Aura Egy Regulatory News (AURA)

26 September 2023

Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company") is pleased to announce that it has released its Audited Financial Report for the year ended 30 June 2023 ("Financial Report").

A full version of the Financial Report can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/7109N_1-2023-9-26.pdf

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

For Further Information, please contact:

Aura Energy Limited

ABN 62 115 927 681

Audited Financial Report

for the year ended 30 June 2023

AURA ENERGY LIMITED

Audited Financial Report - 30 June 2023 TABLE OF CONTENTS

Directors' report 1

Directors and company secretary 1

Principal activities 1

Dividends - Aura Energy Limited 1

Review of operations 1

Material business risks 1

Signicant changes in the state of aairs 3

Events since the end of the nancial year 3

Environmental regulation 3

Information on directors 4

Company secretary 7

Meetings of directors 7

Remuneration report 8

Proceedings on behalf of the company 14

Non-audit services 14

Auditor's independence declaration 14

Shares under option 14

Financial statements 17

Independent auditor's report to the members 52

Your directors present their report on the consolidated entity consisting of Aura Energy Limited and the entities it controlled at the end of, or during, the year ended 30 June 2023. Throughout the report, the consolidated entity is referred to as the Group.

The following persons held oce as directors of Aura Energy Limited during the nancial year:

Mr Philip Mitchell Dr Warren Mundine Mr Bryan Dixon

Mr Patrick Mutz

Mr David Woodall (appointed 17 October 2022)

The following persons held oce as company secretary of Aura Energy Limited during the nancial year:

Mr Phillip Hains

The principal activities of the Group during the nancial year were exploration and evaluation of uranium, vanadium and gold and base metals in Mauritania and Sweden. There was no signicant change in the nature of these activities during the year.

No dividends were declared or paid to members for the year ended 30 June 2023. The directors do not recommend that a

dividend be paid in respect of the nancial year.

The Group's consolidated net loss for the year ended 30 June 2023 after providing for income tax amounted to $6,795,514 (2022: $3,403,791).

The loss for the period is primarily driven by:

• General and administration expenses of $2,808,555 (2022: $1,470,842);

• Employee benets expenses of $913,929 (2022: $505,389);

• Share-based payments of $2,472,578 (2022: $1,187,254), oset by

• Interest income of $62,892 (2022: $1,676)

Included in the result for the nancial year is a loss from disposal group of $674,420 (2022: $275,696).

Cash and cash equivalents at 30 June 2023 was $11,238,716 (2022: $9,950,777). Capitalised exploration and evaluation assets was $27,248,300 (2022: $22,323,176).

Management of the business and the execution of the Board's strategy are subject to a number of key risks and uncertainties, our approach to managing these is detailed below:

Exploration and mining include safety risks from both internal and external factors and require necessary precautions to be put in place to minimise adverse outcomes. The most prominent risk, due to the geological spread of exploration activities,

is associated with the transportation of personnel to and from project sites, particularly the risk of road injuries and fatalities. The Company has in place an OH&S policy that is required to be adhered to at all times by its employees and contractors and will implement additional policies and protocols as activity ramps up, including transportation standards policies, vehicle safety checks and establishing emergency response protocols.

Mineral exploration and development activities are inherently risky. There is a risk that the feasibility study and associated technical work may not achieve the expected results and that a failure to develop and operate projects in accordance with expectations could negatively impact results of operations and the company's nancial position. Risks to the Company's development projects include the ability to acquire and/or obtain appropriate access to property, regulatory approvals, supply chain risks, construction and commissioning risks.

Aura is continuing the FEED (Front End Engineering Design) studies for the Tiris Development Project, including optimisation strategies and incorporating outcomes from the Enhanced Feasibility Study released in the March 2023 Quarter. These studies aim to enhance the recovery of U3O8 within the leaching, ion exchange, and precipitation circuits to optimize the production prole. The FEED work remains on schedule for completion in Q4 2023, with long-lead items already identied to ensure timely delivery for the Tiris Project's construction.

The Group's operations take place amidst varying cultural practices. The evolving expectations of these communities are managed through active community engagement, development and implementation of community relations strategies based on stakeholder concerns and maintaining strong relationships with communities and delivering on its commitments.

The company faces challenges related to new or evolving regulations and standards that are beyond its control. These regulations are often complex and challenging to predict. Opportunities for growth and development may be at risk due to changes to scal or regulatory frameworks, adverse changes in tax or other law, dierences in sustainability standards and practices, or shifts in existing political, judicial, or administrative policies, as well as evolving community expectations.

Aura has a clear policy alongside internal controls and procedures aimed at mitigating risks associated with Anti-Bribery

and Corruption, includes providing training and compliance programs to both employees and contractors. These programs address various risks and associated scenarios, including unauthorised payments or oers of payments involving employees, agents, or distributors, which could potentially violate relevant anti-corruption laws.

