Axiom Mining Limited

ARBN 119 698 770

Level 11, 1 Chifley Square, Sydney, NSW 2000, Australia

T: +61 2 9247 0169 / F: +61 2 9247 0243 / www.axiom-mining.com

ASX / Media Release

30 July 2012

QUARTERLY ACTIVITIES REPORT

APRIL – JUNE 2012

HIGHLIGHTS

SOLOMON ISLANDS

Two additional tenements obtained in highly prospective land (Au-Cu-Ni)

Ruling on Preliminary Questions in High Court litigation

Court of Appeal expected in September – October this year

VIETNAM

Trenching completed and successfully identified drill hole targets on the Me Xi and

Meo Prospects

Diamond Drilling currently underway

QUEENSLAND

Drilling commenced to facilitate a maiden Resource Estimate on the Cardross Project

(Cu-Au-Ag)

Follow up drilling also planned on the Mountain Maid and Split Rock Prospects

Strategic Review of Queensland assets by the Board and due diligence in progress by

selected parties

CORPORATE

$650,000 raised for exploration on new projects

For

per

sona

l use

onl

y

2

SOLOMON ISLANDS

In June 2012, Axiom Mining Limited (“Axiom” or “the Company”) announced the acquisition of

two new tenements in Makira province and Guadalcanal, respectively called the Arosi and

Itina projects in the Solomon Islands. Both of these projects are located in a highly prospective

gold-copper region of the Pacific Rim of Fire. (Appendix 1, Figure 1)

Initial Exploration Activities underway on the Arosi project

Initial exploration activities are underway on the Arosi tenement with the objective to identify

gold-copper porphyry mineralisation. An extensive review of historical information continues

while initial field work focuses on assessing the economic potential of a recently identified

collapsed volcanic caldera. This structure has similarities to the local topography surrounding

the Gold Ridge deposit (owned by Allied Gold Limited) located nearby on Guadalcanal to the

north-west.

Initial Exploration Activities underway on the Itina project

Axiom is undertaking exploration for gold-copper porphyry systems, epithermal gold and nickel

laterite mineralisation in this relatively under-explored tenement.

The Itina project is immediately adjacent to the producing Gold Ridge Mine. It shares the

same host rock as the Gold Ridge porphyry related low sulphide (carbonate style) gold deposit

and has similarities to the nearby Mbetilonga and Poha porphyry gold-copper systems. The

Mbetilonga prospect is currently being actively explored by Newmont Joint Venture.

High Court Update

In the High Court case of SMM Solomon Limited (Sumitomo) vs Solomon Islands

Government, Axiom KB Limited* and the Kolosori landowners, Justice Chetwynd delivered his

ruling on the Preliminary Questions hearing. Although the judgement was not in Axiom’s

favour it was not surprising as it was consistent with the judge’s previous rulings.

After further review and advice from legal counsel, Axiom lodged an Appeal against the

decision for which leave was granted. Importantly, the Appeal is expected to be heard in

September or October this year by the Court of Appeal which comprises a panel of three

international judges from the Commonwealth. The Company’s legal advice is that Axiom will

be successful before the full Court of Appeal.

*Axiom KB Limited is an 80% owned subsidiary of Axiom Mining Limited incorporated in Solomon Islands.

For

per

sona

l use

onl

y

3

VIETNAM

Trenching program

Axiom has previously geologically mapped all artisanal tunnels within the Me Xi and Meo

prospects. Specific tunnels associated with the high grade gold and bonanza gold grade

quartz veins were remapped during the period to provide high level structural information to

enable trenching targets to be defined. The specific aim of this trenching program was to

define the strike and dip characteristics of the main mineralised quartz veins.

In total, eighteen trenches were completed over the Me Xi, Meo and Khe Fia prospects.

Eleven trenches conducted over the Me Xi and Meo prospect (Appendix 2 - Table 1 & Figure

2) highlighted:-

The discovery of a number of oxidised and sericite altered quartz veins associated with

quartz limonite stockworks with a significant strong argillaceous alteration.

The deeper than expected depth of oxidation present over the main mineralised zones

interpreted as reinforcing the extent of the argillic alteration.

This alteration argillic overprint is characteristic to large porphyry gold-copper and Carlin style

gold-copper systems, including the nearby Sepon deposit. The presence of this strong

alteration, combined with the broad circular nature of the overall veining system, indicates that

a potentially large system may be present in the vicinity of the main Me Xi ridge.

Visible flake gold was panned from several samples within the Me Xi, Meo and Khe Fia

trenches. Infill trenches (H.08-MX and H.09-MX) were also completed which was targeted

from the results of panned gold concentrates, of an original trench H.03-MX.

Six trenches were completed over the Khe Fia prospect and are currently being mapped and

sampled. Although the mapping is in an early stage, there are early indications of high

amounts of visible flake gold in some of the pan concentrates derived from specific trenches

on the prospect.

