Building Constructive Engagement & Dialogue with Community Stakeholders May 22-24, 2012

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1 IFC Sustainability Exchange Washington, DC - USA Building Constructive Engagement & Dialogue with Community Stakeholders May 22-24, 2012 Presented by Pauline Voga AXMIN Inc. Director of Liaison & Community Development. 1

2 Introduction Senegal Permits (20%) Senegal Satifara (94.5%) Mali Passendro Gold Project (100%) Central African Republic AXMIN TSXV Listed Company C$30MM Market Cap No debt, US$9 MM in Cash African Focus transitioning from explorer to producer Passendro World-class potential Robust 2011 BFS based on Conservative US$1,100/oz Au price Debt facility negotiations advancing total US$235MM debt Mandated Strong engineering & development team All permitting in place Excellent exploration potential 5,000m drill program underway Mavita Project (100%) Mozambique 2

3 Passendro: Main Zone Pit Overview Open woodland Main Zone Pit Sparsely populated Ndassima Village Ndassima Camp 3

4 Central African Republic Fact Sheet History: The former French colony of Ubangi-Shari became Central African Republic upon independence in After 3 decades of misrule by military governments, civilian rule was established in General Bozize elected President democratically in May 2005 and re-elected in January 2011 Population: 4.8 million GDP: US$3.3 billion, Growth Rate 1.7% (2009 est.) Foreign Direct Investment (net): US$117.1 million (2008) 2009 UNDP Human Development Report: ranks the CAR near the bottom of its Human Development Index (179th out of 182 countries) IMF October 2010 Report: Fund support to the Central African Republic both financially and in the form of technical assistance has helped the implementation of sound economic policies and mobilized external financing which is highly needed to meet the authorities poverty reduction and growth objectives. The CAR authorities have made further progress under their economic and financial reform program. The credibility of public finances has improved through domestic revenue mobilization, prudent budget execution, and reduction of domestic arrears. In part thanks to the reform measures, the economy now appears to be on its way toward sustainable higher growth. 4

5 Community Engagement 2006 to 2007 Original Strategy and Approach Public Consultation identified village Chiefs and authorities as representatives for the community stakeholders Establishing communicative relationships with village Chiefs / authorities Communication flow to stakeholders inadequate resulting in miscommunications and lack of trust 5

6 Community Engagement 2008 to present New Strategy and Approach Identifying the Stakeholders key interest groups; Formation of Community Consultative Committee ( CCC ) Women, youth, farmers, herders, hunters, minorities, teachers, artisanal miners, etc. AXMIN supports but has limited participation during the process of CCC formation 6

7 Community Engagement 2008 to present New Strategy and Approach 2007 to 2009: On going and regular meetings to strengthen trust and relationships Collaborative efforts in collecting and addressing community expectations and grievances 2010 to present: Limited support required from AXMIN but self-support by CCC 7

8 Move towards Constructive Engagement and Dialogue Whose Responsibility is it? Innovative story that moved Stakeholders towards more constructive engagement and dialogue An analogy was used to help Stakeholders define responsibilities of each party in terms of communication and consultation for building trust and relationships 8

9 CCC Program Building Trust Chiefs Women Communication & Consultation Youth Grievance & Expectations Mobilizing & Decision Making Building Sustainable Trust Relationships Herders Problem Solving Artisanal Miners 9

10 Passendro: Economic Benefits to CAR Royalty benefits > US$6MM per annum; Taxes after year 5; At $1400/oz gold price is approximately US$25MM per annum; Share ownership 2.6 MM shares of AXMIN (2.0 MM five year term); Direct employment (about 200 at construction phase construction and about 250 at operation phase; training and education of workers key task; Substantial indirect employment based on local portion of production cost spend. First modern gold mine, open up the whole industry to other entrants.

11 Building Constructive Engagement & Dialogue with Community Stakeholders May 22-24, 2012 Pauline Voga, Dir. Liaison & Community Development E: 11