Aura Egy Regulatory News (AURA)

30 October 2023

Quarterly Report for the Period Ending 30 September 2023

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased to provide an overview of activities for the period ended 30 September 2023 ("Quarter" or "Reporting Period") to accompany the Appendix 5B. Aura remains focused on fast-tracking the development of its Tiris Uranium Project in Mauritania ("Tiris" or the "Tiris Project") and the advancement of the Häggån Polymetallic Project in Sweden ("Häggån" or the "Häggån Project").

To view Appendix 5B please click here: http://www.rns-pdf.londonstockexchange.com/rns/6887R_1-2023-10-30.pdf

Company Activities

During the Quarter, the Tiris Project continued to advance, with good progress made on the FEED study due in Q4 2023. The Company continues to engage with the National Authority for Radiation Protection, Safety and Nuclear Security (ARSN) in order to secure an export permit, and Orano NPS has been appointed to finalise the logistics solution to deliver yellowcake into the global markets. Negotiations continued with utilities over the award of offtake agreements ("Offtake"), supported by an improvement in the uranium spot price, which has risen by nearly 30% from US$56.10/lb to US$71.58/lb U3O8. Discussions on securing finance continued during the Quarter to support the advancement of the Tiris Project's development.

Post the end of the Quarter, Aura announced its intention to commence an exploration program at its Tiris Project, targeting additional resources to progress towards a potential 100 Mlbs U3O8 Inferred Resource. Pre-construction works, including the geotechnical drilling of the proposed plant site and trial mining will also be undertaken as part of this program, which will provide valuable data in the production planning for the Tiris Project.

Figure 1 - Nouakchott Port

During the Quarter, Aura's Executives had meetings in Sweden to discuss the government's legislative process, as the country transitions towards a 100% fossil-free energy strategy including the removal of the uranium mining ban. The Company provided a briefing on the Häggån Scoping Study, with subsequent discussion about how Aura intends to develop the Häggån Project. The Company made progress on key activities required for the application for the exploitation permit, with baseline environmental monitoring and community consultation due to commence in Q4 2023. This will see the application for the exploitation permit being submitted during Q3 2024.

Managing Director and CEO, David Woodall, was interviewed by two of the local newspapers, presenting the strategy that would be adopted by Häggån Project which would deliver no negative impact on the local lakes and water supply, establish operations with a small environmental footprint, progressive rehabilitation, direct employment and business opportunities and the potential of downstream business within the region. This will be a key focus throughout the December 2023 quarter with ongoing consultation and interactions with stakeholders about the Häggån Project as part of the exploitation permitting process.

Aura's Executives also visited Mauritania to update the government on the progress of the Tiris Project, the progress of the uranium export permit, and other activities to support the project development.

In September 2023, the Company boosted its team in Mauritania with the recruitment of Abdoullah Samoury as non-board Business and Exploration Director, based in Nouakchott.

Abdoullah has vast experience in geology, project development, mining and production geology and exploration in several African countries (Togo, Burkina Faso and Mauritania). Most recently, he was the Exploration Manager at the Tasiast-Kinross gold mine and prior to that worked for First Quantum Minerals, World Bank and Société Nationale Industrielle et Minière.

Cash on hand as at 30 September 2023 was A$8.55 million.

Tiris Project Update

Over the last Quarter, the Company maintained steady progress towards "development-ready" status. This included the ongoing FEED study focused on identifying and securing long-lead items to ensure timely delivery. Additional negotiations regarding Offtake have been advanced with multiple counterparties in different geographic markets against the favourable background of a rising uranium spot price. This rise has been consistent with previous Company forecasts, and it is pleasing to see ongoing strength in the price rise since the end of the Quarter.

Following the Quarter end, Aura has identified significant exploration targets at both the Tiris East and Tiris West areas. The potential quantity of the exploration targets are conceptual in nature, and there has not yet been sufficient exploration of these targets to estimate a Mineral Resource. It is uncertain whether these exploration efforts will result in an estimation of a Mineral Resource, but Aura is targeting the expansion of the Inferred Mineral Resource at the Tiris Project to approximately 100 Mlbs U?O?, a threshold of globally important significance.

Already, the Tiris Project has defined a low-cost, long-life mine due to the simple mining method and the easy beneficiation process that allows the upgrade of the ore to a ~2,000ppm leach feed grade. The ability to significantly grow the resource through the expansion of existing ore bodies shows excellent potential for scale.

Negotiations with the government of Mauritania concerning the renewal of existing tenements and the granting of the Exploitation Licence are ongoing but have advanced during the Quarter.

The Company has continued to collaborate with regional communities and local governments to maintain the relationships that have been established. The communities have recognised the positive contribution in terms of jobs and infrastructure that the Tiris Project will bring to the region as it moves to the construction phase.

