Hole ID

Intersection^

Easting*

Northing*

RL

EOH

ISD14-0011

4.95m @1.06% Ni from 1.2m

0578426

9066114

73m

12.6m

ISD14-0021

5.4m @ 0.91% Ni from surface

0578504

9066072

77m

13.0m

ISD14-0031

20.7m @ 1.74% Ni from surface, including

12.45m @ 2.28%Ni from 8.25m

0578786

9066164

123m

30.6m

ISD14-0041

14.4m @ 1.94% Ni from 1.5m, including

7.65m @ 2.67% Ni from 8.25m

0578808

9066150

131m

30.0m

ISD14-005

18.25m @ 1.63% Ni from 4.75m, including

13.75m @ 1.83% Ni from 9.25m

578831

9066132

148m

26.8m

ISD15-001

7.5m @ 1.26% Ni from surface, including

3.0m @ 1.37% Ni from 4.5m

578780

9066195

120m

20.1m

ISD15-002

6.6m @ 1.19% Ni from surface, including

4.6m @ 1.34%Ni from 2m

578906

9066094

150m

25.4m

ISD15-003

7.6m @ 0.99% Ni from surface

578906

9066134

160m

30.0

ISD15-004

13.7m @ 1.02% from 1.5m

581055

9065712

150m

20.0m

ISD15-005

16.5m @ 1.49% Ni from surface, including

10m @ 1.85% Ni from 6.5m

581025

9065726

145m

16.5m

ISD15-006

16m @ 1.66% Ni from 0.5m, including 11.4m

@ 1.92%Ni from 5.1m

581050

9065900

140m

18.5m

ISD15-0072

12.6m at 1.73% Ni from 1.0m, including 4.6m

@ 2.24% Ni from 9m

581050

9065900

140m

29.0

ISD15-008

13.7m @ 1.13% Ni from 2.5m, including

10.9m @ 1.16% Ni from 5.3m

581050

9065800

135m

18.1m

ISD15-009

15.3m @ 1.27% Ni from 1.0m, including 7.8m

@ 1.62% Ni from 8.5m

581050

9065750

130m

17.6m

ISD15-010

7.5m @ 1.12% Ni from 3.5m, including 3.5m

@ 1.16% Ni from 7.5m

581050

9065675

125m

12.0m

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

• Whole core samples were marked up and sampled in the laboratory

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

• Filled core trays were weighed one day after drilling and then weekly-for wet/dry Bulk Density (BD)

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

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

MP250 diamond drill rig

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

• Hole ISD15-007 (drilled at 80° declination to 350° Mag) twins ISD15-006 (vertical).

Drill sample

recovery

Method of recording and assessing core and

chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential

PQ and HQ diamond coring was by triple tube

to maximise core recovery.

Industry standard techniques for mud and foams were used to assist in clear coring. Average sample recovery exceeded 90%. In some cases cavities or core losses were in defined zones-these were marked by spacers

Criteria

JORC Code explanation

Commentary

loss/gain of fine/coarse material.

within the trays and noted in drillers' logs.

Axiom has implemented a dry drilling 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 been

geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

All diamond core holes were:

• marked up for recovery calculations

• geologically marked up and logged

• photographed

• weighed by tray one day after drilling (wet density less water added in drilling process)-selected core was weighed weekly and at laboratory for both dry density and solar drying 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-sampling

techniques and sample preparation

If core, whether cut or sawn and whether

quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

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.

Whole and half core were delivered to the

laboratory. All sample reduction protocols were by standard laboratory techniques.

A range of OREAS nickel laterite standards were inserted into the suite of samples. These were inserted into every 10 samples submitted.

Laboratory standards and blanks were inserted every 50 samples submitted plus repeats were completed every 50 samples.

Sample sets were dried at more than 60° and more than 90°C to simulate solar drying and set out additional BD data ranges.

Quality of

assay data and

The nature, quality and appropriateness of

the assaying and laboratory procedures used and whether the technique is considered

Intertek standard laboratory techniques were

undertaken.

Criteria JORC Code explanation Commentary

laboratory partial or total. • All core trays were dried at 60° or 90 °C

tests For geophysical tools, spectrometers, for 48 hours and then weighed to test for

handheld XRF instruments, etc, the dry bulk density.

parameters used in determining the analysis • Standard reduction techniques were:

including instrument make and model, o jaw crusher reading times, calibrations factors applied o pulveriser and their derivation, etc. o reducer

Nature of quality control procedures adopted o splitters to reduce sample to 200g. (eg standards, blanks, duplicates, external • Ore grade by XRF fusion method laboratory checks) and whether acceptable • Trace element analysis completed by 4

levels of accuracy (ie lack of bias) and acid digest and ICP.

precision have been established.

