Axiom Mining 2015 Annual Report

GROUP FINANCIAL REPORT

Directors’ report continued

28

Remuneration report (continued)

c. Performance rights plan

Director, Executive and Employee Performance Rights Plan The establishment of the Axiom Director and Executive Performance Rights Plan was approved by shareholders at the 30 July 2010 Extraordinary General Meeting and refreshed at the Annual General Meeting (‘AGM’) held on 22 April 2013. The Director and Executive Performance Rights Plan provide appropriate incentives for the Board and management:

– to align the economic interests of the Board and management with shareholders – to keep the Board and management focused on the long term growth of the Company – to increase shareholder value by achieving certain milestones.

Under the plan, participants are granted rights that vest if certain performance conditions are met. Participation in the plan is at the Board’s discretion. Certain employees of the Company have been granted share rights as set out in their service agreement with the Company. Apart from these, no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. When exercisable, each right is convertible into one ordinary share. At the AGM on 22 April 2013, shareholders approved the issue of:

– 6,666,661 performance rights to Ryan Richard Mount – 833,332 performance rights to Stephen Ray Williams. Details of the rights as at 30 September 2015 are as follows:

Number of rights granted Grant date Expiry date

Fair value per share at approval date (3)

VWAP hurdle (4)

Number Vested

Directors Stephen Williams

166,666 (1) 133,333 (2) 133,333 (2) 400,000 (2)

30/07/11

–

–

1.05 0.75

– – – – – – – – – – – – – –

AXIOM MINING LIMITED ANNUAL REPORT 2015

22/04/13 21/10/15 22/04/13 21/10/15 22/04/13 21/10/15

1.33 1.20 1.06

1.13

1.50

833,332

Ryan Mount

333,333 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15 1,000,000 22/04/13 31/03/15 666,666 22/04/13 31/03/15 666,666 22/04/13 31/03/15

1.33 1.20 1.06 0.98 0.89 0.77 0.67 0.60 0.54 0.50

0.75 1.13 1.50 1.88 2.25 3.00 3.75 4.50 5.25 6.00

6,666,661 (5)

(1) Lapsed during the year. (2) The VWAP hurdles relating to the rights were not met by 21 October 2015 and have lapsed. (3) Pre-consolidation value using a Black-Scholes option pricing model. (4) Post consolidation. (5) Cancelled post year- end as detailed in the 31 March 2015 AGM Notice of Meeting.