Aura Egy Regulatory News (AURA)

19 October 2021

Loyalty Options Entitlement Offer

KEY POINTS:

· As announced on 1 April 2021, Aura Energy will offer a non-renounceable pro-rata offer to eligible shareholders of one (1) listed option for every three (3) ordinary shares held following the recent reinstatement of its securities to the Official List of the ASX.

· This offer will only be available to Australian and New Zealand registered shareholders.

· Stage 2 exploration continues at Tiris, with the results from the opportunity review, vanadium assaying, water drilling and net zero emission study to be announced during this quarter.

Aura Energy Limited (AEE:ASX, AIM:AURA) ("Aura", the "Company") is pleased to announce a non-renounceable pro-rata offer to Eligible Shareholders of one (1) Listed Option (exercisable at $0.052 each and with an expiry of 30 June 2024) ("Listed Option") for every three (3) Shares held on the Record Date of 22 October 2021, at an issue price of $0.015 to raise up to $2,030,399 before costs ("Entitlement Offer").

This Entitlement Offer was foreshadowed in conjunction with the successful rights issue announced on 1 April 2021, and is fully underwritten by KTM Capital. The funds raised through the Entitlement Offer will be used for exploration, mining working capital and production commencement.

As previously advised, this offer is only available to Australian and New Zealand registered shareholders. Full details of the Entitlement Offer are contained in the Prospectus and associated shareholder letters which can be seen here:

Prospectus - http://www.rns-pdf.londonstockexchange.com/rns/4991P_1-2021-10-19.pdf

Full RNS - http://www.rns-pdf.londonstockexchange.com/rns/4991P_2-2021-10-19.pdf

Eligible shareholders letter - http://www.rns-pdf.londonstockexchange.com/rns/4991P_3-2021-10-19.pdf

Ineligble shareholders letter - http://www.rns-pdf.londonstockexchange.com/rns/4991P_4-2021-10-19.pdf

Option holders letter - http://www.rns-pdf.londonstockexchange.com/rns/4991P_5-2021-10-19.pdf

Appendix 3B - http://www.rns-pdf.londonstockexchange.com/rns/4991P_6-2021-10-19.pdf

Aura Energy Managing Director & CEO, Peter Reeve, commented: "The funds raised through the Entitlement Offer will also assist in financing Stage 2 exploration which is continuing at Tiris. Water drilling is ongoing with excellent flow rates being achieved[1], and we are also awaiting the outcomes from the opportunity review and vanadium assaying, which has the potential to further lower the cash cost of the project. We also look forward to announcing the results from the net zero emission study in due course."

The timetable for the Loyalty Options Rights Issue is below:

As detailed in the Prospectus, the funds raised under the Entitlement Offer are planned to be used in accordance with the table set out below:

Market Abuse Regulation (MAR) Disclosure

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.

This ASX Release was authorised by the Aura Energy Board of Directors.

For Further Information, please contact:

About Aura Energy (ASX:AEE, AIM:AURA) 

Aura Energy is an Australian based minerals company that has major polymetallic and uranium projects with large resources in Europe and Africa. The company has rapidly grown by acquiring new projects in areas with known polymetallic and uranium occurrences including Sweden and greenfield projects in Mauritania 

The Company is now focused on the Tiris Uranium Project, a major greenfields uranium discovery in Mauritania, with 49 Mlb U308 in current resources from 66 million tonnes @ 334 ppm U308.