The Company operates in foreign jurisdictions, specically in Mauritania and Sweden, where its projects are located. These projects are exposed to various risks, including the potential for unfavourable political and economic changes, uctuations and controls related to foreign currency, civil unrest, political upheavals, or conicts. Furthermore, unforeseen events can curtail or interrupt operations on these properties, restrict capital movement, or lead to increased taxation. The Company remains proactive and closely monitors the political and economic landscapes of the jurisdictions in which it operates.

The Company is developing mineral projects with the intention to produce commodities for sale across a variety of markets. Forecast of supply and demand dynamics and the pricing that may be received for those products is inherently complex and subject to factors outside of the Company's control. There is a risk that factors outside of the Company's control may negatively aect markets. These factors could include geopolitical events, over supply or reduced demand. The Company mitigates this risk through eorts to engage otake contracts to ensure consistency in pricing and through diversication of products.

The Company will require additional funding to bring the Tiris Uranium Project into production and advance the Häggån Polymetallic Project. There is a risk that funding may not be available on acceptable terms for these projects. The Company seeks to mitigate this risk by diversifying potential funding sources between debt, equity and other options. Additional work to derisk technical, social, environmental and permitting will increase the availability of funding options.

In the opinion of the directors there were no signicant changes in the state of aairs of the Group that occurred during the

year.

Subsequent to the end of the nancial year, the Company released the Scoping Study for its Häggån Project in Sweden which conrmed the scale and optionality of the Company's Critical Minerals Project in Sweden. Please refer to the announcement dated 5 September 2023 for more details.

No other matter or circumstance has arisen since 30 June 2023 that has signicantly aected the Group's operations, results or state of aairs, or may do so in future years.

The Group is commencing exploration and evaluation activities in Mauritania and Sweden. Both countries have environmental regulation for the conduct of exploration activities. The Company has complied with these environmental regulations in the conduct of all eld activities.

The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act has no eect on the Company for the current, nor subsequent, nancial year. The directors will reassess this position as and when the need arises.

The following information is current as at the date of this report.

MR PHILIP MITCHELL NON-EXECUTIVE CHAIRMAN

MR WARREN MUNDINE NON-EXECUTIVE DIRECTOR

MR BRYAN DIXON NON-EXECUTIVE DIRECTOR

MR PATRICK MUTZ NON-EXECUTIVE DIRECTOR

MR DAVID WOODALL MANAGING DIRECTOR & CEO

The Company secretary is Mr Ross Kennedy (appointed 12 September 2023).

Ross is a Fellow, Australian Institute of Company Directors, Fellow, Governance Institute of Australia and a Chartered Accountant. He has over 30 year's experience in providing businesses with company secretarial, compliance and general management services.

The numbers of meetings of the Company's board of directors and of each board committee held during the year ended 30 June 2023, and the numbers of meetings attended by each director were:

A = Number of meetings attended

B = Number of meetings held during the time the director held oce or was a member of the Audit & Risk Committee or the Remuneration & Nomination Committee during the year.

The directors present the Aura Energy Limited 2023 remuneration report, outlining key aspects of our remuneration policy and framework, and remuneration awarded this year.

The report is structured as follows:

(a) Key management personnel (KMP) covered in this report

(b) Remuneration policy and link to performance

(c) Remuneration expenses

(d) Link between remuneration and performance

(e) Share-based compensation

(f) Other transactions with KMP

Non-executive and executive directors (see pages 4 to 7 for details about each director) Mr Philip Mitchell, Non-Executive Chairman

Dr Warren Mundine, Non-Executive Director

Mr Bryan Dixon, Non-Executive Director

Mr Patrick Mutz, Non-Executive Director

Mr David Woodall, Managing Director & CEO (appointed 17 October 2022)

Other key management personnel

Dr Will Goodall, Chief Development Ocer

(Acting Chief Executive Ocer from 13 January 2022 to 16 October 2022)

Our remuneration committee is made up of independent non-executive directors. The committee reviews and determines our remuneration policy and structure annually to ensure it remains aligned to business needs, and meets our remuneration principles. In particular, the board aims to ensure that remuneration practices are:

• competitive and reasonable, enabling the Company to attract and retain key talent

• aligned to the Company's strategic and business objectives and the creation of shareholder value

• transparent and easily understood, and

• acceptable to shareholders.

The following table shows details of the remuneration expense recognised for the Group's executive key management personnel for the current and previous nancial year measured in accordance with the requirements of the accounting standards.

The following table shows details of remuneration expenses of each director or other key management personnel recognised

for the year ended 30 June 2023.

Notes

• During the year ended 30 June 2023, the Group engaged Mr Bryan Dixon for consulting services. These services amounted to $30,500.

• Cash bonus includes the amount paid or accrued in the year ended 30 June 2023 in relation to FY 2023 performance.

The following table shows details of remuneration expenses of each director or other key management personnel recognised

for the year ended 30 June 2022.

Notes

• During the year ended 30 June 2022, the Group also engaged Mr Bryan Dixon, Mr Patrick Mutz and Dr Will Goodall for consulting services prior to their appointments as KMP. These services amounted to $2,151, $12,563 and $47,700, respectively.

