Axiom Mining 2015 Annual Report

COMPANY FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

83

1. Corporate information Axiom Mining Limited (the ‘Company’) is a limited liability company incorporated in Hong Kong. The registered office of the Company is located at 2303-7 Dominion Centre, 43-59 Queen’s Road East, Hong Kong, and the principal place of business is located at Level 6, 15 Astor Terrace, Spring Hill QLD 4000. The Company’s shares are listed on the Australian Securities Exchange. The Company is engaged in investment holdings during the year. 2. Basis of presentation Notwithstanding that the Company incurred a net loss of AU$10,390,000 and reported net cash outflows from operating activities of AU$4,359,000 for the year ended 30 September 2015, and the Company has convertible notes with an aggregate principal amount of AU$900,000 as at 30 September 2015, in the opinion of the directors, the Company will have sufficient working capital to finance its operations and to meet its financial obligations as and when they fall due in the foreseeable future after taking into consideration the following: – At 30 September 2015, the Company had cash and cash equivalents of AU$1,170,000. – Subsequent to the reporting period, on 4 November 2015 the Company announced that it had entered into a convertible note facility agreement for up to AU$15,000,000 to project fund the development of the Isabel Nickel Project through a strategic partnership with experienced resource venture capitalist and project incubator InCor Holdings Plc (‘InCoR’). As part of the agreement, Axiom issued one secured convertible note with a face value of AU$5,000,000, convertible to a maximum issue of 13,513,514 fully paid ordinary shares based on a conversion price of AU$0.37 per share. Accordingly, the financial statements have been prepared on the going concern basis.

3. Basis of preparation The financial statements and notes represent those of Axiom Mining Limited (the ‘Company’ or ‘Axiom’). The 2015 consolidated financial statements of Axiom Mining Limited and its subsidiaries (collectively, the ‘Group’) can be found at http://www.axiom-mining. com, which have been prepared in accordance with the Corporations Act 2001 , Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and International Financial Reporting Standards as issued by the International Accounting Standards Board, which can be obtained at its registered office. These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (‘HKFRSs’) (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (‘HKASs’) and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (the ‘HKICPA’), accounting principles generally accepted in Hong Kong and the Hong Kong Companies Ordinance. These financial statements have been prepared under the historical cost convention and presented in Australian dollars (AU$) and all values are rounded to the nearest thousand except where otherwise indicated.

AXIOM MINING LIMITED ANNUAL REPORT 2015