Aura Egy Regulatory News (AURA)

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AURA ENERGY LIMITED

("Aura" or the "Company")

Half-Year Report for Financial Period Ended 31 December 2019

Aura announces its unaudited interim results for the six months ended 31 December 2019. Aura is an Australian incorporated entity and listed on both the Australian Securities Exchange and the Alternative Investment Market. The Company has a diversified portfolio of assets including its advanced exploration assets comprising the Tiris Uranium project located in Mauritania and the Haggan Battery Metals project located in Sweden. The Company also holds soda ash research permits in Mauritania and has a number of gold tenement applications pending approval in Mauritania.

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.

Dear Shareholder

During the half year ended 31 December 2019, Aura continued to advance its exploration and development projects.

With the Group's key projects being Tiris Uranium Project, the Häggån Vanadium Project and our exploration tenements for gold, base and battery metals, Aura conducted a range of activity in relation to these projects.

Whilst the Company had success from a business building point of view, Aura had a poor equity market response, resulting in a low share price. Whilst Aura conducted significant business during the half year, sustained shareholder activation was a distraction for management, the board and for shareholders alike.

The low resulting share price has drastically increased the cost of equity for Aura, contributing to significant dilution in the company.

Aura's development projects were again active with the key events as follows:

· After Aura secured two highly prospective gold exploration licenses near the massive Kinross Tasiast project, the Company signed a deal on additional on-strike tenements to expand its potential in the region

· Aura announced the completion of its Tiris Uranium Project Definitive Feasibility Study. The project has strong financial metrics and supports our ongoing position that "Tiris remains one of the most compelling uranium development projects in the world"

· Following definition of the Häggån Vanadium Project high grade zone Aura pursued the drill out to a Measured and Indicated Resource which was completed in August 2019

· Aura appointed SP Angel as its new AIM Nomad for its London listing

· Following the appointment of our London-based advisors to obtain low-cost Export Credit Finance support for both Tiris and Häggån, Aura received a strong initial response and has continued that process

· The Company conducted reinterpretation of the gold and base metal properties at its Tasiast South Project with positive response

· Aura achieved leach test results for Häggån Vanadium as part of the Häggån Vanadium Scoping Study test work and these materially enhanced the project metrics

· The Häggån Vanadium Scoping Study was completed in September with the study release the subject of ongoing discussions with the ASX

Aura continues to press for the release of the Häggån Project Study as soon as possible. This remains an important step for the Company's most valuable project and its ambition to pursue battery manufacturing initiatives with that project.

Following the Company's re-evaluation of Aura's gold prospects, the Company deems these projects to be a key asset and discussions continue with multiple parties on advancing these prospects.

The Company continues to seek more optimum corporate structures for both the Häggån Vanadium Project and the gold tenements to place both on a stronger independent funding footing, whether that be in an IPO, reverse takeover or corporate transaction.

Aura will continue to pride itself on real advancement of the projects it has already discovered in-house and this has been achieved with the excellent technical team it has assembled over the years.

Yours sincerely

PD Reeve

Executive Chairman

12 March 2020

Tiris uranium project

The Group completed the Tiris Definitive Feasibility Study (DFS) and confirmed the Tiris Uranium Project as a low capital cost and low operating cost development opportunity (see ASX Announcement, dated 29 July 2019).

In the current uranium market environment, a key attribute of any new uranium project is the capital cost of development. The objective of the Group through the DFS was to put forward a low capital cost project whilst ensuring a robust development design. With a $US62.9 million capital cost that includes 85% of the capital estimate based on supplier quotations, the Tiris uranium project is the lowest capital cost uranium project amongst a peer group that the Group identified for comparison.

A number of very good in-situ leach projects state low upfront capital, however, these projects require a 'repeat development capital' in their early years which, it could be argued, require disclosure as part of the initial capital in order to support the proposed development capital.

The capital cost is exceptionally important as it signals the do-ability of the project and Tiris' small footprint and low capital cost make it poised for quick development as soon as financing is achieved in an improved pricing environment.

