ASX ANNOUNCEMENT | 4 AUGUST 2026 | ASX: AKN

AuKing to Acquire the Machinga Heavy Rare Earths Project, Malawi

AuKing Mining Limited (ASX: AKN) has agreed to acquire 100% of the Machinga HREE Project: a high-grade dysprosium and terbium system 40km east of Lindian's Kangankunde, with niobium and gallium credits, kilometres of untested strike, and a fully funded exploration program commencing immediately on completion.

Machinga at a Glance

28-30%

Average HREO content, comparable to or exceeding many ionic clay deposits

3.6%

Average DyTb:TREO in drilling, with intervals up to 4.1%

10x

Hard rock grades of 0.6-1.4% TREO, more than ten times typical ionic clay grades

2.67%

Peak TREO with 1.01% Nb2O5 (1m within a 5.2m @ 1.61% TREO zone, MDD006)

8,588m

Historical drilling across 79 holes (Globe 2010-12 and DY6/Tusker 2023)

7km

Machinga anomaly, with Machinga South and Lingoni anomalies still untested

75.28 g/t

Peak gallium (Ga2O3) from recent surface sampling, with rock chips to 6,649 ppm Nb2O5

200.4km²

Two granted licences (EL0529 and EL0705), 20km north of Zomba on the main highway

"Machinga has the potential to become comparable to the large Strange Lake and Bokan Mountain REE deposits in North America... Machinga has potential to become a district-scale rare earths project."

Paul Williams, Managing Director, AuKing Mining Limited (ASX announcement, 4 August 2026)

Explore the Project

Not all rare earths are created equal. The light rare earths, such as cerium and lanthanum, are relatively abundant. The heavy rare earths dysprosium and terbium are far scarcer, command prices orders of magnitude higher, and are functionally irreplaceable in the most demanding magnet applications.

Both elements are added to neodymium-iron-boron permanent magnets to maintain coercivity and performance at elevated operating temperatures, which makes them essential for electric vehicle drivetrains, offshore wind turbines, defence systems and advanced electronics. Heavy rare earths, particularly dysprosium and terbium, are attracting increasing strategic interest in the United States and globally amid efforts to strengthen resilient, diversified supply chains for critical minerals.

Machinga delivers the heavies with the magnet metals in company. Mineralogical analysis of the standout 15.1m intersection in MDD007 identified 27.7% HREO/TREO and 3.7% Dy+Tb/TREO together with 15.2% NdPr oxide, meaning nearly one in every five tonnes of contained rare earth oxide at Machinga is a magnet metal.

Machinga sits within the Mesozoic Chilwa Alkaline Province, a well-recognised rare earth mineral province that hosts Lindian Resources' Kangankunde Project and Mkango's Songwe Hill Project. The project area is positioned along the north-eastern margin of the Zomba-Malosa intrusive complex, which intruded the Precambrian basement gneiss and comprises a range of syenitic lithologies, including quartz syenite grading into alkaline granite along its eastern margin.

Mineralisation has been defined over a strike length of 2km and comprises niobium, tantalum, zirconium, uranium and rare earth element anomalies. The REE mineralisation is hosted within eudialyte, a zirconosilicate mineral characteristically associated with peralkaline magmatic complexes and recognised as an important source of neodymium and heavy rare earth elements from gadolinium to lutetium.

Drilling has confirmed a strongly mineralised hydrothermal breccia system striking north-west to south-east and dipping shallowly at approximately 35 degrees to the north-east, with gently dipping breccia zones within the gneissic host. The key REE-bearing phases are eudialyte group minerals along with bastnaesite and xenotime. Very high-grade zones were intersected in the diamond drilling, with the mineralised zones thickening at depth and continuing to the north-east into the second licence.

This peralkaline geological setting is very similar to the well-known HREE deposits of North America: Strange Lake in northern Quebec and Bokan Mountain in south-eastern Alaska.

