AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

August 28, 2009 15:00 ET

AXMIN Second Quarter 2009 Update

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2009) - AXMIN Inc. (TSX VENTURE:AXM) announces the filing of its second quarter financial statements and MD&A for the six months ended June 30, 2009. These documents can be viewed on the SEDAR website (www.sedar.com) and the Company's website (www.axmininc.com).

Summary Financial Results

The net loss for the period ended June 30, 2009 was US$52.8 million compared to US$2.7 million in 2008, an increase of US$50.1 million. This increase is explained by impairment charges for the CAR, Mali and Sierra Leone assets and stock compensation expenses which were offset by a decrease in administration expenses and interest income.

Administration expenses in 2009 were US$0.9 million compared to US$1.5 million in 2008. The principal reason for this decrease was the shutdown of the UK office and the reduced scope of the Company's activities in 2009 compared to 2008.

The Company's policy is to continually assess the economic viability of its projects whenever events or changes in circumstances indicate that the carrying amount of the assets may need to be adjusted. Consequently a review of the carrying values of the Company's exploration and development property assets led to impairment charges of US$51.6 million in 2009 compared to US$0.4 million for the same period in 2008.

There were no revenues in either period as the Company did not have any operations in production.

During the six month period ended June 30, 2009, the Company capitalized exploration and development for a total of US$1.9 million (of which US$1.2 million related to the Bambari-Bakala Permits) compared to US$13.6 million (of which US$9 million related to the Bambari-Bakala Permits) during the six month period ended June 30, 2008. As at June 30, 2009 the Company's cumulative capitalized carrying value of exploration and development expenditures was US$33.5 million compared to the March 31, 2009 balance of US$84 million and to the December 31, 2008 balance of US$80.9 million.

Exploration Summary

Komahun Gold Project, Sierra Leone

Following encouraging drill results in 2008 and the positive Scoping Study announced in March 2009, AXMIN initiated a geological mapping program, which took place during the first quarter 2009. The purpose of the program was to identify the favourable geological unit and mineralised horizons outside of the main zone of mineralisation at Komahun. During the program approximately 500 geochemical soil samples and pit / trench samples were collected and prepared for shipping and analysis at ALS Laboratory in Mali. Results should be available shortly.

The program successfully identified three areas of interest (see figure 1), in particular a banded iron formation ("BIF") ridge situated some 4 km to the south-southwest of the main zone. The geology of this area is very similar to the one observed at the main zone. The mineralised horizon can be traced over a 2-3 km strike and follow a NNW trend over a series of high ridges of similar orientation. Limited pitting and trenching was completed and is expected to be continued after the rainy season in fourth quarter, in preparation for a limited drilling program designed to test the mineralised structures.

Kofi Gold Project, Mali

An exploration program aimed at mapping the remaining of the western area of the Kofi project was started in the second quarter of 2009 and was supplemented by termite mound geochemical sampling. A total of 4,628 termite mounds were sampled during the period of June and July 2009, but only 906 samples were sent for analysis. Results are expected shortly.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and west Africa. AXMIN's goal is to move its Passendro Gold Project, Central African Republic towards production. AXMIN is positioned to grow in value as it develops its project pipeline in parallel pursuing new opportunities to increase its asset base. For more information regarding AXMIN visit our website at www.axmininc.com.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization 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. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

To view Figure 1, Nimini West 2009 Potential Drill Targets, click on the following link:

http://media3.marketwire.com/docs/nimini.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • AXMIN Inc.
    Mario Caron
    President & CEO
    416 368 0993 ext 223
    or
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221
    ir@axmininc.com
    www.axmininc.com