AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

May 05, 2011 12:58 ET

AXMIN's Joint Venture Partner Teranga Gold Announces High Grade Gora Deposit on AXMIN's Sounkounkou Permit, Senegal

TORONTO, ONTARIO--(Marketwire - May 5, 2011) -AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that Teranga Gold Corporation (TSX:TGZ) ("Teranga"), formerly Mineral Deposits Limited, has released an exploration update on AXMIN's Senegal Permits, which are the subject of a joint venture between Teranga and AXMIN. The complete May 2, 2011 press release can be found on Teranga's website www.terangagold.com. In the press release Teranga highlighted that early results at the Gora deposit have identified an inferred resource of 106,000 contained ounces of gold (543,000 tonnes at 6.0 g/t Au) and the deposit remains open in all directions.

The Gora project is located on AXMIN's wholly-owned Senegal gold permits (Sounkounkou, Heremakono and Sabodala NW) where its joint venture partner and operator, Teranga has earned a 51% interest. AXMIN has elected not to participate in further expenditure on a pro rata basis, and thus will dilute its interest to 20% in return for Teranga expending a further US$3.5 million. The Gora deposit is located within the Sounkounkou permit approximately 25 km northeast of Teranga's Sabodala processing plant.

As a result of the exploration success to date, Teranga is increasing its exploration budget for the Gora project and the company has initiated a feasibility study and permitting with a goal of processing the high-grade ore through the Sabodala mill as early as late-2012. An updated resource estimate is planned for this summer, after the current phase of drilling has been completed. Once the boundaries of the deposit have been delineated, an infill drill program to bring the resource to reserve status will be completed, which is expected by the end of 2011.

Drilling of the Gora Project began in early February, with three drill rigs active on the project (two core drill rigs and one dual purpose reverse circulation ("RC") / core drill rig). In total, 6,989 metres of RC and 2,491 metres of core drilling has been completed. An additional 6,000 metres of RC and 5,500 metres of core are planned. This second phase of drilling will be testing the deposit to a vertical depth of 120 metres and along strike and is expected to be completed by the end of June.

This press release has been reviewed by François Auclair, M.Sc., PGeo, AXMIN VP Exploration, Member of Ordre des Géologues du Québec, Fellow of Geological Association of Canada.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone and Senegal. AXMIN is positioned to grow in value as it progresses its Passendro Gold Project towards development and builds on its project pipeline focusing on transitioning from an explorer to producer. 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 future plans and objectives of AXMIN; and statements regarding the ability to develop and achieve production at Passendro, to revalidate the BFS and to satisfy the terms of the Mining Licence as negotiated, 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 have been disclosed under the heading "Risk Factors" and elsewhere in AXMIN's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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