Axiom Mining 2015 Annual Report

Operations

9

Mineral-rich Solomon Islands offers Axiom a multitude of opportunities. The Solomon Islands archipelago represents a double chain of islands that span 1300km in the western part of the Pacific Ocean. Both chains follow a northwest/south-east alignment and comprise nearly 1000 islands in total. This archipelago forms part of an arc with a line of very specific volcanic rocks known as the ‘Andesite Line’. This circumscribes the Pacific Ocean in a clockwise direction, from New Zealand to Chile 1 , and is commonly known as the Pacific Rim of Fire. Being bounded by these major tectonic plate boundaries has resulted in the presence of favourable geological structures as well as rock types that are conducive to hosting gold-copper massive sulphide systems and nickel-cobalt deposits. As such, this area is considered fertile ground for large tonnage gold and copper deposits – for example Gold Ridge, Lihir and Panguna. Axiom Mining has two major projects located within the Solomon Islands archipelago – the Isabel Nickel Project and the West Guadalcanal Project. Isabel Nickel Project Tenements: Kolosori (PL 74/11) San Jorge (PL 01/15) Ownership: 80% Axiom KB Limited Mining 20% interest held by the original landowning tribes Location: Santa Isabel Island (Kolosori tenement) San Jorge Island (San Jorge tenement) Area: 42km 2 (Kolosori) 36km 2 (San Jorge) From an orientation drilling program in November 2014 to a Maiden JORC Mineral Resource estimate and its upgrade in a little over a year— Axiom has proven that we have the capability and determination to deliver. After receiving a favourable outcome in the Solomon Islands High Court, Axiom commenced drilling on the Kolosori tenement and intersected high grade nickel laterite.

AXIOM MINING LIMITED ANNUAL REPORT 2015

The Isabel nickel deposit shows high mineability, which means a quick transition from ground to market. The main area of nickel-cobalt mineralisation occurs from the surface and is free from human habitation, and as such mining development will have minimal social impacts. The deposit is also located close to the shore line, allowing easy seaborne access to regional processing hubs. In early 2015, the Project achieved the grant of a Prospecting Licence for the adjacent San Jorge tenement. In mid-2015, Axiom commenced a resource definition drilling program designed to facilitate mining operations. At the same time, development activities progressed at an accelerated pace, including camp refurbishment works, recruitment and training of a local workforce, and preparations to commence initial exploration on the San Jorge tenement. On 30 September 2015, Axiom announced a Maiden JORC Mineral Resource estimate from part of the Kolosori tenement, based on 542 drill holes with 6864m of core samples and 7859 assayed intervals.

References 1 Neall. V.E., Trewick.S.A. 2008. The age and origin of the Pacific islands: a geological overview, Philosophical Transactions of the Royal Society of Biological Sciences.