PASSENDRO/BAMBARI

AXMIN reported a 30% increase in the measured and indicated resource at Main Zone, Passendro project in the Central African Republic. This together with the updated resources at Katsia, Baceta and the new zone Mbourou represent a 10% increase in the overall resources. The measured and indicated resource is now 2.0 million ounce gold (31.5 Mt grading 2.0 g/t Au) and an inferred mineral resource of 1.1 million ounce gold (21.7 Mt grading 1.6 g/t Au). Separately, a low grade (0.3-0.8 g/t Au) mineral resource estimate at Main Zone has also been completed which contains an additional 458,000 ounces of measured and indicated resource and 550,000 ounces of inferred resource.

Announced the results of a reviewed Bankable Feasibility Study. By reducing the project throughput to an average of about 1.3 million tonnes per annum (“tpa”) (average 100,000 oz per annum) the initial capital cost (excluding working capital of US$2.1 million) is reduced by some 35% to US$127 million, project payback remains at just over two years and the life of the project nearly doubles to 11.5 years. Meanwhile the total cash operating cost increases by approximately 14% to US$431/oz whilst Net Present Value (“NPV”, 5% discount rate) and Internal Rate of Return (“IRR”) at a US$750/oz gold price remain very attractive at US$135 million and 27% respectively. At US$900/oz the NPV and IRR increase to US$244 million and 41% respectively.

Main Zone mineralisation is extended another 500 metres to the northwest, intersections including 6.0 g/t Au over 6.0 metres, 1.3 g/t Au over 16.5 metres and 2.9 g/t Au over 4.5 metres. Infill and definition of inferred resources within and proximal to the Main Zone pit with intersections including 11.6 g/t Au over 4.0 metres, 2.9 g/t Au over 10.0 metres, 52.7 g/t Au over 1.5 metres, 16.3 g/t Au over 1.6 metres and 2.3 g/t Au over 13.5 metres.