Passendro Gold Project - AXMIN Inc.

axmininc.com

Passendro Gold Project - AXMIN Inc.

AXMIN Inc.

Marketing Presentation

October 2012


Cautionary Statement

This presentation contains forward looking statements. All statements, other than statements of historical

fact, included herein, including without limitation, statements regarding potential mineralisation and

reserves, exploration results and future plans and objectives of AXMIN, are forward-looking statements that

involve various risks and uncertainties. There can be no assurance that such statements will prove to be

accurate and actual results and future events could differ materially from those anticipated in such

statements. Important factors that could cause actual results to differ materially from AXMIN’s expectations

are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time

with the TSX Venture and other regulatory authorities.

Total resources include all categories unless otherwise stated.

All currency are in US$ unless otherwise stated.

2


AXMIN Highlights: Buying Opportunity

Near term +160,000 oz/year producer

at Passendro, CAR

• +200,000 oz/ year production first 3-years

production at cash cost of US$437/oz result

in rapid 2.2 year payback

• Strong economics at US$1,100100 oz gold –

significant gold price upside

• Debt facility to finance up to 66% of capital

requirements well advanced

Excellent Exploration Potential along

the Bambari greenstone belt

• +1,200 sq km exploration permit within the

greenstone belt

• High potential exploration areas within

Passendro mining permit

• Q1 2012 drilling underway, targetingti

untested strike & depth extensions around

pits

3


AXMIN: Capital Structure

TSX Venture - AXM

Capitalization (October 2012)

Market Cap

$19 MM

Basic Shares Outstanding

t 63,274,215

215

Options

3,961,250

Warrants ($0.63 - $7.50)

12,854,988

Fully Diluted 80,090,453

Cash 1

Debt (at present)

US$3.7 MM

Nil

Major Shareholders

AOG Holdings 26% (FD 23%)

Management &

5% (FD 7%)

Insiders

CAR Government

2.6 MM shares

(2 MM warrants

@ US$3.00)

Float (estimated) +45%

1

Cash as at June 30, 2012; proceeds from future disposal of marketable

securities are not included in the cash position above.

AXMIN’s vision is to own and operate the first modern mine

in Central African Republic.”

4


AXMIN Experienced Team

Senior Management

George Roach, President & CEO

Over 25 years of experience securing and establishing mineral exploration tenure

and managing mining and resource operations throughout Africa. Founding director

and managing director for UraMin Inc., former president & CEO of AfNat

Resources, founder and managing director of G&B African Resources. Currently a

director of Ethiopian Potash Corp.

Graham Hill, COO

Mechanical Engineer with over 25 years of experience building and operating major

gold coal and mineral sands mines internationally. Involved with building of the

Yatela and Sadiola gold mines in Mali for Anglo American, recently involved with

the development of Oxus Resources Jerooy and Amantaytau gold mines in Central

Asia.

Janina Dusza, Chief Financial Officer

Ms. Dusza has over 16 years of financial experience working for both, private and

public companies. In addition to her financial reporting experience, Ms. Dusza has a

well acknowledged auditing experience primarily in the resource sector with

PricewaterhouseCoopers LLP in Toronto. Ms. Dusza has advanced knowledge of

Canadian GAAP and IFRS regulations. Most recently, Ms. Dusza was AXMIN’s

corporate controller since June, 2009 and previous to that she practiced as an

independent financial consultant.

Judy Webster, Vice President Investor Relations

Ms Webster comes to AXMIN with extensive experience in the field of investor

relations. Prior to joining AXMIN in 2001 Ms Webster worked as an relations

professional managing IR programs for many publicly listed companies. Ms

Webster also brings a valuable background as a manager at a major Canadian

newswire service and as Senior Geologist for one of Canada's largest mining

consulting firms. Ms Webster holds a BSc in Geological Sciences from McMaster

University (Canada).

