Hole ID

Intersection^

Easting*

Northing*

RL

EOH

ISD15-011

9.6m @1.23% Ni from 1.5m, including 2.0m @ 1.94% Ni from 8.0m

581050

9065575

155

30.0

ISD15-016

21.2m @1.16% Ni from 0.5m, including 2.1m @

2.14% Ni from 6.5m

581001

9065704

171

20.0

ISD15-025

13.5m @1.04% Ni from 0.5m, including 2.0m @

1.91% Ni from 5.0m

581100

9065600

180

19.5

ISD15-026

7.0m @1.16% Ni from 1.2m, including 2.0m @

1.66%Ni from 5.7m

581100

9065500

180

20.0

ISD15-027

7.8m @1.4% Ni from surface, including 4.5m @

1.66% Ni from 1.3m

581197

9065584

180

20.0

ISD15-029

15.0m @1.46% Ni from 1.0m, including 6.5m @

1.76% Ni from 9.0m

581000

9065500

180

20.0

Criteria

JORC Code explanation

Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut

channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases

more explanation may be required, such

as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

PQ and HQ triple tube core-initially delivered to laboratory in tray-then in sampled intervals

• Handheld XRF analysers were used in field for initial analysis on 25cm intervals for control then 10cm

• Samples were collected either at a range of intervals (minimum 0.5m) or geological intervals

• Half core samples were cut and sent to the laboratory.

Drilling techniques

Drill type (eg core, reverse circulation,

open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Industry standard PQ and HQ triple tube by Diamond drill rig

• Holes were drilled vertically through the limonite and saprolite zones into underlying basement.

Drill sample recovery

Method of recording and assessing core

and chip sample recoveries and results assessed.

PQ and HQ Diamond coring was by triple tube to maximise core recovery.

Industry standard techniques for mud and

Criteria JORC Code explanation Commentary

Measures taken to maximise sample foams were used to assist in clear coring. recovery and ensure representative Average sample recovery exceeded 90%. nature of the samples. In some cases cavities or core losses were Whether a relationship exists between in defined zones-these were marked by

sample recovery and grade and whether spacers within the trays and noted in

sample bias may have occurred due to drillers' logs.

preferential loss/gain of fine/coarse Axiom has implemented a dry drilling

material. technique in the top limonite zones and a low water technique in lower saprolite zones-bringing average recoveries for

later 2015 holes to more than 98%.

Logging Whether core and chip samples have All Diamond core holes were:

been geologically and geotechnically • marked up for recovery calculations

logged to a level of detail to support

appropriate Mineral Resource estimation, • geologically marked up and logged

mining studies and metallurgical studies. • photographed

• weighed by tray one day after drilling Whether logging is qualitative or (wet density less water added in quantitative in nature. Core (or costean, drilling process)-selected core was channel, etc) photography. weighed weekly and at laboratory for

The total length and percentage of the both dry density and solar drying

relevant intersections logged. responses.

Core was geotechnically logged for hardness, fractures, fracture orientation, recovery and mining characteristics.

All laterite intersections were analysed by either handheld XRF analyser or standard laboratory techniques for both mine grade values and trace elements.

Sub- If core, whether cut or sawn and whether Half core was delivered to the laboratory. sampling quarter, half or all core taken. All sample reduction protocols were by techniques If non-core, whether riffled, tube standard laboratory techniques.

and sample sampled, rotary split, etc and whether A range of OREAS nickel laterite standards

preparation sampled wet or dry. were inserted into the suite of samples.

For all sample types, the nature, quality These were inserted into every 10 samples

and appropriateness of the sample submitted.

preparation technique. Laboratory standards and blanks were Quality control procedures adopted for all inserted into every 50 samples submitted sub-sampling stages to maximise plus repeats were completed every 50 representivity of samples. samples.

Criteria JORC Code explanation Commentary

Measures taken to ensure that the

sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of The nature, quality and appropriateness Standard laboratory techniques were

assay data of the assaying and laboratory undertaken.

and procedures used and whether the • All samples were weighed wet, dried laboratory technique is considered partial or total. at 90 degrees and then weighed wet tests For geophysical tools, spectrometers, to establish minimum moisture

handheld XRF instruments, etc, the ranges and density guides

parameters used in determining the • Standard reduction techniques were:

analysis including instrument make and o jaw crusher

model, reading times, calibrations factors o pulveriser

applied and their derivation, etc.

o split to reduce sample to 200g.

Nature of quality control procedures • Ore grade by XRF fusion method.

adopted (eg standards, blanks,

duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Verification The verification of significant Eight core holes twinned existing INCO or of sampling intersections by either independent or Kaiser Engineers pits or INCO GEMCO drill and alternative company personnel. holes.

assaying The use of twinned holes. One Axiom core hole was twinned by an Documentation of primary data, data additional NQ triple tube core hole 100 cm entry procedures, data verification, data offset.

storage (physical and electronic) One Axiom hole was twinned by an

protocols. additional HQ hole at 80 degrees.

Discuss any adjustment to assay data.

Location of Accuracy and quality of surveys used to Initial collar location was by handheld GPS

data points locate drill holes (collar and down-hole reading to 5m accuracy.

surveys), trenches, mine workings and

other locations used in Mineral Resource All collars are to be picked up by surveyors

estimation. by differential GPS (DGPS) to 10mm

accuracy.

