AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

January 23, 2012 15:30 ET

CORRECTION FROM SOURCE: AXMIN-Passendro Gold Project Update

TORONTO, ONTARIO--(Marketwire - Jan. 23, 2012) - AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN" or the "Company") this document corrects and replaces the press release that was sent January 23, 2012 at 9:48 AM EST. The error occurred in the first paragraph where it should have read "final payment of US$3.0 million to the State of the Central African Republic ("CAR") earlier than the required April 30, 2012". The corrected version follows.

AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN" or the "Company") today announced that as a gesture of confidence in the Company's ability to build the Passendro Gold Project, AXMIN will make its final payment of US$3.0 million to the State of the Central African Republic ("CAR") earlier than the required April 30, 2012. This early payment constitutes the full amount of the payment to CAR, and thereby completes Aurafrique's payment obligations under the Addendum to the 2006 Mining Convention.

AXMIN's President and CEO, Mr. George Roach, comments, "AXMIN's early payment of its final installment to the Government of CAR and the progress we are making with on-site infrastructural upgrades signals to the State and people of CAR that we are determined to build the country's first modern gold mine. In addition, I would like to take this opportunity to thank our shareholders for their support and patience as we progress through the debt financing negotiations. Although longer than originally anticipated, the work that our team has accomplished during the past year ensures that we are in a strong position to finalize the debt and move forward to development and gives me confidence that 2012 will be an exciting year for AXMIN."

Project Development

AXMIN has begun the on-site infrastructural upgrades and pre-development work which constitute the soft-start development that is required to ensure that the project maintains its 24 month build schedule. Work undertaken to date includes:

  • The State has granted AXMIN a two year extension as of January 11, 2012 to begin the development and production start-up work at the Passendro project;
  • Local civil contractor engaged to carry out early on-site infrastructural upgrades, including starting 45 km road upgrade from Kombele to site, on-site road works, building an air-strip and the main bridge over Bambari River;
  • Team building at Passendro continues, recently hired Mike Edwards as Project Director and Geoff McLoughlin as Engineering Manager, in addition to recent appointment of the CAR Country Manager and Passendro Chief Controller;
  • Tendering and adjudication process for major build Engineering, Procurement, Construction and Management ("EPCM") contract is in the final stages and contract award is expected shortly;
  • Mining equipment and fuel supply contract tendering and site visits are underway and power options (lease, own or third party provider) analysis and proposals have been received;
  • Feasibility study optimizations and upgrades are underway and will include a revised financial model.

Project Finance

With the assistance of our financial advisors Endeavour Financial, we are progressing through the final stages of the debt finance negotiations with multiple lenders and in condensed summary, our progress includes:

  • The Standard Bank of South Africa Mandate Letter Agreement ("MLA") to arrange and underwrite up to a US$100 million in debt facility has been extended to March 31, 2012 from December 31, 2011;
  • Lenders environmental due diligence has been completed, and in December the Lenders technical due diligence was completed and the legal due diligence completion is expected soon;
  • Negotiations with several other banking groups for the remaining debt required are in the final approval process.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. 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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