice, where material capital raises are announced prior to settlement and formal regulatory notification upon issuance. The eight-day period allowed for investor commitments, share allocation, and administrative processing.

Appendix 2A forms filed concurrently with the section 708A notice demonstrate compliance with ASX obligations for timely securities issuance disclosure. Investors seeking further details should consult the 14 July 2026 announcement and subsequent market updates.

Management Authorization and Contact Information

The release was authorized by Paul Williams, Managing Director of AuKing Mining. Contact details including Williams’ mobile number and email address were provided to facilitate investor inquiries. This transparency underscores the company’s commitment to open communication regarding securities issuance and strategic direction.

AuKing Mining’s registered office is Suite 34, Level 10, 320 Adelaide Street, Brisbane, Queensland 4000, serving as its Australian administrative center. Additional information is available at www.aukingmining.com. Investors are encouraged to use the provided contacts for questions about the placement or company strategy.

Upcoming Developments and Investor Considerations

Investors should closely monitor several key areas: the outcome of rare earth project acquisition discussions, which could materially alter the company’s strategic focus; progress and results from the Tundulu project funded by the recent placement; the December 2026 expiry and potential exercise of 35 million placement manager options; future capital raising needs and potential dilution; and updates on resource definition or development milestones at Tundulu. Additionally, any strategic moves into the rare earth sector warrant attention for their potential impact on capital requirements and business direction.