Ann: Response to ASX Query Letter, page-10

AXP Energy Limited | ABN 98 114 198 471
AUSTRALIAN OFFICE: Suite 302, Level 3, 17 Castlereagh Street, Sydney NSW 2000 | P: +61 2 9299 9580
www.axpenergy.com



23 September 2021


Ms Lin Kang
Adviser, Listings Compliance (Sydney)
ASX Limited
20 Bridge Street,
Sydney NSW 2000



Dear Lin,

AXP ENERGY LIMITED (‘AXP’ – EARLY RELEASE OF INFORMATION QUERY
We refer to your letter of 16 September 2021 on the above subject. Please see our
responses to each of your queries, as follows:
1. Please explain how the information in the Announcement appeared in the Press
Release.
While negotiating the Heads of Agreement (‘HOA’ with Elite Mining Inc (‘EMI’ in August
2021, AXP agreed details with EMI of an announcement that AXP intended to make after
the HOA was signed (the ‘Draft Announcement’.
AXP is aware that ASX has specific guidance related to any cryptocurrency related
business and on this basis AXP submitted the Draft Announcement to ASX on Thursday,
12 August 2021 at 5:20pm AXP expected to sign the HOA either on Friday, 13 August 2021.
AXP fully expected that, once the HOA was signed, the Draft Announcement would then
be able to be promptly lodged by AXP and released on the ASX market announcement
platform (‘MAP’.
Whilst EMI had been provided with the Draft Announcement to confirm the accuracy of
its own release (‘Press Release’, AXP did not, at any time, release any information
pertaining in any way to the HOA publicly, nor did the Board give approval to EMI or
executive management in the US to make any such release. However, AXP’s US
Management had indicated to EMI that, once HOA was signed, the Draft
Announcement would be promptly released to the MAP and EMI would be able to
release their Press Release (hence they did not breach the provisions of the HOA in
respect of public release of information). This was a genuine oversight in our process, as
we would normally hold the release of any announcement via an associated party until
after the AXP release had been actually released on the MAP.
Once AXP’s US Management were aware of EMI’s Press Release, in the very early hours
of Saturday 14 August 2021 (AEST), they requested to EMI that it be taken down, however,
it had already been on-reported by this time.



AXP Energy Limited | ABN 98 114 198 471
AUSTRALIAN OFFICE: Suite 302, Level 3, 17 Castlereagh Street, Sydney NSW 2000 | P: +61 2 9299 9580
www.axpenergy.com

,
2. What arrangements does AXP have in place to ensure compliance with Listing Rule15.7?
AXP restricts the sharing of price sensitive information to employees who need to know
or who are the originators. All AXP employees (particularly senior managers & officers)
are expected to be aware of the ASX continuous disclosure requirements, including the
fact that information that is for release to the market is confidential and cannot be
released to external parties. Disclosure of price sensitive information is restricted and
approved by the Board for release.
3. If the current arrangements are inadequate or not being enforced, what additional
steps does AXP intend to take to ensure compliance with Listing Rule 15.7?
AXP considers that the arrangements it has in place are adequate. An oversight in this
instance was that the Company Secretary was unaware that the EMI Press Release had
been drafted or a release was planned and was operating in the belief that control over
information was maintained. AXP understands that EMI believed it could allow the
release of the Press Release once the HOA was executed.
The Press Release made by EMI was not within the control of AXP. Further, AXP held a
genuine belief that there would not be any significant delays in AXP lodging the Draft
Announcement for release on MAP. AXP is also of the view that it was reasonable for EMI
to make its own press release in a timely manner after execution of the HOA. AXP’s view
is that EMI’s actions did not result in AXP breaching Listing Rule 15.7.
AXP has promulgated its Continuous Disclosure Policy to all relevant management and
officers to ensure future compliance.
4. Please confirm that AXP's responses to the above have been authorised and approved
under its published continuous disclosure policies or otherwise by its board or an officer
of AXP with delegated authority from the board to respond to ASX on disclosure matters.
This response has been approved by AXP’s Board of Directors.