Häggån Project - Exploration Permit Application

Häggån Project Exploitation Permit application submitted in Sweden HIGHLIGHTS · Exploitation permit application for Häggån K no 1 lodged with the Swedish Mining Inspectorate · New exploration application lodged for Häggån no 2, covering the areas of the original Häggån no 1 concession · Aura is focused on responsibly and sustainably advancing the Häggån Project · Häggån's 2023 Scoping Study [1] demonstrates the Project's significant scale, optionality and viability, supporting a review of all options to advance the project for the benefit of all stakeholders

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased to provide an update in relation to the permitting of the future facing metals Häggån Project in Sweden. The Häggån Project is located in the municipality of Berg in the county of Jämtland in central Sweden and contains a globally significant polymetallic Mineral Resource[2] of approximately 2 billion tonnes containing vanadium, potassium, nickel, zinc, molybdenum, and uranium critical to Sweden and Europe's energy transition and energy and global food security.

Aura Energy Managing Director and CEO, Andrew Grove said:

"The Exploitation Permit Application process has confirmed some crucial matters about the Häggån future facing metals Project, stemming from our work focused on both environment and social impacts. Sweden is currently the EU's leading mining and mineral nation, and Sweden's minerals strategy will strengthen that position by using its mineral resources sustainably. Importantly, we expect this to help Aura to create jobs and support economic growth in Sweden as we progress the project development.

The Swedish Government acknowledges that nuclear power is critical for Sweden to achieve its clean energy ambitions. Against this backdrop, we welcome the Government process aimed at lifting Sweden's ban on uranium extraction in both a socially and environmentally sustainable manner.

The Häggån polymetallic ore body also contains very significant quantities of uranium, with Mineral Resources of over 800 million pounds U3O8[3]. Uranium was not considered in the Scoping Study or the exploitation application because of the current uranium mining ban and therefore may represent significant future economic upside once the ban has been overturned.

The 2023 Häggån Scoping Study only considers approximately 3% or 65 million tonnes of the total 2 billion tonne Häggån Project Mineral Resource2. The Scoping Study underpins Aura Energy's application for a 25-year exploitation permit. Aura Energy is confident that further drilling will continue to de-risk the resource and likely increase mine life and further enhance the project economics.

The world's decarbonisation quest together with the mining environment in Sweden support a strong future for the Häggån Project. Häggån is a significant project which could transform both Aura and the Swedish energy metals mining industry and, as part of its evaluation, Aura will review all options to create value from the Project for all stakeholders."

Tenement Status Update

On behalf of its 100% subsidiary Vanadis Battery Metals AB, Aura Energy has submitted the Exploitation Permit application for Häggån K no 1 with the Swedish Mining Inspectorate, Figures 1 and 2. The Exploitation Permit application included a preliminary assessment of the Project including economics and both environmental and community impact.

If granted, the Exploitation Permit will secure the tenure over the Häggån Project and be valid for 25 years, pending approval from the Swedish government. Aura will then undertake further environmental and social impact studies, with the ultimate goal of developing a profitable mine that operates sustainably, responsibly and in full compliance with Swedish regulations.

In addition, an application has been submitted for a new exploration license, Häggån no 2, covering the areas of the original Häggån no 1 exploration license and an exception to the prohibition year (allowing Aura to apply for the new Häggån no 2 license, where normally no parties may apply for the expired tenure for a period of 12 months). The Company believes these applications will be considered favourably due to the considerable amount of work undertaken over the Project to date.

While the Swedish Mining Inspectorate considers the Häggån K no 1 Exploitation Permit application the Häggån no 1 exploration license will remain valid and after the determination the Häggån no 2 exploration license application may be considered. However, there is no guarantee either application with be granted.

Figure 1 - Häggån K no 1 exploitation application area showing planned infrastructure

Figure 2 - Häggån K no 1 exploitation application area, Mineral Resource areas and Aura's exploration tenements

This is a very important step in realising the significant value inherent in the Häggån Project, with the 2023 scoping study estimating a NPV8 of between US$456 million to US$1,307 million[4].

The Swedish Government is also considering lifting the current ban on uranium mining and the Häggån Project contains very significant uranium Mineral Resources[5] of more than 800 million lbs U3O8. Uranium was not considered in the 2023 scoping study economics but, if included, would increase the Project NPV8 by 37% at a uranium price of US$65/lb U3O84.

The Exploitation Permit application did not consider producing uranium because of the current uranium mining ban. Under the current Project model, uranium would be treated as a waste product: stabilised and disposed of in an environmentally safe manner.

We look forward to keeping shareholders informed on the progress of these applications.

The Board of Aura Energy Ltd has approved this announcement.

The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. 2024 FEED Study 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.