prospecting licence granted, page-2

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Axiom is pleased to announce that its Solomon Islands joint venture company with the traditional
landowners Axiom KB Limited (?Axiom KB? or ?the company?) has been granted a Prospecting
Licence over the Takata land in Isabel Province which was issued by the Minister on 15 April 2011
under the Mine and Minerals Act of the Solomon Islands.
On 12 April 2011 Axiom KB was granted a Letter of Intent by the Minister on the recommendation of
the Mineral Board signifying the Minister?s intention to issue Axiom KB a Prospecting Licence over
tenements on south San Jorge and Takata in Isabel Province identified in the company?s Prospecting
Application subject to the company acquiring Surface Access Agreements with the landowners.
On 15 April 2011 Axiom KB lodged the Surface Access Agreement over the Takata land which
comprises the majority of the Isabel nickel and cobalt deposit located in the Solomon Islands.
Having been issued with a Letter of Intent over the remainder of the Isabel nickel and cobalt deposit
in respect of the south San Jorge island tenement, Axiom KB is currently completing arrangements
for the Surface Access Agreement in respect of that land. Under the letter of Intent, Axiom KB is
given an exclusive right for 12 months to secure surface access agreement with the Bungusule
landowners.
Axiom KB, along with its commercial partners, will now be completing preparations for the
commencement of an extensive exploration program which will be based on verifying previous work
completed by world leading mining companies. This program will also form the basis of feasibility
studies that will be initially focused on rapid development of a mine.
In Honiara, Solomon Islands, Axiom Mining and Axiom KB CEO Ryan Mount said ?This is a
monumental achievement for the traditional landowners and Axiom. After 30 years the landowners
have finally secured an equity ownership in the development of their land and resources including a
share of the eventual profits with the issue of this Licence. Axiom now adds a world class asset to its
existing portfolio with a clear path to commercialisation.?
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Mr Mount further added ?The issue of this Licence delivers a clear message to the international
investment community that the Solomon Islands traditional landowners can participate in the
commercial benefits of their land holdings. I commend the Government in persevering under much
pressure to achieve this positive outcome. This will be a flagship project for the pacific islands having
a world class mineral deposit with landowner participation and a commitment to environmental
protection.?
?Axiom will now set about completing its planning to ensure that the development will deliver the
best environmental and commercial outcomes for the Solomon Islands and intends to work closely
with the Solomon Islands Government and the landowners to achieve this result.?
Chairman of Kolosori Landowner Trustees, Elliot Cortez said ?We are so happy about this result. For
so long we have been held back on the development of our mineral resources because other
international companies did not respect our traditional rights. I thank our Government and Axiom
Mining for sharing the vision of my people and all the Solomon Islanders.?
Axiom KB Limited
Axiom KB Limited is incorporated in the Solomon Islands with Axiom owning 80% and the Kolosori
and Bungusule Landowner Trustee groups jointly owning 20%. The Solomon Islands Foreign
Investment Board has granted approval to this registration and ownership.
Axiom KB has five directors, with one each from the two landowner groups and three from Axiom
that include its Chairman and Chief Executive Officer.
Letter of Intent
A Letter of Intent is issued by the Minister when the Mineral Board is of the opinion that an
application for a Prospecting Licence is acceptable. A Letter of Intent may be issued for a period of
up to 12 months and provides an opportunity to the applicant to obtain Surface Access Rights by
agreement with the landowners.
Prospecting Licence
A Prospecting Licence is issued by the Minister once Surface Access Rights have been obtained by
agreement with the landowners. It provides an exclusive right to explore for minerals over a
specified area of land for a period not exceeding 3 years with a right of renewal for a further 2 years.
At any time during the Prospecting Licence period, the applicant on delineation of a commercial
mineral deposit may apply for a Mining Licence.
With this announcement Axiom requests that the voluntary suspension in trading of its securities on
the ASX be lifted immediately.
ENDS
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For further information contact:
Ryan Mount
Chief Executive Officer
Axiom Mining Limited
P: 02 9247 0169
E: [email protected]
About Axiom