AuKing Mining Limited will continue with its Manyoni exploration and drilling program in March despite action from the Tanzanian Mining Commission
impacting two Manyoni PLs. Manyoni Licences: AuKing was granted 12 PLs in Tanzania, including 5 PLs that comprise the Manyoni uranium project. Almost all of the historical resource estimate for Manyoni was comprised within those 5 PLs. Notices were then received by AuKing on the evening of 20 February 2023 from the Commission indicating that 2 of these 5 licences were to be revoked due to a flexicadastre system malfunction that led to double allocation of mineral rights over the same areas. There had been no prior indication that such notices would be issued. A significant portion of the historical Manyoni resource estimate is contained within the 2 PLs that are the subject of revocation. AuKing has spent the past few days identifying the holder of the double allocation of mineral rights. Another Tanzanian company was issued PLs on 3 February 2023 over the exact same areas as AuKing's PLs. Discussions with representatives in Australia of this other company to resolve the matter have proven unsuccessful. In the meantime, AuKing's local legal advisors in Tanzania have prepared an appeal to the Minister of Minerals under the relevant provisions of the Mining Act 2010 and will file this appeal immediately. The legal advice AuKing has received is that there are strong grounds to assert that various provisions of the Mining Act have not been followed in this matter. At this stage there is no indication as to how long the appeal process will take nor of the final outcome. However, despite this situation, AuKing remains committed to making a significant contribution to the Tanzanian mining sector and intends to work co-operatively with the Commission. Proposed Manyoni Program: As part of the proposed exploration and drilling program, AuKing engaged H&S Consultants (the successor firm of Hellman & Schofield) to undertake a detailed review of the historical data that supported their 2010 MRE. That review was also to provide recommendations for the drilling program to the extent that re-drilling and twinning of previous areas might be required in order to provide confidence for future resource estimation work at Manyoni. Included in the H&S Consultants review was an indication that various areas across the known uranium resources at Manyoni have not been explored to any detail (or at all) and provide the potential for significant extension of the known uranium resources at Manyoni. The PL areas at Manyoni that are the subject of revocation have already been well-defined by significant historical exploration and drilling. Accordingly, AuKing now has an opportunity to focus its proposed exploration and drilling program on the other, less-explored areas at Manyoni where there is greater potential resource extension areas.