Board of Directors

Alex du Plessis

Adjunct Professor Ctr. for Mechanized

Mining, U. of Witwaterstand, SA

Ozge Erdem

Legal Counsel & Partner at Patrimoine

Partners LLP, London, UK

Robert Metcalfe

Legal Counsel at Metcalfe, Blainey & Burns

LLP, Toronto, Canada

George Roach

President & CEO

Robert Shirriff

Legal Counsel at Fasken Martineau

DuMoulin,

Toronto, Canada

David de Jongh Weill

Director & Partner at Patrimoine Partners

LLP, London, UK

Shirley Kozel

AXMIN Corporate Secretary

5


AXMIN Key Management (cont’d)

Mine Development Team

Alex du Plessis, Technical Committee Chairman

Alex du Plessis has more than 30 years of mining industry experience. This experience includes mine design and operations, as well as the management

of mine construction projects. In addition, he has worked in applied research and development for mining. Since 1990, Alex has consulted to a wide range

of mining industry clients around the world, and has direct experience in mining projects in Canada, the United States, Asia, Australia, Eastern Europe,

and south and central Africa.

Mike Edwards Project Director

Senior Project Director with over 40 years experience, 25 of which were in high-level positions managing the construction and development of major

mining, hydroelectric, civil and earthworks projects primarily in sub-Saharan Africa. Mining and resource projects include Sadiola gold mine in Mali, Phase

I of Tarkwa gold mine in Ghana and major gas pipeline in South Africa.

Geoff McLoughlin Engineering Manager

Mr. McLoughlin, a process Metallurgist, has over 25 years senior level design and operational experience with gold mining projects and operations

throughout central Asia and Africa. As Chief Metallurgist for MAED Limited, Geoff’s experience included the design and commissioning of metallurgical

operations for several gold operations in Central Asia. Geoff was responsible for managing the Phase I and II of expansions at Randgold’s Syama Gold

Mine in Mali, and was Plant Manager for four of Harmony Gold’s South African gold mines.

Dan Orlando CAR Country Manager

Mr. Orlando, a Forest Engineer, has over 25 years experience in high level positions managing large plantation, milling , newsprint and recycling

operations in Canada and Africa. Most recently, Mr. Orlando was Director General for MagForestry’s Eucalyptus Fibre operation in the Republic of

Congo, an operation with plus 300 full time and 1,800 contract employees. Dan oversaw all aspects of managing the 68,000 hectare plantation and

500,000 GMT annual chip plant. Mr. Orlando was responsible for the operations community and social relations, all aspects of health safety,

environmental programs. In addition, Dan was the Company chief liaise with the State’s Ministries and local NGO’s

s.

Johan Slabber CAR Controller

Mr. Slabber, a CMA, has over 25 years of financial experience working with federal government and private companies throughout Africa. Johan most

recently was Chief Financial Officer for Koidu Kimberlite Project, Sierra Leone and the Director Finance and Country Manager for two diamond mines in

Angola. Prior to that Mr. Slabber was Finance Officer for 18 years with the South African National Defense.

Denis Spector Project Geologist – CAR

Mr. Spector is a professional geologist with over 19 years of international experience managing technical and administrative functions of mineral

exploration and mine development projects. Denis has held senior roles with Lithic Metals, Nickel project in Togo, Western Prospector Group, Uranium

Mine, Mongolia, Phelps Dodge, Gold Mine, Botswana and Falconbridge International projects in Yemen and South Africa to name a few. Mr. Spector 6has

a MSc from Royal School of Mines Imperial College, UK.


Passendro Gold Project: Bambari Gold Belt

N

Louba

Topa

Bambari 1

Bambari potential

25-year mining licence from the

government granted in Aug 2010

(highlighted yellow)

BFS studied only the Passendro region

Areas within the mining licence such as

Ndassima and Ao have high

exploration potential

Exploration permits in the Bambari Belt

(highlighted blue) adds upside for

AXMIN

Western Limb

Mining Licence

Ao

Passendro

Gold Project

Bambari 2

Ndassima

Bambari South

0 Km

10 Km 20 Km

7


AXMIN: Leading Development in CAR

AXMIN has positive relationship with the CAR

Government

• CAR Government received signature bonus of US$11

million, final tranche paid in Jan 2012

• CAR Government, in lieu of carried interest, received

2.6 million AXMIN shares and 2.0 million warrants at

US$3.00 per share

• High ranking CAR Government officials i support

AXMIN’s development; state visit to Canada re-enforce

commitment

Fiscal provisions of amended 2006 Mining Convention

remain intact

• 2.25% royalty on gold sales

• Exemption from duties and VAT on capital, equipment,

consumables and mining contract

• Fuel tax and VAT exemption for life of mine

• 5-year tax holiday (30% corporate tax rate)

Government equity ownership aligns the State’s

interest to the interest of AXMIN shareholders.

