Aura Egy Regulatory News (AURA)

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KEY POINTS:

QUARTER SUMMARY

Aura Energy continues to progress its asset base where possible despite being constrained in activity due to the ongoing shareholder activism which is undermining equity raising to continue work programmes.

Covid-19 has also restricted access to our projects (both the Australian government and to a lesser extent Mauritanian government travel bans).

Aura lists its assets as:

· the construction-ready Tiris Uranium Project

· Excellent gold assets

· Häggån Vanadium Project

· Swedish compensation claim

The main activity during the quarter revolved around a corporate transaction for the gold assets to list these assets in Toronto.

Aura continued discussions with US utilities for additional long-term uranium sale contracts to support the Export Credit Agency financing process; however, the weakening of the uranium price in the quarter has impacted discussions.

The Swedish compensation claim is ongoing and focussed on funding arrangements for this litigation.

The Company held its third s.249D requisition for a shareholders meeting over a period of 8 months where various groups have attempted to appoint individuals based in Hong Kong, Indonesia and Panama; however in the latest meeting all were again defeated.

TIRIS PROJECT, MAURITANIA (AURA 85%)

Other than additional uranium offtake discussions with US utilities no activity took place on the Tiris Project.

HÄGGÅN BATTERY METALS PROJECT, SWEDEN (AURA 100%)

Activities at the Häggån Battery Metals project remained on care-and-maintenance.

The Swedish compensation claim remains ongoing and Aura continues to be steadfast in action to recover the value of the confiscated asset.

TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)

Aura completed a number of additional steps as it moves to finalise its C$4.5 million (A$4.8 million) gold funding transaction with Archean Gold.

As previously advised, this deal, initially sponsored by TSX-listed Chilean Metals, is now being completed with the private vehicle Archean Gold Inc. which will undertake an Initial Public Offering (IPO) on the TSX.

The key items that have been completed are as follows:

· Aura Energy has recently completed the payment of its Entry Fee US$100,000 to Nomads Mining Company sarl to commence the farm-in process of expending US$1,000,000 to secure a 70% equity interest in the Nomads ground.

· Archean Gold has successfully completed due diligence, including a visit to the tenements held by the Company in Mauritania

· Terry Lynch, CEO of Chilean Metals, has confirmed to the Company that he will take on the Chairman of the new gold vehicle, Archean Gold Inc

· A 43-101 Technical report is being prepared and will be available before the listing.

· Mackie Research Capital Corporation has been appointed to lead the Archean Gold Inc IPO on the TSX

· An initial C$500,000 of seed investment has now been committed pre-IPO, with those investors agreeing to follow their investment into the IPO

· The Archean IPO is expected to occur in early Q1 2021.

The transaction envisages Aura progressively vending its Mauritanian gold and base metal tenements into Archean Gold for various staged payments. Archean Gold will receive payments totalling C$4.5 million before October 2021.

At the completion of the deal Aura will not have contributed any cash but will have almost A$5 million applied to its gold tenements which the Company believes to be very prospective. Any rise in the Archean share price will be reflected in Aura's share price.

At the completion of that payment schedule transaction, Aura Energy will own 50% of Archean Gold. This values the gold tenements at C$9 million or A$9.6 million.

The proposed transaction will require shareholder approval and the Company will advise shareholders when the meeting will take place.

CORPORATE

Shareholder Action

During the quarter, Aura secured shareholder support which defeated all the resolutions put to a s.249D general meeting of shareholders brought by ASEAN Deep Value Fund to remove directors and place its own nominees on the board of directors.

ASX Suspension

Aura has been suspended now for a number of months.

The ASX has now imposed a two-year placement holiday on the Company for the omission of a single definition in a 60-page convertible note agreement regarding excessive conversions if the market capitalisation of Aura fell below a certain level.

The Company disclosed the impact of the definition to the ASX through a cleansing statement on 13 March 2020.

The Company is working with the ASX for reinstatement of the Company on the ASX and is proposing to undertake a rights issue and a share purchase plan with the shortfall in the rights issue being placed.

Aura Energy Directory

ASX Code: AEE

AIM Code: AURA

Shares in issue: 2,557,535,966

Unlisted Options

on issue: 94,104,161

Performance Rights

on issue: 10,0000,000

Website: www.auraenergy.com.au

For further information please contact:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.