Announcement PDF AuKing Mining Limited ABN 29 070 859 522 ASX Code: AKN, AKNO INTERIM FINANCIAL REPORT For the half-year ended 30 June 2024 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 CORPORATE DIRECTORY AuKing Mining Limited ABN 29 070 859 522 Board of Directors Mr Peter Tighe (Chairman) Mr Shizhou Yin (Non-Executive Director) Mr Paul Williams (Managing Director) Company Secretary Mr Paul Marshall Exploration Manager Mr Chris Bittar Head Office Suite 2208, Level 22 127 Creek Street Brisbane QLD 4000 Telephone: Email: Website: 07 3535 1208 admin@aukingmining.com www.aukingmining.com ASX Code: AKN Auditors Share Registry BDO Audit Pty Ltd Level 10, 12 Creek Street Brisbane QLD 4000 Link Market Services Limited Level 21 10 Eagle Street Brisbane QLD 4000 Telephone: Website: 07 3237 5999 www.bdo.com.au Telephone: Facsimile: Website: 1300 554 474 02 9287 0303 www.linkmarketservices.com.au Page 2 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 DIRECTORS' REPORT Your Directors present their report on the Consolidated Entity consisting of AuKing Mining Limited (“AKN” or “Company”) and the entities it controlled (together referred to as the “Consolidated Entity” or “Group”) at the end of, or during, the halfyear ended 30 June 2024. DIRECTORS The following persons were directors of AuKing Mining Limited during the whole of the period and up to the date of this report, unless otherwise stated: Name Position Period of Directorship Mr Peter Tighe Non-Executive Chairman Appointed 9 June 2021 Mr Shizhou Yin Non-Executive Director Appointed 9 June 2021 Mr Paul Williams Managing Director Appointed 3 June 2024 Mr Asimwe Kabunga Former Executive Chairman Appointed 19 October 2022, resigned 3 June 2024 Mr Zuliang (Park) Wei Former Non-Executive Director Appointed 5 June 2023, resigned 29 May 2024 REVIEW OF OPERATIONS For the half-year ended 30 June 2024 the Consolidated Entity made a loss of $2,537,113 (30 June 2023: loss of $10,696,693). Tanzanian Projects Mkuju Uranium In January, the Company reported significant assay results from the combined soil and rock chip sampling and auger drilling program conducted late last year including: • MKAU23_020 (auger) 3m @ 1,273ppm U3O8 incl 1m @ 3,350ppm U3O8 • MKGS017 (soil) 8,800ppm U3O8 • MKGS057 (rock) 2,250ppm U3O8 During the March Quarter, AKN announced details of its proposed Stage 2 drilling program at Mkuju, comprising an estimated 75 drill hole (11,000m) air core/RC drilling program. Since that time, the Company has obtained the necessary “local content” regulatory approvals from the Tanzanian Mining Commission after the conduct of a tender process for the drilling program. Manyoni Uranium AKN announced on 27 February 2023 that two (2) key Prospecting Licences (“PLs”) at the Manyoni uranium project in central Tanzania, had been revoked by the Tanzanian Mining Commission. A significant portion of the historical Manyoni uranium resource estimate is contained within the two PLs that were the subject of revocation. Since that time AKN management has taken various actions including several meetings with Tanzanian officials in an effort to re-secure the two revoked PLs. This included a recent high-level meeting in Dodoma attended by senior Ministry officials as well as the Company’s Chairman and Managing Director in late June 2024. To date, there has been no response received by the Company to these efforts to seek a resolution to the matter. Koongie Park Sandiego North Drilling During the June Quarter, the Company announced details of a proposed initial 1,000m reverse circulation (RC) drilling program across an estimated 6-8 drill holes to test the potential extent of copper mineralization along a 700m target zone to the north of the existing Sandiego deposit. During the course of 2023, the Company completed a soil sampling program over the Sandiego North area to follow up on mineralisation identified in and around the drill hole ASWB001. The purpose of the soil program was to identify any geochemical continuity between Sandiego and Sandiego North. This drilling Page 3 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 program is planned to commence when a drilling contractor is in the Halls Creek region and available to carry out this activity. No other activities were conducted at Koongie Park during the reporting period. Corporate Matters Board Changes On 29 May 2024, Mr Park Wei resigned as a director and on 3 June 2024, Mr Asimwe Kabunga resigned as Chairman and a