Häggån Exploitation Permit application - Update

Häggån Project Exploitation Permit application submitted in Sweden - Update HIGHLIGHTS · Exploitation permit application for Häggån K nr 1 lodged with the Swedish Mining Inspectorate · New exploration application lodged for Häggån nr 2, covering the areas of the original Häggån nr 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 ("Aura" or the "Company") refers to the announcement released on 5 September 2024 titled "Häggån Project Exploitation Permit application submitted in Sweden". For the purposes of this release, additional information is provided in relation to previously disclosed Mineral Resource Estimates and Scoping Study outcomes for the Häggån Project. Further information is also provided for the previously released production targets and life of mine information included in the 2024 FEED Study for the Tiris Uranium Project in Mauritania.

The updated announcement is set out below and the corresponding ASX announcement can be viewed via the following link: http://www.rns-pdf.londonstockexchange.com/rns/2316D_1-2024-9-6.pdf.

Aura Energy Limited 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. All the material assumptions underpinning the production target, and the forecast financial information derived from the production target, continue to apply and have not materially changed. 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."

The Mineral Resource Estimate for uranium was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. A competent person has not done sufficient work to classify the Mineral Resource Estimate for uranium as mineral resources or ore reserves in accordance with the JORC code (2012). It is uncertain that following evaluation and/or further exploration work that the uranium estimates will be able to be reported as mineral resources in accordance with JORC code (2012).

Tenement Status Update

On behalf of its 100% subsidiary Vanadis Battery Metals AB, Aura Energy has submitted the Exploitation Permit application for Häggån K nr 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 nr 2, covering the areas of the original Häggån nr 1 exploration license and an exception to the prohibition year (allowing Aura to apply for the new Häggån nr 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 nr 1 Exploitation Permit application the Häggån no 1 exploration license will remain valid and after the determination the Häggån nr 2 exploration license application may be considered. However, there is no guarantee either application with be granted.

Figure 1 - Häggån K nr 1 exploitation application area showing planned infrastructure

Figure 2 - Häggån K nr 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 a very significant uranium Mineral Resource Estimate[5] of more than 800 million lbs U3O8. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. A competent person has not done sufficient work to classify the Mineral Resource Estimate for uranium as mineral resources or ore reserves in accordance with the JORC code (2012). It is uncertain that following evaluation and/or further exploration work that the uranium estimates will be able to be reported as mineral resources in accordance with JORC code (2012).

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[6] 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.

Häggån Mineral Resource Estimate

The detailed information regarding the Häggån Mineral Resource Estimate can be found in ASX Release: Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed, 10 October 2019. The Company confirms that it is not aware of any new information materially affecting the information. All material assumptions and technical parameters underpinning the Mineral Resources Estimates continue to apply. 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.

Häggån Mineral Resources

Included in the global resource published 22 August 2012, "Outstanding Häggån uranium resource expands to 800 million pounds" is an Inferred Mineral Resource of 2.35 billion tonnes with U3O8 grade of 155 ppm at a cut-off of 100 ppm U3O8, for contained U3O8 of 800 Mlb. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Häggån Uranium Mineral Resources 1

1 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. A competent person has not done sufficient work to classify the Mineral Resource Estimate for uranium as mineral resources or ore reserves in accordance with the JORC code (2012). It is uncertain that following evaluation and/or further exploration work that the uranium estimates will be able to be reported as mineral resources in accordance with JORC code (2012).

There is a low level of geological confidence with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.

[1] ASX and AIM Release: "Scoping Study Confirms Scale and Optionality of Häggån" 5 Sept 2023

[2] ASX and AIM Release: "Häggån Battery Metal Project Resource Upgrade Estimate" 10 Oct 2019

[3] ASX Release: "Outstanding Häggån Uranium Resource expands to 800 million pounds" 22 Aug 2012

[4] ASX Release: "Scoping Study Confirms Scale and Optionality of Häggån" 5 Sept 2023

[5] ASX Release: "Outstanding Häggån Uranium Resource expands to 800 million pounds" 22 Aug 2012

[7] ASX and AIM Release: "Häggån Battery Metal Project Resource Upgrade Estimate" 10 Oct 2019

[8] ASX and AIM Release: "Outstanding Häggån Uranium Resource expands to 800 million pounds" 22 Aug 2012

[9] ASX and AIM Release: "Scoping Study Confirms Scale and Optionality of Häggån" 5 Sept 2023