The All-In Sustaining Cash Cost of $US29.81/lb U3O8 is extremely competitive when compared to our uranium development peers. The benefits of shallow mining and the simple beneficiation stage in the process phase lead to lower operating cost.

There is potential for further upside with further exploration likely to expand resources to enable a production rate of 3 million pounds U3O8 per annum. In addition, there is significant potential to recover vanadium and through optimisation of initial mining and processing operations. The Group is also confident that the operating team will be able to improve the project and financial outcomes in the production phase.

Aura is continuing to seek further optimisation of the capital cost, improve elements of the process to reduce operating cost, and to validate the vanadium recovery option. In parallel, the promising start to the Export Credit Agency ("ECA") Finance process will intensify in the coming months as the ECA finance short-list is finalised.

Engineering company Mincore Pty Ltd provided the capital cost estimate for the Tiris uranium project. The capital cost estimate includes the scope of the facilities and services required to design, purchase and construct the entire project, up to practical completion and handover to the operations team.

Table 1

Capital Costs

The capital cost estimate assumes that the Group will enter into a contract mining arrangement. The estimate for infrastructure includes the costs of supporting a contract mining operation with workshops and other facilities. The mine plan has been based on no pre-stripping as the mineralisation at the start of operations outcrops at the surface.

Operating costs include royalties, sustaining capital over the life of the mine, insurances and transportation of final product.

Table 2 sets out the operating costs on an annualised basis.

Table 2

Operating Costs

The Tiris uranium project operating parameters and financial outcomes are set out in the following Tables 3 and 4.

Table 3

Operating Parameters

Table 4

Financial Outcome

During the half-year, the Group commenced a water drilling programme. Prior to the suspension of the water drilling programme, two of the five targets tested reported significant water flows. The water drilling programme is designed to test water targets within a 30-kilometre radius of the proposed plant site for the Tiris uranium project. The Group believes the results achieved prior to the suspension of the programme confirm the long held view that significant water exists within the Oued El Foule depression that was initially discovered in a number of the deeper drill holes undertaken as part of the exploration drilling programme to generate the mineral resource.

As stated above, with limited funding available to the Group during the first-half, the water drilling programme was suspended. In addition, the Group deferred a number of optimisation programmes previously outlined to the market.

From an Export Credit Agency perspective, SD Capital Advisory Limited and GKB Ventures Limited submitted their ECA Finance Report and have recommended to the Group that it commences discussions with two government Export Credit Agencies.

Haggan vanadium project

The Group submitted its Haggan Vanadium Project Scoping Study to the Australian Securities Exchange in September 2019. Following a series of discussions the Group conducted more metallurgical testwork and revised its submission.

The Scoping Study was based on the substantial drilling programme undertaken between November and 2018 and March 2019 which resulted in a new global resource estimate of 2 billion tonnes averaging approximately.3% V2O5, containing 13.3 billion pounds of V2O5 at a cut-off grade of 0.2% V2O5. The global resource included 320 million pounds of Indicated Resource (see ASX Announcements, dated 19 August 2019 and 10 October 2019) and, more importantly, with this Indicated Resources were 42 million tonnes V2O5 at 0.35%, using a 0.2% V2O5 cut-off grade, in a coherent near-surface zone.

Based on recently revised criteria for funding estimates set by the Australian Securities & Investments Commission (ASIC) under its Forward Looking Statement paper (INFO 214), the Group has not been able to release the full economic details from the Scoping Study. ASIC has set a market capitalisation/funding multiple which the Group is too small to meet. The board of directors believes that any announcement that does not disclose the economic outcomes of the Häggån Vanadium Project Scoping Study will not provide important information that shareholders should have.

Notwithstanding the above, the additional metallurgical work that the Group undertook at the request of the ASX to confirm metallurgical results for the recovery of vanadium exceeded the extrapolation estimate from the previous testwork and therefore, enhanced economics of the Häggån Vanadium Project.

The 2019 revised Resource Estimate of the Häggån Vanadium Project is set out in Table 5.