Machinga carries more than 8,500m of historical drilling: Globe Metals and Mining completed 36 RC holes for 4,045m in 2010-12, and DY6 Metals (now Tusker Minerals) completed 35 RC holes for 3,643m plus 8 diamond holes for 900m in late 2023. Highlight intercepts from the 2023 program include:

  • MDD007: 15.1m @ 1.01% TREO, 0.36% Nb2O5, 27.70% HREO from 23.9m (3.71% Dy+Tb/TREO), including 4m @ 1.75% TREO, 0.63% Nb2O5, 28.25% HREO (3.8% Dy+Tb/TREO)
  • MDD008: 9m @ 1.11% TREO, 0.41% Nb2O5, 27.58% HREO from 41m (3.72% Dy+Tb/TREO), including 3m @ 1.56% TREO, 0.49% Nb2O5, 30.98% HREO (4.1% Dy+Tb/TREO)
  • MDD006: 9m @ 0.70% TREO, 0.30% Nb2O5, 28.53% HREO from 3m (3.84% Dy+Tb/TREO), and 5.2m @ 1.61% TREO, 0.66% Nb2O5, 30.66% HREO from 41.4m (3.99% Dy+Tb/TREO), including 1m @ 2.67% TREO and 1.01% Nb2O5
  • MR011: 7m @ 1.42% TREO, 0.49% Nb2O5, 28.99% HREO from 65m (3.8% Dy+Tb/TREO)
  • MR024: 11m @ 0.74% TREO, 0.29% Nb2O5, 27.73% HREO from surface (3.8% Dy+Tb/TREO)
  • MR004: 6.1m @ 1.09% TREO, 0.4% Nb2O5 from 22.5m (3.78% Dy+Tb/TREO)

Results averaged 29% HREO:TREO and 3.6% DyTb:TREO at a cutoff grade of over 0.25% TREO, with mineralisation from surface in multiple holes and significant niobium throughout.

Recent surface work keeps extending the system: 2024 rock chips graded up to 3.22% TREO and 0.75% Nb2O5, and the December 2025 program 3km south-east of the drilling returned strong gallium (up to 75.28 g/t Ga2O3) with encouraging REE and niobium values.

The scale case at Machinga is compelling precisely because so little of the system has been tested.

Soil geochemistry defines a 2.7km-long north-west to south-east anomaly with multiple parallel zones consistent with the drilling results, and the two western anomalies show a continuous character of higher TREO results. This zone was only partially tested by the first phase of drilling, and no drilling has been completed west of the main road. Significant potential exists for further drilling to the west and south of the initial drilling focus.

Beyond Machinga Main, the historical radiometric surveys define the large Machinga South anomaly and the separate Lingoni anomaly to the east, both essentially untested. Across the wider 200.4km² licence package, the December 2025 sampling program confirmed strong gallium, REE and niobium mineralisation extending well beyond the drilled footprint.

AuKing's first work program attacks exactly this question of scale: integrating the extensive historical drilling, geochemical and radiometric datasets with modern drone-based magnetic and LiDAR surveys to refine structural controls and define priority drill targets, followed by drilling later in 2026 focused on extending known mineralisation along strike and at depth, testing the western and southern extensions, and evaluating the large untested radiometric anomalies. Exploration is funded from AuKing's existing cash reserves.

A Four-Commodity Critical Minerals Suite

Every element in the Machinga basket carries strategic weight of its own.

Dy 66

Dysprosium

The Thermal Workhorse

Added to NdFeB permanent magnets to preserve coercivity at high operating temperatures in EV motors and wind turbines. No commercially viable substitute exists.

Historical drilling returned dysprosium oxide values up to 740 ppm Dy2O3 within high-grade intervals

Tb 65

Terbium

The Scarcest Magnet Metal

Among the rarest and most valuable of all rare earths, used alongside dysprosium in premium magnet formulations for the most demanding applications.

Combined DyTb runs at 3.6% to 4.1% of the basket in the best intervals

Nb 41

Niobium

The Rarity Multiplier

A steel-strengthening critical metal running consistently through the Machinga system. The opportunity to recover niobium as a valuable by-product further enhances Machinga's strategic importance and rarity.

Drill intervals up to 1.01% Nb2O5, rock chips up to 0.75% Nb2O5

Ga 31

Gallium

The Semiconductor Metal

Central to semiconductors and defence electronics, and subject to Chinese export controls. Confirmed across the southern licence area by the December 2025 sampling program.

Grades up to 75.28 g/t Ga2O3 alongside REE and niobium values

The Bokan Mountain Benchmark

Machinga is hosted in an analogous peralkaline igneous system to Bokan-Dotson Ridge in Alaska, a globally significant heavy rare earth deposit held by Ucore Rare Metals (TSXV: UCU). The same deposit style, carried through to a defined resource, underpins a company with a market capitalisation of approximately A$320 million.

