DESCRIPTION

The Passendro Gold Project is located in the northwest trending Archaean Bambari-Bandas granite-greenstone belt, considered to be the extension of the Kibalian greenstone belt of the DRC, host to IAMGold’s Kilo-Moto deposits. The Bambari licences cover 90 km of strike of this belt and the Passendro Gold Project is located in the centre of the licences. The Bambari belt is dominated by banded iron formations (“BIF”), ferruginous quartzites and intermediate to acid volcanic and volcaniclastics. The stratigraphy has been intruded by late stage granites and by gabbro and diorite sills. The topography of the Bambari property is typified by elongate sinuous ridges and hills of BIF that rise up to 300 metres above surrounding terrain, which is underlain by softer metasedimentary and volcanic rocks.

The Passendro deposit consists of six discrete deposits located along two principal northwest oriented mineralised trends, the Katsia-Main Zone Trend which is 6 km long and host to the Main Zone, Main Zone North, Katsia and Bacanga Head deposits and the 4.5 km long French Camp Trend located 1 km to the west and host to the French Camp and Baceta deposits.

MINERAL RESOURCE ESTIMATE – JUNE 2009

In June 2009 AXMIN reported a 30% increase in the Measured and Indicated Resource at Main Zone, this together with the updated resources at Katsia, Baceta and the new zone Mbourou represent a 10% increase in the overall resources. The Measured and Indicated resource is now 2.0 million ounce gold (31.5 Mt grading 2.0 g/t Au) and an Inferred Mineral resource of 1.1 million ounce gold (21.7 Mt grading 1.6 g/t Au).

Separately, a low grade (0.3-0.8 g/t Au) mineral resource estimate at Main Zone has also been completed which contains an additional 458,000 ounces of Measured and Indicated resource and 550,000 ounces of Inferred resource.

The mineral resource estimate was undertaken by independent consultants, SRK Consulting (UK) Ltd (“SRK”) and the intention of this program was to eventually simplify existing pit design and decrease overall strip ratio. It is expected that this latest development combined with the strong gold price is expected to further the economic viability of the project.

Grade interpolation was carried out using ordinary kriging and classification of the Mineral Resource estimate is based on geological continuity, bore hole spacing and the results of a detailed variography analysis. The resource estimates have used different cut off grades ranging from 0.8 to 1.2 g/t Au. High values have been capped at 17 g/t Au at Main Zone, 10 g/t Au at Baceta, 60 g/t Au at Katsia East, 40 g/t Au at Katsia Main and South with no high grade cut applied to Mbourou. The estimates have been prepared under the guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CF.

ADDITIONAL LOW GRADE MINERAL RESOURCE AT MAIN ZONE – JUNE 2009

Given the current favourable gold price, modelling at Main Zone has taken into account both a surficial saprolite zone (to depths of about 30 metres) and the lower grade halo developed around many of the mineralised structures. It is anticipated that a significant amount of this low grade resource could lie within future pit designs. The low grade mineral resource estimate includes mineralisation that lies within the 0.3-0.8g/t Au range, and represents separate mineralisation to the estimate reported at a 0.8 g/t Au cut off.

MINING RESERVE ESTIMATE – JANUARY 2011

The Mining Reserve estimate, prepared by SRK, was calculated on seven discrete engineered pits optimized at a gold price of US$1,000 per ounce. The calculation presented a total proven and probable reserve of 23.5 million tonnes of ore at an average grade of 1.9 g/t Au containing 1.446 million ounces of gold. Approximately 66% of the ore reported in the pits is oxide material with 21% transitional ores and 13% sulphide mineralisation. Contained within the engineered pits is an additional inferred resource of 1.04 Mt grading 2.12 g/t Au containing 71,000 ounces of gold, with additional work it is expected that these resources will be added to the overall reserves.

       Note: proven and probable reserve is derived from measured and indicated resources

MINING LICENCE & CONVENTION

In August 2010 the President of the Central African Republic (“CAR”) has signed a Decree that awarded AXMIN a 25 year Mining Licence for the Passendro Gold Project, located within the Bambari permit area.