director of the Company. Mr Peter Tighe was appointed non-executive Chairman in place of Mr Kabunga. Completion of Share Placements The Company completed two share placements during the reporting period: • The placement conducted by the Company in November 2023 was completed by the placement of an additional 5,000,000 shares at an issue price of $0.04 per share to Kabunga Holdings Pty Ltd to raise $200,000. A further 2,500,000 free-attaching options at an exercise price of $0.10 on or before 31 December 2025 were also issued to Mr Kabunga; • The placement to certain sophisticated and professional investors to raise $600,000 (before costs) through the issue of 40,000,000 shares at an issue price of $0.015 each (Placement Shares). An additional series of freeattaching options (Placement Options) were issued with the Placement Shares on a 1:4 basis exercisable at $0.03 on or before 30 April 2027. Mr Peter Tighe, a Director, participated in the Placement to the extent of $50,000. Short Term Loan Facility On 19 April 2024, the Company announced details of a short-term loan agreement with Evolution Capital Pty Ltd (Evolution). A summary of the key terms of the loan facility is as follows: Facility Limit: $750,000 Term: Four months from the date of signing, namely 18 August 2024 (Due Date) Interest: 10% fixed rate (being $75,000) payable at the Due Date Security: A first-ranking corporate charge over all Company assets and interests; personal guarantee from Mr Asimwe Kabunga Options Issue: 12,500,000 options exercisable at 3c on or before 30 April 2027 were also issued to Evolution. Prior to the Due Date, an agreement was reached between Evolution and the Company’s Chairman (Peter Tighe) whereby the rights of Evolution under the short term loan facility were assigned to Mr Tighe under the following terms: Lender: Mr Peter Tighe (having purchased these rights from Evolution Capital Pty Ltd) Facility Limit: $750,000 Term: 30 November 2024 Interest: 15% per annum payable monthly in arrears EVENTS AFTER BALANCE SHEET DATE The following events since 30 June 2024 that impact upon the financial report are as follows: Myoff Creek Niobium/REE Project Acquisition On 22 July 2024, the Company announced it had entered into an option agreement to acquire all the shares in Australianregistered company North American Exploration Pty Ltd (NAE). NAE owns 100% of eight (contiguous claims that comprise the Myoff Creek Niobium/REE Project. A summary of the acquisition terms is as follows: Page 4 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 • A non-refundable fee of $50,000 was paid by AKN on signing the agreement; and • In consideration for the acquisition of all the shares in NAE, AKN will issue 57,000,000 ordinary shares at an issue price of $0.015 per share and 28,500,000 free-attaching options exercisable at $0.03 on or before 30 April 2027 to the existing NAE shareholders and their nominees. The Company has since exercised the option and completed the acquisition of NAE, with some of the consideration shares (17,000,000) and all the 28,500,000 consideration options to be issued if approved at the Company’s extraordinary general meeting on 26 September 2024. Grand Codroy Uranium Project Acquisition On 9 September 2024, the Company entered into a term sheet to acquire the Grand Codroy uranium project in southwestern Newfoundland, pursuant to which the Company agreed acquire 100% of the issued capital of Lithium Rabbit Pty Ltd (GC Transaction). The following consideration is payable to the vendor shareholders or their nominee/s: • $50,000 cash; • 21,428,571 ordinary Shares (GC Consideration Shares), equating to a value of $150,000 at a deemed issue price of $0.007 per Share; and • a further number of fully paid ordinary Shares (GC Deferred Consideration Shares) equal to a value of $100,000, with an issue price of the previous 20 trading day volume weighted average price for the Company’s Shares trading on the ASX or $0.005 each, whichever is the greater. The GC Deferred Consideration Shares are to be issued 12 months after the date of acquisition and the maximum number of GC Deferred Consideration Shares will be 20,000,000 Shares. Additionally, Lithium Rabbit Shareholders will retain a 2% Net Smelter Royalty on all materials produced from the Grand Codroy Project. The Company has a right to buy-back 1% of the Net Smelter Royalty for the sum of $1,000,000. Completion of the Grand Codroy acquisition is conditional upon the following: • AKN