Hole ID Entire Limonite Saprolite Easting Northing RL EOH

intersection intersection intersection (m) (m)

HA-281

6.2m @ 0.92% Ni from 1.0m

580924

9066144

227.0

10.3

HA-289

7.0m @ 1.10% Ni from 1.0m

2.0m @ 1.50% Ni from 6.0m

581118

9066146

208.0

11.6

HA-290

12.0m @ 1.52% Ni from 1.0m

4.0m @ 1.63% Ni from 5.0m

4.0m @ 2.15% Ni from 9.0m

580954

9066128

224.0

15.0

HA-291

12.0m @ 1.47% Ni from 1.0m

2.0m @ 1.77% Ni from 5.0m

4.0m @ 2.19% Ni from 7.0m

580971

9066123

219.0

13.0

HA-294

13.5m @ 1.23% Ni from surface

3.3m @ 2.09% Ni from 4.0m

581049

9066125

218.0

16.0

HA-295

14.0m @ 0.98% Ni from 2.0m

3.0m @ 1.29% Ni from 9.0m

2.0m @ 1.44% Ni from 12.0m

581074

9066125

216.0

19.8

HA-296

7.8m @ 0.82% Ni from 2.0m

581100

9066125

211.0

12.8

HA-297

6.0m @ 1.01% Ni from 3.0m

581122

9066127

207.0

12.4

HA-298

13.3m @ 1.57% Ni from 1.0m

3.0m @ 1.69% Ni from 5.0m

6.0m @ 1.96% Ni from 8.0m

580953

9066099

213.0

17.4

HA-299

16.0m @ 1.52% Ni from 3.0m

12.0m @ 1.71% Ni from 6.0m

580977

9066101

221.0

22.0

HA-300

13.0m @ 1.69% Ni from 1.0m

8.0m @ 2.12% Ni from 6.0m

581022

9066096

213.0

17.0

HA-301

14.8m @ 1.37% Ni from surface

2.0m @ 1.88% Ni from 3.0m

7.7m @ 1.52% Ni from 5.0m

581052

9066103

216.0

17.0

HA-302

11.2m @ 1.02% Ni from 2.0m

3.0m @ 1.43% Ni from 8.0m

1.0m @ 1.40% Ni from 11.0m

581073

9066101

217.0

16.9

HA-303

5.5m @ 1.12% Ni from 6.0m

3.0m @ 1.22% Ni from 8.0m

581100

9066104

204.0

15.7

HA-304

7.5m @ 0.95% Ni from 1.0m

581125

9066106

204.0

13.4

HA-305

6.0m @ 1.17% Ni from 3.0m

2.2m @ 1.64% Ni from 5.0m

580977

9066077

215.0

12.0

HA-306

13.2m @ 1.29% Ni from 2.0m

5.8m @ 1.70% Ni from 8.2m

581001

9066078

217.0

17.4

HA-307

17.0m @ 1.58% Ni from 1.0m

8.0m @ 2.14% Ni from 8.0m

581023

9066078

214.0

20.0

Hole ID Entire Limonite Saprolite Easting Northing RL EOH

intersection intersection intersection (m) (m)

