Clarification – Appendix 5B and further information Axiom Mining...

Clarification – Appendix 5B and further information Axiom Mining Limited (‘Axiom’ or ‘the Company’) provides the following clarification and further information in relation to its Appendix 5B for the quarter ended 31 December 2018 and cash proceeds received from its capital raising activities. 1. Amended Appendix 5B – Quarterly Cashflow Report 31 December 2018 On 20 December 2018 the Company announced that Director, Mr Jeffrey Markoff had provided a binding financial commitment of $2.0 million in a Private Placement of shares, subject to shareholder approval. To support his commitment, Mr Markoff provided the $2.0m share subscription money to the Company in advance in the December 2018 quarter. Shareholder approval will be sought at the Extraordinary General Meeting (EGM) scheduled for 8 February 2019. This relates to (Resolution One). Attached is an amended Appendix 5B for the quarter ended 31 December 2018 which has amended the proceeds from issue of shares and proceeds from borrowings in Section 3 – cash flows from financing activities and reflects that, until shareholder approval is obtained and the shares issued, the share subscription monies received in advance are treated as a borrowing as opposed to share issue proceeds. If (Resolution One) is passed at the EGM on 8 February, these borrowings will be converted to shares.

2. ASX Announcement of 9 October 2018, 'Capital raising transaction for $2.5 million' The Company announced on 9 October 2018 that it had raised $2.5m of equity from investors, including $500,000 from its Directors, Mr Jeffrey Markoff and Mr Ryan Mount, subject to shareholder approval. Mr Markoff and Mr Mount provided to the Company in advance $480,000 of subscription monies in the September 2018 quarter* and $20,000 in the December 2018 quarter. Shareholder approval will be sought at the EGM scheduled for 8 February 2019. This relates to (Resolution Two and Three). The Company provides the following further information in relation to the equity raising. In relation to the $500,000 of subscription monies advanced by Mr Markoff and Mr Mount, until shareholder approval is obtained and the shares issued, those share subscription monies are treated as a loan. If Resolutions Two and Three are passed at the EGM on 8 February, these borrowings will be converted to shares. In relation to the balance of $2,039,500 in equity raised, shares were issued for the following consideration:  $1,545,000 cash;  $207,500 cash which was committed to be paid on issue, is due for payment in the March 2019 quarter and remains in holding lock;  $250,000* from the conversion of an unrelated party loan into shares; and  $32,500 from the conversion of supplier payments into shares. All shares in the placement were issued at $0.10 cents per share with a 1 for 2 attaching option with an exercise price of $0.20 and an expiry of 30 June 2019.
3. Appendix 5B – Estimated cash outflows for next quarter The Company refers to Section 9 of the Appendix 5B for the quarter ended 31 December 2018. The Company advises that a large portion of the $1.0 million in development costs and $1.45 million in production costs partly relating to the first shipment of nickel ore from the San Jorge mine are dependent on there being available funding from the Off-take finance facility that the Company is currently negotiating and revenue from sales of nickel ore in the March 2019 quarter. The precise cash outlays will vary to reflect the funding the company can secure. The Company will release a further announcement with an update in relation to the Kolosori tenement shortly which ends the Suspension of trade of the Company’s securities. * part of the disclosure in note 18 (b) to the Annual Consolidated Financial Statements dated 30 September 2018