Head office Level 3, Energy House,

18-20 Cavenagh St, Darwin NT 0800 GPO Box 2394, Darwin NT 0801, Australia

T +61 8 8924 3500 F +61 8 8924 3555

Ranger mine Locked Bag 1,

Jabiru NT 0886 Australia

T +61 8 8938 1211 F +61 8 8938 1203

www.energyres.com.au

ABN 71 008 550 865

A member of the Rio Tinto Group

18 February 2019

Company Announcements Office

ASX Limited

Level 4, Stock Exchange Centre

20 Bridge Street

Sydney NSW 2000

BY ELECTRONIC LODGEMENT

Dear Sir/Madam

Energy Resources of Australia Ltd (ERA) - 2018 Annual Report

Please find attached a copy of ERA's 2018 Annual Report.

Copies of the Annual Report are expected to be dispatched to all shareholders who have elected to receive a copy of the Annual Report on or about 5 March 2019.

ERA's Annual General Meeting will be held at 9.30am (ACST) on Wednesday 10 April 2019. A copy of the Notice of Annual General Meeting is expected to be sent to all shareholders on or about 5 March 2019.

Yours faithfully

James O'Connell

Legal Counsel | Company Secretary

SALES REVENUE ($M)

2014

DRUMMED PRODUCTION TONNES (T)

379.2

2014 2015 2016 2017 2018

1,165

2015 2016

267.8

2017 2018

211.2

201.0

332.8

2,005

2,351

2,294

1,999

NET PROFIT AFTER TAX ($M)

2014

2015 -275.5

-187.8

2016 -271.1

2017

INDIGENOUS EMPLOYEES (FTEs)

2014 2015 2016 2017 2018

47

49

46

-43.5

43

2018

-435.3

44

OPERATING CASHFLOW ($M)

2014 2015 2016 2017 2018

ALL INJURY FREQUENCY RATE (PER 200,000 HRS WORKED)

2014 2015 2016 2017 2018

0.67

0.19

0.56

Cover photo of the Ranger Trial Landform taken in January 2019 using ERA's drone.

With thanks to Scott Mason, David Coles and Sue Smiley from the Infrastructure team.

1.27

1.17

ii

CONTENTs

1

19

2018 ANNUAL REPORT

FINANCIAL REPORT

CHAIRMAN'S REPORT

2

DIRECTOR'S REPORT

20

CHIEF EXECUTIVE'S REPORT

3

AUDITOR'S INDEPENDENCE DECLARATION

43

COMPANY OVERVIEW

4

CORPORATE GOVERNANCE STATEMENT

44

FINANCIAL PERFORMANCE

5

STATEMENT OF COMPREHENSIVE INCOME

50

OPERATIONS AND REHABILITATION

6

BALANCE SHEET

51

BUSINESS STRATEGY

9

STATEMENT OF CHANGES IN EQUITY

52

BUSINESS RISKS

10

CASH FLOW STATEMENT

53

FUTURE SUPPLY

12

NOTES TO THE FINANCIAL STATEMENTS

54

SALES AND MARKETING

15

DIRECTOR'S DECLARATION

86

HEALTH AND SAFETY

16

INDEPENDENT AUDITOR'S REPORT

87

REGULATORY FRAMEWORK

18

SHAREHOLDER INFORMATION

93

2018 ASX ANNOUNCEMENTS

95

TEN YEAR PERFORMANCE

96

INDEX

97

1

CHAIRMAN's REPORT

It has been some years since your Company has mined the Ranger ore body, and it is now well advanced in its rehabilitation program. I believe this is an appropriate time to reflect on the benefits that have been derived by many over the last four decades because of its existence.

The Ranger Uranium Mine will leave a significant legacy, which will, hopefully, live on through other projects.

This reflection is particularly timely in the light of the current heightened opposition to the extractive industry. The debate on the advantages and disadvantages of this industry is a worthy one, but it does need balance. I have highlighted below some of the benefits that have resulted from ERA's operations, but it is fair to say that the ERA story is not an uncommon one in the mining industry in general.

On the environmental front, ERA started mining on pristine bare land in 1980, and, in 2026, it will have returned that same land to a condition in keeping with the surrounding natural habitat. All mining equipment and buildings on the mine site will have been demolished and the pits backfilled. The rehabilitation works will see more than a million seedlings planted over the Ranger Project Area. In short, the disturbed land will be returned to a viable ecosystem, meeting the expectations of all ERA's stakeholders, and, most importantly, those of the Mirarr.

While planning for closure and rehabilitation of the Ranger Mine is now our main focus, ERA has had a long history as a reliable supplier of fuel to nuclear power stations, connecting millions of homes with clean electricity.

But it goes well beyond that. There is also a legacy of far reaching other economic benefits in Australia. Over 37 years of production, the Ranger Mine has contributed more than half a billion dollars in royalties to Aboriginal interests and to Governments; more than one billion dollars in dividends; and more than one billion dollars in tax.

Significant other economic and social benefits have been ERA's contribution to training and employment. Onsite training programs have been of a high standard and ongoing. Over the years we have employed many thousands of people. The multiplier effect of that training and employment is obvious.

From a social perspective, the town of Jabiru owes its existence to ERA. In today's money, ERA spent $230 million on the establishment of the town to support the mine and the local community. The commercial properties, houses, public pool, lake and sporting facilities are, and will continue to be, extensively used. Educational, health and policing facilities are provided. These would not otherwise be locally available. Jabiru is powered by the Ranger Mine. The airport, (constructed and operated by ERA), is used by emergency services, commercial ventures and local charter operations - all at no cost.

The Ranger Mine has not only spawned a community, but has also been a fundamental enabler in the development of a tourism industry underpinned by the World Heritage Kakadu National Park. Jabiru is the gateway into the Park and will remain so many years after the Ranger Mine has been rehabilitated. The importance of this town has been recognised by the Federal and Territory Governments, both of which have committed significant funding to the development of Jabiru, the local tourism hub.

In any balanced debate, the broad contribution that mining in general, and ERA in particular, has made to Australian life needs to be acknowledged. ERA has taken, and continues to take, its environmental, economic and social responsibilities very seriously. I believe it has truly earned its social licence to operate in the future.

Lastly, on behalf of the Board, I would like to thank the management team and staff at ERA for their commitment and hard work this year.

PETER MANsELL

CHAIRMAN

2

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Energy Resources of Australia Limited published this content on 18 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 February 2019 09:11:13 UTC