The success of the trenching program has defined ten drill hole targets for diamond drilling.

Diamond Drilling

Drilling has commenced with ten diamond drill holes planned on the Me Xi and Meo prospects

for approximately 940 linear metres (Appendix - Table 2 & Figure 2). Six of the holes are

designed to evaluate the stockwork quartz veining identified from trenching and mapping. The

remaining four holes are planned to intersect the down dip extension of the gold mineralised

zones encountered in the trenches.

Three holes (LK11-MX, LK04-MX and LK08-MX) have been completed for 379 linear metres.

The drill program is currently in progress and will be expanded the Khe Fia area.

For

per

sona

l use

onl

y

4

QUEENSLAND

Drilling on the Cardross Project and other Prospects

Drilling has commenced with thirteen holes for 2327 linear metres planned to assess the

northern 800m mineralised zone of Cardross (Appendix 2 - Table 3 & Figure 3). Three

Reverse Circulation (RC) pre-collar drill holes have been completed and six RC shallow holes

have been drilled to final depth. Diamond drilling of the first hole, CA12DD01 is also

underway. A summary of drill holes is presented in Appendix 2.

Later this month, drilling will also commence to test the high grade feeder zones on the

Mountain Maid prospect and the alteration zone within the 500 ppm copper soil anomaly on

Split Rock.

Reinterpretation of Cardross Geology

A reinterpretation of the Cardross geology has:

resulted in far greater understanding of the localised geological and structural controls on

the gold and copper mineralisation.

provided a renewed focus upon the project as a whole and facilitated drill target definition.

unlocked new areas for further exploration representing areas outside of the main

Cardross Mining Lease (ML), however still within the Exploration Permit for Minerals

(EPM), namely the new Lochinvar Line prospect.

Check Assaying from 2011 in preparation for a maiden Resource Estimate

In addition to this, a diamond drilling program on the Cardross EPM and ML commenced with

the aim to define a maiden Resource Estimate (Au-Cu-Ag).

A check assay program was conducted on the mineralised zones which indicated a good gold

repeatability. Check assaying is an important component and a prerequisite to any Resource

Estimate that Axiom will complete on the Cardross project.

Strategic Review

Recently, Axiom has received significant interest from other mining companies with regards to

the Company’s Queensland assets. Discussions have commenced with selected parties and

the Board is considering various proposals and will inform shareholders once completed.

CORPORATE

Axiom has raised $650,000 additional capital via a private placement of shares and

convertible note to sophisticated and professional investors. This additional funding has been

utilised for exploration and general working capital.

ENDS

For

per

sona

l use

onl

y

5

About Axiom Mining Limited

Axiom Mining Limited is an advanced mineral exploration company that holds 100% interest in the Arosi gold-silver

project in Makira Province, 93% in the Itina gold-silver-nickel project on Guadalcanal and 80% in the world class

Isabel Island nickel deposit in the Solomon Islands. 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: www.axiom-mining.com.

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 Eamonn Dare.

Mr Dare is a member of the Australasian Institute of Mining and Metallurgy 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 Dare 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.

For

per

sona

l use

onl

y

6

APPENDICES

Appendix 1 – Solomon Islands

Figure 1 - Location of Arosi and Atina Projects

For

per

sona

l use

onl

y

7

Appendix 2 - Vietnam

Figure 2 - Diamond drilling and interpretative geology on Me Xi and Meo prospects

For

per

sona

l use

onl

y

8

Table 1 - Trench Collar Coordinates for Me Xi and Khe Fia Prospects

Trench Name Easting Northing Elevation Bearing Dip

MXH-01 691206 1870575 158 135 101

MXH-02 691292 1870693 175 136 72

MXH-03 691369 1870762 183 135 64

MXH-04 691406 1870840 172 45 79

MXH-05 691613 1870799 218 230 128

MXH-06 691728 1870629 247 10 89

MXH-07 691826 1870610 252 10 109

MXH-08 691389 1870769 185 135 114

MXH-09 691420 1870686 200 135 123

MXH-10 691253 1870759 244 10 88

MXH-11 691483 1870504 243 60 98

KFH-01 692387 1871048 182 135 77

KFH-02 692710 1871053 291 135 58

KFH-03 692822 1871083 329 135 50

KFH-04 692766 1871294 310 135 43

KFH-05 692981 1871075 372 135 73

KFH-06 693041 1871972 340 125 38

Notes to accompany Table 1

1. Collar Northing, Easting and Azimuth are all in Vn2000 Grid Coordinates

2. Location of all costean starting points were determined using a handheld GPS achieving ±4m accuracy

3. Trench location starting coordinates may vary upon final survey

4. Length stated is from starting point as defined by coordinates along stated azimuth, and represent surface length.

Table 2 - Drill Hole Collar Coordinates for Me Xi Project

Notes to accompany Table 2

1. * indicates current drill hole 2. Bold indicates holes completed 3. Collar Northing, Easting and Azimuth are all in Vn2000 Grid Coordinates 4. Location of all drill hole collars were determined using a handheld GPS achieving ±4m accuracy 5. Actual Drill Hole Collar coordinates may vary upon final survey 6. Length stated is from surface as defined by coordinates along stated azimuth, and represent downhole length.