Key facts

History:

Independent since 1960. Civilian rule was

established in 1993. General Bozize was

affirmed as President in May 2005

Population:

4.8 million

GDP:

US$3.3 billion (2009 estimate)

GDP Growth Rate:

1.7% (2009 estimate)

Foreign Direct Investment (net):

US$117.1 million (2008)

IMF October 2010 Report:

Fund support to the CAR – both financially and

through technical assistance – has helped the

implementation of sound economic policies and

mobilized external financing to help authorities

reduce poverty and achieve growth objectives.

The economy now appears to be on the way to

sustainably higher growth.

8


Passendro Project: Financing Update

• To date a total of US$235 MM debt Mandate Letters signed:

• US$100 MM – Standard Bank (Mandate Lead Arranger)

• US$85 MM (Consortium of Lenders)

• US$50 MM IFC (US$25 MM Senior, US$25 MM Convertible); IFC

Lead for the Development Finance Institutions

• Lenders’ due diligence led by Standard Bank and IFC is

progressing:

Golder updating ESIA to meet IFC Performance Standards

• Optimizing and updating OPEX and CAPEX costs to be completed

for the finalization of Lenders’ terms sheet

• Final version of preferred EPCM contractor submitted to Lenders’

legal counsel for approval before award and announcement

• Negotiations advancing for the equity component of the projects

capital requirements

9


Passendro Project: Pre-production Work

• Fuel supply bids received, power plant tender updated; AXMIN

award Bosche Projects (SA) to investigate appropriate alternative

and sustainable energy options for Passendro

• Logistics supply tenders for shipment and transportation of heavy

equipment loads has been received will be analyzed and

adjudicated in due course

• Road up-grade work well advanced due for completion in late July

work included roads from Bambari to site, on-site roads and

building airstrip

• Geotechnical drilling at Baidou river bridge site completed;

currently drilling underway on the plant terrace site and will then

move to the tailings and water storage dams; additional drill

working on infilling hydrogeological testwork

• Early works started on engineering and design with preferred

EPCM

10


Passendro Project: Road work Bambari to Site

Local contractor engaged, 45 km road upgrade from town of Bambari to site initiated in December 2011

11


Passendro Project: Hydrogeological Testing

Geotechnical & Hydrogeological drilling underway

12


Passendro Project: Local Community

Ndassima Camp garden; Local school meeting; Neighboring villagers and women selling at the market

13


Bambari Belt: Satellite Image Analysis

High Priority Targets

N

Q4 – Exploration drilling to resume utilizing 2

drill rigs with the objective of increasing reserves

in pit and long existing pits

0 Km

10 Km 20 Km

14


Passendro Project: Robust Economics

Revalidated Feasibility Study (Jan 2011)

Assumed Gold Price

Assumed Oil Price

Mine Throughput

Mine Life

Development & Construction

Strip ratio

Average Annual Production (year 1-3)

Average Annual Production (LOM)

Initial Capital Cost (excluding contingency)

Cash Operating Costs (including royalties)

Average Metallurgical Recovery

Gravity Recovery

Payback Period

IRR (after tax & royalties)

NPV (after tax, 5% discount)

Operating Cash Flows

$1,100oz

US$80/bbl

2.8 mtpa

8.3 years

24 months

5.4:1

205,000 ozs

163,000 ozs

US$246 million

US$484/oz Au

94%

40%

22years 2.2 32.1%

US$340 million

US$493 million

Gold Price Upside US$1,500/oz US$2,000/oz

IRR (after tax & royalties)

NPV (after tax, 5% discount)