In field handheld XRF analysis by handheld

Olympus Delta Pro:

• ore grade analysis

• geochemical analysis

• standards, references and blanks (10) were bracketed morning and afternoon at start and end of run

• analyser was calibrated by six OREAS

nickel laterite ore standards

• readings were spot readings taken every

10cm

• 25cm readings were taken for early holes in 2014.

Check assaying on holes ISD14-001 to 004 were completed by ALS Laboratory Brisbane. Correlation on within the ore grade suite exceeded 99%.

Verification The verification of significant intersections by Eight core holes twinned existing INCO or

of sampling either independent or alternative company Kaiser Engineers pits or INCO GEMCO drill

and assaying personnel. holes

The use of twinned holes. One Axiom core hole was twinned by an

Documentation of primary data, data entry additional NQ triple tube core hole 100 cm

procedures, data verification, data storage offset.

(physical and electronic) protocols. One Axiom hole was twinned by an additional

Discuss any adjustment to assay data. HQ hole @ 80°.

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

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

trenches, mine workings and other locations

used in Mineral Resource estimation. All collars are to be picked up by surveyors by

differential GPS (DGPS) to 10mm accuracy.

Specification of the grid system used.

LIDAR program to a maximum distortion of

Criteria JORC Code explanation Commentary

Quality and adequacy of topographic control. 25cm to be completed by mid-2015.

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

and Results. traverses based on:

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

Mineral Resource and Ore Reserve estimation

procedure(s) and classifications applied. • INCO defined mineral area (at a 1.0 and

1.2% Ni envelope).

Whether sample compositing has been

applied.

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

of data in unbiased sampling of possible structures and surface drape over underlying ultramafic

relation to the extent to which this is known, considering source units.

geological 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 have 3D logging in the walls of the excavator pit

introduced a sampling bias, this should be indicated dip of marker units varied from 0 to

assessed and reported if material. 5°, and any dips related to terrain slope.

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

security security. locked facility at the site camp.

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

transport from site to the Intertek Laboratory in Honiara.

Intertek and/or Axiom protocols in place for delivery of prepped sub samples to Intertek laboratories in Perth and Townsville (and check assays ALS Brisbane)

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

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

Criteria JORC Code explanation Commentary

tenement and ownership including agreements or material 50-year land lease-80% owned by Axiom.

land tenure issues with third parties such as joint The validity of both the prospecting licence and

status ventures, partnerships, overriding royalties, the leasehold was tested and confirmed in a

native title interests, historical sites,

wilderness or national park and recent Solomon Islands High Court judgment.

environmental settings. The hearing for the appeal against this

The security of the tenure held at the time of judgment is pending.

reporting along with any known impediments to obtaining a licence to operate in the area.

Exploration

done by other parties

Acknowledgment and appraisal of • INCO

exploration by other parties. • Kaiser Engineers

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

mineralisation.

Drill hole A summary of all information material to the Axiom completed diamond coring using PQ and

Information understanding of the exploration results HQ triple tube to maximise recoveries within

including a tabulation of the following the mineralised horizons.

information for all material drill holes:

A number of holes twin previous Kaiser and

• easting and northing of the drill hole INCO test pits and auger holes and also the

collar mined area.

• 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, weighting No weighting has been applied to reporting for

aggregation averaging techniques, maximum and/or the 2014 program.

methods minimum grade truncations (eg cutting of All assay intervals are based on geological

high grades) and cut-off grades are usually

Material and should be stated. intervals or 0.5 or 2m lengths if the geological

interval is greater than 2m.

Where aggregate intercepts incorporate

short lengths of high grade results and No excessive high grade Ni grades met.

longer lengths of low grade results, the Use of an initial 0.6% cutoff for mineralised procedure used for such aggregation should envelopes based on previous Kaiser modelling be stated and some typical examples of such data.

aggregations should be shown in detail.

Criteria JORC Code explanation Commentary

The assumptions used for any reporting of

metal equivalent values should be clearly stated.

Relationship These relationships are particularly Target only due to limited modern testing.

between important in the reporting of Exploration

minerali- Results.

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

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 scales) See figures 1 and 2.

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

reporting Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

N/A

Other Other exploration data, if meaningful and Both INCO and Kaiser Engineers undertook

substantive material, should be reported including (but circa 6000 drill holes and pits, feasibility exploration not limited to): geological observations; studies, economic analysis and reserve and data geophysical survey results; geochemical resource calculations and estimates.

survey results; bulk samples - size and

method of treatment; metallurgical test Most of these studies were conducted prior to results; bulk density, groundwater, the establishment of the JORC Code. geotechnical and rock characteristics;

potential deleterious or contaminating substances.

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

(eg tests for lateral extensions or depth

extensions or large-scale step-out drilling). • Focus on smaller portion of deposit to

prove up a resource compliant with the

Diagrams clearly highlighting the areas of JORC Code, in anticipation of mining and

possible extensions, including the main to establish a direct shipping of ore

geological interpretations and future drilling operation

areas, provided this information is not • Testing of the larger deposit for long-term

commercially sensitive.

development.