Table 5

Resource Estimate

The Häggån Vanadium Project is a large polymetallic deposit containing significant economically-attractive levels of V (vanadium), Ni (nickel), Zn (zinc), Mo (molybdenum) and other metals. Resource estimates have previously been conducted and reported over a number of years, including 2010, 2011, 2012 and 2018 and again from the recently completed infill-drilling programme.

Tasiast South gold

The Group commenced a limited field work programme during the first half, including field inspections, geological mapping of structures and the review and confirmation of previous drilling data for both gold and nickel-cobalt projects.

The tenements, with a total area of 435 km2,are in a highly prospective area lying on two lightly explored mineralised greenstone belts in Mauritania. The areas lie along strike from the giant +20 million-ounce Tasiast Gold Mine owned by Kinross, where Franco Nevada own a royalty, and also along strike from Tijirit gold deposits owned by Algold.

The Group maintains that these tenements, with the single large Tasiast gold mine along strike, and strong base and battery metal results from limited previous exploration, represent some of the best under-explored greenstone belt targets in the world.

The Group has completed compilation and re-interpretation of data gathered from previous exploration campaigns, which has highlighted the following;

1. Additional gold intersections on the Ghassariat Prospect some 1.5 kms from a previously-defined mineralised section, indicating potential for a large mineralised gold system

2. Existence of a large untested magnetic anomaly on the Bella Prospect interpreted to reflect an unusually large ultramafic complex prospective for nickel and cobalt. This has been tested so far only by a single line of bedrock drilling near its southern margin and this yielded strong nickel and cobalt values

3. This complex within Bella has 5 additional lines of previously proposed drilling across magnetic highs which were not executed by the previous owners

4. Strong, previously unreported, nickel/cobalt/copper values on the Taet permit

5. The Taet intercepts include strong copper values which may indicate the presence of nickel sulphides

Corporate

The Group entered into a factoring arrangement with Lind Global Macro Fund LP to fund research and development expenditure during the first half and repaid the amount borrowed from the rebate received from the Commonwealth of Australia. In addition, the Group entered into a Follow-on Convertible Security Facility Agreement for $350,000 on November 2019. The face value of the facility is $420,000.

During the first half, Lind converted $700,000 of convertible notes issued under the Replacement Convertible Security Facility, approved by shareholders on 19 June 2019, into fully paid ordinary shares. The Replacement Convertible Security Facility was reduced from $2,400,000 to $1,700,000 and this increased to $2,120,000 through the drawdown of the Follow-on Convertible Security Facility Agreement.

The Group also extinguished a number of contractual arrangements for advisors and suppliers by way of the issue of fully paid ordinary shares. In total, the group extinguished outstanding obligations by $373,035 through the issue of fully paid ordinary shares.

The Company has lodged a writ with the Supreme Court of Victoria against Pre-emptive Trading Pty Ltd in relation to an alleged failure of Pre-emptive Trading Pty Ltd to fulfil its obligations under an irrevocable acceptance made pursuant to a Share Placement on 5 February 2019. Mr JL Bennett, now a non-executive director of the Company, is the principal for Pre-emptive Trading Pty Ltd.

The Company has lodged with the Kingdom of Sweden a claim for compensation for the alleged expropriation of its rights to mine and produce uranium concentrate from the tenements held by Vanadis Battery Metals AB, a controlled entity of the Company.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2019

The accompanying notes form part of these financial statements

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

The accompanying notes form part of these financial statements

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2019

The accompanying notes form part of these financial statements

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2019

The accompanying notes form part of the se financial statements

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2019

The accompanying notes form part of these financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2019

NOTE 1. REPORTING ENTITY

Aura Energy Limited (the "Company") is a Company incorporated and the laws and regulations of the Commonwealth of Australia.

The address of the Company's registered office is Level 1, 34-36 Punt Road, Windsor, Victoria, Australia. The consolidated interim financial statements as at and for the six-month period ended 31 December 2019 comprises the Company and its controlled entities (together referred to as the "Group" and individually as "Group entities"). The Group undertakes the exploration for and evaluation of uranium and gold opportunities in Mauritania and Battery Metals in Sweden.

