Aura Egy Regulatory News (AURA)

30 January 2024

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased to provide an overview of activities for the period ended 31 December 2023 ("Quarter" or "Reporting Period") to accompany the Appendix 5B. The priorities for Aura remain the development of the Tiris Uranium Project in Mauritania ("Tiris") and advancement of the Häggån Polymetallic Project in Sweden ("Häggån").

To view Appendix 5B, please click here: http://www.rns-pdf.londonstockexchange.com/rns/3636B_1-2024-1-30.pdf

Uranium - price continues to strengthen

The positive sentiment towards nuclear power has shown no indication of softening. The rapid increase in the spot price of uranium has occurred within the context of positive media coverage about growing demand and the historic supply deficit. The pivot towards nuclear energy reflects the reality that renewable energy solutions are unable to provide sufficient reliable base load energy supply to meet predicted consumption in the years ahead.

Current thematics support the positive uranium price trend to continue, including:

· Available uranium stocks have fallen considerably;

· EU sentiment towards nuclear power as an alternative and reliable fuel source to replace fossil fuels has improved significantly; and

· Renewable energy sources are proving to have practical limitations in terms of:

o Significant infrastructure requirements (including batteries) to link to existing power distribution networks

o Lack of continuous generation capability (especially solar and wind)

o Requiring larger land footprints than traditional and nuclear energy sources.

The United Nations' ("UN") COP28 climate conference held in Dubai in December 2023, officially called for accelerating the deployment of low-emission technologies, including nuclear energy, to help achieve "deep and rapid decarbonization". The decision represents the first time the 198 signatory countries to the UN Framework Convention on Climate Change have included nuclear energy in the Global Stocktake.

Government policies are also more focused on energy security and increased geopolitical supply risk has further exacerbated the price rises. On 11 December 2023, the US House of Representatives passed legislation that would potentially ban the import of Russian uranium into the USA.

The US, Canada, UK, Japan and France are among many countries that have pledged to triple nuclear capacity by 2050[1]. In addition, in order to supply its rapidly growing reactor fleet, China is seeking to increase uranium consumption from 30Mlbs to 150Mlbs in the next 15 years[2].

Notable events during the Quarter include:

· 22 nations pledged at the COP28 summit to triple nuclear capacity by 2050. [3]

· The International Atomic Energy Agency's (IAEA) annual nuclear power outlook high case projection sees installed nuclear capacity increasing to 890 gigawatts by 2050 compared to 369 gigawatts presently.[4]

· Belgian Prime Minister Alexander De Croo, French President Emmanuel Macron and Director of the IAEA Rafael Mariano Grossi announced the world's first Nuclear Energy Summit will be held in Brussels in March 2024. [5]

Tiris, Mauritania

The Tiris Uranium Project is situated in the province of Tiris Zemmour, located in the northern most region of Mauritania - a country supportive of responsible development of mineral projects.

Throughout the Quarter, the Company has continued progressing the Tiris Uranium Project towards becoming a commercial scaled low cost ~2 Mlbs U3O8 pa uranium mine as detailed in the Tiris Enhanced Feasibility Study.[6]

The FEED study has largely been completed, with the final review and release expected in Q1 2024.

An exploration targeting review in October 2023 identified seven new exploration targets and estimated further resource potential of between 30-60 Mt at 120 - 240ppm U3O8 for 8 - 32 Mlbs U3O8 from extensions to the existing Mineral Resources.[7] A ~15,500m drilling program has commenced subsequent to the end of the Quarter to test the new targets and extend Mineral Resources.[8]

Given the high prospectivity of the region, the Company applied for 13,000 km2 of new exploration tenements in the broader Tiris area, in November 2023.[9] Once granted, these new tenements will be systematically explored with the aim of developing Tiris into a world-class Uranium province.

Figure 1 - Temporary camp for the current exploration drilling campaign

Tiris Uranium Project Front End Engineering Design Study

The Tiris FEED study is in the final stages and release expected in Q1 2024. All technical deliverables have been completed, and final review of capital and operating costs and financial analysis underway. The capital cost of the project has been significantly de-risked through detailed engineering estimates, notwithstanding an anticipated increase in capital cost impacted by global supply and inflation factors, similar to those seen throughout the industry. Significant economies of scale have been identified through increasing the potential scale of production, partially offset by a reduction in Mauritanian diesel fuel subsidies.

The Company remains confident of delivering a strong financial result for the Tiris Uranium Project.

The following diagram of the production facility illustrates the largely modular and thereby scalable nature of the planned processing plant.

Figure 2 - 3D Layout of processing circuit module 2 Mlbs/pa U3O8 Tiris Uranium Project

Engagement with the Mauritanian National Authority for Radiation Protection, Safety and Nuclear Security ("ARSN") is ongoing, with Orano NPS appointed to finalise the logistics solution for delivering Tiris yellowcake into the global market and the export permit.

Negotiations with global utilities over the award of offtake agreements ("Offtake") have been assisted by the uranium spot price surging to 15-year highs. The spot price of US$100/lb U3O8 reflects the growing worldwide acceptance that nuclear energy will be critical for successfully transitioning away from fossil fuel dependency and positions the company advantageously leading into 2024.

Tiris Exploration

An exploration review using newly acquired radiometric, historic radiometric and drilling data demonstrated the strong correlation between radiometric strength and uranium mineralisation. Geologists identified seven new untested exploration targets. Exploration Targeting estimated the potential for additional resources immediately adjacent and contiguous to the existing Mineral Resource of between 8 Mlb to 32 Mlb U3O8[10] (see table below).

A 15,500m air core drilling campaign has commenced subsequent to the end of the Quarter, with the objective of testing the newly identified targets and to expand the Mineral Resources which can be subsequently added to the mine plan for the future Tiris Uranium Mine (Figure 3).

Historically, because of the shallow nature of the uranium mineralisation (3O8 at Tiris.

Figure 3 - Tiris Project exploration program target areas

The Tiris Zemmour Province, northern Mauritania, has only had very limited uranium exploration, other than by Aura, but is highly prospective for additional discoveries similar to Tiris. Using Aura's deep knowledge of the area and the nature of the uranium mineralisation, Aura has applied for an additional ~13,000 km2 of exploration tenements securing a controlling position of this potential world-class Uranium province. The tenements were identified through an extensive 12-month evaluation program based on radiometric survey data and historical drilling results compared to the work completed on the Tiris Uranium Project. The Company is confident that the proven model of successful exploration can be extended across the wider Tiris Zemmour region.

During the Quarter, Aura received the renewal of the exploration tenements for Oued El Foule Sud and its subsidiary Tiris International Mining Co (TIMCO) tenements at its Tasiast South project area, approximately 35km along strike from Kinross' 20Moz Tasiast Gold Mine and is prospective for both gold and nickel.

Table 1 - Aura Energy exploration tenements

(NB. Tenement 561 - Oum Ferkik is currently under application for exploitation permit)

Häggån Project Update

The Häggån project is located in Berg municipality in the province of Jämtland in central Sweden and hosts a very substantial ~2 billion tonne polymetallic Mineral Resource (Table 2, ASX release 10 October 2019) which includes 800 Mlbs of U3O8. (2.35Bt @ 155ppm U3O8, ASX release 22 Aug 2012). The deposit is owned 100% by Aura Energy through its subsidiary Vanadis Battery Metals AB.

Sweden is Europe's leading mining and mineral nation. The adoption by the Swedish parliament of a new energy target, changing from "100% renewable" to "100% fossil-free" electricity, is an important part of the transition towards the use of nuclear power and uranium mining in Sweden. The Company is supportive of this policy and can play an important role in supporting this energy transition.

Table 2 - 2019 Häggån Mineral Resource Statement

The Company undertook a series of community consultation meetings with local stakeholders in relation to 100%-owned Häggån Project. These meetings have allowed the community to ask questions regarding the project and the recently released Scoping Study.

Aura continues to work towards the submission of the 25-year exploitation permit and is undertaking baseline environmental monitoring.

Following the completion of the Scoping Study released in September 2023, Aura is confident in the substantial economic potential that the Häggån Project offers to Sweden, the local community and shareholders of Aura Energy. While the potential to extract uranium from the ore body undoubtably adds value to the project, the Base Case for the Häggån Project (ex-uranium) still shows excellent economic returns.

Corporate Activities

Aura participated in the Toronto Fall Mining Showcase and the International Mining and Resources Conference (IMARC) in Sydney at the beginning of November presenting to stakeholders and potential institutional investors.

4.5 million options expiring 30 June 2024 at an exercise price of $0.052 per share were exercised during the period.

The Company's cash position as of 31 December 2023 was A$5.87 million. The Company's major cashflow movements for the quarter included:

· Investments in the Company's Exploration and Evaluation assets of A$1.24 million;

· Staff costs of A$0.96 million; and

· Admin and corporate costs of A$0.70 million.

The forecasted net operating cashflow and investment in the Company's exploration and evaluation assets for the coming quarter is A$2.92 million. With a closing cash balance of $5.87 million, the company has enough cash for 2.01 quarters.

Post the reporting period, the Company announced on 24 January 2024 that proceeds from the exercise of approximately 82.5 million listed options expiring 30 June 2024 have been secured through option funding agreements and an option exercise underwriting agreement, to raise A$4.3m.

On 30 January 2024, Aura Energy appointed Andrew Grove as Managing Director and CEO. Mr Grove is a highly experienced mining and finance executive with extensive global industry experience across multiple commodities. This includes more than 30 years of managerial, technical, commercial and finance experience, including significant expertise in uranium and West African development and operations.

Tenement Summary

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

Table 3 - Tenement Summary

Farm-in agreement with Nomads Mining Company sarl, Mauritania, Aura, through subsidiary Archean Greenstone Gold has earned a 70% interest in Nomads 100%-owned exploration permit in Mauritania (refer to ASX announcement 11 June 2019).

ENDS

The Board of Aura Energy Ltd has approved this announcement.

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 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). 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:

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

Aura Energy is an Australian-based exploration and mining company with major uranium and polymetallic projects in Africa and Europe.

The Company is focused on uranium production commencing at the Tiris Project, a major greenfield uranium discovery in Mauritania.

Aura plans to transition from a uranium explorer to a uranium producer to capitalise on the rapidly growing demand for nuclear power as the world shifts towards a decarbonised energy sector.

Aura also owns 100% of the ~2 billion tonne Häggån Polymetalic Project in Sweden. Häggån contains a global-scale vanadium and uranium resources that could potentially be mined for generations. Utilising only 3% of the resource, a 2023 Scoping Study outlined a potential 27-year mine life based on mining 3.5 Mtpa.

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 various 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 guarantee that the anticipated results, performance, or achievements expressed or implied in those forward-looking statements will be achieved.

Competent Persons Statement

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.

Appendix 1: Resources and Reserves

Table 1 - Tiris Uranium Project Updated Mineral Resource Estimate

The declared Ore Reserve, at a 110 ppm U3O8 cut off is shown in Table 2.

Table 2 - Updated Ore Reserve

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 3 - 2019 Häggån Mineral Resource Statement[14]