successfully conducting a due diligence in relation to Lithium Rabbit Pty Ltd and the Grand Codroy mineral claim within 21 days from signing; and • AKN obtaining shareholder approval under ASX Listing Rule 7.1 to enable the Company to have sufficient capacity to issue the 21,428,571 shares noted above. The conditions are to be satisfied on or before 30 October 2024, failing which the agreement may be terminated by either party. Extension of Short Term Loan Facility On 14 August 2024, the Company announced that an agreement was reached between Evolution and the Company’s Chairman (Peter Tighe) whereby the rights of Evolution under the short term loan facility assigned to Mr Tighe under the following terms: Lender: Mr Peter Tighe (having purchased these rights from Evolution Capital Pty Ltd) Facility Limit: $750,000 Term: 30 November 2024 Interest: 15% per annum payable monthly in arrears Page 5 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Further Share Placements The Company has completed two share placements after the reporting period: • On 22 July 2024, the Company announced a placement to sophisticated and professional investors to raise $150,000 (before costs) through the issue of 10,000,000 shares at an issue price of 1.51c each (July Placement Shares). An additional series of free-attaching options will be issued with the July Placement Shares on a 1:2 basis exercisable at 3c on or before 30 April 2027. This placement was effected in conjunction with the Company’s proposed acquisition of the Myoff Creek niobium/REE project in Canada. Empire Capital Partners Pty Ltd managed the placement on behalf of the Company. • On 11 September 2024, the Company announced a placement to sophisticated and professional investors to raise $130,000 (before costs) through the issue of 16,883,116 shares at an issue price of 0.77c each (September Placement Shares). An additional series of free-attaching options will be issued with the September Placement Shares on a 3:2 basis exercisable at 3c on or before 30 April 2027. The placement was effected in conjunction with the Company’s proposed acquisition of the Grand Codroy uranium project in Newfoundland, Canada. Peak Asset Management Pty Ltd managed this placement on behalf of the Company. Rights Issue On 12 September 2024, the Company has announced a pro-rata non-renounceable entitlement offer to existing shareholders: • entitlement offer of ordinary shares (New Shares) to existing shareholders on a 2 for 3 entitlement basis at an issue price of 0.7 cents per share to raise approximately $1.48 million. • For every two New Shares issued to a holder as part of their subscriptions under the Entitlement Offer, the holder will also receive one unlisted attaching option exercisable at 3 cents and expiring 30 April 2027. • Entitlement Offer is to fund: o o o o o the planned drilling program at the Mkuju uranium project in southern Tanzania; a proposed radiometric survey over the Myoff Creek niobium/REE project in eastern BC, Canada; a planned RC drilling program at Sandiego North, part of the Koongie Park copper/zinc project; initial soil sampling program at the newly-acquired Great Codroy uranium project in Newfoundland, Canada; and the costs of the Entitlement Offer and for general working capital purposes. AUDITOR’S INDEPENDENCE DECLARATION The auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 7 and forms part of the Director’s report for the half-year ended 30 June 2024. Signed in accordance with a resolution of the directors. Paul Williams Managing Director 13 September 2024 Page 6 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au Level 10, 12 Creek Street Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia DECLARATION OF INDEPENDENCE BY T R MANN TO THE DIRECTORS OF AUKING MINING LIMITED As lead auditor for the review of AuKing Mining Limited for the half-year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and 2. No contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of AuKing Mining Limited and the entities it controlled during the period. T R Mann Director BDO Audit Pty Ltd Brisbane, 13 September 2024 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Page 7 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Consolidated Statement of Comprehensive Income For the half-year ended 30 June 2024 6 months ended June 2024 $ 6 months ended June 2023 $ Employment and consultancy expenses (450,783) (721,526) Depreciation expense (23,957) (23,117) Note Costs