HA-308

12.1m @ 1.41% Ni from surface

4.0m @ 1.34% Ni from 1.0m

6.0m @ 1.63% Ni from 5.0m

581050

9066077

215.0

15.0

HA-310

10.0m @ 1.20% Ni from 2.0m

2.0m @ 1.35% Ni from 6.0m

3.4m @ 1.55% Ni from 8.0m

581127

9066080

199.0

13.8

HA-311

10m @ 1.33% Ni from 2.0m

4.0m @ 1.92% Ni from 7.0m

580979

9066051

212.0

15.0

HA-312

10.5m @ 1.68% Ni from 1.0m

5.7m @ 2.22% Ni from 5.8m

581001

9066048

213.0

13.9

HA-313

18.0m @ 1.08% Ni from 1.0m

4.0m @ 1.44% Ni from 10m

581023

9066046

208.0

20.7

HA-315

4.0m @ 1.07% Ni from 1.0m

581073

9066048

212.0

12.0

HA-316

3.0m @ 0.92% Ni from surface

581091

9066046

210.0

8.5

HA-317

10.3m @ 1.20% Ni from 2.0m

4.0m @ 1.27% Ni from 4.0m

4.0m @ 1.27% Ni from 8.0m

581122

9066056

193.0

15.0

HA-318

12.6m @ 1.24% Ni from 1.0m

2.5m @ 2.25% Ni from 9.0m

580975

9066025

210.0

13.6

HA-319

12.0m @ 1.41% Ni from 1.0m

4.7m @ 2.15% Ni from 7.7m

580999

9066026

211.0

14.3

HA-320

9.0m @ 1.37% Ni from 1.0m

4.0m @ 1.81% Ni from 4.0m

581022

9066029

211.0

12.4

HA-323

10.0m @ 1.22% Ni from 2.0m

5.8m @ 1.34% Ni from 3.2m

2.0m @ 1.20% Ni from 9.0m

581100

9066026

202.0

16.5

HA-325

11.5m @ 1.64% Ni from 1.0m

6.1m @ 2.26% Ni from 6.4m

581025

9066000

205.0

14.5

HA-327

4.4m @ 0.99% Ni from surface

581104

9066001

205.0

7.0

HA-331

14.6m @ 1.50% Ni from 1.0m

3.0m @ 1.97% Ni from 6.0m

4.0m @ 2.09% Ni from 9.0m

581023

9065972

205.0

15.6

HA-332

9.0m @ 1.59% Ni from surface

6.0m @ 1.87% Ni from 3.0m

581053

9065974

200.0

13.0

HA-339

14.0m @ 1.57% Ni from 1.0m

6.8m @ 1.86% Ni from 4.0m

3.2m @ 1.93% Ni from 10.8m

581026

9065951

204.0

17.0

HA-340

8.4m @ 0.99% Ni from 2.0m

2.0m @ 1.27% Ni from 4.0m

581053

9065949

205.0

13.3

HA-341

11.0m @ 1.24% Ni from surface

2.5m @ 2.05% Ni from 3.5m

581077

9065943

194.0

14.2

HA-348

7.0m @ 1.02% Ni from 1.0m

3.0m @ 1.32% Ni from 4.0m

581026

9065925

202.0

12.0

HA-349

10.0m @ 1.56% Ni from 3.0m

5.0m @ 2.20% Ni from 6.0m

581056

9065928

202.0

16.0

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 representation 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 1m samples from which 3kg was pulverised to produce a 30g 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.

Currently utilising NQ single tube core in sampled intervals.

Handheld XRF analysers were used infield for initial analysis to guide site geologist or field assistants in deciding to end the hole.

Samples were collected generally at 1.0m interval. In changes in geology a range of intervals from 0.3m minimum to 1.25m maximum.

Whole core samples were 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).

NQ single tube by tungsten carbide bit employing man portable machines commonly used in laterite drilling in Indonesia and the Philippines.

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.

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 loss/gain of fine/coarse material.

NQ coring was by single tube to maximise core recovery.

Average sample recovery exceeded 99%. In most cases laterite core recoveries exceeded 100% due to "swelling"-bit cuttings getting into the inner tube.

Axiom has implemented a dry drilling technique in the top limonite zone and a low water technique in lower saprolite zone-bringing average recoveries to more than 99%.

Criteria

JORC Code explanation

Commentary

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 holes were:

 marked up for recovery calculations

 geologically marked up and logged

 marked up for sampling interval and density determination

 photographed.

In-situ wet density is determined by calliper method for limonite and saprolite and water displacement method for irregular shaped rocky saprolite and bed rock. A

10cm length of representative limonite and saprolite

sample is selected for density measurement.