Specification of the grid system used.

LIDAR program to a maximum distortion

Quality and adequacy of topographic

Criteria JORC Code explanation Commentary

control. of 25cm to be completed by mid-2015.

Data Data spacing for reporting of Exploration Orientation holes were designed along

spacing and Results. traverses based on:

distribution Whether the data spacing and • INCO pitting and drilling distribution is sufficient to establish the • Kaiser Engineers pitting degree of geological and grade continuity • INCO mining

appropriate for the Mineral Resource and • INCO defined mineralised area.

Ore Reserve estimation procedure(s) and

classifications applied.

Whether sample compositing has been applied.

Orientation Whether the orientation of sampling The nickel laterite is a weathered

of data in achieves unbiased sampling of possible geomorphic surface drape over underlying

relation to structures and the extent to which this is ultramafic source units.

geological known, considering the deposit type. All holes and pits were vertical and will be

structure If the relationship between the drilling 100% true intersection.

orientation and the orientation of key

mineralised structures is considered to 3D logging in the walls of the excavator pit

have introduced a sampling bias, this indicated dip of marker units varied from

should be assessed and reported if 0 to 5 degrees-and any dips related to

material. terrain slope.

Sample The measures taken to ensure sample All samples were escorted offsite to a

security security. secure locked facility at the site camp.

Onsite security was provided for samples. Chain of custody protocols in place for

transport from laboratories.

Audits or The results of any audits or reviews of Axiom has employed highly experienced

reviews sampling techniques and data. nickel laterite consultants to review all procedures and results from the orientation drilling phase.

Criteria JORC Code explanation Commentary

tenure joint ventures, partnerships, overriding 50-year land lease-80% owned by Axiom.

status royalties, native title interests, historical The validity of both the Prospecting

sites, wilderness or national park and

environmental settings. Licence and the leasehold was tested and

confirmed in a recent Solomon Islands High

The security of the tenure held at the Court judgment.

time of reporting along with any known

impediments to obtaining a licence to The hearing for the appeal against this

operate in the area. judgment is pending.

Exploration done by other parties

Acknowledgment and appraisal of • INCO

exploration by other parties. • Kaiser Engineers

Geology Deposit type, geological setting and style Wet tropical laterite.

of mineralisation.

Drill hole A summary of all information material to Axiom completed Diamond coring using PQ

Information the understanding of the exploration and HQ triple tube to maximise recoveries

results including a tabulation of the within the mineralised horizons.

following information for all material

drill holes: A number of holes twin previous Kaiser and

INCO test pits, auger holes and the mined

• easting and northing of the drill hole area.

collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

If the exclusion of this information is justified on the basis that the information is not material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data In reporting Exploration Results, Only length weighting has been applied to

aggregation weighting averaging techniques, reporting for the 2014 program.

methods maximum and/or minimum grade Assay intervals are generally undertaken

truncations (eg cutting of high grades)

and cut-off grades are usually Material on 0.5 m regular intervals. The intervals

and should be stated. are adjusted to geological boundaries with

some intervals ranging up to 2 m.

Where aggregate intercepts incorporate

There are no outlier values requiring

Criteria JORC Code explanation Commentary

short lengths of high grade results and adjustment.

longer lengths of low grade results, the An initial 0.6% cut-off is used to define

procedure used for such aggregation

should be stated and some typical mineralised nickel laterite envelopes. This

examples of such aggregations should be was also used as the basis for previous

shown in detail. Kaiser resource modelling.

The assumptions used for any reporting A second higher grade 1.2% Ni cut-off is

of metal equivalent values should be also used to provide a higher grade

clearly stated. intercept more appropriate to some direct shipping requirements.

Relationship These relationships are particularly The laterite is thin but laterally extensive. between important in the reporting of Exploration The intercepts are perpendicular to the minerali- Results. mineralisation.

sation If the geometry of the mineralisation widths and with respect to the drill hole angle is intercept known, its nature should be reported. lengths

If it is not known and only the down hole

lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

Diagrams Appropriate maps and sections (with See figures 1 and 2.

scales) and tabulations of intercepts should be included for any significant discovery being reported.

These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Balanced Where comprehensive reporting of all Both low and higher grade intercepts are

reporting Exploration Results is not practicable, reported.

representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Other Other exploration data, if meaningful Both INCO and Kaiser Engineers undertook substantive and material, should be reported circa 6000 drill holes and pits, feasibility exploration including (but not limited to): geological studies and economic analysis.

data observations; geophysical survey results;

geochemical survey results; bulk samples Most of these studies were conducted

- size and method of treatment; prior to the establishment of the JORC

Criteria JORC Code explanation Commentary

metallurgical test results; bulk density,

groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Code.

Further work The nature and scale of planned further Ongoing testing:

work (eg tests for lateral extensions or • Focus on smaller portion of deposit to

depth extensions or large-scale step-out

drilling). prove up a resource compliant with

the JORC Code, in anticipation of

Diagrams clearly highlighting the areas mining and to establish a direct

of possible extensions, including the shipping of ore operation

main geological interpretations and • Testing of the larger deposit for long-

future drilling areas, provided this term development.

information is not commercially

sensitive.