Lind Security Facility and Voting at upcoming GM

Aura Energy Limited (AEE; ASX, AURA; AIM) wishes to inform shareholders that a significant negative vote has been lodged by 14 shareholders against all resolutions to be put to shareholders at the general meeting on Friday, 31 January 2020.

If Resolutions 1,6 & 7, regarding the Lind Security Facility Agreement are voted down the Company will be in default of its obligations under that facility and Lind would be able to utilise a number of measures available in the agreement to protect its interests. This would be negative for the company and shareholders.

With approximately 85% of all proxies received voting against all resolutions a majority of the board of directors are concerned that these shareholders do not understand the ramifications of voting against the resolutions relating to the Lind Security Facility Agreement (Resolutions 1, 6 and 7). 

A majority of the board of directors are also concerned that these 14 shareholders have also rejected the ratification of the prior issue of shares. 

Under ASX Listing Rules the Company cannot place more than 15% of its securities in any 12-month period without approval of shareholders.  Every junior exploration company on the ASX that does not have access to an operating cash flow funds its exploration activities from equity and quasi-equity. 

The failure of the Company to have the prior issues of shares ratified by shareholders will virtually put the Company at a standstill in its capacity to advance its projects and fund day-to-day activities as it will need to call general meetings of shareholders each time it wishes to raise new equity. 

Each meeting will require preparation of a notice of meeting, approval of the ASX, printing and despatch of the notice of meeting to every shareholder and, under new listing rules, the attendance of the Company's share registrar to conduct polls on resolutions relating to the listing rules.  This outcome will be time-consuming and add significantly to operating costs.

A majority of the board of directors request all shareholders that have not voted to do so with urgency and TO VOTE IN FAVOUR of all resolutions.  Proxy voting closes at 11 am on Wednesday, 29 January 2020.

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.