Axiom Announces First Energy Project Eden Vale Sedimentary Uranium

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1 ASX / Media Release 4 June 2013 Axiom Announces First Energy Project Eden Vale Sedimentary Uranium HIGHLIGHTS An application lodged for exploration of known sedimentary hosted uranium deposit over 330km 2 in Eden Vale, Queensland. Previous exploration drilling has intersected anomalous uranium mineralisation in both oxidised and reduced units within the Gilbert River Formation in a single defined channel. A definitive gravity low extends through the drilled intersections and matches the sandstone unit outcrop both of which are covered by Axiom s application. Numerous hard rock uranium occurrences occur up dip of the tenement including the Maureen Deposit. The application area is the only known roll front uranium deposit in Queensland and is surrounded by a number of other tenements currently held by Australian and international uranium companies. The Eden Vale Uranium Deposit Axiom Mining Ltd ( Axiom or the Company ) is pleased to announce its expansion into the energy sector through the Exploration Permit for Minerals (EPM) application over an area of 330km 2 containing the only known roll front uranium deposit in Queensland located near Eden Vale in the Georgetown Inlier. This area covers highly prospective sandstone aquifer units in a geological setting that is similar to the high grade Four Mile West Deposit, held in joint venture between Quasar Resources Pty Ltd and Alliance Resources Ltd (Figure 1). The tenement contains outcropping oxidised Gilbert River Formation sandstones that on-lap onto the basement rocks of the Georgetown Inlier. Maureen (Mega Uranium Limited) and much outcropping hard-rock style uranium mineralisation, discovered in the 1970s, are hosted in the basement sequences to the south-east and outside of the EPM application area. The host sand sequence is highly anomalous in uranium radiometrics and has a distinctive gravity low that extends for 30km. The previous tenement holder, Australian and New Zealand Exploration Company, targeted sandstone units within the tenement application area with drilling that defined the start of a sandstone channel and containing a number of anomalous uranium results in oxidised and reduced units. The drilling did not close off the channel or the units to the north-west or at Axiom Mining Limited ARBN Unit 6, 76 Doggett Street Newstead, Queensland 4006, Australia T: F:

2 depth. Axiom is currently interpreting this gravity low as defining a large sand filled river system sitting in a channel carved into the basement (Figure 2). Potential of Sedimentary Uranium Deposit The Gilbert River Formation is the basal unit of the Jurassic Carpentaria Basin. Additional porous sandstone units are also known in the Basin and the overlying Karumba Basin and represent additional targets. The Gilbert River Formation is also known to contain organic material that could assist in uranium precipitation on reducing (redox) fronts and is capped by the Wallumbilla Formation, a mudstone, which will aid in the concentration of the flow of mineralising fluids sourced from the adjacent uranium rich basement rocks (Figure 3). The Carpentaria and Eromanga Basins are currently targeted for large sedimentary uranium deposits by International and Australian explorers including the Areva/Mitsuibishi Joint Venture and Wilson Uranium. The Carpentaria Basin has almost no exploration completed on it other than scattered government stratigraphic drilling and recent geophysical programs. Sedimentary uranium deposits now produce a significant portion of the world s uranium production predominantly by Insitu Leaching (ISL). Axiom will explore for an insitu leach uranium target due to the low environmental impact and low cost of solution mining. With the Queensland Government making clear its policy intentions on uranium mining; the increasing number of uranium reactors being constructed in Asia; coupled with the strong potential of the tenement application area to host the similar mineralisation to the Four Mile West mine, the Company believes its expansion into the energy sector will add value to its Australian portfolio. This EPM application has now completed departmental financial and technical assessment and is now proceeding to native title advertising. ENDS About Axiom Mining Limited Axiom Mining Limited holds an 80% interest in the world class Isabel nickel deposit in the Solomon Islands, 100% in the Arosi gold-silver project in Makira Province, 93% in the Itina gold-copper project on Guadalcanal. It also owns 80% of the Quang Tri gold project in Vietnam and 100% of highly prospective gold, silver and copper tenements in North Queensland, Australia. The company is listed on the ASX and operates in Australia, Solomon Islands and Vietnam. For more information on Axiom Mining and details of our Solomon Islands, Vietnamese and Australian projects, please refer to the company website at: Disclaimer Statements in this document that are forward-looking and involve numerous risks and uncertainties that could cause actual results to differ materially from expected results are based on the Company s current beliefs and assumptions regarding a large number of factors affecting its business. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or their extent or likely impact; (ii) the publicly available information with respect to these factors on which the Company s analysis is based is complete or accurate; (iii) the Company s analysis is correct; or (iv) the Company s strategy, which is based in part on this analysis, will be successful. Competent Person's Statement Geological information presented in this document is based on exploration results compiled by Mr Jess Oram. Mr Oram is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity, which he is undertaking to qualify as Competent Person in accordance with Clause 8 of the JORC Code. Mr Oram is a full time employee of Axiom Mining Ltd and consents to inclusion in this document of the matters based on his information in the form and context in which it appears. 2

3 Figure 1 - Eden Vale Sedimentary Uranium Project Location Plan 3

4 Figure 2 - Uranium Radiometric in Sandstone Capping 4

5 Figure 3 - Conceptual Target, Rollfront Cross Section 5

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