Aura Egy Regulatory News (AURA)

AURA ENERGY LIMITED

("Aura" or the "Company")

Correction: December Quarterly Report

Following the Australian Stock Exchange comments yesterday, and a further review by an independent competent person the Company's December quarterly report released to the market on 31 January 2018 under RNS number 4366D has been amended as follows:

· The deletion of the word "Metal" in the sixth bullet point.

· The addition of the word "inferred" in the description to figure 3 for both Hippolyte and Agouyame.

· The relocation of the following paragraphs from the description to figure 3 to the end of the announcement "[1] (Refer Aura ASX Announcement 19/07/2011: First Uranium Resource in Mauritania - was an Inferred Resource of 50 million pounds. Note: the Resource Zone names have changed since the 2011 announcement. The Hippolyte Resource was referred to in the 2011 announcement as Oued El Foule Est A-E Project.) Aura is not aware of any new information or data that has materially affected the information in the 2011 announcement and the technical assumptions underpinning that Resource estimate have not materially changed. [2] (Refer Aura ASX Announcement 19/07/2011: First Uranium Resource in Mauritania - an Inferred Resource of 50 million pounds. Note: the Resource Zone names have changed since the 2011 announcement. The Agouyame Resource was referred to in the 2011 announcement as the Tenebdar Project.) Aura is not aware of any new information or data that has materially affected the information in the 2011 announcement and the technical assumptions underpinning that Resource estimate have not materially changed".

· In the second paragraph relating to Tasiast add the phrase "(Refer ASX Announcement dated 28/08/2012 by Drake Resources Limited) No follow-up drilling has yet been conducted on this mineralised zone and Aura is not aware of any new information or data that has materially affected the information in that 2012 announcement"

· In the Tiris Engineering section, clarify the seventh bullet point with the following words "Following the peer review, the Project Design criteria was set at an initial 1.0MTPA ROM ore as the project basis. This Project Design was the capacity outlined in the Reguibat Project Scoping Study. Release Reguibat Scoping Study 14th April 2014".

· In the Haggan Battery Metals Intiative section, paragraph 10, delete the word "will" and replace with the phrase "has the potential to"

· In the Process Update Section add the word "inferred" to the phrase "JORC Resource" in the first paragraph of this section and delete the phrase "option study" and replace with "an internal review of options" in the third paragraph.

 All other details contained in the announcement remain unchanged.

 The full amended announcement is shown below.

To view the December Quarterly Report as a .pdf please visit: http://www.auraenergy.com.au/ 

DECEMBER QUARTERLY REPORT

KEY POINTS:

TIRIS PROJECT (Mauritania)

· Environmental Approval received for Tiris Uranium Project

· Definitive Feasibility Study (DFS) for Tiris continued

· Planning for Resource upgrade undertaken

· Hippolyte South and other tenements granted - high potential

HÄGGÅN BATTERY METALS (Sweden)

· Aura to separately list Häggån Polymetallic asset in new international IPO

· Häggån Battery Metals will fully exploit large multi-metal resource

· Vanadium price has increased 146%% since June 2017 - currently 12.80/lb V2O5

· Vanadium is a key project focus as the Häggån deposit value is predominantly in vanadium

· Other Battery Metals and base metals of cobalt, copper, uranium, molybdenum, nickel, zinc and neodymium also to be a focus

· IPO is expected to realise significant value accretion to Aura

· Häggån tenement extension granted for 5 years

TASIAST SOUTH GOLD PROJECT (Mauritania)

· Grant of gold and base metal tenements remained outstanding at quarter end

· Government has advised the tenement will be granted soon

CORPORATE

· Aura raised $1.1 million in a placement

QuarterLY OVERVIEW

Aura continued to progress the Tiris DFS during the quarter but also resolved to pursue an IPO and separate listing of the vast Häggån Polymetallic which contains significant quantities of Battery Metals including vanadium, cobalt and nickel.

Whilst the uranium price has shown modest recovery following large producer cut-backs, the Tiris Uranium Project remains Aura's best near-term cashflow project with C1 cash costs of US$19.40/lb U₃O₈; below both spot and long-term contract prices.

The key milestone for the development of the Tiris Project, the Environmental Approval Permit, was received in the quarter with the strong consultative support of the Mauritanian Government. This is a significant step within the Tiris DFS.

A key diversification for Aura is its gold and base metals strategy in Mauritania which the company believes are exceptional prospects. The company continues to discuss the delayed tenement grant with the government who has advised Aura its tenement applications will be granted soon.