The consolidated annual financial statements of the Group as at and for the year ended 30 June 2019 are available upon request from the Company's registered office or at www.auraenergy.com.

NOTE 2. STATEMENT OF COMPLIANCE

The consolidated interim financial statements have been prepared in accordance with Australian Accounting Standards, AASB 134 Interim Financial Reporting, and the Corporations Act 2001.

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 30 June 2019. The consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated annual financial statements of the Group as at and for the year ended 30 June 2019.

These consolidated interim financial statements were approved by the Board of Directors on 11 March 2019.

NOTE 3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the Group in preparing the condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated annual financial statements as at and for the year ended 30 June 2019.

NOTE 4. ESTIMATES AND JUDGEMENTS

The preparation of the consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the condensed consolidated financial statements as at and for the year ended 30 June 2019.

KEY JUDGEMENT-EXPLORATION AND EVALUATION EXPENDITURE

Exploration and evaluation expenditure is carried forward where right of tenure of the area of interest is current. These expenditures are carried forward in respect of areas that have not, at the reporting date, reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. The carrying value of capitalised exploration and evaluation expenditure at the reporting date is $21,936,812.

For the six-month period to the 31 December 2019, the Group completed an assessment of its tenement assets and recognized an impairment on the relinquishment of a tenement in Sweden of $39,655 (2018: $178,087).

NOTE 5. GOING CONCERN

The consolidated interim financial statements have been prepared on a going concern basis, which envisages the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Group incurred a loss for the year of $1,231,480 (2018: $1,399,044) and a net cash out-flow from operating activities of $1,066,888 (2018: $2,237,557).

As at 31 December 2019, the Group had working capital of negative $675,716 (30 June 2019: $307,547) (excluding financial liabilities and the current portion of the convertible note facility.

The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds by raising capital from equity markets or by other means, and by managing cash flows in line with available funds, and/or the successful development of the Group's exploration assets. These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to continue as a going concern.

Based upon cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate, including the meeting of exploration commitments. Subsequent to the end of the financial period, the company has raised $474,375 from a private placement in January 2020 as detailed in note 17 and the Company is looking to secure for further raising within one to two weeks. In addition, given the Group's history of raising funds to date, the directors are confident of the Group's ability to raise additional funds as and when they are required.

Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due.

The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due.

NOTE 6. NEW AND AMENDED ACCOUNTING STANDARDS ADOPTED BY THE GROUP THAT ARE APPLICABLE TO THE PRESENT HALF-YEAR REPORTING PERIOD

The Group has applied AASB 16 Leases to its lease obligations. Under this new standard, the group is required to recognise all right of use assets and lease liabilities, except for short-term (12 months or fewer) and low value leases, on the balance sheet. The lease liability is initially measured at the present value of future lease payments for the lease term. Where a lease contains an extension option, the lease payments for the extension period will be included in the liability if the Group is reasonably certain that it will exercise the option. The liability includes variable lease payments that depend on an index or rate but excludes other variable lease payments. The right of use asset at initial recognition reflects the lease liability, initial direct costs and any lease payments made before the commencement date of the lease less any lease incentives and, where applicable, provision for dismantling and restoration.

The Group has recognised depreciation of right of use assets and interest on lease liabilities in the statement of comprehensive income over the lease term. Separate the total amount of cash paid into a principal portion (presented within financing activities) and interest portion (which the Group presents in operating activities) in the cash flow statement.

The Group has measured the rights to use as if AASB 16 has applied since the commencement date of the lease arrangements and used the incremental borrowing rate at the date of transition. Under this approach the Group has capitalised the rights to use and recorded the present value of obligations to pay as a liability by applying a single incremental borrowing rate with an adjustment to the opening balance of accumulated losses.

The Group has assessed the financial implications of application of AASB 16 Leases and with fourteen months to the end of the lease, the financial effect was not material.