Häggån Project Update

During the Quarter, the Company announced the Scoping Study for the Häggån Project in Sweden. The results indicated a large poly-metallic deposit containing economically significant levels of V (vanadium), SOP (sulphate of potash), Ni (nickel), Zn (zinc), and Mo (molybdenum).

Aura has made considerable progress on the Häggån Project with the completion of the Scoping Study outlining the extraordinary opportunity of the Häggån Project. The study covered 65 Mt of the resource, which represents less than 3% of the known 2.0B tonne Mineral Resource Estimate of the broader Häggån Project. Within this boundary, the ore body displayed a richly endowed polymetallic structure containing significant quantities of vanadium, potash, nickel, zinc, molybdenum, and uranium. A projected post-tax Base Case NPV of US$380-US$1,231 million has been estimated, dependent on final plant construction and the forward price assumptions.

Since the current legislation in Sweden prevents the extraction of uranium, the base case scenario of the Scoping Study assumes that uranium is not extracted from the ore and instead is returned to the ground ("Base Case Scenario").

The Base Case Scenario proposes mining the high-grade zone at ~5.9Mtpa, producing approximately:

· 10,400 tpa V2O5 high-quality vanadium flake;

· 217,000 tpa sulphate of potash (SOP) by-product for sale as fertiliser; and

· 3,000 tpa mixed sulphide product.

Aura intends to pursue a 25-year exploitation agreement and recognises the potential value that could be added by recovering uranium from the Häggån ore, subject to changes in Swedish legislation and demonstration that the proposed operation will not have a negative impact on the water quality or the environment.

Aura continues to work with the Swedish Government, local community and relevant authorities and notes recent Swedish Government legislation introduced to the parliament that proposes the removal of restrictions on new nuclear power stations. The adoption of the new energy target, changing from "100% renewable" to "100% fossil-free" electricity by the Swedish parliament, is part of the shift in sentiment towards the use of nuclear power due to its stability, reliability and lack of greenhouse emissions.

Uranium Market - Growing Global Support

The Quarter has seen a continuation of governments internationally acknowledging nuclear energy as a key part of the carbon-free energy transition. Multiple governments continue to announce plans to construct or upgrade existing nuclear power plants to provide stable, zero-carbon baseload generation capacity. The growing realisation that renewable energy solutions are unable to provide the scalability or instantaneous demand continues to drive this sentiment.

During the Quarter, the following highlights have been noted:

· China is looking to develop its nuclear power sector at a rate of six to eight new plants per year for the foreseeable future[2];

· Japanese nuclear power plants are planning to restart production next year as the country seeks to reduce reliance on fuel imports[3];

· The United States, France, Japan, Canada, and the United Kingdom formed the Nuclear Fuel Alliance (NFA) to develop a shared supply chain for nuclear fuel[4];

· U.S. House of Representatives subcommittee for Energy, Climate and Grid Security pledged bipartisan support for the development of nuclear energy[5]; and

· The World Nuclear Association published updated supply and demand forecasts, which show a more rapid growth trajectory of uranium demand.

This growing sentiment towards nuclear energy is starting to impact the uranium spot price. Subsequent to the end of the quarter, the spot price has exceeded US$73/lbs, a 13 year high.

David Woodall and Nigel Jones also attended the recent World Nuclear Fuels Market (WNFM) conference in Ljubljana, Slovenia, where meetings were held with potential offtake partners for the Tiris Project.

Corporate

The Company's cash position as of 30 September 2023 was A$8.55m. The Company's major cashflow movements for the Quarter included:

· Investments in the Company's Exploration and Evaluation assets of A$1.80m; and

· Administration and corporate costs of A$0.63m.

Forecasted net operating cash outflow, including the investment in exploration and evaluation, for the coming quarter is A$2.82m. Based on this, and with a closing cash balance of A$8.55m, the Company has sufficient cash for 3.03 quarters.

Tenement Summary

The Company holds the following interest in mining tenements, farm-in and farm-out agreements as at the end of the Quarter:

Table 1 - Tenement Summary

* Renewal applications have been submitted and are being processed.

** At 30 June 2023, the Company had fulfilled its exploration obligation thereby earning a 70% equity interest in Nomads Mining Sarl and is currently in the process of completing the necessary documentation to formalise this arrangement.

This Announcement contains inside information for the purposes of the UK version of the

market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law

by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

For further information, please contact:

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

Aura Energy is an Australian-based minerals company that has major uranium and polymetallic projects with large resources in Africa and Europe. The Company is now focused on uranium production from the Tiris Project, a major greenfield uranium discovery in Mauritania.

A recent Enhanced Feasibility Study has increased the project NPV significantly which reconfirms Tiris as potentially one of the lowest capex, lowest operating cost uranium projects that remain undeveloped in the world.

In October 2021, the Company entered a US$10m Offtake Financing Agreement with Curzon, which includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.

