I am not sure if this is a bug or intended but my transmuted exotic axes now have rare stats on them.
The only thing I can think of is that I applied rare sigils to them, (because I was to cheap to buy the more expensive exotic sigils) would this have converted the overall stats to rare?
I would hate to think that I was sloppy enough that when I transmuted them I carried over the rare stats instead of the exotic, but can you do that when applying only the Reaver skin?