Name and Location
Passendro gold project, Central African Republic.

Project Description
The Passendro gold project has been reconfigured, following a review of the April 2008 bankable feasibility study (BFS).

The initial production rate of the mine in the BFS was three-million tons a year; however, in light of the current project finance and economic climate the project throughput has been reduced to 1,3-million tons a year.

With the reconfiguration of the project, the life of the mine has nearly doubled to 11,5 years from the 5,9 years quoted in the BFS.

The mine is envisioned as a conventional openpit gravity carbon-in-leach operation and will include roads, housing, processing facilities, community facilities, an airstrip and power generation.

Value
By reducing the project throughput to an average of about 1,3-million tons a year, the initial capital cost (excluding working capital of $2,1-million) for the construction of the operations at the Passendro gold project has been reduced by some 35% to $127-million, from the previously quoted figure of $196-million.

Duration
Assuming a ‘soft start' approach, which would include some pre-engineering, followed by early ordering of major equipment and site preparation, it is possible that the construction time for the reconfigured project could be significantly reduced from the near 24-month term of the April 2008 BFS to about 12 months.

Client
Axmin.

Key Contracts and Suppliers
GBM (prefeasibility study), AMEC Earth & Environmental (tailings disposal study), Golder Associates (environmental scoping study), SRK Consulting (mining and reserve study), Endeavour Financial International (finance) and Senet (study to review April 2008 BFS).

Latest Developments
The company intends to complete a mineral resource update at the Passendro project during the second quarter. This update will integrate the drilling completed subsequent to the mineral resource estimate that was used in the BFS, and includes some 16 500 m of core, of which nearly 14 000 m was completed along the 4,5-km-long Main Zone structure.

The results and interpretation from the drilling suggests that the indicated resources could increase and may importantly simplify subsequent pit designs.

An increase in indicated resource could lead to better economics, giving potential for an increase in mine life, or production, or profile and, as such, an addendum to the BFS incorporating the resource update and the reduced throughput scenario will be undertaken as soon as the mining licence is awarded.

On budget and on time?
Too early to state.

Contact Details for Project Information
Axmin manager: investor relations Judith Webster, tel +1 416 368 0993 or
email ir@axmininc.com.