Interim Financial Report - 31 December 2022

Aura Energy Limited (ASX:AEE, AIM:AURA) is pleased to present its Half Year Report.

Review of operations and activities

Financial review

Aura Energy Limited ("Aura", or the "Company") has reported a loss for the half-year ended 31 December 2022 of $3,316,842 (31 December 2021: $624,048). As at 31 December 2022, the consolidated entity's net assets decreased to $33,146,135 compared with $33,614,450 as at 30 June 2022, including cash reserves of $6,203,179 (30 June 2022: $9,950,777).

Review of operations

The Company is an ASX and AIM listed resources company, transitioning from exploration to production from the Tiris Uranium Project in Mauritania and ongoing development of the Häggån Vanadium Polymetallic Project, Sweden. The Company also holds gold and base metals projects in Mauritania.

During the six-month period to 31 December 2022 (the “Period”), Aura completed product analysis and infill drilling activities at its flagship Tiris Project in Mauritania, and accelerated the transition to development activities under a revised strategy, with multiple milestones due to be reached in the second half of FY23.

Tiris Uranium Project (“Tiris” or the “Project”), Mauritania

The Tiris project is the Company’s flagship project.

Demand for uranium is expected to grow significantly over the next two decades. The Company has the potential to develop a low-capital/low-operating-cost mining project for the benefit of the Company’s shareholders and the Mauritanian people. The World Nuclear Association (WNA) has reported that there are currently 60 nuclear reactors under construction around the world, 104 nuclear reactors in the planning phase and 338 nuclear reactors being evaluated and proposed around the world by various governments and entities. The WNA reports that approximately half of the forecast growth in nuclear power generation will be in China.

During the Period, the Company:

• Completed 11,600 metres of infill drilling program, which increased Measured & Indicated Resources by 52% to 58.9 million pounds of U₃O₈ , 113 million tonnes at 236 ppm U₃O₈ at a 100 ppm cut-off grade.
  
• Completed initial radiometric fieldwork with the goal of growing resources.
• The Australian Nuclear Science and Technology Organisation (ANSTO) undertook, leaching, Ion Exchange and purification tests on pilot plant products in Sydney and confirmed that the uranium product planned to be produced at the Tiris Project will meet ASTM International specifications (there are approximately 12,500 global standards set by this international body which has 140 countries as members). These beneficiation trials have cleared the way for marketing discussions with downstream nuclear utilities and converters.
• Submitted management plans for authorisation of uranium production and export to the National Authority for Radiation-protection, Safety and Nuclear Security (“ARSN”) in Mauritania.

The Company:

• Progressed, on schedule, the optimisation of the Tiris project feasibility study, which is assessing the feasibility to increase the annual production target of U₃O₈. The Company’s goal is to complete the optimisation feasibility study during the January-March 2023 quarter which will provide key inputs for the Front-End Engineering and Design ("FEED") studies.
  
• Commenced the FEED studies.

Subsequently to the Period end, the Company executed a 30-year Mining Convention with the Government of Mauritania a 30-year Mining Convention for the Tiris project. The Convention was announced on 1 February 2023. This agreement confirms the security of tenure and the fiscal stability that enables the development of the Tiris Project and near-term uranium production.

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