NOTE 7. OPERATING SEGMENTS

The Group conducts mineral exploration in two geographical segments being Mauritania and Sweden and operates in one industry mineral exploration and mining. Non-reportable segment financial information is reported as Corporate.

NOTE 8. CASH AND CASH EQUIVALENTS

NOTE 9. TRADE AND OTHER RECEIVABLES

Value-added taxes receivable is a generic term for broad-based consumption taxes that the Group is exposed to in the various countries in which it conducts its exploration activities - Australia (goods-and-service tax, Mauritania (value-added tax) and Sweden (value-added taxes).

NOTE 10. OTHER CURRENT ASSETS

NOTE 11. EXPLORATION AND EVALUATION EXPENDITURE

The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the continuation of the Group's right to tenure, future exploration and successful development and commercial exploitation of the respective area of interest or alternatively by their sale.

The Company is in negotiation with the government of Mauritania to secure the renewal of Oum Ferkik tenement which formed part of the Application for an Exploitation Licence on 21 May 2018. The Company has expended $2.6 million on the Oum Ferkik tenement.

NOTE 12. TRADE AND OTHER PAYABLES

Trade and other payables are unsecured and non-interest-bearing obligations of the Company which arise from the business activities. Trade payables and other accruals, with the exception of amounts due to directors of the Company, are settled within the lower of terms or 30 days.

NOTE 13. FINANCIAL LIABILITIES

On 30 April 2019, the Group entered into a Convertible Security Financing Agreement with Lind Global Marco Fund LP for proceeds (before costs) of A$2,000,000. On 19 June 2019, shareholders approved the Replacement Convertible Security Financing Agreement on the same and terms and conditions. The Group entered into a Follow-on Convertible Security Facility Agreement with Lind Global Macro Fund LP on 18 November 2019 for proceeds (before costs) of A$350,000.

The Group has applied AASB 9 Financial Instruments to account for Convertible Security Facility Agreement and therefore, has recorded the amount due on maturity of both convertible note facilities above on a present value basis and recognised the implicit value of conversion rights granted to Lind Global Macro Fund LP.

As a result of the conversion by Lind of $700,000 in convertible notes during the half-year ended 31 December 2019, the Group transferred a proportion of the conversion rights recognised as an other financial liability as equity. The remainder of the conversion rights will be transferred to equity as and when Lind exercises its conversion rights.

Note 14. VENDOR OBLIGATIONS

On 11 June 2019, the Group executed a Binding Term Sheet (see ASX Announcement, dated 11 June 2019) with the shareholders of Nomads Mining Company sarl, an entity incorporated in Mauritania, to acquire a 70% equity interest in Nomads Mining Company sarl and on 26 June 2019 the Group and the shareholders of Nomads Mining Company sarl executed a Farm-in and Joint Venture Agreement. Under the terms and conditions of the above agreement, the Group agreed to the shareholders an entry fee of US$150,000 with US$25,000 payable in cash and the balance in fully paid ordinary shares in the Company. The Entry Fee was payable over 12 months in three equal instalments of US$50,000 on 26 June 2019, US$50,000 on 26 December 2019 and US$50,000 on 26 June 2020.

The Company extinguished its cash obligations of 4 July 2019 and share obligation on 12 July 2019. With limited placement capacity available to the Company under ASX Listing Rule 7.1, the Company sought and received approval from Nomads to extend the due date. The Company has since this time negotiated a Deed of Variation to the Farm-in and Joint Venture Agreement and is awaiting execution by Nomads Mining Company sarl. The revised terms the Company will pay US$30,000 in cash within seven days of execution of the Deed of variation and US$20,000 in cash by no later than 22 April 2020.

Nomads Mining Company sarl is the holder of Exploration Licence 2688 Nderik.

Note 15. BORROWINGS

On 30 April 2019, the Group entered into a convertible note agreement with Lind Global Macro Fund, LLP (see ASX Announcement, dated 30 April 2019). Pursuant to the terms and conditions the Group issued a convertible note with a face value of $2,400,000 to the Investor with proceeds before costs of $2,000,000.

