Axiom Mining 2015 Annual Report

COMPANY FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

102

26. Directors remuneration (continued) Details of the unexpired rights as at 30 September 2015 are as follows:

Fair value per share at grant approval

Number of rights granted Grant date Expiry date

VWAP hurdle (4) cents

Number Vested

date (3) cents

Directors Stephen Williams

166,666 (1) 133,333 (2) 133,333 (2) 400,000 (2)

30/07/11

–

–

1.05 0.75

– – – –

22/04/13 21/04/16 22/04/13 21/04/16 22/04/13 21/04/16

1.33 1.20 1.06

1.13

1.50

833,332

(1) lapsed and cancelled post year-end. (2) The VWAP hurdles relating to the rights were not met by 21 October 2015 and have lapsed. (3) Pre-consolidation value using a Black-Scholes option pricing model. (4) Post consolidation. The performance rights are charged to expense over the life of the rights. The expense in relation to the performance rights is calculated as fair value using the Black-Scholes and Monte Carlo models. The issue of shares on exercise of the performance rights must be within three years from the approval by the shareholders and: – were subject to Volume Weighted Average Price (‘VWAP’) hurdles with rights vesting only after the 30 day VWAP has exceeded the relevant hurdles; and – a further six months must elapse after satisfaction of the VWAP performance condition before the performance rights can be exercised. A service-based vesting condition also applies. That is, Mr Mount and Mr Williams must remain in the service of the Company at the time the performance rights are exercised. Performance rights that do not vest will lapse. The performance rights are issued for nil consideration and have a nil exercise price. The shareholders at the 31 March 2015 AGM approved for 2,400,000 Short term performance rights and 9,600,000 Long term performance rights granted under Axiom director and executive performance right plan. As at the date of this report, the rights have not been issued.

AXIOM MINING LIMITED ANNUAL REPORT 2015

Fair value per share at approval date

Number of rights

VWAP hurdle

Number Vested

Expiry date

Ryan Mount Short term (2)

2,400,000

– (1)

0.165

n/a 2,400,000

Long term (3)

2,400,000 28 February 2017 2,400,000 28 February 2018 2,400,000 28 February 2019 2,400,000 28 February 2020

0.057 0.054 0.052 0.050

34.5 43.5 55.5 69.0

– – – –

(1) Expires 12 months after the date of issue. The rights have not been issued. (2) Short term rights vest immediately upon approval by the shareholders. (3) Long term rights vest where the Company’s share price exceeds speci ed thresholds during the speci ed periods, and subject to employment continuation.