Over the past 12 months AXG Mining Limited (AXC) has endured a period of frustration and consolidation but continues to actively review opportunities in a number of sectors.

The Company is mindful of the difficult prevailing economic conditions and has prioritised its expenditures on optimising the value of the Turkmenistan project. Given this focus, non essential tenements in the Central Wheatbelt of Western Australia and the Murchison region were disposed of .

The Company has begun discussions concerning its future retention of its remaining tenements and has received indicatively favourable expressions of interest from a number of parties. The Company will now begin discussions with its joint venture partner to determine the agreeable future of these tenements and of those stand alone tenements. This search for an ultimate decision is becoming elongated in tenure and the directors are endeavouring to expedite this decision.

Your board is and continues to be conscious of market conditions and the need for small companies to remain frugal and flexible.

To this end your Company continues to reduce or defer costs at any opportunity and will continue to look for advanced opportunities that hold a lower risk profile for your Company.