AXMIN views Sierra Leone as an excellent country in which to explore for gold, with Archaean greenstone belts similar to those of the Central African Republic and essentially no modern exploration, yet abundant evidence for gold bearing systems. Sierra Leone has been through a severe episode of insurgency but with the support of the United Nations and the British government the country is now recovering. In Sierra Leone AXMIN holds a substantial land position with five licence areas covering over 600 sq km, with its Nimini Hills project currently the most advanced. In 04 AXMIN acquired a wholly owned licence (named Matotaka) end entered into separate joint ventures over four other licences (namely Nimini Hills, Gori Hills, Makong and Sokoya). The terms of the joint ventures over Nimini Hills, Gori Hills, Makong and Sokoya are such that AXMIN has the ability to earn up to 60%, 80%, 82.5% and 80% interest respectively. For further information see technical report filed on SEDAR (www.sedar.com) on Dec 15, 05 entitled "Independent Technical Report on the Exploration Properties of AXMIN Inc., West and Central Africa" dated Nov 05. NIMINI HILLS PROJECT In 04 AXMIN elected to exercise an option whereby AXMIN may earn a 60% interest in the Nimini Hills project, comprising the Nimini East and West licences, owned by a subsidiary of Eldorado Gold Corporation ("Eldorado") by expenditure of US$2.25 million over a three year period, with a minimum expenditure of US$500,000 in the first year. Thereafter Eldorado has the right to participate on a pro rata basis or if it elects not to then AXMIN can earn an additional 20% by producing a Bankable Feasibility Study. The monies spent on Eldorado’s behalf to earn this additional 20% will be recovered by AXMIN from Eldorado’s share of future production. In Oct 06 AXMIN reported an initial inferred mineral resource estimate of 4.9 million tonnes assaying 2.5 g/t Au (392,000 contained ounces of gold) on the Komahun Prospect at the Nimini Hills project in Sierra Leone. This resource estimate was completed by independent consultant SRK Consulting (UK) Ltd. ("SRK") and is based on the drill holes located in the central portion of the shear zone and does not take into account the known and previously reported parallel structures which are the subject of a current drill program. Drilling to test both parallel structures and the main zone at Komahun is on going. The Nimini East and West permits are located about 220 km east of the capital city of Freetown and are underlain by a complex of ultramafic and mafic volcanics with associated sedimentary and banded ironstone formations. Historic drilling on the 98 sq km Nimini Hills project includes intersections of 2.5 g/t Au over 40 metres, 4.6 g/t Au over 13.7 metres and 8.6 g/t Au over 5.5 metres, what is now refered to as the Komahun Prospect. In 05 AXMIN first pass drilling along the 1,500 m gold in soil anomaly confirmed the presence of gold mineralisation at the historic Komahun prospect representing the discovery of a third AXMIN project where resource definition drilling will be undertaken in 06. Results include 6.2 g/t Au over 13.5 metres, 2.4 g/t Au over 28 metes, 7.4 g/t Au over 6.8 metres, and 2.2 g/t Au over 19.4 metres.    Drilling to date at Komahun indicates that gold mineralisation is hosted within a northeast trending sub vertical shear zone within magnetite banded amphibolites and minor banded ironstones units, in association with disseminated and stringer sulphides and minor quartz carbonate veins. Mineralised structures occur either as multiple, narrower units or coalesce to form a single, broader unit within the 20-30 metres wide shear zone. Oxidation depths are typically less than 20 metres with the structures sub cropping on a steep hillside that rises about 150 metres above a valley. Drilling has confirmed gold mineralisation over 650 metre strike and to a vertical depth of 180 metres with consistent strong gold grades. The main zone at Komahun remains open to both the northeast and southwest and at depth. I addition there is good potential to define parallel mineralised zones, as demonstrated by the discovery of parallel high grade structures to the east (47.5 g/t Au over 3 metres) and west zone (4.2 g/t over 3.9 metres).