Solomon Islands Litigation Proceedings Update HIGHLIGHTS ?...

Solomon Islands Litigation Proceedings Update

HIGHLIGHTS

? Orders made extending Axiom KB Limited's Prospecting Licence to at least 6 January 2017,

subject to the outcome of the trial

? Hearing commenced on 14 October 2013 and continues

In case 258/11 in the Solomon Islands High Court, Axiom KB Limited (“Axiom KB”) filed an application seeking an order that the injunction restraining it be varied and partially

discharged. One of the reasons for making this application was because even if Axiom KB is successful at trial, the injunction may have rendered any success nugatory because Axiom KB's Prospecting Licence was due to expire on 14 April 2014.

The application was not determined by the Court but on 21 October 2013. After the Court

construed section 71A of the Mines and Minerals Act (Solomon Islands), a consent order

was made to the effect that his Lordship Commissioner Brown ordered that Axiom KB's Prospecting Licence be extended to 6 January 2017 or such a later date as is 2 years and 267

days after the final judgment if Axiom KB is successful.

Mr Mount further added “We are very pleased with this result. This week's ruling coupled

with the further undertaking obtained this year, as to damages and costs which are now guaranteed by the SMM Solomon Limited's parent company, Sumitomo Metals and Mining Co., Ltd in Japan, means that we are assured both financially and exclusively to the

prospecting licensing rights if the court rules in our favour in the trial.”

Early this year, given the duration of the proceedings, Axiom foreshadowed that it would

apply to the High Court seeking orders that Japan Oil, Gas and Metals National Corporation and Sumitomo Metal Mining Co., Ltd (Japan) provide to the High Court an undertaking as to

Axiom's damages in addition to the undertaking as to damages already given by SMM

Solomon Limited. In response, Sumitomo Metal Mining Co., Ltd agreed to give an

undertaking to the High Court guaranteeing the obligations of SMM Solomon Limited in

relation to the undertaking as to damages. Damages and costs claims may be subject to

recovery proceedings.

This announcement ends the Trading Halt of the Company's securities on the ASX.