Axiom Interactive Annual Report 2017

OPERATIONS SOLOMON ISLAND SAN JORGE (PL 01/15) Axiom had a dual focus at San Jorge during the year. The first aim was the upgrading of the Prospecting Licence (PL 01/15), granted in March 2015, into a mining lease. Axiom submitted a mining lease application to the Solomon Islands Government in December 2016. Regular engagement with government continues to facilitate the process, with the aim of being awarded the mining lease in 2018. As the second focus, Axiom, in readiness for development on receipt of a mining lease, continued its operational activities on San Jorge Island, Isabel Provence. Axiom commenced an initial drilling program over a portion of the tenement which included 154 holes over 1576 meters using 50 m by 50 m drill pattern across the initial area of focus, supplemented by 25 m by 25 m infill holes in some areas, as well as sterilisation holes on the edge of a known mineralised zone to assist with boundary identification. On 20 March 2017 the Company announced the successful completion of the Phase One drilling program. The drilling program was designed to establish an area within the San Jorge tenement that presents optimal logistical characteristics of an initial mining operation. The results confirmed the commercial characteristics of the San Jorge deposit for the purpose of a mining lease application. Key highlights from the Phase One drilling program included encouraging grades of nickel mineralisation intersects: 23.2 m @ 1.36% Ni from 0.9 m including 10.6 m @ 1.80% Ni from 7.5 m 16.5 m @ 1.54% Ni from 2.0 m including 8.0 m @ 2.09% Ni from 8.0 m 13.0 m @ 1.60% Ni from 2.0 m including 7.0 m @ 2.14% Ni from 8.0 m The main area of nickel 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 sea access for transport to regional ore customers. In addition, assay results established the presence of promising grades of cobalt and scandium at significant levels for wet tropical laterite deposits. Having scandium and/ or cobalt as a by-product significantly enhances both the potential value and marketability of the limonite product at San Jorge. While awaiting the grant of the mining lease, Axiom continued pre-development work with the completion of a series of environmental studies and infrastructure during the second half of 2017. This information is a summary of exploration results for the Isabel Nickel Project (San Jorge deposit) and is extracted from ASX announcements on 30 November 2016, 15 December 2016, 22 December 2016 and 20 March 2017. Full results from this exploration program are included in these ASX announcements. 11 AXIOM MINING LIMITED ANNUAL REPORT 2017 OPERATIONS