On 19 June 2019, the Company held a general meeting to seek approval for, amongst other resolutions, the issuance of the Replacement Convertible Note to the Investor. All resolutions were passed at the general meeting (see ASX Announcement, dated 20 June 2019).

Under the terms and conditions, Lind Global Macro Fund LP is entitled to convert a maximum of $100,000 of convertible notes each month at 1.6 cents per share or 90% of the average 5 daily VWAPs chosen by Lind from the daily VWAPs for the 20 trading Days immediately prior to the conversion notice date.

The Group also issued Lind 50,000,000 Collateral Shares and 62,500,000 options over ordinary shares. On the Group fulfilling its obligations under the convertible note and repaying the convertible note in full by way of the issue of shares or payment of cash, Lind Global Macro Fund LP will transfer that number of Collateral Shares to the Group for no consideration to or at the direction of the Company; or, subject to the shares trading on ASX on the relevant day and trading for at least 5 trading days prior to payment, pay the Company in immediately available funds an amount equal to the outstanding Collateral Shareholding number multiplied by the Collateralisation Price.

The options over ordinary shares expire 3 years from the date of issue and have an exercise price of 1.6 cents per option over ordinary share.

On 18 November 2019, the Group entered into a Follow-on Convertible Security Facility Agreement with Lind Global macro Fund Ltd (see ASX Announcement, dated 18 November 2019). Under the terms and conditions, the Group secured proceeds before costs of $350,000 for a convertible note with a face value of $420,000. The Group also issued Lind 8,750,000 Collateral Shares and 20,000,000 options over ordinary shares as part of the terms and conditions to secure the additional funding. The terms and conditions governing the Collateral Shares were the same as those issued under the Replacement Convertible Facility Agreement and the options over ordinary shares were issued for three years from the date of issue being 18 November 2019 with an expiry price of 0.754 cents per option over ordinary share. Since balance date, Lind Global Macro Fund LP has converted six tranches of convertible notes into fully paid ordinary shares in Aura Energy Limited. Accordingly, the Replacement Convertible Facility Agreement note has been reduced from $2,400,000 to $1,700,000 whilst the Follow-on Convertible Facility Agreement is $420,000.

The Company has issued 156,349,219 fully paid ordinary shares (see ASX Announcements, dated 12 July 2019, 4 September 2019, 25 September 2019, 27 October 2019, 20 December 2019 and 23 December 2019) on the conversion of $700,000 in convertible notes.

NOTE 16. ISSUED CAPITAL AND RESERVES

(I) MOVEMENT IN SHARES ON ISSUE

The Company has shares on issue of 1,423,940,558 (30 June 2019: 1223,891,343) and paid-up capital of $47,465,963 (30 June 2019: $46,315,150).

All shares on issue are fully paid ordinary shares at no par value.

(II) MOVEMENT IN OPTIONS ON ISSUE

The Company has options over ordinary shares granted on issue of 129,079,588 (30 June 2019: 112,314,862 options over ordinary shares).

The Company has awarded directors and management 50,000,000 performance shares of which 22,500,000 performance shares have been converted into ordinary shares. A further 17,500,000 have vested but remain unconverted into ordinary shares and the remaining 10,000,000 have not vested.

NOTE 17. FINANCIAL INSTRUMENTS

The Group's financial instruments consist of financial assets and liabilities which are measured at amortised cost including trade and other receivables and trade and other payables and convertible notes.

The carrying amount of the financial assets and liabilities included in these condensed consolidated interim financial statements approximate their fair value.

NOTE 18. CONTINGENT LIABILITIES

Global Coal Management plc

On 15 October 2010, the Company and Global Coal Management plc entered into a Share Sale and Purchase Agreement which resulted in the Company acquiring all the shares on issue in GCM Africa Uranium, the entity which held the beneficial interest of GCM in the above- mentioned research permits in Mauritania.