57.8%

US$785 million

83.9%

US$1,340 million

Reserves (January 2011– based on US$1,000/oz Au)

Category

Proven

Probable

Tonnes

(Mt)

3.5

20.0

Grade

(g/t Au)

1.8

1.9

Gold Content

(oz)

207,505

1,238,670

Total P&P Reserve 1 23.5 1.9 1,446,175

Resources (Updated June 2009)

Category

Tonnes

(Mt)

Grade (g/t

Au)

Gold Content

(oz)

M&I 31.5 2.0 2,027,000

Inferred 21.7 1.6 1,104,000

Additional Low Grade (0.8-0.3g/t Cut-off (within Main Zone Pit)

M&I

Inferred

27.5

35.5

0.5

0.5

1

Proven & Probable reserve included in Measured & Indicated resource

Resources are NI 43-101 compliant and prepared by SRK Consulting (UK) Ltd

458,000

550,000

AXMIN is preparing to deliver the first large-scale operational gold

mine in the Central African Republic

15


Passendro: Cost-efficient Gold Production

Capital cost breakdown

Description

Initial mining capital cost

Pre-strip costs

Pit dewatering

Tailings

Process plant direct costs

Infrastructure costs

Owners’ pre-production costs

Off-site infrastructure

Other

Construction & Management

Contingency

Operation cost breakdown

Capital Cost

Description

US$/Tonne

(US$ million)

Processed

US$ per ounce

26.8

11.5

Mining

$11.62

$201

3.5

Processing & Refining

$11.46

$198

73 7.3

G&A

$3.13

$54

79.3

Royalties

$1.81

$31

45.5

7.6

Total Cash Costs $28.02 $484

63 6.3

2.3

55.0

20.4

Sub-Total

$265.55

Working capital

$8.4

Total

$273.9

Current work on project optimizations have potential to reduce

capital costs further improving economic profile

16


Passendro Gold

Project

Infrastructure – Mine Plan

Nov 2011 Feasibility Study

N


Passendro: Main Zone Pit Overview

Open woodland

MainZonePit

Sparsely populated

NdassimaVillage

NdassimaCamp

18


Passendro: Planned Transportation Routes

Note – the river route involves off-loading

at Pointe Noire, transfer by train to

Brazzaville and loading on to river barges

for transport to Bangui, CAR. It is open for

6-7 months of the year (May-November).

Fuel is imported to Matadi by barge and

then piped to a large storage facility in

Kinshasa before loading into barges for

transport up river to Bangui.

River Route – Brazzaville/Kinshasa to Bangui

Rail Route – Point Noire to Brazzaville

Road Route – Matadi to Kinshasa

Road Route – Douala to Site

19


AXMIN: Highly Prospective Project JV Asset

Senegal Permits

Location:

Senegal Permits (Sounkounkou,

Heremakono and Sabodala NW )

includes the Gora Gold Deposit

Description

Located adjacent and to NE of Teranga

Gold (formerly Mineral Deposits

Limited) Sabodala Gold Mine.

Ownership

Teranga has earned 80% interest in the

Senegal Permits (by spending US$6

MM, AXMIN retains a 20% interest.

AXMIN has US$2.5 MM free carried

interest of which ~US$1.1 MM is spent

to date.

Key development

Teranga announced inferred resource

at Gora Deposit of 106,000 oz (0.53Mt

at 6 g/t Au); plus the discovery of two

other potential deposits on the AXMIN

Senegal Permits.

Teranga is planning to fast-track Gora

to augment Sabadola production.

20


AXMIN: Excellent Grade Open Pit Deposit

Open Pittable Gold Deposits > 1 million ounces held within a single asset Junior

2.5

Reserve Grade (g/t)

2

1.5

1

0.5

Andina

Greystar

Detour

Osisko

Gabriel

Banro

AXMIN

Romarco

0

Andina Greystar Detour Osisko Gabriel Banro AXMIN Romarco

21


www.axmininc.com

Judy Webster, VP Investor Relations

T: 416 368 0993 ext 221

E: ir@axmininc.com

October 2012

22

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