The first step towards production has already been taken with an agreement in place that will see AXMIN advancing towards a pre-feasibility study on resources in Burkina Faso, with  potential for fast track towards production. In the Central African Republic, we continue to be very excited about the potential of the Bambari Permit to host multi-million ounce gold deposits, as well as the opportunities to discover other minerals as witnessed by the high quality Topa Iron Ore discovery. With the Bambari Permit once again wholly owned, we are  optimistic that the substantial reconnaissance drilling program planned for the 2002 dry season on the Passendro prospect will identify new gold zones which together with the discoveries already made at Main Zone and French Camp will form the focus of a systematic follow up resource drilling program later in the year.  With three other major gold prospects already identified on the Permit and many other highly prospective areas awaiting initial exploration we believe that the Bambari Permit has all the hall- marks of becoming a world class gold district. The first drill program of the 2002 year in Mali has had an auspicious start with three gold  discoveries on the Kofi Project. Once the data is fully evaluated, we anticipate that the first resource statement emanating from an AXMIN discovery will be announced. The Kofi Project still has many targets yet to be drilled, and we are confident that the resource base will grow  significantly with time. Moreover, with two other companies completing feasibility studies on nearby projects in the Kofi district, the opportunity may well occur for AXMIN to be able to consider either stand alone or joint development scenarios for any gold resources identified. In summary, we are delighted with the start made to the “new” AXMIN and look forward to maintaining the momentum through the coming year as we strive to grow the Company and make major discoveries in Africa. As mentioned above, in a more recent  development AXMIN has reached agreement with Channel Resources Ltd. over the Bouroum Permit in Burkina Faso. This project has resources outlined and represents an opportuni- ty that could lead to the Company having its first production project. Under the terms of the  agreement, AXMIN can over time fully acquire the Bouroum Permit. The resources at Bouroum are sufficiently advanced that if the pre-feasibility study is positive then it should be possible to fast track the development through feasibility  to production. Cash flow from our own projects remains part  of our focus. This is exemplified by the discovery of a small high grade lens of gold ore at the Cape Three Point Licence in Ghana which has  the potential for one-off sale or joint venture to existing producers in Ghana.  “Signed” “Signed” May 15, 2002 2 Philip Adeane Chairman of the Board and Director Jonathan Forster Chief Executive  Officer and Director