Can be found to the far west of the camp at the end of the dock. The axe can save you hunting both keys as you can break down doors with it. It can also be used on the wooden flare box in Cabin A and to smash the glass that houses the Flare Gun outside the water closet. If you go inside the water closet, you can also use it to chop through the cubicle door. Oh, one more, you can also use it to cut the rope mooring the boat.