Swedish Government inquiry to overturn uranium ban

KEY POINTS: · The Swedish Government have announced an inquiry into the ban on mining uranium · The inquiry will conclude on 15 May 2024 at which point, the Government can proceed to lift the ban on uranium mining · The Häggån Project contains Uranium Mineral Resources [1] of approximately 800 M lbs of U 3 O 8 · Uranium has the potential to increase the Häggån Project NPV by 37% and adds 14% to revenue [2] from current scoping study NPV range of US$ 456 million to US$ 1,307 million · Häggån can assist Sweden with their aims of becoming climate-neutral and energy independent · Aura strongly supports the Swedish Government to allow safe and environmentally responsible extraction of Uranium in Sweden

"If the European union is to become the first climate-neutral continent, access to sustainable metals and minerals must be ensured. We need to use the uranium we have, instead of sorting it out and considering it as waste, as is the case now - due to the current ban on mining uranium," says Minister for Climate and the Environment, Romina Pourmokhtari.[3]

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased to provide an update in relation to the Häggån Project.

The Swedish Government have announced on Friday the 23rd of February 2024 the launch of an inquiry to overturn the existing ban on mining uranium, which has been in place since 2018. The inquiry will investigate the regulatory changes needed to make uranium extraction legal, and analyse whether mining of uranium should be allowed. The conclusions of the inquiry will be presented on the 15th of May 2024. Once the results of the inquiry are published, the Government can choose to go forward with a legislative proposal to Parliament.

The Häggån asset, located in the municipality of Berg in the county of Jämtland, contains Mineral Resources1 of approximately 800 million lbs of U3O8. The primary metals and minerals in Häggån are vanadium and sulphate of potash "SOP" and uranium, with nickel, molybdenum and zinc also present. Approximately 14 percent of the known value of the asset is uranium. Including uranium into the previously published scoping study[4] increased the Project NPV by 37% at a uranium price of US$ 65/lb U3O8 from the previously stated range of between US$ 456 million to US$ 1307 million.

Sweden currently uses 2.4Mlbs U3O8 annually in their three nuclear reactors and has committed to building two additional nuclear reactors by 2035, Häggån has the potential to supply a significant portion of Sweden's nuclear fuel requirements.

Aura intends to file for processing concession for Häggån K1 during 2024 with the Swedish Mining Inspectorate. A Swedish processing concession (exploitation permit) is valid for 25 years.

Commenting on the inquiry, CEO of Aura Energy, Andrew Grove, said:

"Global energy demand continues to rise, and the need for carbon free, reliable baseload electricity generation means that a renaissance for nuclear power is under way globally. This announcement is a logical step by the Swedish Government towards allowing the extraction of uranium domestically to secure its own and others' needs. It is the start of a process which I hope will result in new legislation that not only makes it legally possible to mine uranium, but also provides a predictable permit process for uranium extraction alongside the mining of other metals. Häggån is a polymetallic asset where uranium is only a minor component of a suite of future facing metals, although a component with significant value and energy security for Sweden. It makes sense economically and environmentally to make full use of these resources."

"Releasing the value of uranium within the Häggån Project has a significantly positive economic impact on an already robust project."

"The Swedish Government's stated aim aligns well with the ability to mine domestic uranium, reducing foreign dependency and strengthening domestic and European energy supply. It is of course essential that uranium is mined in a way that does not threaten the local environment or water supply, and I am certain that we will be able to demonstrate that within the framework of the Swedish permit process."

The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. The Front End Engineering Design has confirmed Tiris to be a potential high-value low-cost low-risk long-life commercial scaled near term uranium mine.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden. Häggån contains a global-scale 2.5 billion tonnes of vanadium, sulphate of potash ("SOP") and uranium resources. Utilising only 3% of the resource, a 2023 Scoping Study outlined a 27-year mine life based on mining 3.5Mtpa.

Competent Person Statements

The Häggån Project Resource was released dated 10 October 2019 "Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed". 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.