For irregular rock sample, 5cm to 8cm core representing the lithology is sampled for density.

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

All laterite intersections were analysed by standard laboratory techniques for mine grade and trace element values using fused bead XRF method.

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 representation 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 core was 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. Blank samples were also inserted. These were inserted 1-2 in every batch of samples (150-200 samples) for all drilling samples submitted.

Core duplicates are collected by splitting the previous sample interval. Duplicates are collected one in every

20 holes (5%) drilled.

Laboratory standards and blanks were inserted into every 20 samples submitted plus repeats were completed every 50 samples.

Criteria

JORC Code explanation

Commentary

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Standard laboratory techniques as outlined below were undertaken:

 All samples were weighed wet, dried at 90 degrees and then weighed dry to establish minimum moisture ranges and density guides.

 Further drying to 105 degrees prior to reduction to remove all moisture.

 Standard reduction techniques were:

o jaw crusher

o pulveriser

o split to reduce sample to 200g.

 Ore grade by XRF fusion method. Loss on Ignition

(LOI) by thermo gravimetric analysis.

 Where required, trace element analysis for selected elements or 30 element suite completed by four

acid digest and AAS readings.

Verification of

sampling

and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Eight core holes twinned existing INCO or Kaiser pits or INCO GEMCO drill holes during the early part of the drilling program.

One Axiom hole was twinned by an additional NQ triple tube core hole 100cm offset.

One Axiom hole twinned by an additional HQ hole at 80 degrees.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Initial collar location was by handheld GPS reading to

5.0m accuracy.

After completing the hole, collars are again picked up by GPS for actual location.

All collars are to be picked up by surveyors using differential GPS (DGPS) to 10mm accuracy.

Data spacing and distribution

Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient

to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

The current release covers drilling on a 25.0m x 25.0m hole spacing.

The expected outcome is appropriate for a measured resource category.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land

tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Prospecting Licence 74/11-80% held by Axiom.

50-year land lease-80% owned by Axiom.

The validity of both the Prospecting Licence and the leasehold was tested and confirmed in a recent Solomon Islands High Court judgment.

The hearing for the appeal against this judgment was completed and pending final decision.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Previous explorers were INCO and Kaiser Engineers.

Geology

Deposit type, geological setting and style of mineralisation.

Wet tropical laterite. In-situ chemical weathering of the ultramafic rocks.

Criteria

JORC Code explanation

Commentary

Drill hole

Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all material drill holes:

 easting and northing of the drill hole 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.

Axiom previously completed diamond coring using HQ and NQ triple tube to maximise recoveries within the mineralised horizons. The current program employs NQ single tube with tungsten carbide bit.

The previous program twinned Kaiser and INCO test pits, auger holes and the mined area.

All collars are surveyed using handheld GPS recorded on UTM grid WGS84-57S with up to 5.0m accuracy.

Collar elevation is recorded on RL.

Drill holes are logged using logging forms. Relevant hole information such as final depth (EOH), core recovery, sampling interval, sample number, physical description, geological boundaries, lithology and mineralisation and alteration are noted.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Only length weighting has been applied to reporting for the program.

Assay intervals are generally undertaken on 1.0m regular intervals. The intervals are adjusted to geological boundaries with intervals ranging 0.3m minimum to 1.25m maximum.

There are no outlier values requiring adjustment.

An initial 0.6% cut-off is used to define mineralised nickel laterite envelopes. This was also used as the basis for previous Kaiser resource modelling.

A second higher grade 1.2% Ni cut-off combined with the geological data is also used to provide higher grade intercepts more appropriate to some direct shipping requirements.

Relationship between minerali- sation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its 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').

The laterite is thin but laterally extensive. The intercepts are almost perpendicular to the mineralisation.

Drilling so far has been confined to the major ridgelines due to access and deposit geometry.

Diagrams

Appropriate maps and sections (with 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.

See figure 1.