MACHINGA, MALAWI (AKN) BOKAN-DOTSON RIDGE, ALASKA (UCU)
Geological setting Peralkaline system on the margin of the Zomba-Malosa intrusive complex, Chilwa Alkaline Province Peralkaline igneous complex, Prince of Wales Island, south-east Alaska
Host mineralogy Eudialyte group minerals with bastnaesite and xenotime in pegmatites and breccia zones HREE-rich felsic dikes and pegmatites, structurally controlled, radial to the intrusion
Scale and grade No resource yet. Hard rock grades of ~0.6-1.4% TREO in drilling across a barely tested system Defined deposit of 5.15Mt @ 0.58% TREO
Heavies skew Approximately 28-30% HREO in drilling Approximately 22% HREO
Mining concept Mineralisation exposed from surface, strong potential for lower-cost open-pit mining Proposed underground mining operation
By-products Niobium, tantalum, zirconium and gallium Niobium, zirconium, beryllium, hafnium, titanium, vanadium

The valuation benchmark: Ucore Rare Metals, owner of Bokan-Dotson Ridge, currently has a market capitalisation of approximately A$320 million. AuKing currently trades at a substantially lower valuation, providing scope for meaningful valuation uplift as Machinga advances through exploration, resource definition and development studies. Machinga's drilling shows higher TREO grades and a stronger heavies skew than Bokan's defined deposit, from surface rather than underground, with the majority of the system still untested.

Machinga Against the ASX Hard Rock Rare Earths Peers

The commercial story of a rare earths project is written by its basket, not its headline grade. The ASX's multi-billion dollar rare earths names are overwhelmingly light rare earths stories.

COMPANY / PROJECT LISTING AND SCALE DEPOSIT STYLE RESOURCE / GRADE DyTb AND HEAVIES PROFILE
AuKing Mining
Machinga, Malawi		 ASX: AKN. The entry point, pre-resource Eudialyte-hosted peralkaline / pegmatite system No resource yet. Drill hits to 15.1m @ 1.01% TREO, 8,588m of historical drilling, system open 3.6% DyTb:TREO, 28-30% HREO, plus Nb, Ta, Zr and Ga credits
Lynas Rare Earths
Mt Weld, WA		 ASX: LYC, approx A$16B. The sector giant, producing Monazite carbonatite (hard rock) One of the highest-grade REE deposits globally, decades of production ahead LREE dominant. NdPr drives value, DyTb a small by-product stream
Arafura Rare Earths
Nolans, NT		 ASX: ARU, approx A$1.4B. Construction pending Phosphate-hosted hard rock (apatite-monazite) Targeting 4,400 tpa NdPr, around 4% of global NdPr demand NdPr focused, roughly a quarter of TREO. Heavies minor
Northern Minerals
Browns Range, WA		 ASX: NTU, approx A$0.3B. DFS complete Xenotime hydrothermal breccia (hard rock) Ore Reserve 5.18Mt @ 0.88% TREO The ASX heavies benchmark. DyTb around 70% of basket value

The read-through: Northern Minerals, the exchange's dedicated heavies play, classifies a heavy rare earths project as one with a DyTb:TREO ratio above 3%. Machinga clears that benchmark at 3.6%, with heavy rare earth ratios comparable to ionic clay deposits at hard rock grades more than ten times higher, and adds niobium, tantalum, zirconium and gallium credits the peers do not carry.

Peer figures sourced from company reporting and market data as at July-August 2026. Market capitalisations are approximate and change daily. Peer companies are at far more advanced stages than Machinga, which has no mineral resource estimate, and their inclusion is for market context only. Comparisons are illustrative and are not a representation that AuKing will achieve similar outcomes.

Transaction Milestones

AuKing is acquiring 100% of Machinga from Tusker Minerals (ASX: TSK) on staged terms that tie a substantial part of the consideration directly to exploration success, keeping shareholder interests aligned with delivery.

ON COMPLETION

A$750,000 cash plus A$750,000 in AKN shares (30 million shares at $0.025, voluntarily escrowed for 12 months), with a further A$1,250,000 cash payable within 12 months of completion.

THE PERFORMANCE HURDLE

A$1,250,000 in performance shares convert only upon delivery of a JORC-compliant Mineral Resource of at least 10Mt at 0.65% TREO at Machinga within three years. The resource target is written into the deal itself.

FULLY FUNDED, MOVING NOW

Due diligence, ASX clearance and binding documentation are complete. Exploration is funded from existing cash reserves, with drone magnetics, LiDAR and drilling planned for later in 2026, subject to MMRA approval of the licence transfers.

Seven Decades of Discovery, One Owner to Deliver It

1950s-1970s: First Recognition

The Geological Survey of Great Britain and other pre-independence era groups identify radiometric anomalies over outcropping pegmatites at Machinga, with early drillholes intersecting radioactive granites and pegmatite veins.