In 2023, Aura will continue to transition from a uranium explorer towards becoming a uranium producer, to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy sector.

Disclaimer Regarding Forward-Looking Statements

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance, or achievements to differ materially from the expectations described in such forward-looking statements. The Company does not give any assurance that the anticipated results, performance, or achievements expressed or implied in those forward-looking statements will be achieved.

Mineral Resource and Ore Reserve Estimates

The information in this announcement that relates to Mineral Resources or Ore Reserves is extracted from the reports titled 'Tiris Uranium Project - Resource Upgrade of 10%' released to the Australian Securities Exchange (ASX) on 27 August 2021 and 'Tiris Uranium Project DFS Update' released to the ASX on 18 August 2021 and for which Competent Persons' consents were obtained. Each Competent Person's consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcements continue to apply and have not materially changed.

The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original ASX announcements.

In respect to Resource statements, there is a low level of geological confidence associated with the inferred mineral resource and there is no certainty that further exploration work will result in the determination of indicated measured resource or that the production target will be realised.?

Notes to Project Description

The Company confirms that the material assumptions underpinning the Tiris Uranium Production Target and the associated financial information derived from the Tiris production target as outlined in the Aura Energy release dated 18 August 2021 for the Tiris Uranium Project Definitive Feasibility Study continue to apply and have not materially changed.

The Tiris Uranium Project Resource was released on 27 August 2021 "Resource Upgrade of 10% - Tiris Uranium Project". The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

In respect to Resource statements, there is a low level of geological confidence associated with the inferred mineral resource and there is no certainty that further exploration work will result in the determination of indicated measured resource or that the production target will be realised.

Competent Persons

The Competent Person for the portion of the 2022 Tiris Vanadium Mineral Resource Estimate and classification relating to the Hippolyte, Hippolyte South, Lazare North, and Lazare South deposits is Mr Arnold van der Heyden of H&S Consulting Pty Ltd. The information in the report to which this statement is attached that relates to the 2018 Mineral Resource Estimate is based on information compiled by Mr van der Heyden. Mr van der Heyden has sufficient experience that is relevant to the resource estimation to qualify Mr van der Heyden as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr van der Heyden is an employee of H&S Consultants Pty Ltd, a Sydney-based geological consulting firm. Mr van der Heyden is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy (AusIMM) and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Competent Person for the portion of the 2022 Tiris Vanadium Resource Estimate and classification relating to all other deposits within the resource (Sadi South, Sadi North, Marie, Hippolyte West, Oum Ferkik East, Oum Ferkik West deposits) is Mr Oliver Mapeto, an independent resources consultant.

The information in the report to which this statement is attached that relates to the 2018 Resource Estimate is based on information compiled by Mr Mapeto. Mr Mapeto has sufficient experience that is relevant to the resource estimation to qualify Mr Mapeto as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mapeto is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM) and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Competent Person for drill hole data and for integrating the different resource estimates is Mr Neil Clifford. The information in the report to which this statement is attached that relates to compiling resource estimates and drill hole data is based on information compiled by Mr Neil Clifford. Mr Clifford has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify Mr Clifford as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Clifford is a consultant to Aura Energy. Mr Clifford is a Member of the Australasian Institute of Geoscientists. Mr Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resource Estimates for the Häggån Polymetallic Project in Sweden is based on information compiled Mr Arnold van der Heyden, a Competent Person who is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr van der Heyden is a full-time employee of H&S Consultants Pty Limited, a Sydney-based independent geological consulting firm. Mr van der Heyden has sufficient experience that is relevant to mineral resource estimation to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr van der Heyden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Competent Person for drill hole data, cut-off grade and prospects for eventual economic extraction is Mr Neil Clifford MSc. The information in the report to which this statement is attached that relates to drill hole data for both existing and new drill holes (with the new drill holes are from 18DDHG070 to 19DDHG091 and the results set out in Table 2), cut-off grade and prospects for eventual economic extraction is based on information compiled by Mr Neil Clifford. Mr Clifford has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford is an independent consultant to Aura. Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Appendix 1: Resources and Reserves

Table 2 - Tiris Uranium Project Updated Mineral Resource Estimate (100% basis)

The declared Ore Reserve, at a 110 ppm U3O8 cut off is shown in Table 3.

Table 3 - Updated Ore Reserve (100% basis)

Notes:

1. Ore Reserves are a subset of Mineral Resources.

2. Ore Reserves conform with and use the JORC Code 2012 definitions.

3. Ore Reserves are calculated using a uranium price of US$65 /lb.

4. Ore Reserves are calculated using a cut-off grade of 110 ppm U3O8.

5. Tonnages are reported including mining dilution.

6. All figures are rounded to reflect appropriate levels of confidence which may result in apparent errors of summation.

Table 4 - 2019 Häggån Mineral Resource Statement[8]