Quarterly

Activities Report

For the period ended 31 March 2016

Message from the Chairman

Robert Barraket joined the Axiom Board of Directors on 19 February 2016 as Non-Executive Chairman.

On 21 March 2016, the much-awaited judgment by the Solomon Islands High Court of Appeal regarding the Isabel Nickel Project was delivered. The Court held that the land where the Kolosori deposit is located remains customary land, and as a result Axiom KB's registered lease and Prospecting Licence were set aside.

While this is not the judgment Axiom had hoped for, it provides us with an opportunity to move forward litigation-free and continue to invest in the mineral-rich Solomon Islands. Axiom is in discussions with key stakeholders and the Solomon Islands Government in reapplying for the Prospecting Licence for the Kolosori tenement and are optimistic about regaining it.

We are pleased to report our strategic partners remain committed to the Company and

their investment in the Isabel Nickel Project. Gunvor confirmed its commitment to its off-take and

pre-payment agreement with Axiom, InCoR Holdings Plc converted $5 million of its Convertible Note to equity, allowing Axiom to retain flexibility over future project financing, and South Pacific

mining services leader and major shareholder Anitua Limited is continuing its collaboration with Axiom.

Despite being involved in complex litigation during a global downturn in the resources industry, Axiom has been able to maintain strong landowner and community relations in Solomon Islands. The company

has developed the necessary remote site infrastructure and logistical support, employed 150 Solomon Islanders and delivered a maiden JORC resource, which defined the

first five years of production.

I would like to take this opportunity to thank our shareholders and other key stakeholders for your continued support during this time.

I realise you will no doubt have questions about Axiom's strategy for moving forward. As such, I invite you to attend our shareholder information sessions, which will be held on 30 and 31 May in Sydney and Brisbane respectively. Further details will be advised closer to the date.

Robert Barraket Chairman

1 | Axiom - Quarterly Activities Report for the period ended 31 March 2016

Q&A with the CEO

Q: The Court of Appeal in Solomon Islands has held that the Kolosori tenement of the Isabel Nickel Project is customary land, and as a result Axiom's registered lease and Prospecting Licence were set aside. Where does this leave Axiom?

A: Essentially, the Court of Appeal decision has re-set the clock on the Prospecting Licence for Kolosori. Axiom is now free of litigation, and free to re-apply for the licence. Our landowner partners, who were once the registered landowners, are now customary landowners once again. Their support for Axiom remains firm, which has been uplifting for us. We admire and have been inspired by their resilience in these circumstances.

Q: Has the Solomon Islands Government given any indication on how long the re-application process may take?

A: The Solomon Islands Government has not formally advised Axiom on timing of the application, however we have been in ongoing discussions with the relevant Ministries regarding our application.

Q: Do the customary landowners of the Kolosori tenement have to become registered landowners again before the Letter of Intent can be issued?

A: No, they do not. I'd like to point out that the south San Jorge landowners are customary landowners, and we have a surface access agreement with them to support our Prospecting Licence for San

Jorge. The majority of prospecting licences issued to other companies in Solomon Islands are subject to customary land regulations.

Q: When will Axiom commence exploration on San Jorge?

A: Ideally, we would like to bring Kolosori into production in the first instance as it is very close to mine ready. Revenue generated from this tenement would be able to more efficiently fund development of other tenements. However, as we know, we are waiting for confirmation on the timing of the re-application process. Axiom has already

been working for some months on the San Jorge tenement in a limited capacity, including preliminary exploration and environmental studies. Depending on the timing of the re-application process

for Kolosori, Axiom will consider further active development of San Jorge in the coming months.

Q: Does Axiom have enough cash reserves to last

until the end of the re-application process?

A: Since the Court of Appeal decision was handed down, Axiom undertook several cost efficiency measures to minimise expenditure and will continue to carefully manage our cash reserves.

Axiom also raised $5 million of new capital and significantly reduced our debt position by more than 85%. Axiom has strong ties to the capital markets and is confident of securing capital efficiently when required, eg when a decision to develop San Jorge (or Kolosori, subject to permitting) is made.

Q: Finally, what is the current state of the nickel market and how is Axiom positioned-can it be profitable with the nickel price still at close to 13- year lows?

A: While not at the levels of the period immediately after Indonesia implemented its ore export ban, nickel demand still grows. China remains reliant on nickel imports and new global supply is limited.

Having undertaken extensive exploration and studies, which included a JORC Mineral Resource estimate, coupled with our strong landowner relations to minimise social risk, we strongly believe Axiom remains very competitive for the Asia Pacific nickel ore trade.

Axiom - Quarterly Activities Report for the period ended 31 March 2016 | 2

Corporate summary

Strategic partners confirm continued support

Following the Court of Appeal judgment, Axiom's strategic partners confirmed their ongoing commitment to the long-term development of the Isabel Nickel Project:

• Gunvor confirmed off-take and ore prepayment agreement in place.

• InCoR Holdings converted $5 million of its Convertible Note to equity, giving Axiom the flexibility over future project financing. InCoR is now a long-term significant and strategic shareholder in Axiom. President of InCoR Technologies Professor David Dreisinger, co-inventor of Starved Acid Leaching Technology, was appointed as Technical Advisor to Axiom (announced to ASX on 31 March 2016)

• Anitua Limited is continuing its collaboration with Axiom on the development of the San Jorge tenement.

Project development funding

On 1 April, Axiom announced that it had raised $5 million of funding through a private placement of ordinary shares, which provides the company with a significant new source of funding to undertake the next phase of the development of the

Isabel Nickel Project.

3 | Axiom - Quarterly Activities Report for the period ended 31 March 2016