Drill hole Name

Easting (m) Northing (m) Elevation (mRL) Declination Azimuth Depth (m)

LK04-MX 1870663.58 691330.99 182.40 50 350 139.4

LK05-MX 1870795.00 691319.00 175.89 50 170 110.0

*LK06-MX 1870616.03 691813.06 248.47 65 30 65.0

LK07-MX 1870569.00 691785.05 228.34 65 30 65.0

LK08-MX 1870634.02 691758.10 235.32 50 30 120.0

LK09-MX 1870590.98 691733.00 222.71 65 30 60.0

LK10-MX 1870610.04 691656.09 207.01 65 30 50.0

LK11-MX 1870678.68 691412.41 194.83 50 350 120.5

LK12-MX 1870664.97 691686.96 220.62 65 30 120.0

LK13-MX 1870566.07 691230.08 168.61 50 170 80.0

For

per

sona

l use

onl

y

9

Appendix 3 – Queensland

Drill Hole Summaries of Cardross Project, Queensland

Six RC short length drill holes and three RC pre-collar holes are now complete. Pre-collar holes are

drilled by RC to save significant costs of diamond drilling in areas where mineralisation is not expected.

All pre-collar holes are geologically logged and sampled if evidence of mineralisation is encountered.

CA12RC01 was completed to a depth of 150m; chalcopyrite mineralisation was intersected

between 61-63m, 77-83m and 89-93m.

CA12RC02 was completed to a depth of 139m; chalcopyrite mineralisation and favourable

alteration was intersected in the bottom metre of the hole. Re-entry of this drill hole in the near

future is dependent upon assay results.

CA12RC03 was completed to a total depth of 79m; chalcopyrite mineralisation was intersected

between 50-54m and 58-62m.

CA12RC04 was planned to be drilled to 150m; however was abandoned at 39m due to high

groundwater inflows being encountered.

CA12RC05 has encountered <5% chalcopyrite in the hanging wall position of the mineralisation,

however the mineralisation on the footwall may be missing due to a suspected porphyry intrusion.

CA12RC06 has been drilled and intersected 30m of mineralisation including several

metres of massive sulphide at shallow depth. This hole will be followed up with further

drilling.

Diamond Drilling

Diamond drilling and re-entry of hole CA12DD01 are in progress. This drill hole has intersected a

multiple of thin zones of massive chalcopyrite. Thin zones of massive and dessiminated sulphides have

been observed from 135.5-135.9m, 141-141.3m with minor arsenopyrite. This drill hole is currently in

progress.

The above are due to be assayed shortly.

For

per

sona

l use

onl

y

10

Figure 3 - North Cardross drilling location plan showing selected drill collars

For

per

sona

l use

onl

y

11

Figure 4 - Location of Axiom's assets in Chillagoe, North Queensland

For

per

sona

l use

onl

y

12

Table 3 - Cardross Drill Hole Collar Table

Drill hole Name

Easting (m) Northing (m) Elevation (mRL) Declination Azimuth Depth (m)

*CA12DD01 193101 8114707 224 135 -65 300

CA12DD02 193033 8114704 222 135 -60 320

CA12DD03 192938 8114538 220 135 -60 420

CA12RC01 193131 8114674 230 135 -60 150

CA12RC02 193235 8114720 231 135 -60 139

CA12RC03 193110 8114720 230 135 -60 79

*CA12RC04 193155 8114725 240 135 -50 120

CA12RC05 193060 8114615 224 135 -60 79

*CA12RC06 192940 8114520 215 135 -60 150

CA12RC07 192890 8114440 238 135 -65 180

CA12RC08 192935 8114395 235 135 -50 120

CA12RC09 192885 8114425 239 135 -60 150

CA12RC10 192770 8114255 251 135 -50 120

Notes to accompany Table 2

1. * indicates current drill hole

2. Bold indicates holes completed

3. Collar Northing, Easting and Azimuth are all in AMG GDA94 Grid Coordinates

4. Location of all drill hole collars were determined using a handheld GPS achieving ±4m accuracy

5. Actual Drill Hole Collar coordinates may vary upon final survey

6. Length stated is from surface as defined by coordinates along stated azimuth, and represent downhole length.

For

per

sona

l use

onl

y