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Feb 01, 2006

Axmin enters into key agreement with the state of the central african republic

Toronto, Ontario – Feb 01, 2006, AXMIN Inc. (AXM-TSX Venture) is pleased to announce that Aurafrique SARL, a wholly owned group company, has entered into a Mining Convention with the State of the Central African Republic covering exploration, development and mining activities on the Company’s Bambari Permits, which cover an area of 2,000 square kilometres of Archaean greenstone belt.

The Mining Convention is valid for a period of 25 years, extendable by mutual consent. The key terms include:

· a 2.25% royalty on the proceeds from the sale of gold

· a 10% free carried interest for the State with an option to acquire an additional participating interest of 10% at market value

· exemption from:
- taxes (including value added tax ("VAT")) and duties on fuel used in the mining operations
- VAT on imported capital equipment, consumables and any mining contract
- duties on imported capital equipment and consumables during the development phase and for a period of 5 years thereafter

· exoneration from withholding tax on dividends, capital repayments and interest

· a five year tax holiday from the date of first commercial production, following which the corporate tax rate will be 30%

These terms compare favourably with other jurisdictions in Africa and underline the government’s commitment to facilitate its national development.

Chief Executive Officer, Dr Jonathan Forster comments "The signing of the Mining Convention marks a historic moment for both parties and will act as a catalyst in the development of a new mining industry in the Central African Republic. On behalf of everyone at AXMIN and Aurafrique, I should like to thank the State’s Commission established to oversee the drafting and negotiation of the Mining Convention for their dedication and diligence, and the smooth running of the process that culminated in the signing of the Convention. With the fiscal and legal framework now set we can continue to fast-track feasibility studies, confident of the development environment."

Work is ongoing on the Bambari Permits with the Passendro Gold Project being the focus of the Company’s current development opportunity. The most recent resource update, July 2005, delineated a mineral resource at the Passendro Project comprising an indicated resource of 1.072 million ounces (13.2 Mt grading 2.5 g/t Au) and an inferred resource of 1.109 million ounces (19.3 Mt grading 1.8 g/t Au). The ongoing drilling program is focusing on both the systematic upgrade and extension of resources at Passendro, as well as new exploration within the core area and on the adjacent Ndassima target area. The results of a pre-feasibility study, which is evaluating both carbon-in-leach and heap leach processing options at a target rate of 150,000 ounces per annum, will be announced shortly. The Company is looking towards commencing development in 2007.

AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa. As at the date of this press release AXMIN has 159.9 million common shares on issue (174.6 million fully diluted).

For more information regarding AXMIN visit our website at www.axmininc.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

For additional information please contact AXMIN Inc.:


Jon Forster

Judith Webster

Chief Executive Officer

Manager – Investor Relations



Tel: +44 (0)1233 665600 (UK)

Tel: +1 416 368 0993 (Canada)

Fax: +44 (0)1233 643728 (UK)

E-mail: ir@axmininc.com