1986-87: The Airborne Survey

A UNDP-sponsored airborne magnetic and radiometric survey identifies the anomalies across the Zomba region, including at Machinga, that have formed the basis of exploration ever since.

2010-2012: Globe Confirms the Discovery

Globe Metals and Mining completes 1,635m of trenching and 36 RC holes for 4,045m, confirming a significant heavy rare earth and niobium discovery at Machinga.

2023: High-Grade Modern Drilling

DY6 Metals completes 43 holes for 4,543m, averaging 29% HREO:TREO and 3.6% DyTb:TREO, confirming a shallow, continuous breccia-hosted system with intervals up to 2.67% TREO and 1.01% Nb2O5, thickening at depth and open along strike.

2024-2025: The System Keeps Growing

Rock chips up to 3.22% TREO extend mineralisation across the enlarged 200.4km² licence package, and the December 2025 program confirms gallium up to 75.28 g/t Ga2O3 with strong REE and niobium values 3km south-east of the drilling.

4 August 2026: AuKing Steps In

AuKing (ASX: AKN) agrees to acquire 100% of Machinga, uniting it with the neighbouring Tundulu rare earths project to create a southern Malawi rare earths portfolio, with fully funded exploration and drilling planned for later in 2026.

Investor Questions

The basket. Most large rare earth deposits are dominated by low-value light rare earths. Machinga's drilling has consistently returned 3.6% to 4.1% DyTb as a share of the basket and approximately 28% to 30% heavy rare earth oxides, ratios comparable to or exceeding many ionic clay deposits, but at hard rock grades of 0.6% to 1.4% TREO, more than ten times the typical grades mined from ionic clays. It delivers this alongside niobium, tantalum, zirconium and gallium credits, and with 15.2% NdPr oxide identified in the standout MDD007 mineralogy, nearly one in five tonnes of contained rare earth oxide is a magnet metal.

Not yet, and the transaction is structured around delivering one. The performance component of the acquisition consideration converts only upon reporting of a JORC-compliant Mineral Resource of at least 10Mt at 0.65% TREO within three years. Machinga arrives with more than 8,500m of historical drilling across 79 holes, demonstrated continuity, and a system open at depth and along strike, providing a substantial head start on that target.

A small fraction. Drilling has focused on the northern part of the Machinga Main anomaly, with no drilling yet completed west of the main road despite soil anomalism showing multiple continuous parallel zones over 2.7km. The large Machinga South anomaly and the separate Lingoni anomaly remain essentially untested, and the December 2025 sampling confirmed mineralisation extending across the wider 200.4km² licence package.

Bokan-Dotson Ridge in Alaska is a globally significant heavy rare earth deposit hosted in an analogous peralkaline igneous system. Its owner, Ucore Rare Metals, has a market capitalisation of approximately A$320 million, while AuKing currently trades at a substantially lower valuation. Machinga's drilling shows higher TREO grades and a stronger heavies skew than Bokan's defined deposit, with mineralisation from surface offering open-pit potential where Bokan is proposed as an underground mine. Geological similarity does not guarantee AuKing will define a resource, but the benchmark illustrates what this deposit style can support.

Staged and success-linked: A$750,000 cash and A$750,000 in escrowed AKN shares on completion, a further A$1,250,000 cash within 12 months, and A$1,250,000 in performance shares that convert only on delivery of a JORC resource of at least 10Mt at 0.65% TREO within three years. Completion is subject to approval of the licence transfers by Malawi's Mining and Minerals Regulatory Authority under the Mines and Minerals Act 2023.

AuKing intends to commence exploration as soon as practicable following completion, funded from existing cash reserves. Initial work integrates the extensive historical drilling, geochemical and radiometric datasets with modern drone-based magnetic and LiDAR surveys to refine drill targets, followed by RC and diamond drilling later in 2026 focused on extensions along strike and at depth, the untested western and southern zones, and the large unexplored radiometric anomalies, building towards a maiden mineral resource. Machinga joins AuKing's Tundulu rare earths project in the same region, alongside the Koongie Park, Mkuju and Big Wilson assets.

High-Grade Heavies. District Scale. Barely Tested.

The Machinga acquisition delivers AuKing a shallow, high-grade heavy rare earths and niobium system in a proven, cost-competitive mining jurisdiction, with heavy rare earth ratios rivalling ionic clays at ten times the grade, a valuation benchmark in Ucore's Bokan Mountain, a resource milestone written into the deal, and a fully funded exploration program about to begin. With the majority of a 200.4km² district still untested, the next chapter starts now.