Häggån Battery Metals, which evolved from Aura's desire to maximise the output of the vast polymetallic resource, will now be listed as a separate vehicle to ensure dedicated management, funding and technical drive to ensure that outcome. The rapid development of the battery sector and Häggån's significant vanadium content have created significant opportunities for Aura.

With the recent significant price increases for vanadium and other Battery Metals, the proposed separate IPO of the Häggån deposit could result in significant value attribution to Aura Energy.

Aura conducted a small capital raising of $1.1 million dollars during the quarter.

Tiris Project, MAURITANIA (Aura 100%)

Tiris Project Overview

Aura is conducting a Feasibility Study on its 100% owned 49-million-pound U₃O₈ calcrete uranium project in Mauritania (See Figure 1). The project has low operating costs and low development capital with strong financial returns under long-term pricing scenarios.

Tiris Project Definitive Feasibility Study

During the quarter, Aura was granted environmental approval for the Tiris Project with the approval by the Mauritanian Government of the Environmental and Social Impact Assessment (ESIA). Aura's maintains this is the key approval for any uranium project and thus a key project milestone achievement.

Combined with the recent reduction of the operating cost to US$19.40/lb U₃O₈ via optimisation of reagent usage, this approval positions Tiris well for development particularly in light of the recent improvement in spot and contract prices.

TO VIEW THE FULL QUARTERLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:

http://www.auraenergy.com.au/announcements-2018.html

Figure 1: Location of Aura's Tiris Project Uranium Resources 

Geology and Resource Upgrade Program

An extensive drilling program was completed during the quarter. The objective was to upgrade a further +5 million lbs U3O8 from Indicated to Indicated/Measured status compliant with JORC reporting standards.

In total, 8,200 metres were drilled in 1428 air-core holes and 59 large diameter diamond drill holes in 8 resource zones. Holes were drilled for the most part on a 50m x 50m pattern, and three squares of close spaced (12.5m x 12.5m) holes were drilled to define short range variability (See Figure 2).

All holes were radiometrically logged by geophysical consultants. All diamond drill core was transported to Nouakchott for density determinations, geological logging, core cutting and sampling, and chemical assaying in Ireland in order to validate the downhole radiometric logging results.

150 samples were sent to either ANSTO (Australian Nuclear Science & Technology Organisation) or to Actlabs in Canada for radioactivity equilibrium studies.

A new resource estimate based on these results will be carried out during the first quarter 2018.

TO VIEW THE FULL QUARTERLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:

http://www.auraenergy.com.au/announcements-2018.html

Figure 2. Location of 2017drilling. 2017 drillholes shown in red.

Water drilling

The water drilling program commenced in the preceding quarter was terminated due to excessively slow progress due to equipment problems encountered by the contractor and a different contractor will be engaged.

New Exploration Permits

Two new exploration permits, Hippolyte South and Agouyame, were approved for grant to Aura by the Council of Ministers in December 2017. Both permits contain significant uranium mineralisation.

The Hippolyte South permit covers 224 km2 and adjoins to the south Aura's Hippolyte resources. The permit contains strong radiometric anomalies of similar size and strength to those associated with the Hippolyte resources (See Figure 3).

An initial drill program comprising 139 aircore holes was drilled to test the strongest portions of these radiometric anomalies during the quarter. The results will be incorporated in the revised Tiris Resource Estimate to be completed during the first quarter 2018.

TO VIEW THE FULL QUARTERLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:

http://www.auraenergy.com.au/announcements-2018.html

Figure 3. Airborne uranium channel radiometrics showing Aura's new Hippolyte South permit in relation to the Hippolyte Inferred Resources.[1]

The second permit, Agouyame, covers a strong radiometric anomaly, on which an inferred resource of 1.2 million lbs U3O8 has previously been delineated.[2] . 

TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)

Aura holds applications for 3 exploration permits covering 600 km2 in the Tasiast area. Grant of these permits has been slower than expected. Programs of RC and air-core drilling and ground geophysics to test already defined targets and to define additional targets are ready to commence when the permits are granted.

The permit areas cover several greenstone belts which contain gold mineralisation along strike, including the +20 million oz Tasiast deposit and the Tijirit gold deposits currently being actively drilled (See Figure 4). The areas have been evaluated by only one previous explorer who identified a number of gold mineralised zones, including the Ghassariat Zone where an intersection of 71m of 0.3 g/t gold, including 5m of 1.2 g/t & 3m of 1.0 g/t were obtained in an RC drill hole. (Refer ASX Announcement dated 28/08/2012 by Drake Resources Limited) No follow-up drilling has yet been conducted on this mineralised zone and Aura is not aware of any new information or data that has materially affected the information in that 2012 announcement

TO VIEW THE FULL QUARTERLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:

http://www.auraenergy.com.au/announcements-2018.html

Figure 4. Location of Aura's Gold application areas in relation to known mineralisation.

Tiris Metallurgy

The independent review identified several opportunities for improvements in the process circuit to improve robustness and allow greater flexibility for the remote location. One of the key findings was that decoupling the beneficiation circuit from the leaching circuit would provide the flexibility to operate the beneficiation as a mobile circuit closer to the mining area. This presents significant benefits in reducing trucking requirements.

The updated process flowsheet has been presented below.

Over the remaining course of the Tiris DFS, test work will be conducted to further define the geometallurgical domains and better understand variability in the mineralisation. This will allow continued optimisation of process parameters, process equipment, consumables and further scope for review of the operating and capital cost estimates.

Tiris Project Engineering

The Definitive Feasibility Study (DFS) for the Tiris Uranium Project continues to progress. However, as some elements of the Tiris DFS will be priced later in 2018 following the site test work planned for March, the DFS completion has necessarily been delayed to Q3 2018.

Engineering progress on Tiris to the end of the reporting period included;

· Commissioned an extra option review for a desktop study, budget and 3D CAD model for a surge tank prior to leaching, replacing the 24 hour ROM stockpile. (See Figure 5).

· Obtained revised pricing, drawings and power loads for U3O8 equipment based on 1.5 Mlbs/annum throughput.

· Obtained container and bulk load handling and storage costs for construction transport from Nouadhibou to Zouerate.

· Obtained competitive bids from major Mauritanian construction companies for hourly labour and equipment hire rates, concrete and steel pricing for input into capital estimate.

· Obtained formal quotes from mining consultants based on Aura's scope of work, to optimise process plant location, mine output and mining fleet.

· A metallurgical peer review was held on 23/24th November on the Tiris process testing program and scope of work.

· Following the peer review, the Project Design criteria was set at an initial 1.0MTPA ROM ore as the project basis. This Project Design was the capacity outlined in the Reguibat Project Scoping Study. Release Reguibat Scoping Study 14th April 2014.

· Aura prepared a cost estimate for a trailer mounted system of rotary drum scrubbing, Derrick screening and pressure filtration. This option was to allow on site pilot testing of the key 75 micron separation.

· In mid-December Aura reviewed the optimum central location for the processing plant, based on reducing trucking costs from the uranium deposits residing in the four widely spread resource zones. The conclusion was to have the front end of the plant (attrition/screening/pumping) transportable and located adjacent to the operating open pit. The slurry would then be pumped up to 20km through a HDPE slurry pipeline, to the permanent centrally located leaching and U3O8 drumming plant. Engineering provided approximate pricing for the additional equipment required. 

TO VIEW THE FULL QUARTERLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:

http://www.auraenergy.com.au/announcements-2018.html

Figure 5. 3D CAD view of scrubber feed area with surge tank prior to leaching as 24hr buffer - stockpile now superfluous.

HÄGGÅN BATTERY METALS, SWEDEN (AURA 100%)

Häggån Battery Metals Initiative

Aura has previously announced it was reviewing options for the Häggån Project given the large aggregate content of Battery Metals including vanadium, molybdenum, cobalt, neodymium, nickel and zinc. Most of these metals have not been fully considered in the previous technical studies.

Metal prices rises over the past 2 years, including 400% for vanadium and 300% for cobalt, have significantly altered the aggregate metal value, and value-mix, of the Häggån deposit. These changes are the key drivers to this reassessment of Häggån.

Aura has always considered Häggån to be the company's most valuable long-term asset and the significant recent price rise in Battery Metals has transformed Häggån's current value proposition. Häggån now has potential to be one of the world's largest sources of Battery Metals and the Company believes a separate listing in this environment has the potential to generate substantial value for shareholders.

Listing Häggån separately with a focussed Swedish management team and the resources to independently finance and propel the project with the new impetus of the growth in Battery Metals will drive development of this substantial multi-commodity project."

The Häggån Polymetallic Project was the subject of a Scoping Study in August 2012 with very favourable technical and financial outcomes however that study did not consider;

· Vanadium recovery

· Cobalt recovery

· Neodymium recovery

· Optimisation and improvement of the by-product base metal recoveries or

· Downstream processing of Battery Metals as integrated manufacturing industries

Aura believes the recent changes in the value of various elements in the Häggån metal content, given the significant changes in the price of the battery related metals, can now drive a new development focus for the project. Additionally, Aura will explore the potential for the new vehicle to create downstream businesses in the battery manufacture sector which will also enhance the prospects for regional employment in central Sweden.

Häggån contains globally significant quantities of vanadium and has the potential to be one of the world's largest sources of vanadium production. .

Given the current growth of vanadium usage and the importance of Redox-Flow battery technology to grid power storage, Aura sees the potential for substantial project upside in the detailed re-evaluation of this element of the Häggån Project.

The Häggån asset is held by Aura Energy in a separate Swedish entity and as such the process to achieve a separate listing is not expected to experience many hurdles. Aura will initially maintain a substantial ownership of the new vehicle but will consider further third-party investments or sell-downs as satisfactory value accrues in the vehicle.

Aura will also entertain, and seek, strategic investors into the new vehicle who operate within aligned Battery Metal industries. This would assist in transforming Häggån into a corporate entity which can take advantage of the Green Metals revolution currently underway globally, which Aura believes will continue for many years to come.

The role of vanadium Redox-Flow batteries has the potential to transform the use of renewable energy in large scale grid applications with their ability for long term energy storage. Aura has the potential to be a key player in this area and Europe is particularly well positioned to embrace this battery technology.

Aura has commenced early stage planning for the separate listing of Häggån and key steps in this process are;

· Commence an immediate corporatisation of the Häggån asset

· Commence search for new management team

· Rename the Häggån Battery Metals vehicle

· Sell down 20-30% of the new entity

· List it separately on the London or Toronto stock exchange as primary exchange

· Secondary listing on Sweden's Stock exchange

Aura hopes to complete the process as quickly as possible and has set a conceptual timetable of completing the process during the course of 2018.

Process development update

Aura Energy's focus on development of 'green' and 'battery group' metals at the Häggån polymetallic deposit in Sweden resulted in Aura Energy defining the terms of reference for the Häggån polymetallic Project Option Study. These were defined to focus on assessment of development options, within the existing defined JORC Inferred Resource, for vanadium recovery and improved efficiency for green and battery metal recovery.

Häggån represents one of the world's largest undeveloped vanadium resources with significant value in nickel, zinc, copper and cobalt, in addition to the previously defined uranium value.

Scoping level test work for the Häggån bacterial heap leach process did not place an emphasis on optimisation of vanadium or base metal recovery and only preliminary sighter test work has been undertaken to examine supporting processes for vanadium recovery. Aura has now commenced an internal review of options to explore opportunities to improve recoveries of base metals in the bacterial heap leach process and to assess process options for efficient recovery of vanadium. The scope of the Option Study includes:

· Review of scoping test work to focus on identification of opportunities for process improvement for vanadium, nickel, zinc, copper and cobalt recovery.

· Opportunity assessment of alternative processing options.

· Assessment of integrated solutions to produce value added metal products.

· Supporting test work for identified options.

The potential for base metal streaming transactions from this deposit to aid the development is under review, to reposition future development focussed on the benefits of base metal production from Häggån. This approach allows a broader appeal of the project in Sweden, with strong industrial spin-off benefits for the local community such as local manufacturing and valued added metal work industries.

The vanadium market continued to experience robust growth during the quarter, demonstrating confidence in the metal as an alternative option for grid scale energy storage. 

[1] (Refer Aura ASX Announcement 19/07/2011: First Uranium Resource in Mauritania - was an Inferred Resource of 50 million pounds. Note: the Resource Zone names have changed since the 2011 announcement. The Hippolyte Resource was referred to in the 2011 announcement as Oued El Foule Est A-E Project.) Aura is not aware of any new information or data that has materially affected the information in the 2011 announcement and the technical assumptions underpinning that Resource estimate have not materially changed.

[2] (Refer Aura ASX Announcement 19/07/2011: First Uranium Resource in Mauritania - an Inferred Resource of 50 million pounds. Note: the Resource Zone names have changed since the 2011 announcement. The Agouyame Resource was referred to in the 2011 announcement as the Tenebdar Project.) Aura is not aware of any new information or data that has materially affected the information in the 2011 announcement and the technical assumptions underpinning that Resource estimate have not materially changed.

For more information please visit www.auraenergy.com.au or contact the following:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.