Axiom Mining 2015 Annual Report

GROUP FINANCIAL REPORT

Independent auditor’s report to the members of Axiom Mining Limited continued

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AXIOM MINING LIMITEDAND CONTROLLED ENTITIES ABN 119 698 770

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AXIOM MINING LIMITED AND CONTROLLED ENTITIES

Auditor’s Opinion In our opinion: a. the financial report of Axiom Mining Limited is in accordance with the Corporations Act 2001 including: i. giving a true and fair view of the consolidated entity’s financial position as at 30 September 2015 and of its performance for the year ended on that date; and ii. complying with Australian Accounting Standards and the Corporations Regulations 2001; and b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. (i) We draw attention to Note 2 (b) in the financial report which indicates that the consolidated entity incurred a net loss of $12,460,000 and incurred net cash outflows from operations of $8,494,000 and had no ongoing source of operating income for the year ended 30 September 2015. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report. (ii) We draw attention to Note 11 that discloses the renewal progress of the West Guadacanal tenement license which has not been renewed at the date of this financial report. This condition indicates the existence of a material uncertainty which may cast a significant doubt about the recoverability of capitalised expenditures in relation to the West Guadacanal tenement. Should the license not be successfully renewed, the carrying value of capitalised exploration expenditures relating to the West Guadacanal tenement, amounting to $2,967,491 may be impaired as at 30 September 2015. Report on the Rem u neration Report We have audited the remuneration report included in pages 5 to 9 of the directors’ report for the year ended 30 September 2015. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s Opinion In our opinion the remuneration report of Axiom Mining Limited for the year ended 30 September 2015 complies with Section 300A of the Corporations Act 2001. Emphasis of matter Without modifying our opinion:

AXIOM MINING LIMITED ANNUAL REPORT 2015

Drew Townsend PARTNER 21 December 2015

Hall Chadwick Level 40, 2 Park Street Sydney NSW 2000