related to the Tanzania transaction 8 - (1,039,119) Exploration expenditure - Tanzania 4 (330,013) (8,378,112) (922,890) - Impairment – exploration and evaluation assets Finance costs (277,159) - (532,311) (534,819) (2,537,113) (10,696,693) Income tax expense - - Loss for the period (2,537,113) (10,696,693) 7,737 18,126 - - 7,737 18,126 (2,529,376) (10,678,567) Cents Cents (1.06) (5.79) Other expenses Loss before income tax 3 Other comprehensive income/(loss) Foreign currency translation differences for foreign operations Income tax Other comprehensive income for the period, net of tax Total comprehensive loss Earnings per share Basic and diluted loss per share The Consolidated Statement of Comprehensive Income should be read in conjunction with the Notes to the Consolidated Financial Statements. Page 8 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Consolidated Balance Sheet As at 30 June 2024 Note June 2024 $ December 2023 $ Cash and cash equivalents 112,736 396,308 Trade and other receivables 22,094 31,219 TOTAL CURRENT ASSETS 134,830 427,527 3,185 3,185 8,021,826 8,770,769 139,617 163,574 TOTAL NON-CURRENT ASSETS 8,164,628 8,937,528 TOTAL ASSETS 8,299,458 9,365,055 170,834 198,499 180,548 179,086 718,785 - TOTAL CURRENT LIABILITIES 1,070,167 377,585 TOTAL LIABILITIES 1,070,167 377,585 NET ASSETS 7,229,291 8,987,470 CURRENT ASSETS NON-CURRENT ASSETS Other receivables Exploration and evaluation assets 4 Plant and equipment CURRENT LIABILITIES Trade and other payables Employee benefit provisions Borrowings 5 EQUITY Share capital 6 23,792,827 23,303,355 Reserves 7 2,536,102 2,246,640 (19,099,638) (16,562,525) 7,229,291 8,987,470 Accumulated losses TOTAL EQUITY The Consolidated Balance Sheet should be read in conjunction with the Notes to the Consolidated Financial Statements Page 9 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Consolidated Statement of Changes in Equity For the half-year ended 30 June 2024 Share Capital $ Reserves $ Accumulated Losses $ Total Equity $ 13,592,798 379,631 (4,107,833) 9,864,596 Issue of share capital 8,951,000 - - 8,951,000 Share issue costs (157,914) - - (157,914) Share based payments - 2,014,655 - 2,014,655 Transfer of expired options - (210,000) 210,000 - 8,793,086 1,804,655 210,000 10,807,741 Consolidated Entity Balance at 1 January 2023 Transactions with owners in their capacity as owners Comprehensive income Loss after income tax - - (10,696,693) (10,696,693) Other comprehensive income - 18,126 - 18,126 - 18,126 (10,696,693) (10,678,567) Balance at 30 June 2023 22,385,884 2,202,412 (14,594,526) 9,993,770 Balance at 1 January 2024 23,303,355 2,246,640 (16,562,525) 8,987,470 Issue of share capital 650,000 - - 650,000 Share issue costs (160,528) - - (160,528) - 281,725 - 281,725 489,472 281,725 - 771,197 Transactions with owners in their capacity as owners Share based payments Comprehensive income Loss after income tax - - (2,537,113) (2,537,113) Other comprehensive income - 7,737 - 7,737 - 7,737 (2,537,113) (2,529,376) 23,792,827 2,536,102 (19,099,638) 7,229,291 Balance at 30 June 2024 The Consolidated Statement of Changes in Equity be read in conjunction with the Notes to the Consolidated Financial Statements Page 10 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 Consolidated Cash Flow Statement For the half-year ended 30 June 2024 Note 6 months ended June 2024 $ 6 months ended June 2023 $ (948,876) (1,097,873) - (46,709) (330,013) (675,882) CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Payments for Tanzania transaction costs 8 Payments for exploration and evaluation - Tanzania Finance costs (83,665) - (1,362,554) (1,820,464) Payments for exploration and evaluation– Koongie Park (175,710) (474,941) Net cash provided used in investing activities (175,710) (474,941) Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares 6 650,000 2,033,600 Cost associated with the issue of shares 6 (35,020) (65,514) Proceeds from borrowings 5 656,250 - Repayment of borrowings 5 (17,757) - Net cash provided by financing activities 1,253,473 1,968,086 Net increase/(decrease) in cash and cash equivalents (284,791) (327,319) Cash and cash equivalents at the beginning of the period 396,308 1,656,292 1,219 1,237 112,736 1,330,210 Net foreign exchange differences Cash and cash equivalents at the end of the period The Consolidated Cash Flow Statement should be read in conjunction with the Notes to the Consolidated Financial Statements. Page 11 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Reporting