Aura Energy : Half Year Report December 2021

For personal use only

AURA ENERGY LIMITED

(ASX:AEE, AIM:AURA)

Interim Financial Report

for the half-year ended

31 December 2021

For personal use only

Directors

Secretary

Principal registered office in Australia

Share and debenture register

Auditor

Solicitors

Bankers

Nominated advisor

Joint brokers

Stock exchange listings

Website

Aura Energy Limited

Corporate directory

Mr Philip Mitchell (appointed 21 December 2021)

Non-Executive Chairman

Mr Warren Mundine (appointed 21 December 2021)

Non-Executive Director

Mr Bryan Dixon (appointed 21 December 2021)

Non-Executive Director

Mr Peter Reeve (resigned 21 December 2021) Managing Director and CEO

Mr Peter Ward (resigned 21 December 2021)

Non-Executive Director

Mr Martin Rogers (resigned 21 December 2021)

Non-Executive Chairman

Mr Phillip Hains

Suite 1, Level 3

62 Lygon Street Carlton Victoria 3053 Australia

+61 3 9824 5254

Computershare Investor Services Pty Ltd

Level 2, Reserve Bank Building

45 St Georges Terrace

Perth WA

Hall Chadwick WA Audit Pty Ltd

283 Rokeby Road

Subiaco WA 6008

Palisade Corporate

Level 24, St Martins Tower

44 St Georges Terrace

Perth WA 6000

National Australia Bank

330 Collins Street

Melbourne VIC 3000

SP Angel Corporate Finance LLP

35 Maddox Street

Mayfair London United Kingdom

SP Angel Corporate Finance LLP

WH Ireland Limited

Australian Securities Exchange (ASX) and

Alternative Investment Market (AIM)

www.auraenergy.com.au

For personal use only

Aura Energy Limited Review of operations and activities 31 December 2021

Review of operations and activities

Financial review

Aura Energy Limited has reported a loss for the half-year ended 31 December 2021 of A$624,048 (31 December 2020: A$1,699,461). The Group's net assets increased to A$24,785,108 compared with A$22,000,914 at 30 June 2021, including cash reserves of A$3,262,869 (30 June 2021: A$3,206,855).

Review of operations

During the half-year ended 31 December 2021, business activities were focused on recapitalisation of the Group and restructure of the board of directors and management to support the development phase for the Tiris Uranium Project.

Tiris Project, Mauritania (85% owned)

Work in preparation for a move into the development phase for the Tiris uranium project was initiated during the half-year.

• Water drilling within 30km of the Tiris uranium project was completed. 7 drill holes were successful in locating water, defining a basin estimated to contain adequate water to support the 1.25Mtpa processing plant.
• Re-analysisof the Tiris drilling database allowed reclassification of some areas to inferred resource category, resulting in an increase in the global uranium resource at cut off grade of 100ppm U3O8 to a total resource of 56Mlb U3O8.
• Re-pricingof Tiris DFS Capital Estimate to reflect inflation and supply chain pressure introduced by the COVID-19 pandemic was undertaken by MinCore Engineers. Resulted in an estimated 10% increase in CAPEX from US$67.8m to US$74.8m. The inflation was predominantly caused by increase in steel and equipment pricing.
• The Tiris uranium project opportunity review was undertaken by METS Engineering. The review identified several areas to target potential operating cost reductions for the Tiris processing circuit. Additional projects will be undertaken to examine the opportunities through the year ended 30 June 2022.
• The Net Zero Emission baseline study with Wood Group was initiated.

Häggån Battery Metals Project, Sweden (100% owned)

Activities at the Häggån Battery Metals project remained on care-and-maintenance.

Tasiast South Gold Project, Mauritania (100% owned)

• Detailed gravity surveying was conducted over all tenements to define better geology and possible mineralising structures. Determinations were taken at 6,643 stations by South African gravity specialist GeoFocus. The program was overseen by Perth based geophysicists NewExco.
• Trial Induced Polarisation testwork was carried out at 6 sites to test the effectiveness of the technique in detecting sulphides in this desert environment. Results were mixed with saline ground water being a potential problem in some but not all areas.
• Auger drilling to test bedrock was carried out on the Nomads Joint Venture area, to provide the first subsurface testing in the large area of greenstones 35km along strike from the giant Tasiast goldmine. 464 holes were drilled 100m apart on lines generally 800m apart. Assay results are awaited.
• Auger drilling was conducted also on nickel/cobalt targets within komatiitic rocks in the Bella and Taet tenements. Assays are awaited.
• PGN Geoscience were engaged to conduct a re-interpretation of all existing data on Aura's Tasiast South tenements in the light of the gravity survey results and have generated a number of targets for gold and battery metals.