The Highlights of the award include:

• 25 year Mining Licence; Company entitled   mine gold in the production area of 355 sq km identified in the Feasibility Study
• New 3 year renewable Exclusive Exploration Licences issued over the remaining areas of the Bambari 1 and 2 permits not covered in the Mining Licence; plus an additional 270 sq km virtually ring fencing the Mining Licence
• Fiscal provisions of the 2006 Mining Convention remain intact including:
  • A 2.25% royalty on the proceeds from gold sales,
  • Exemption from duties and VAT on cpaital, equiipment, consumables and any mining contract for mining develpment plus five years thereafter,
  • Fuel tax and VAT exemption for life of mine,
  • Exoneration from WHT on dividends, capital plus interest, and
  • Five year tax holiday (corporate tax rate 30%)
     
• The State receives a signature bonus of US$11 million payable in three tranches, US$5 million on issuance of the Decree, US$3 million on April 30, 2011 and US$3 million on April 30, 2012
• In lieu of any project free-carried interest, the State will be issued 26 million common shares of AXMIN and 20 million common share purchase warrants with an exercise price of US$0.30 and a five year term

As per the terms of the Addendum to the Mining Convention, AXMIN is asked to commence production in 24 months but has a contractual right to obtain exemptions for a maximum period of 6 years. An exemption is always granted where it is requested on the basis of a duly justified and recorded necessary delay to the construction of the mine. AXMIN will undertake not to sell or dispose of the tenements or sell or transfer its shares in its subsidiaries that hold the licences before commencement of production without prior consent from the Government acting reasonably.  As well, AXMIN will liaise with the Government in event of a change of control of AXMIN.


BANKABLE FEASIBILITY STUDY & REDUCED MINING SCENARIO STUDY

In January 2011, AXMIN announced the results of the Revalidated Feasibility Study which detailed a much more robust project both technically and economically. The first three years provide an average annual production of 205,000 ounces of gold with a low average cash cost of US$437/oz, resulting in a rapid project payback of 2.2 years. The feasibility study was led by SENET (PTY) Ltd. of South Africa ("SENET") and included a multidisciplinary team of independent consults, all of whom were involved in the original 2008 study.

The Feasibility Study  results indicate a robust project with a NPV at a 5% discount of US$340 million, an IRR of 32%, and a low cash cost of US$484/oz over a mine life of 8.3 years. The strong financial results, together with the fiscal terms of the signed Mining Convention; the award of a 25 year Mining Licence; and significant exploration potential have, contributed significantly to lessening the project risk profile compared to the original 2008 study. AXMIN has all of the necessary licencing and permitting required to build its 100% owned Passendro Gold Project, and the completion of the revalidated feasibility study gives AXMIN all of the documentation it needs to secure the debt financing.

Highlights of the 2011 Revalidated Feasiblity Study is detailed below.

DETAILED REPORTS AND RECENT PRESS RELEASES

• A report dated June 18, 2009 prepared for AXMIN Inc. by SRK, the report is entitled "Independent Mineral Resource Estimation Update of the Passendro Project, Central African Republic" and is available on the SEDAR website (www.sedar.com).
• A report dated March 17, 2011 prepared for AXMIN Inc. by SENET (PTY) Ltd. of Johannesburg, South Africa (“SENET”). The report is entitled Passendro Gold Project Bankable Feasibility Study Optimization and Update Summary Report (“BFSOU”) and is available on the SEDAR website (www.sedar.com).
• AXMIN’s 2011- Annual Information Form, April 29, 2011 available on the SEDAR website (www.sedar.com).
• January 11, 2011 - Revalidated Feasibility Study details a significantly improved Passendro Gold Project both technically and economically.
• May 9, 2011 - AXMIN strengthens mine development team with the appointment of Graham Hill as Chief Operating Officer.
• July 20, 2011 - AXMIN executes Mandate Letter with The Standard Bank of South Africa to arrange and underwrite up to US$100 million of debt financing.