Aura Energy : Potential separate exchange listing of Häggån project

13 December 2017

AURA ENERGY LIMITED

(“Aura” or the “Company”)

THE HÄGGÅN PROJECT HAS THE POTENTIAL TO BE A GLOBALLY SIGNIFICANT PRODUCER OF BATTERY METALS

AURA COMMENCES PROCESS FOR POTENTIAL LISTING OF HÄGGÅN SEPARATELY ON MULTIPLE INTERNATIONAL STOCK EXCHANGES

SHORTLISTING OF INVESTMENT BANKS AND BROKERS UNDERWAY

Aura Energy Limited (AEE; ASX, AURA; AIM) is pleased to advise that it has commenced a process to list its 100% owned Häggån Project in Sweden separately on multiple international exchanges to maximise the significant value of the Battery Metal content in the project.

Aura has previously announced it was reviewing options for the Häggån Project given the large aggregate content of Battery Metals including vanadium, molybdenum, cobalt, neodymium, nickel and zinc. Most of these metals have not been fully considered in the previous technical studies.

Metal prices rises over the past 2 years, including 400% for vanadium and 300% for cobalt, have significantly altered the aggregate metal value, and value-mix, of the Häggån deposit.  These changes are the key drivers to this reassessment of Häggån.

Peter Reeve, Aura Energy's Executive Chairman said “Aura has always considered Häggån to be the company’s most valuable long-term asset and the significant recent price rise in Battery Metals has transformed Häggån’s current value proposition. Häggån now has potential to be one of the world’s largest sources of Battery Metals and the Company believes a separate listing in this environment has the potential to generate substantial value for shareholders.

“Listing Häggån separately with a focussed Swedish management team and the resources to independently finance and propel the project with the new impetus of the growth in Batterym Metals is a very appealing strategy to drive development of this substantial multi-commodity project.”

The Häggån Polymetallic project was the subject of a Scoping Study in August 2012 with very favourable technical and financial outcomes however that study did not consider;

• Vanadium recovery

• Cobalt recovery

• Neodymium recovery

• Optimisation and improvement of the by-product base metal recoveries or

• Downstream processing of Battery Metals as integrated manufacturing industries

Aura believes the recent changes in the value of various elements in the Häggån metal content, given the significant changes in the price of the battery related metals, can now drive a new development focus for the project. Additionally, Aura will explore the potential for the new vehicle to create downstream businesses in the battery manufacture sector which will also enhance the prospects for regional employment in central Sweden.

Häggån contains globally significant quantities of vanadium and has the potential to be one of the world’s largest sources of vanadium production. Given the current growth of vanadium usage and the importance of Redox-Flow battery technology to grid power storage, Aura sees the potential for substantial project upside in the detailed re-evaluation of this element of the Häggån Project.

The Häggån asset is held by Aura Energy in a separate Swedish entity and as such the process to achieve a separate listing is not expected to experience many hurdles. Aura will initially maintain a substantial ownership of the new vehicle but will consider further third-party investments or sell-downs as satisfactory value accrues in the vehicle.

Aura will also entertain, and seek, strategic investors into the new vehicle who operate within aligned Battery Metal industries. This would assist in transforming Häggån into a corporate entity which can take advantage of the Green Metals revolution currently underway globally, which Aura believes will continue for many years to come.

“The rapid change in pricing of Battery Metals and their newly assumed role in society have been nothing short of breathtaking and Aura Energy sees a significant opportunity in this transformation for Häggån and shareholders.

"The role of vanadium Redox-Flow batteries will transform the use of renewable energy in large scale grid applications with their ability for long term energy storage. Aura has the potential to be a key player in this area and Europe is particularly well positioned to embrace this battery technology and there is no region currently, where this is more important. Pleasingly it just happens to be where Häggån is situated”, Mr Reeve said.

Aura has commenced early stage planning for the separate listing of Häggån and key steps in this process are;

• Commence an immediate corporatisation of the Häggån asset

• Commence search for new management team

• Rename the Häggån Battery Metals vehicle

• Sell down 20-30% of the new entity

• List it separately on the London or Toronto stock exchange as primary exchange

• Secondary listing on Sweden’s Stock exchange

Aura hopes to complete the process as quickly as possible and has set a conceptual timetable of completing the process during the course of 2018.

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