19 October 2022

Aura Continues to Advance Tiris Uranium Project

KEY POINTS:

·    Tiris Resource Upgrade drilling and logging program is now complete, with final results expected in December.

·    This represents a key milestone in pursuit of Aura's objective to upgrade the Inferred resource to Measured and Indicated ("M&I") categories.

·    Engineering and test work continues to confirm the Tiris flow sheet for an initial 800,000 lb/pa, including capital and operating cost estimates.

·    Formalisation of Tiris shareholder and government arrangements with our hosts in Mauritania is imminent.

·    The Company is also progressing discussions regarding offtake and financing opportunities for Tiris.

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura", "the Company") is pleased to announce the completion of air core drilling at the Tiris Uranium Project ("Tiris" or the "Project") in Mauritania, and the progress of the key 2022 milestones for the Company towards the delivery of near-term Phase 1 uranium oxide production.

Aura's primary objective in CY2022 was the 10,000-metre infill drilling program to upgrade our Inferred resources of 26.3m lbs at 100ppm U₃O₈ cut-off within Tiris East into Measured or Indicated status, and to identify further exploration targets within the tenure (please see ASX and AIM Announcement 19 April 2022). The drilling milestone is now complete, with the program designed to provide the basis for growing the Project, which already demonstrates low capital and low operating cost metrics, and to underpin the potential for expansion to 2-4 Mlbs U₃O₈ pa.

The drilling and logging programme in Mauritania is now successfully complete and validation samples have been delivered to ALS Ireland and ANSTO Minerals, Australia. Final Resource modelling results will be available once these validation results have been received by the Company. An updated resource estimate is expected before the end of 2022.

Aura's Chief Operating Officer, Dr Will Goodall, commented:

"Completion of drilling as part of the Resource Upgrade Program is a key milestone in developing Tiris, and it is aligned with our objective to achieve uranium production by 2025.

Importantly, it also demonstrates clear progress on the path set in Q1 of this year to rapidly develop Tiris and grow its value for all our stakeholders, including the government and community, with whom we continue to work very closely. Through Q4 CY 2022 we expect to finalise key negotiations with the Mauritanian government, which remains very supportive of Tiris.

The Company continues to work towards near-term uranium production, and we look forward to providing our shareholders with further updates as programs are finalised."

Aura's strategy to deliver near-term production from Tiris is being driven by the global shift towards safe, low carbon energy sources. This has led to an increased focus on nuclear power for low emissions energy, which in turn has prompted a surge in uranium prices. During 2022 uranium prices have risen dramatically, from around US$30/lb to today's level near US$50/lb, representing an increase of approximately 60%.

Uranium Resource Upgrade Program

Historically, conversion of Inferred resources to Measured and/or Indicated category has occurred at a ratio of approximately 65% with infill drilling. Using new sampling techniques, the Company has consistently discovered additional mineralisation when drilling areas with high surface radiometric signature. Together, and assuming this trend continues, our objective of having identified sufficient U₃O₈ resources to support a 2-4Mlbs pa operation within 5 years should be achieved.

The 2021 Tiris Feasibility Study update demonstrated that Tiris is a low capital and low operating cost project, with a simple, proven flowsheet.  The Project has first mover opportunity with a capital estimate of US$74.8m and C1 operating cost of US$25.43/lb U₃O₈.[1] During 2022, considerable progress has been achieved in our engineering program with:

·       Pilot plant of ore upgrading confirming grade increases of 500-600% while retaining 90% of the uranium[2];

·       A new circuit is being developed, which will recover a by-product vanadium pentoxide from our proposed 800klbs project, with the expectation of operating cost savings[3], and

·       In June, DRA Global and its subsidiary, SENET were appointed to undertake the Front-End Engineering Design Study for our 800,000lb U₃O₈ pa initial project with Wallbridge Gilbert Aztec and Adelaide Control Engineering designing the processing circuit.  [4]

Figure 1 shows the delivery pathway for key programs in development of the Tiris project to its full potential.

Figure 1 Tiris Project Development Timeline

Based on the work outlined in Figure 1, a key pillar for a Final Investment Decision (FID) is expected in Q1 CY 2023 and will also provide cost estimates and indicative economic analysis for an expansion to a target of between 2 and 4 million lbs U₃O₈ production per year.

Figure 2 - Drilling team on-site at the Tiris Project

Mauritanian government relations

A concession agreement is being negotiated with the Government of Mauritania, to be signed by both the President and the Minister of Mines outlining our commitment to the key steps involved in project development, including the approval process steps, and gives certainty in relation to tenure and Aura's expansion into a regional uranium producer. It will also confirm all aspects of the host government's fiscal regime for at least 30 years. Constructive discussions have continued throughout 2022 and a formal agreement is imminent.

In addition, the Mauritanian Government's ANARPAM Agency[5] will hold a 15% Free Participation interest in earnings from Tiris[6]. The other characteristics of the Shareholders Agreement are now being finalised. 

Mauritania is a member state of the International Atomic Energy Agency ("IAEA") and has a well-established Law on Nuclear Energy. During September, Key Management Plans for authorisation of uranium production and export from Tiris were submitted to Mauritania's National Authority for Radioprotection, Safety and Nuclear Security ("ARSN") with approval for exports anticipated in mid-2023.

Table 1 - Tiris Uranium Project Global Resource Estimate

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

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.

For Further Information, please contact:

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 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 to 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.

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 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.