AXMIN Announces Granting of the Mining Licence at Passendro Gold Project, CAR

TORONTO, ONTARIO -- (Marketwire) -- 08/09/10 -- AXMIN Inc. ('the Company') (TSX VENTURE: AXM) is pleased to announce that the President of the Central African Republic ('CAR') has signed a Decree that awards a Mining Licence for the Passendro Gold Project, located within the Bambari permit area.

Highlights

-   25 year Mining Licence
-   Mining title covers the complete area of mineralisation set out in the
    Feasibility Study
-   New 3 year renewable Exclusive Exploration Licences issued over the
    remaining areas of the Bambari 1 and 2 permits not covered in the Mining
    Licence
-   Area covered by the new Exclusive Exploration Licences increased by
    additional 270 sq km
-   Fiscal provisions of the 2006 Mining Convention remain intact
-   The State receives a signature bonus of US$11 million payable in three
    tranches
-   In lieu of any project free-carried interest, the State will be issued
    26 million common shares of AXMIN and 20 million common share purchase
    warrants with an exercise price of US$0.30 and a five year term
-   Revalidation of the BFS will commence shortly

President and CEO, Mr. George Roach, comments, 'Now that the Mining Licence is in hand, I am delighted to inform our shareholders that we can proceed with the development of the Passendro Gold Project. This represents another positive step forward towards commercial production from CAR's first modern gold mining operation. We are appreciative of the support we have received during the current permitting negotiations and look forward to working with the Government and the people of CAR to build the Passendro Gold mine. Our team is in place and we will begin revalidation of the current Feasibility Study immediately, and we expect that the project will be that much more robust once it reflects the positive changes in the gold price and increases in reserves at Passendro.'

Lieutenant Colonel Sylvain Ndoutingai, Minister of State to the Mines, Energy and Hydraulics for CAR ('Minister for the Mines') comments: 'The signing of the Mining Convention and Permit is an important milestone in the Country's policy to open its doors to international investment, in an effort to further develop CAR's vast mineral wealth. We are very pleased with the negotiated terms of the Mining Convention which ensures that the people of CAR benefit greatly for many years to come from the development of the Country's first modern gold mine.'

The Minister for the Mines of CAR has, after detailed negotiations, agreed to the granting of a 25 year Mining Licence whereby, having satisfied all necessary requirements under CAR Law, the Company is entitled to mine gold in the production area of 355 sq km identified in the Feasibility Study and contained within the Bambari 1 and 2 permits (approximately 1,000 sq km area). The 25 year renewable Mining Licence became effective on August 7, 2010 and is held through the Company's wholly owned subsidiary La Societe des Mines d'Or de la Ouaka (SOMIO Toungou). Salient terms of the Licences include a signature bonus paid to the State in three tranches, US$5 million on issuance of the Decree, US$3 million on April 30, 2011 and US$3 million on April 30, 2012. In addition, the State will receive 26 million common shares of AXMIN and 20 million common share purchase warrants exercisable at a price of US$0.30 per share valid for a period of five years. The positive tax considerations detailed in the 2006 Mining Convention will remain unchanged; as will the State's receipt of a 2.25% royalty on gold sales.

As per the terms of the Addendum to the Mining Convention, AXMIN is asked to commence production in 24 months but has a contractual right to obtain exemptions for a maximum period of 6 years. An exemption is always granted where it is requested on the basis of a duly justified and recorded necessary delay to the construction of the mine. AXMIN will undertake not to sell or dispose of the tenements or sell or transfer its shares in its subsidiaries that hold the licences before commencement of production without prior consent from the Government acting reasonably. As well, AXMIN will liaise with the Government in event of a change of control of AXMIN.

Completion of the transactions is subject to the approval of the TSX Venture Exchange. Any securities issued will be subject to a hold period of 4 months and a day from the date of issuance.

Passendro Gold Project Details

The positive results of the Feasibility Study at Passendro were announced in April 2008 (see press release April 2, 2008) and detailed a project with robust economics based on an average annual production of 203,000 ounces with an average cash cost of US$379/oz which gives an IRR of 29.4% and a NPV at a 5% discount of US$164 million. Subsequently in March 2009 (see press release March 17, 2009), the Company considered a Reduced Mining Scenario based on a production profile of 100,000 ounces per year. This scenario demonstrates that the project remains robust with a 35% reduction in capital costs, payback remains just over two years and almost doubles the mine life while maintaining an attractive NPV (5% discount) and an IRR of US$135 million and 26.6% respectively. Both studies were based on a US$750/oz gold price and a reserve of 1.3 and 1.2 million ounces (16.8 Mt at 2.4 g/t Au and 15.6 Mt at 2.42 g/t) respectively. Since that time, gold prices have increased significantly. As well, in June 2009 (see press release June 18, 2009) AXMIN announced an increase in resources; most significantly, a 30% increase in Measured and Indicated ounces which coupled with an additional near surface low grade resource at Main Zone is expected to have the potential to significantly reduce stripping ratios.

Both studies were undertaken by independent engineering company SENET (Pty) Ltd of South Africa ('SENET'), and incorporated a section on mining completed by SRK Consulting (UK) Ltd. ('SRK') and both utilised the mineral resource that was previously reported (press release March 27, 2008) in accordance with National Instrument 43-101 Standards for Disclosure for Mineral Projects. This press release has been reviewed by in-house qualified person Richard Quarmby, Pr Eng, MBA, MSAIChE.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone, Senegal and Zambia. For more information regarding AXMIN visit our website at www.axmininc.com.

This press release includes certain 'Forward-Looking Statements.' All statements, other than statements of historical fact, included herein, including without limitation, statements regarding future plans and objectives of AXMIN, statements regarding the ability to develop and achieve production at Passendro, to revalidate the BFS and to satisfy the terms of the Mining Licence as negotiated, are forward-looking statements that involve various risks and uncertainties.

There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from AXMIN's expectations are disclosed under the heading 'Risk Factors' and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

AXMIN Inc.

George Roach

President & CEO

+44 779 626 3999


AXMIN Inc.

Judy Webster

Manager Investor Relations

416 368 0993 ext 221
ir@axmininc.com
www.axmininc.com