Aura Egy Regulatory News (AURA)

5 February 2019

AURA ENERGY LIMITED

("Aura" or the "Company")

Trading Halt

AURA RAISES $0.977 MILLION IN PLACEMENT TO SOPHISTICATED/INSTITUTIONAL INVESTORS

BOard APPROVES SHARE PURCHASE PLAN, Options

AND LOYALTY OPTION SCHEME

Aura Energy Limited (ASX: AEE; AIM: AURA) (Company) is pleased to advise shareholders that the Company re-commenced trading this morning on the Australian Securities Exchange following the completion of a placement of 61,062,500 shares (Placement Shares) to sophisticated/institutional investors at an issue price of 1.6 cents per share to raise approximately $0.977 million (before costs) (Placement).

Following completion of the Placement, the Company will be offering Shareholders with a registered address in Australia or New Zealand the opportunity to subscribe for shares under a Share Purchase Plan (SPP) on the same terms as the Placement Shares, together with an opportunity for shareholders to acquire a loyalty option.

Mr Peter Reeve, the Executive Chairman of the Company, said "Aura has continued at every stage to purposely and methodically advance the individual elements of its Definitive Feasibility Study (DFS) at the Tiris Uranium Project and the Haggan Vanadium Project studies. As part of this approach, the Company has also recently signed a significant offtake agreement and commenced the process to secure an innovative financing solution for these development projects; both highlighting outstanding progress for the projects. This placement will continue to advance these activities as the Company moves towards production."

Placement

The Placement was undertaken at 1.6 cents per Placement Share (approximately an 11% discount to the market price at the close of business on 31 January 2019). Subscribers to the Placement will also receive:

(i) 1 free attaching option (Placement Bonus Option) for every three Placement Shares subscribed with each option exercisable at 2.2 cents and expiring two years from the date of issue; and.

(ii) 1 free loyalty option (Placement Loyalty Option) for every five Placement Shares subscribed with each option exercisable at 2.2 cents and expiring one year from the date of issue.

The Placement Loyalty Option record date will be 31 July 2019.

The Placement Shares will rank equally with existing ordinary shares. The Placement Shares do not require shareholder approval as the Company will utilise its existing placement capacity under ASX Listing Rules 7.1/7.1A. It is expected that the Placement Shares will be issued on 12 February 2019.

SPP

Shareholders who participate in the SPP will be entitled to subscribe on the same terms and conditions as those set out above for the Placement. Shareholders will be entitled to acquire up to $15,000 worth of ordinary shares in the Company free of brokerage and fees.

The shares to be issued under the SPP will rank equally with existing ordinary shares. The SPP will not be underwritten. Shareholder approval for the SPP is not required under Exception 15 of Listing Rule 7.2. Full details of the SPP will be contained in an offer booklet which will be dispatched to eligible shareholders on or about Monday, 11 February 2019.

Participants in the SPP will each receive 1 free attaching option (SPP Bonus Option) for every three shares subscribed for with each option exercisable at 2.2 cents and expiring two years from the date of issue.

Participants in the SPP will each receive 1 free loyalty option (SPP Loyalty Option) for every five shares subscribed for with each option exercisable at 2.2 cents and expiring one year from the date of issue.

The SPP Loyalty Option record date will be 31 July 2019.

The indicative timetable below sets out the key dates for the SPP:

The Company reserves the right to scale back applications under the SPP, at its absolute discretion.

The Company reserves the right not to proceed with the whole or part of the SPP at any time prior to the issue of the SPP shares and, if the SPP does not proceed, application monies will be refunded in full without interest.

Shareholder Loyalty Options

All eligible shareholders will be entitled to subscribe for one loyalty option (Shareholder Loyalty Option) for every five shares held at 31 July 2019 at an issue price of 0.5 cents per loyalty option, each exercisable at 2.2 cents and expiring 12 months from the date of issue (Shareholder Loyalty Options Offer). These loyalty options will be issued based on the number of shares held by eligible shareholders at 31 July 2019.

The Company will make the Shareholder Loyalty Options Offer and the other offers of options as detailed above pursuant to a prospectus which will set out the terms and conditions of the Loyalty Options Offer and the other options offers set out above.

Use of funds

The proceeds raised through the Placement and the SPP will be used for continuing the Tiris DFS and Haggan scoping study as well as for general working capital purposes.

Admission

Admission of the Placement Shares to trading on AIM is expected to commence on or around 12th February 2018. The total number of ordinary shares on issue following Admission will be 1,152,247,102 ordinary shares. There are no shares held in treasury and, therefore this figure may be used by shareholders, from the appropriate time, as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

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.