The Company paid GCM US$100,000 on execution of the Share Sale and Purchase Agreement; US$472,183 in cash plus 2,000,000 fully paid ordinary shares in the Company on completion (due diligence); and, US$500,000 on the first anniversary of completion.

The Company also agreed to pay a contingent consideration:

• US$2,000,000 (in cash and shares as determine by the Company) on the delineation of 75 million pounds or more Initial Resource (not defined in the Letter Agreement) under the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves; and

• US$400,000 in cash and 400,000 fully paid ordinary shares in the Company for each Subsequent Resource of 6,500,000 pounds up to a maximum of US$4,000,000 in cash and 4,000,000 in fully paid ordinary shares.

The obligations to make the contingent consideration payments are held by the Company and the contingent consideration is only payable if the Initial Resource and Subsequent Resource are achieved within 10 years of the date of the Share Sale and Purchase Agreement. Accordingly, the obligation to pay the contingent consideration expires on 15 October 2020.

Servico sarl

The Group executed a Letter Option Agreement with Servico sarl on 29 May 2019 over a tenement prospective for gold within the vicinity of tenements held by the Group through its controlled entity Tiris International Mining Company Sarl. Under the terms and conditions of the Letter Option Agreement, the Company agreed to pay service:

• US$25,000 in cash; and

• US$75,000 in fully paid ordinary shares.

on execution of the Letter Option Agreement.

On or prior to each anniversary of the commencement date and for a period of five years Aura must inform Servico whether it wishes to continue to hold its Option or terminate the Option. If the Group elects to continue to hold its Option by way of written notice to Servico on each anniversary date after the commencement it will pay Servico US$25,000, at Aura's election, in either cash or fully paid ordinary shares. (If Aura holds the Option for the duration of the Option Period set out in this Agreement it will make total payments to Servico of US$125,000.) If the Group elects to terminate its Option, it must inform Servico within seven days of its decision and arrange for its legal representative in Mauritania to return to Servico the share transfer book and the Tenement title documents.

On termination of the Option Servico is free to explore and exploit the tenement at its own cost and the rights and obligations of the Group under this Agreement will cease

If the Group elects to exercise its Option and notifies Servico in writing of this decision to exercise the Option:

• Servico must transfer the tenement to a nominated Mauritanian-incorporated entity of the Group within 30-days of the written notice; and

• Aura must pay Servico US$500,000, at Group's election, by way of cash or in fully paid ordinary shares within 30-days of the notice and issue Servico with shares in the nominated Mauritanian incorporated entity equal to 30 per cent of the paid-up capital of the Mauritanian entity.

If mining and treatment are undertaken on the tenement by the joint venture and Aura is a 70% party to the Joint Venture, Servico will be entitled to a royalty equal to US$1,000,000 for every 200,000 ounces of gold produced from mining and treatment of minerals extracted from the tenement (or US$5 per ounce of gold produced from mining and treatment of minerals extracted from the tenement). If mining and treatment are undertaken on the tenement by the joint venture and the Group is a 70% party to the Joint Venture, Servico will be entitled to a one-off payment of US$1,000,000 from the first US$1,000,000 of gold proceeds.

If a party to the joint venture is unable to fund its share of developing of mining and treatment, the non-defaulting parties will have rights to dilute the defaulting venturer.

Geogruppen I Goteburg AB and Met Forages sarl

The Company executed a Drilling Services Agreement with Geogruppen on 14 February 2019 and a Drilling Services Agreement with Met Forages on 8 August 2019. Geogruppen and Met Forages agreed to have drilling invoices settled by way of the issue of fully paid ordinary shares in the Company. The Company agreed to pay the face value of all Swedish Kroner and US dollar invoices submitted by Geogruppen and Met Forages, respectively, and therefore, any difference between the proceeds on sale of its shares and the face value of the invoices will be reimbursed by the Company.

At the date of this annual report, both Geogruppen and Met Forages have not sold any shares issued to each party under their respective Drilling Settlement Agreements.