• On 21 December 2021, the Group issued loan funded shares to Dr Will Goodall as an eligible consultant prior to his appointment as KMP. During the year ended 30 June 2022, $14,297 has been recognised as a share-based payment to Dr Goodall as a consultant.

• Similarly, on 21 December 2021, the Group issued loan funded shares to Mr Peter Reeve as an eligible employee after his resignation as KMP. During the year ended 30 June 2022, $118,725 has been recognised as a share-based payment to Mr Reeve.

(i) Relative proportions of xed vs variable remuneration expense

The following table shows the relative proportions of remuneration that are linked to performance and those that are xed, based on the amounts disclosed as statutory remuneration expense on page 10 above:

Notes

*Mr Peter Ward and Peter Reeve resigned on 21 December 2021

(i) Terms and conditions of the share-based payment arrangements

Options

Aura Energy Limited operates an ownership-based scheme for directors and executives of the Group. In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors and executives may be granted options to purchase parcels of ordinary shares at an exercise price as determined at the time options are granted.

Each option converts into one ordinary share of the Group on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

The number of options granted is approved by shareholders at a previous annual general meeting. The scheme rewards directors and executives against the extent of the Group's and individual's achievement against criteria from the following measures:

• improvement in share price

• improvement in return to shareholders

(i) Terms and conditions of the share-based payment arrangements (continued)

Loan funded securities

Aura Energy Limited operates a loan funded equity scheme for directors, executives and senior consultants of the Group.

In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors,

executives and senior consultants may be granted loan funded securities.

Each loan funded share converts into one ordinary share of the Group on issue. The loan funded shares rank equally with all

other fully paid ordinary shares on issue in the capital of the Group.

The number of loan funded shares granted is approved by shareholders at the annual general meeting of the Group.

For detailed disclosures please refer to Note 8(b).

(ii) Reconciliation of options, performance rights and ordinary shares held by KMP

Option holdings

Notes

1 Balance may include shares held prior to individuals becoming KMP. For individuals who became KMP during the period,

the balance is as at the date they became KMP.

2 Other changes incorporates changes resulting from the issue of options pursuant to rights issue.

3 For former KMP, the balance is as at the date they ceased being KMP.

(ii) Reconciliation of options, performance rights and ordinary shares held by KMP (continued)

Share holdings

Notes

1 .  Balance may include shares held prior to individuals becoming KMP and exclude shares held by individuals who resigned

as KMP in prior year. For individuals who became KMP during the year, the balance is as at the date they became KMP.

2 Other changes incorporates changes resulting from the acquisition or disposal of shares.

3 For former KMP, the balance is as at the date they cease being KMP.

There are no other transactions with key management personnel of Aura Energy Limited

Aura Energy Limited received more than 75% of favourable votes on its remuneration report for the 2022 nancial year.

The Group did not receive any specic feedback at the 2022 annual general meeting or throughout the year on its

remuneration practices.

[This concludes the remuneration report, which has been audited]

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the

Corporations Act 2001.

During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, its

related practices and non-related audit rms:

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 16.

(a) Unissued ordinary shares

Unissued ordinary shares of Aura Energy Limited under option at the date of this report are as follows:

No option holder has any right under the options to participate in any other share issue of the Company or any other entity.

(b) Shares issued on the exercise of options

The following ordinary shares of Aura Energy Limited were issued during and after the year ended 30 June 2023 on the exercise

of options. No amounts are unpaid on any of the shares.

This report is made in accordance with a resolution of directors.

Mr David Woodall

Managing Director & CEO

26 September 2023

AURA ENERGY LIMITED

Audited Financial Report

- 30 June 2023

Consolidated statement of prot or loss and other comprehensive income 18

Consolidated statement of nancial position 19

Consolidated statement of changes in equity 20

Consolidated statement of cash ows (direct method) 22

Notes to the nancial statements 23

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023

The above consolidated statement of prot or loss and other comprehensive income should be read in conjunction with the

accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023

The above consolidated statement of nancial position should be read in conjunction with the accompanying notes.

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR

ENDED 30 JUNE 2023

The above consolidated statement of cash ows should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(A) DESCRIPTION OF SEGMENTS AND PRINCIPAL ACTIVITIES

The Group operates predominately in the mining industry. This comprises exploration and evaluation of uranium projects.

Inter-segment transactions are priced at cost to the consolidated Group.

The Group has identied its operating segments based on the internal reports that are provided to the board of directors on a monthly basis. Management has identied the operating segments based on the three principal project - uranium, vanadium and gold and base metals. The Group also maintains a corporate function primarily responsible for overall management of the operating segments, raising capital and distributing funds to operating segments.

Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.

Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements. Financial assets including cash and cash equivalents, and investments in nancial assets, are reported in the Treasury segment.

The segment information for the reportable segments for the year ended 30 June 2023 is as follows:

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

1 SEGMENT INFORMATION (CONTINUED)

(B) FINANCIAL BREAKDOWN (CONTINUED)

The segment information for the reportable segments for the year ended 30 June 2022 is as follows: