16 December 2024

Substantial growth in Ore Reserves and strategic progress at Tiris Uranium Project

HIGHLIGHTS

Ore Reserve update

§ The Tiris Uranium Project's Ore Reserve estimate has increased by 49% to 62.8Mt at 243ppm U₃O₈, containing 33.6Mlb of U₃O₈, up from 22.6Mlb of U₃O₈[1]

§ Additional material defined in the Ore Reserve estimate came from increased confidence for Mineral Resource classification within the Lazare North, Lazare South, Sadi and Hippolyte resource areas, from the 2024 drilling program

§ The Ore Reserve estimate has been completed based on pit optimisation and mine schedules reported as part of the September 2024 Production Target update[2]

§ High Mineral Resource to Ore Reserve conversion driven by shallow, free-digging mineralisation that upgrades six to eight times through simple wet screening

§ Ongoing Ore Reserve growth anticipated with future drilling and enhanced Mineral Resource confidence. The 2024 drilling campaign achieved Mineral Resources definition at an exceptionally low cost of US$0.14/lb U₃O₈

Project update

§ Wood, a highly credentialled engineering contractor has commenced a basic engineering and early works definition program in preparation for the Final Investment Decision (FID) at Tiris expected Q1 CY2025

§ Agreement with Wood also for the subsequent Engineering, Procurement and Construction Management (EPCM) of the Tiris Uranium Project development

§ Water drilling has defined very significant quantities of water in the Taoudeni Basin with long-term pump testing and aquifer modelling underway

§ Funding process well advanced with Independent Technical Experts (ITE) RPM Global and other parties having undertaken due diligence site visits

Aura Energy Managing Director and CEO, Andrew Grove said:

"The updated Ore Reserve Estimate is another strong validation of the robust nature of the Tiris Project. Building on the significant 55% increase in the Mineral Resource Estimate announced in June 2024^[3], the updated Reserve estimate has increased by a further 49%. This means that 64% of the Production Target is now within the Proved and Probable Reserve categories, further reducing Project Delivery risk as we move towards Final Investment Decision in 2025 and operations in 2027.

The engagement of Wood as engineering partners for basic engineering and early works package definition is a significant step towards project execution. Wood brings strong uranium and project delivery experience in Africa, providing depth and support to our already strong Aura Energy team. Completing the Heads of Agreement for the EPCM contract with Wood, means that we are well placed to move rapidly into project execution.

The results to date of water drilling have been outstanding, providing confidence that once modelling of the aquifers is complete there will be adequate water to support the Project in the long term. By locating water in a second aquifer at the Taoudeni Basin, we have de-risked an important aspect of the project development.

Continuing to achieve project milestones, including the substantial Ore Reserve increase and de-risking project execution has supported the funding process well. We were pleased to host Independent Technical Experts, RPM Global on a site visit in October, along with other parties undertaking due diligence. The process remains on track and we look forward to providing further updates in Q1 2025."

Ore Reserve estimate increased 49%

Aura Energy Limited (ASX: AEE, AIM: AURA) (Aura or the Company) is pleased to provide an update in relation to update of the Ore Reserve estimate for the Tiris Uranium Project, Mauritania. 

The Tiris Uranium Project Ore Reserve estimate has increased 49% to 62.8Mt at 243ppm U₃O₈, containing an estimated 33.6Mlb U₃O₈ (previously 40.4Mt at 254ppm U₃O₈, containing an estimated 22.6Mlb U₃O₈)[4]. The updated Ore Reserve estimate has been completed on the recently reported Mineral Resource Estimate (MRE), which included growth of Measured and Indicated Resources of 35%⁶. The Ore Reserve estimate update has been completed based on pit optimisation and mine schedules reported as part of the September 2024 Production Target update⁵.

The key mining areas and process infrastructure remain unchanged from those reported within the September 2024 Production Target Update[5]. The upgrade has seen incremental growth in the Ore Reserve estimate in the Lazare North, Lazare South, Sadi and Hippolyte resource areas, mainly due to increased classification of resources as Measured and Indicated in the June 2024 MRE update[6].

The updated Ore Reserve estimate, with comparison to the previously reported Ore Reserve estimate[7] has been summarised in Table 1. The Ore Reserves are estimated from their respective Mineral Resources after consideration of the level of confidence in the Mineral Resource and taking account of material and relevant modifying factors. No Inferred Mineral Resources have been included in the Ore Reserve.

Table 1 - Updated Ore Reserve Estimate showing key changes at deposits

Notes:

Ore Reserves are a subset of Mineral Resources.

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

Ore Reserves are calculated using a uranium price of US$80/lb.

Ore Reserves are calculated using a cut-off grade of 100ppm U₃O_8.

Tonnages are reported including mining dilution.

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

Project update

Appointments announced for basic engineering and early works packages, and power generation solution

Wood, a highly credentialed engineering contractor has been appointed to commence a basic engineering and early works definition program in preparation for the Final Investment Decision at Tiris due Q1 CY2025. 

Wood is a global leader in consulting and engineering, delivering critical solutions across energy and materials markets. The company provides consulting, projects and operations solutions in 60 countries, employing around 35,000 people, (www.woodplc.com).

Wood has taken a major role in the development of Uranium Projects across in North America, Australia and Africa from initial geology to flowsheet development, project execution, commissioning and operations support.

Wood is currently executing the detailed engineering on Bannerman's Etango project in Namibia and was the lead Engineering, Procurement and Construction Management (EPCM) contractor on the Husab project. Wood's expertise also extends into alkaline leaching of Uranium, notably for the Langer Heinrich Project.

In addition, Wood is unique among large consulting firms in that it offers full support of reporting requirements for public disclosure to JORC or NI 43-101 standards, from preliminary economic assessments through to detailed feasibility studies.

The basic engineering package will deliver updated capital and operating costs in line with AACE Class 3 guidelines. Wood will also prepare a set of actionable site work packages, ready for contract/order to be placed (Early Works) and develop detailed project execution planning.

In addition, Aura and Wood have agreed to a set of terms, conditions and rates (Heads of Agreement) for the subsequent EPCM of the development of the Tiris Uranium Project that will be formalised into a specific EPCM contract prior to FID early next year. In combination with the Basic Engineering and Early Works packages this will position Tiris strongly to immediately transition into execution once FID has been achieved.

ECG Engineering is a leading specialist power-generation consultancy with a substantial track record of designing and implementing hybrid power solutions for the mining, power, and mineral processing industries in Africa. The company offers a range of services, including power system design, generation, control systems, instrumentation, project advisory, and maintenance support.

ECG Engineering has been appointed to define a power generation solution for Tiris with the lowest levelised cost of energy, determine the capital and operating costs for a self-funded and fully amortised solutions and to demonstrate a bankable independent power producer (IPP) solution through a commercial enquiry process.

Water Drilling development

Hydrogeological drilling of the Taoudeni Basin (~100km south of the Project) and the C22 borefield (~30km from the Project), Figure 1, has been completed.

The program included 26 holes for 2,755 metres in the Taoudeni Basin, an additional 17 holes for 1,763 metres at the C22 borefield and six holes for 700m confirming groundwater conditions at the Project site. Results have been highly successful with summary results and initial observations from Knight Piésold detailed below.

Taoudeni Basin: Water reported in 61% of holes with significant water flows (up to 55m³ per hour in air lift testing). The water column averaged 14m thick with a flow rate of 20m³ per hour. The exploration drill and test programme undertaken at the Taoudeni Basin region yielded good to very good quality water, with several high yielding targets intersected. Additionally, the bores installed in this area are spaced far apart, therefore increasing long-term potential use, and scope for expanding this target region as a borefield.

There is significant scope for additional exploration and expansion of the groundwater resource in this region, particularly around high yielding zones as well as along regional scale fault zones for long term use, with the targeted aquifer systems extending significantly to the northeast and southwest of the exploration programme area. Due to this scale (including the same lithologies and most likely, hydrogeological conditions), there is potential for several additional borefields in the Taoudeni Basin with similar prospectivity to that of the 2024 program.

The potent for establishing future Project scale borefields in the Taoudeni, around the high yielding zones as well as along large fault zoned for long term use, is significant.

C22 borefield: Drilling was completed in 2021 to define an initial water resource[8]. Drilling in this program to extend the aquifer returned 41% of holes that were productive, with water flows up to 40m³ per hour in air lift testing. The existing groundwater resource at the C22 borefield area has been expanded, the initial results of which show significant potential for success. There exists a large scope for further exploration at prospective targets in the area with similar hydrogeological characteristics such as intersecting large scale geological structures and areas of deeper weathering, both of which have been shown in the 2024 investigation to be highly prospective for groundwater supply.

Long term pump testing of the identified aquifers is ongoing and planned for completion by the end of December. Knight Piésold, internationally recognised hydrological consultants, have been supporting the program and will undertake aquifer modelling early in Q1 CY2025.

Water drilling has been very successful at both locations with air lift testing defining a cumulative 344m³/hr of water flow rates. The Project's water demand has been estimated at between 120m³/hr to 160m³/hr.

In addition, six holes were drilled under the proposed plant site intersecting no water. With no water table in the plant area this significantly limits the possibility of potential contamination from the processing activities.

The final report should be completed in Q1 CY2025.

Figure 1: Location plan of the Tiris Uranium project hydrogeological evaluation

Funding

In June 2024, Aura appointed Orimco to arrange debt funding for Tiris. Orimco has vast experience supporting projects throughout Africa and at the same time, Macquarie Capital was appointed in Australia to identify and engage with strategic investors for a potential equity investment in Tiris and/or Aura.

We have received confidential, non-binding proposals from a number of investors and debt providers and other parties continue to contact us expressing willingness to co-invest.

Both funding processes are ongoing, with advisors actively advancing discussions with multiple parties interested in debt financing and strategic investment opportunities.

At this time, discussions in respect of the proposals have not sufficiently progressed to be announced to the market and there is no binding agreement in place with respect to any funding arrangement. Aura confirms that no assurance can be given that the ongoing confidential discussions will result in any binding agreement between the parties, and Aura will continue to maintain its policy of keeping the market fully informed with its continuous disclosure obligations.

The Independent Technical Engineers, RPM Global, are well advanced in their due diligence analysis on all aspects of the project on behalf of the lenders and investors which included undertaking a site visit to Tiris in late October 2024.

We are actively engaging with potential funding partners and anticipate being in a position to make a Final Investment Decision on the Tiris Uranium Project in Q1 CY2025. Following this decision, an 18-month final design and construction program will commence, targeting production start-up in late 2026 to early 2027.

We are pleased with the progress to date and the level of interest we've received from a strong mix of potential funding partners.

ENDS

This release has been approved by the Board of Aura Energy Ltd.

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 mineral company with major uranium and polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. The 2024 Front End Engineering Design (FEED) Study[9] demonstrated Tiris to be a near-term low-cost 2Mlbs U₃O₈ pa near term uranium mine with a 17-year mine life with excellent economics and optionality to expand to accommodate future resource growth.

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.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden. Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash (SOP)[10] and uranium[11] resource. Utilising only 3% of the resource, a 2023 Scoping Study[12] outlined a 17-year mine life based on mining 3.5Mtpa.

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

The Company has concluded that it has a reasonable basis for providing the forward-looking statements and production targets included in this announcement and that material assumptions remain unchanged. The detailed reasons for this conclusion are outlined throughout this announcement, and in the ASX Releases, "Scoping Study Confirms Scale and Optionality of Häggån", 5 September 2023; "Aura's Tiris FEED Study returns Excellent Economics" 28 February 2024; and "Tiris Uranium Project Enhanced Definitive Feasibility Study", 29 March 2023.

ASX and JORC Related Disclosures

Mineral Resources

The information on Mineral Resources for the Tiris Uranium Project in this report is extracted from the ASX release "Aura increases Tiris Mineral Resources by 55% to 91.3Mlbs", dated June 2024.

These reports can be viewed at https://auraenergy.com.au/investor-centre/asx-announcements.

The estimated mineral resources underpinning the alternative production targets have been prepared by a Competent Person or persons in accordance with the requirements in Appendix 5A (JORC Code). The Competent Person for the 2024 Tiris Mineral Resource Estimates for all deposits underpinning the Production Targets is Mr Arnold van der Heyden of H&S Consulting Pty Limited[13].

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement 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 market announcement.

Competent Person statements

The Competent Person for information in this report that relates to Tiris Mineral Reserves is based on information reviewed by Mr Andrew Hutson, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of Resolve Mining Services. Mr Hutson has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Mr Hutson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Tiris Uranium Project Ore Reserve information summary

Project location and description

The Tiris Uranium Project is 100% owned by Tiris Ressources SA, which is 85% owned by Aura Energy Ltd and 15% by the Mauritanian Government's Agence Nationale de Recherches Géologiques et du Patrimoine Minier ('ANARPAM').

Tiris is located approximately 1,400 kilometres from the capital of Mauritania, Nouakchott. The Project is located 680km from the town of Zouérat in the Tiris Zemmour Region of Mauritania. Access is by hard pan desert track (Figure 2).

Figure 2: Location plan of the Tiris Uranium project in Mauritania, Africa

A Scoping Study was completed in 2014[14]. This was updated into a Feasibility Study (FS) document in May 2017, to support an application for exploitation licences. FS and an extensive Environmental and Social Impact Assessment (ESIA) were submitted on 24 May 2017 to the Mauritanian Ministry of Petroleum, Energy and Mines[15], and formally approved by the Mauritanian Government on 5th October 2017[16].

A Definitive Feasibility Study (DFS) for a 1.25Mtpa mine and 230ktpa process plant was completed in 2019[17]. The process plant has been designed to take full advantage of the characteristics of the material which responds well to concentration of uranium by scrubbing and screening, whilst providing a low capital cost and rapid project development and construction.

The Capital Estimate for the DFS was updated in August 2021[18]. In March 2023 an Enhanced Definitive Feasibility Study (EFS) was published including additional Ore Reserves and Mineral Resources defined in ASX and AIM releases, 'Major Resource Upgrade at Aura Energy's Tiris Project', 14 February 2023 and ASX Release, 'Tiris Uranium Project Enhanced Definitive Feasibility Study', 29 March 2023. The EFS presented a staged development approach, including a 2-year ramp up at 1.25Mtpa mined ore, expanding to 4.1Mtpa mined ore in year three to produce an average of 2Mlbspa U₃O₈.

In February 2024, the results of a FEED study were published in ASX and AIM Release: 'Aura's Tiris FEED Study Returns Excellent Economics', 28th February 2024. This study updated capital and operating cost assumptions and accelerated production to a base case capacity of 2Mlbpa U₃O₈ from the beginning of the project.

Exploitation licences (2491C4 and 2492C4) for the Ain Sder and Oued El Foude permits, were granted on the 8 of February 2019, Mining Conventions for these permits were signed in January 2023 and the final permits for mining and processing uranium were granted in July 2024.

Geological setting and mineralisation

Regional Geological Setting

The Tiris Uranium Project lies in the north-eastern part of the Reguibat Craton, an Archaean (>2.5 Ga) and Lower Proterozoic (1.6-2.5 Ga) aged complex composed principally of granitoids, meta-sediments and meta-volcanics. The resources lie within Proterozoic portions of the craton. This part of the craton generally consists of intrusive and high-grade metamorphic rocks of amphibolite facies grade. In addition to the Archaean and Paleoproterozoic basement rocks, two principal types of Cainozoic surficial sediments occur; Hamada (sand and outwash fan material) and Cailloutis (flat lying calcrete layers, typically one to three metres thick, in places partially silicified) which in this area stand out as small mesas up to a few metres above the surrounding land surface. Several small uranium occurrences were known in the Reguibat Craton from exploration during the 1950's.

All the resource zones are generally at less than five metre depths and lie beneath flat land surfaces covered by surficial hamada and thin aeolian sand deposits. This shallow overburden largely covers the basement rocks, which only appear as scattered outcrops.

Uranium Mineralisation           

The uranium resources generally lie either within weathered, partially decomposed red granite or in colluvial gravels developed on or near red granites. Small portions occur in other rock types such as meta-volcanics and meta-sediments. The resources are believed to have developed within shallow depressions or basins, either within weathered granitic rocks or where colluvial material has accumulated in desert sheet wash events. The pebbles within the gravels are generally unweathered fragments washed in from the nearby exfoliating granites and other crystalline rocks, mixed with sand, silt, calcrete, gypsum and yellow uranium vanadates. The gravels and weathered granite occur at surface or under a very thin (<30 cm) veneer of wind-blown sand and form laterally continuous, single, thin sheets overlying fresh rock, usually granite. The uranium mineralisation generally forms thin shallow horizontal tabular bodies ranging in thickness from 1 to 12m hosted in weathered granite and granitic sediments.

It is inferred that the deposits were formed by near-surface leaching of uranium from the uraniferous red granites by saline groundwaters during the wet Saharan "pluvial" periods. There have been several periods over the past 2.5 million years, the most recent ending only 5,900 years ago. Evaporation during the subsequent arid periods caused the precipitation of uranium vanadates, along with calcium, sodium and strontium carbonates, sulphates and chlorides.

The host material at Tiris is granitic gravel or weathered granite containing powdery calcium carbonate (calcrete) and sulphates. Although the Tiris mineralisation is associated with calcium carbonates, it differs from other well-known calcrete uranium deposits such as Langer Heinrich and Yeelirrie, in that they are river valley-fill deposits. The Tiris deposits have formed in shallow depressions in unconsolidated and uncemented gravels and in partially decomposed granites. In Namibia and Western Australia, the mineralisation is typically within calcareous clays or massive hard calcrete which forms below the water table, often at several levels related to the changing positions of the water table. In contrast, Aura's Tiris deposits are believed to be pedogenic calcrete occurrences that formed in the vadose zone by capillary action above the permanent water table.

The uranium mineralisation occurs principally as carnotite K₂(UO₂)₂(VO₄)₂.3H₂O) and possibly some of the chemically-similar calcium uranium vanadate, tyuyamunite Ca(UO₂)₂(VO₄)_2.5-8H₂O) in varying proportions. In this report, "carnotite" refers to any mineral in the carnotite-tyuyamunite series. The carnotite occurs as fine dustings and coatings on granite or granite mineral fragments, and on the surfaces or partly within the calcite cement that forms the patches of calcrete. The carnotite is mostly ultrafine, micron scale in grain size. The carnotite is distributed erratically in numerous patches and strings over short distances.

Reserve Modifying Factors

In accordance with ASX Listing Rule 5.9.1, the following summary information is provided for the understanding of the reported estimates of the Ore Reserve.

Material Assumptions

The Ore Reserve estimate has been completed on the basis of Modifying Factors used in the Tiris FEED study[19] and updated in the September 2024 Production Target update[20], which was completed by Kenmore Mining Consulting. 

A summary of the key economic assumptions applied in the Production Target update include:

§ Mining costs were sourced from the February 2024 FEED⁶ study and were applied on a US$ per tonne of beneficiation plant feed basis

§ The site general and administration fixed cost and the leach / precipitation costs were provided as overall costs per pound of U₃O₈ and the calculation of cost per tonne of beneficiation plant feed reflected the varying beneficiation performance across the Mineral Resource areas

§ Operating costs were estimated to a feasibility study level of accuracy

§ Capital cost estimates for establishment and construction of site surface non-processing infrastructure and processing plant were summarized in the February 2024 FEED study⁶ and were presented at feasibility study level of accuracy

§ Aura has maintained the uranium market assumptions outlined in the 2024 FEED study⁶, with a long-term price assumption of US$80/lb U₃O₈. These assumptions remain valid with no material changes

Criteria for classification

The Mineral Resource Estimate used as the basis for the Ore Reserve Estimate was estimated by an independent geology consultant, H&S Consulting Pty Ltd. The Mineral Resource Estimate is shown in Table 2 below and was announced to the market in June 2024. The announcement is stated below:

§ ASX and AIM Release: 12 June 2024 - Aura Increases Tiris Mineral Resources by 55% to 91.3Mlbs.

The Ore Reserve estimate represents the portion of the Tiris Uranium Project Production Target based on Measured and Indicated Resources only. All material classified as Inferred Mineral Resources within the mine plan was assigned zero revenue for the purposes of estimating the Ore Reserve.

Table 3 - Tiris Ore Reserve Estimate

Notes:

          Ore Reserves are a subset of Mineral Resources.

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

          Ore Reserves are calculated using a uranium price of US$80 /lb.

          Ore Reserves are calculated using a cut-off grade of 100 ppm U₃O₈.

          Tonnages are reported including mining dilution.

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

Physical and economic modifying factors have been applied to the Mineral Resource during the pit optimisation and mine scheduling process to ensure the resultant Ore Reserve can be economically mined and processed to produce saleable Uranium oxide concentrate.

Considerations in favour of high confidence in the Ore Reserve include:

§ The mineralisation occurs at surface to an average depth of 4m, allowing for simple and flexible open pit design

§ The mineralisation is free-digging, with no requirement for drilling and blasting during mining

§ Simple scrubbing and screening of material rejects ~90% of barren material, while retaining between 80% and 90% (resource dependent) for processing[21]. This minimizes capital and operating costs for the processing circuit

§ Capital and operating costs have been estimated to feasibility study level of accuracy and recently updated as part of the February 2024 FEED study

Considerations in favour of a lower confidence in the Ore Reserve include:

§ Future commodity price forecasts carry an inherent level of risk

§ There is a degree of uncertainty associated with geological estimates. The Ore Reserve classifications reflect the levels of geological confidence in the estimates

§ There is a degree of uncertainty regarding estimates of impacts of natural phenomena including geotechnical assumptions, hydrological assumptions, and the modifying mining factors, commensurate with the level of study

Mining

Open pit optimisation

The modifying factors used to create the optimisation shells are included in Table 4.

Table 4 - Modifying Factors

The mining costs were developed in March 2023 by Mining Plus as part of an owner-mining cost model developed from the Enhanced Feasibility Study (EFS)[22] mine plan. The main inputs were provided by quotations from Komatsu and priced using Australian standards. Several options were modelled which resulted in average mining cost of US$2.43/tonne mined which included the cost of rejects and tailings return.

The 2024 FEED[23] study utilised these base costs but included some minor changes to reflect the FEED results and resulted in the rates in Table 4 which when applied to the optimised feasibility study plan achieves an average mining cost of US$2.31/t mined and US$2.37/t mined for the FEED plan.

Processing and beneficiation costs, along with the recoveries in the EFS were constant across the deposits, whereas additional test work has shown that there is variation between the deposits, which has been included in this study. The reject ratios and processing recoveries are similar for Lazare North however are lower for the other deposits. These lower recoveries have translated to higher overall processing cost when calculated as a cost per tonne of feed.

Due to the shallow nature of the deposits, the ability to free dig and the sort time frame before the mining voids will be backfilled with rejects or tailings the overall pit slopes are not significant as a modifying factor. This does not intimate that they will not be important during the mining operations as the pit wall will need to hold stable while mining is underway for safety and dilution management.

Slope angles

The deposits are very shallow in nature and will be backfilled. Therefore, the overall pit slope angles are not overly relevant for the optimisations and were set at 80 degrees for all deposits.

Process Recovery

The processing on site is undertaken in two distinct stages. The mined feed is processed through a beneficiation plant and then a slurry is pumped to a leach / precipitation plant. The beneficiation metal recovery and mass rejection vary by deposit (see Table 5) and the leach / precipitation recovery is 92.2%.[24]

Table 5 - Processing parameters used in pit shell optimisation and LOM averages from financial model

Cut-off Grade

The Cut Off Grades (COG) were estimated for each Mineral Resource area using the parameters described in the Production Target update[25]. The COG estimation included the average mining cost from the February 2024 FEED study[26] of US$4.00/t beneficiation plant feed. Often COG estimation for open pit mining ignores the mining cost as it is assumed that all material within the pit shell will be mined, and the decision point is whether that material is sent directly to the process plant or waste dump. However, as these deposits will be mined as strip mining of essentially a single mineralised horizon it was appropriate that the mining cost be included in the COG estimation. The cut off grades estimated in Table 6 indicated that the use of the Mineral Resource proportional grade fields of the 100ppm U₃O₈ COG was appropriate. In the Hippolyte Mineral Resource area, a COG of 120ppm U₃O₈ was applied and any blocks with a GR_100 grade below 120ppm U₃O₈ were taken as waste.

Table 6 - Cut Off grades

Estimation methodology

The Ore Reserve estimate represents that portion of the Tiris Uranium Project Production Target based on Measured and Indicated Resources only. All material classified as Inferred Mineral Resources within the mine plan was assigned zero revenue for the purposes of estimating the Ore Reserve.

The Mineral Resource Estimate used as the basis for the Ore Reserve Estimate was estimated by recoverable Multiple Indicator Kriging (MIK) using GS3 geostatistical software as described in ASX and AIM Release: 12 June 2024 - Aura Increases Tiris Mineral Resources by 55% to 91.3Mlbs. Pit optimisation and mine scheduling was undertaken using the Deswik mining software, as described in ASX and AIM Release: 11 September 2024 - Updated Production Target Improves Economics at Tiris.

Modifying factors applied in pit optimisation and mine scheduling completed for the September 2024 Production Target update were reviewed and confirmed to remain applicable.

Material modifying factors

Tenure

The Project is wholly located in two granted exploitation licenses and one granted exploration license. Tiris Ressources SA, which is 85% owned by Aura Energy Ltd and 15% by the Mauritanian Government's Agence Nationale de Recherches Géologiques et du Patrimoine Minier (ANARPAM), wholly owns the two granted exploitation licences. Aura Energy Ltd, wholly owns the one granted exploration licence.

Exploitation licences (2491C4 and 2492C4) for the Ain Sder and Oued El Foude permits, were granted on the 8 of February 2019[27]. Mining Conventions for these permits were signed in January 2023[28] and the final permits for mining and processing uranium were granted in July 2024[29].

Environmental permitting and approvals

All material environmental permits and approvals for the Tiris Uranium Project have been granted. The Environmental and Social Impact Assessment was approved by the Mauritanian Department of Environment on 5^th October 2017[30]. The authorisation to develop, mine and produce Uranium Oxide Concentrate (UOC) was issued by the National Authority for Radiation Protection, Safety and Nuclear Security (L'Autorité Nationale de Radioprotection de Sûreté et de Sécurité Nucléaire (ARSN)) on -12 July 2024.

Infrastructure

The Project is located 680km from the town of Zouérat in the Tiris Zemmour Region of Mauritania. Access is by hard pan desert track.

There is sufficient land within the lease area for the establishment and operation of the planned facilities, including the processing plant and supporting non-process infrastructure.

Power will be generated by a solar-diesel hybrid power plant designed as part of the FEED study.

Process and service water will be sourced within the region and pumped, by buried high-density polyethylene (HDPE) pipeline to the Project. Adequate water treatment infrastructure has been designed for treatment of potable and process water.

There are no known impediments to construction of all required infrastructure including power station and accommodation camp. Aura is in liaison with both government and key stakeholders regarding development of the Project. The supporting infrastructure required for the operation of the Project will include the following works:

§ Accommodation camp

§ Raw water pipeline

§ Potable and wastewater treatment plants, including site reticulation

§ Process water storage

§ Communications and IT

§ Minor upgrades to access route

§ Project insurance

§ High voltage power reticulation across the site

§ Basic Engineering program focusing on:

§ Front end loading of engineering design

§ Definition of early procurement and early works packages

Economic Outcomes

Financial modelling completed confirms that the Project is economically viable under current assumptions. In the opinion of the Competent Person, cost assumptions and Modifying Factors applied in the process of estimating Ore Reserves are reasonable. The Ore Reserve is considered to provide the basis of a technically and economically viable Project. The proposed mine plan is technically achievable. All proposals for the operation involve the application of conventional technology which is currently utilised in the uranium industry.

Project Risks

The key risks with their mitigations, are identified as follows:

1.   The Project's success is fundamentally linked to the price for uranium for the life of the project exceeding the operating cost for the project. Aura is in the process of seeking additional offtake agreements with suitable long-term pricing, but the market price risk is otherwise largely outside Aura's control.

2.   The estimated capital costs for the project could prove optimistic, requiring additional funding. The Capex estimate was composed of 85% external pricing[31], so has a strong basis for its pricing, subject to any subsequent inflation. The project will rely on competent Project cost control by the EPC company overviewing the project.

3.   OHS management risk of radioactive dust in the mining and front-end areas. Aura will ensure operators are in dust sealed cabins, use radiation monitoring badges and will rotate personnel if necessary.

4.   There are potential risks in obtaining Mauritanian statutory permit approvals, in the time required. Aura is seeking a high-level connection between Government authorities and its senior management, to supplement the usual project interfaces between Aura's local permitting supervisor and Government authorities. It is expected given Aura's focus on maximising local employment, that the Mauritanian Government will be quite supportive.

5.   There are risks from terror groups in the Sahel region. Aura has provisionally arranged for military supported security to be permanently based close to the site. Aura will continue with its very close coordination with police/gendarmes/military guarding the area.

6.   A risk remains of insufficient water being available for the project. A program designed to mitigate the risk that includes the drilling and test work of the Taoudeni basin is currently underway. The Taoudeni basin supplies water for the SNIM magnetite iron ore operations in Zouérat and First Quantum's Guelb Morghein Cu/Au/Fe mine in Akjout. Tiris' water requirements are between 2-3MLpa and it expected that there will be more than sufficient quantities of water available.

7.   Aura's hybrid diesel and solar generation plant will be the only power source for the Project. Aura shall undertake rigorous engineering selection of the power generation supply and hire experienced and competent electrical support personnel to maintain the power plant.