Nomads Mining Company sarl

On 11 June 2018, the Group executed a Binding Term Sheet (see ASX Announcement, dated 11 June 2019) with the shareholders of Nomads Mining Company sarl, an entity incorporated in Mauritania, to acquire a 70% equity interest in Nomads Mining Company sarl and on 26 June 2019 the Group and the shareholders of Nomads Mining Company sarl executed a Farm-in and Joint Venture Agreement.

Under the terms and conditions of the above agreement, the Group agreed to pay the shareholders of Nomads an entry fee of US$150,000. The first entry fee of US$25,000 in cash and the Australian dollar equivalent of US$25,000 in fully paid ordinary shares was paid on execution of the agreement. The second instalment of the entry fee (US$50,000) is payable, no later than six months after the date of execution and third instalment of the entry fee (US$50,000) by way of either cash or fully paid ordinary is payable no later than twelve months from the date of execution. The second and third instalment fees are conditional on the Group continuing to exploration the ground held by Nomads.

On completion of US$1,000,000 exploration programme (the Farm-in Commitment) on the tenement held by Nomads, the shareholders of Nomads will assign 70% of their uncertificated equity interest in Nomads to the Group. On the Group is assigned the uncertificated equity interest is assigned the shareholders of Nomads, comprising the group and the existing shareholders of Nomads, will form a joint venture with the Group to be appointed manager.

The Group will provide the shareholders of Nomads with a free-carry through to development and a deferred carry following the decision to mine. The deferred carry is repayable with interest out of dividends declared by nomads once in operations.

Tiris International Mining Company sarl

On 25 June 2016, the Group Tiris International Mining Company sari ("TIMCO") and Sid

Ahmed Mohamed Lemine Sidi Reyoug executed the Tasiast South sale and purchase agreement.

On 2 April 2019, TIMCO was granted tenements 2457 (Hadeibet Bellaa) and 2458 (Touerig Taet) by the Ministry of Petroleum Energy and Mines.

Under the terms and conditions of the agreement if the Group proves up an 'Indicated Resource' greater than one million ounces of gold it will be required to pay Sid Ahmed Mohamed US$250,000 and, on commencement of production, Aura is required to pay Sid Ahmed Mohamed US$5/ounce of gold and a 0.4% net sales revenue royalty on other commodities with total royalty payments capped to a maximum of US$5 million.

NOTE 19. SUBSEQUENT EVENTS

The Company has made the following issues of shares following the end of the half-ear 31 December 2019:

• 105,416,667 fully paid ordinary shares were issued to subscribers in Australia and the United Kingdom to a Private Placement on 14 January 2020 at 0.45 cents per share which raised $474,375.

• 11,164,037 fully paid ordinary shares were issued to SD Capital Advisory Limited and GKB Ventures Limited on 10 February in lieu of financial advisory services (1 September 2019 to 31 December 2019) pursuant to a Letter of Engagement, dated 25 January 2019, to assist with the securing funding for the Tiris and Haggan projects from Export Credit Agencies.

• 48,750,000 fully paid ordinary shares to Lind Global Macro Fund LP on conversion of $146,250 in convertible notes on 18 February 2020 at a share price of 0.3 cents per share under the terms and conditions of the Replacement Convertible Security Facility Agreement, dated 19 June 2019, and the Replacement Follow-on Convertible Security Facility Agreement, dated 31 January 2020.

• 7,193,788 fully paid ordinary shares were issued to SD Capital Advisory Limited and GKB Ventures Limited on 4 March 2019 in lieu of financial advisory services (1 January 2020 to 28 February 2020) pursuant to a Letter of Engagement, dated 25 January 2019, to assist with the securing funding for the Tiris and Haggan projects from Export Credit Agencies.

• 50,000,000 fully paid ordinary shares to Lind Global Macro Fund LP on conversion of $200,000 in convertible notes on 9 March 2020 at a share price of 0.3 cents per share under the terms and conditions of the Replacement Convertible Security Facility Agreement, dated 19 June 2019, and the Replacement Follow-on Convertible Security Facility Agreement, dated 31 January 2020.