Entity AuKing Mining Limited (the “Company”) is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 30 June 2024 comprises the Company and its controlled entities (together referred to as the “Consolidated Entity”). (b) Statement of Compliance The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. The Company is a for-profit entity for the purpose of preparing the interim financial report. The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the Consolidated Entity as at and for the year ended 31 December 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. New and revised standards have been issued by the AASB and are effective for the half-year; however there are no material changes to the policies that affect the recognition or measurement of the results or financial position of the Consolidated Entity. (c) Accounting Policies Except for the Borrowings accounting policy detailed in Note 5, the accounting policies and methods of computation applied by the Consolidated Entity in the consolidated interim financial report are the same as those applied by the Consolidated Entity in its consolidated financial report as at and for the year ended 31 December 2023. (d) New Standards and Interpretations Not Yet Adopted Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2024 reporting period. The Consolidated Entity has decided against early adoption of these standards. The Consolidated Entity has assessed the impact of these new standards that are not yet effective and determined that they are not expected to have a material impact on the Consolidated Entity in the current or future reporting periods and on foreseeable future transactions. (e) Going Concern As at 30 June 2024 the Consolidated Entity had cash reserves of $112,736 and net current liabilities of $935,337, inclusive of a $750,000 loan from Evolution capital (assigned post period-end to Director Peter Tighe). For the half year ended 30 June 2024 the Consolidated Entity incurred a loss of $2,537,113, including $330,013 of exploration expenditure that was expensed under the Consolidated Entity’s accounting policy disclosed in Note 4, and $922,890 of impairment charges related to the non-core Koongie Park tenements. The Consolidated Entity also incurred operating cash outflows of $1,362,554 (including $330,813 of exploration expenditure that was expensed under the Consolidated Entity’s accounting policy disclosed in Note 7) and had investing cash outflows of $175,710. As disclosed in Note 10 the Consolidated Entity also has obligations to expend minimum amounts on exploration in tenement areas. Currently the exploration expenditure obligations for the 12 months ending 30 June 2025to maintain its current tenement areas are $1,562,140. Subsequent to year end the Consolidated Entity raised an additional $150,000 through a share placement that was managed by Empire Capital Partners Pty Ltd and $120,000 through a share placement that was managed by Peak Asset Management Pty Ltd. The Consolidated Entity is also working towards entering into a $175,000 sale agreement for the sale of its Manyoni licenses in Tanzania. The Consolidated Entity lodged a prospectus on 12 September 2024 in respect of the proposed raising of an additional approximately $1.484M from existing shareholders. In the event of a likely shortfall on subscriptions from eligible shareholders, the Co-Lead Managers to the rights issue (Empire Capital Partners and Peak Asset Management) have committed (on a best endeavours basis) to assist the Consolidated Entity to secure the shortfall moneys. Both Empire Capital Partners and Peak Asset Management have already participated in recent placements undertaken by the Consolidated Entity. Page 12 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Consolidated Entity requires further capital to: • fund future exploration activity and meet other necessary corporate expenditure. It is the intention of the Consolidated Entity to carry out near-term exploration activities at its existing Mkuju, Myoff Creek and, if sufficient funding is available, the Sandiego North projects. • repay the $750,000 loan from Director Peter Tighe by 30 November 2024 The ability of the Consolidated Entity to continue as a going concern is dependent upon securing funding in the form of a capital raise (by way of the rights issue), within the next month. A further capital raising is planned for late November 2024 to ensure the Consolidated Entity is in a position to retire the short-term loan facility owing to Mr Tighe, in the event that an agreement to extend that loan cannot be achieved, despite the best efforts by the parties to do so. This is in addition to amounts already raised subsequent to balance date. These funds are required to continue planned exploration and meet the Consolidated Entity’s working capital requirements. In addition to planned capital raising activities, the Consolidated Entity is taking steps to reduce its expenditures moving forward. The Consolidated Entity’s ability to continue as a going concern is dependent upon one or more of the following: • the ability of the Company to raise additional capital in the future; • the ability of the Consolidated Entity to obtain short term funding within the next month (under the rights issue) to meet immediate funding requirements; and • the successful exploration and subsequent exploitation of the Consolidated Entity’s tenements. These conditions give rise to material uncertainty which may cast significant doubt over the Consolidated Entity’s ability to continue as a going concern. Whilst acknowledging these uncertainties, the directors have concluded that the Company is currently solvent and that the going concern basis of preparation is appropriate due to the following reasons: • The Consolidated entity will continue to monitor its available funding and may seek to extend the expiry of the loan with Mr Tighe if necessary; • The Consolidated Entity has respective mandate agreements in place with both Empire Capital Partners and Peak Asset Management to assist with any shortfall under the rights issue; • To date the Consolidated Entity has funded its activities through issuance of equity securities, and it is expected that the Consolidated Entity will be able to fund its future activities through further issuances of equity securities; and • The implementation of a cost reduction program. The directors believe there will be sufficient cash available for the Consolidated Entity to continue operating based on the Company’s cash flow forecast. Should the Consolidated Entity be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Consolidated Entity be unable to continue as a going concern. Page 13 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 NOTE 2 SEGMENT REPORTING Reportable Segments The Consolidated Entity has identified its operating segment based on internal reports that are reviewed and used by the executive team in assessing performance and determining the allocation of resources. The Consolidated Entity does not yet have any products or services from which it derives an income. Management currently identifies the Consolidated Entity as having only two reportable segment, being: • • Exploration for minerals in Australia at the Koongie Park project; and Exploration for minerals in Tanzania. The following is an analysis of the Consolidated Entity’s revenue and results by reportable operating segment for the period under review. Tanzania Australia Unallocated Consolidated Half-Year Ended 30 June 2024 Revenue: $ $ $ $ Revenues - - - - Expenses: Tanzania exploration expenses Impairment – exploration and evaluation assets Other operating expenses (330,013) - - (330,013) - (922,890) - (922,890) (67,399) (28,276) (1,188,535) (1,284,210) (2,537,113) Segment result Income tax (397,412) (951,166) (1,188,535) - - - Net Loss (2,537,113) (2,537,113) Assets: Segment assets 13,627 8,117,935 167,896 8,299,458 15,624 32,403 1,022,140 1,070,167 Liabilities: Segment liabilities Page 14 of 27 AuKing Mining Limited Interim Financial Report for the Half-Year Ended 30 June 2024 NOTE 2 SEGMENT REPORTING (continued) Tanzania Australia Unallocated Consolidated Half-Year Ended 30 June 2023 Revenue: $ $ $ $ Revenues - - - - Expenses: Tanzania acquisition expenses (1,039,119) - - (1,039,119) Tanzania exploration expenses (8,378,112) - - (8,378,112) (38,844) (121,104) (1,119,514) Other operating expenses (1,279,462) (10,696,693) Segment result (9,456,075) (121,104) (1,119,514) (10,696,693) - - - - Income tax Net Loss (10,696,693) Assets: Segment assets 163,106 8,777,787 1,464,624 10,405,517 35,156 124,696 251,895 411,747 Liabilities: Segment liabilities 6 months ended June 2024 $ 6 months ended June 2023 $ Corporate compliance and insurance expenses 216,062 233,828 Administration expenses 187,071 197,502 Telecom and IT expenses 11,961 29,691 Investor relations expenses 117,217 73,798 532,311 534,819 NOTE 3 OTHER EXPE