Aura Energy : Uranium Resource Upgrade Programme Underway

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ASX RELEASE

19 April 2022

Uranium Resource Upgrade Programme Underway

KEY POINTS:

• • 10,000 metre infill drilling programme to commence in May 2022, with completion expected in Q3 CY 2022 and Resource upgrade results early in Q4 CY 2022.

• • Focused on increasing Measured and Indicated (M&I) Resources, as Aura transitions from a uranium explorer to producer at Tiris.

• • A potential increase in M&I Resources will aim to support the expansion of mining Reserves, leading to possible increased target production rates.

• • Contracts entered with drilling and downhole radiometric logging contractors for mobilisation in May 2022.

• • The program will include re-evaluation of targets in the Tiris West resources using drilling and downhole radiometric logging, with the aim of expanding the global Tiris uranium and vanadium resources. Results are expected in Q3 CY 2022.

Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company") a company focused on the development of the 85% owned Tiris Uranium Project, Mauritania ("Tiris", "Project"), is pleased to provide an update on the Resource Upgrade Programme ("Programme") previously announced 9 February 2022. The Programme will focus on increasing the Measured and Indicated Resource base at Tiris and will now also include re-evaluation of exploration targets with the aim of increasing the total uranium and vanadium Resource Estimates.

The Tiris updated Mineral Resource Estimate is for a total of 56.91 million lbs U3O8 and 18.4 million lbs V2O5 (see Table 1), including Reserves of 8.12 million lbs U3O8 at 336 U3O8 (see Table 3).

On 18 August 2021, the Company announced an updated Definitive Feasibility Study with a capital estimate current to 2021, which confirmed Tiris as a low-CAPEX and low operating cost project that is economically viable at current uranium prices (see Table 4 and Table 5). The Production Target studied was supported by the Project's Maiden Mineral Reserve Estimate, which reflected only ~19% of the Mineral Resource Estimate at a cut-off grade of 175 ppm U3O8.

• 1 Refer Aura ASX announcement 16 Feb 2022: Aura Defines Vanadium Resource at the Tiris Uranium Project.

• 2 Refer Aura ASX announcement 18 August 2021: Zero Emission Tiris Uranium Project Definitive Feasibility Study - Updated

Capital Estimate

Aura Energy Limited

Suite 1, Level 3, 62 Lygon Street

Carlton South, VIC 3053

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The focus of the upcoming drilling programme is to increase the M&I Resources at Tiris to support extension of the Project life and/or studies for Production Target expansion options, completed in parallel with the fast-tracked development to production of ~800,000lb U3O8 at Tiris as outlined in the DFS.

Aura Energy Acting CEO, Will Goodall, commented: "This Resource Upgrade Programme will be the largest drilling programme completed on the Tiris deposits and represents a significant step forward for Tiris by aiming to release further value from the Mineral Resource. The upgrade will be undertaken concurrently with the fast-tracked development of the ~800,000lb U3O8 Tiris Project, with the aim of being one of the first greenfield uranium projects feeding into the current demand cycle.

By upgrading the Mineral Resource Estimate, in parallel with planned development and construction, we will add the potential opportunity to expand the target production rate early in the mine life. Only a small proportion of the Tiris Mineral Resource Estimate was used to support the Tiris Production Target for the fast-track Project and we aim to create significant upside by utilising a greater proportion of the global Resource in future production.

We are also excited by the potential opportunity to expand the global Resource base at Tiris. Northern Mauritania is a highly prospective area with potential to support long life uranium production. The introduction of downhole radiometric logging as an effective technique for uranium resource estimation transformed the resource at Tiris East and we look forward to applying this know-how to re-assessment of the Tiris West deposits. If successful we see the chance for Northern Mauritania to become a world class uranium province.

Overall, this programme represents a key part of Aura's strategy to advance from uranium explorer to producer at the Tiris Project in a manner that generates sustained value for the Mauritanian people and our shareholders."

Aura Energy Limited

Suite 1, Level 3, 62 Lygon Street

Carlton South, VIC 3053

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Figure 1 - Tiris Resource Zones showing measured, indicated, and inferred resources.

INFILL DRILL PROGRAM

To undertake the Resource Upgrade Programme, the Company has entered into contracts for a 10,000 metre drilling program, which is on schedule to commence in May 2022. The programme aims to increase the proportion of Measured and Indicated Resources from 34% of total Resource Estimate to more than 50%. This Programme will represent the largest single drilling programme completed on the Tiris deposits by Aura.

The infill drilling program will focus on areas surrounding existing M&I Resources in the Lazare South, Sadi and Hippolyte Deposits of Tiris East, as shown in Figures 1 & 2.

Aura Energy Limited

Suite 1, Level 3, 62 Lygon Street

Carlton South, VIC 3053

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The infill drilling program is expected to be completed in Q3 CY 2022 and Resource upgrade early in Q4 CY 2022.

Figure 2: Location of Resource Upgrade drilling zones (red cross-hatch) - Tiris East

RESOURCE EXPANSION PROGRAMME

In conjunction with the Infill drilling programme, Aura has commenced a programme to identify additional mineralised zones in the Tiris West deposits. This will include re-evaluation of a number of targets previously drill tested, where analysed uranium grades appeared marginal. Aura's experience in the region has shown that chemical analysis of calcrete uranium can significantly under-estimate the grade due to loss of ultra-fine carnotite in

Aura Energy Limited

Suite 1, Level 3, 62 Lygon Street

Carlton South, VIC 3053

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drilling. Therefore, selected targets only previously assessed using chemical analyses will be re-tested by drilling and downhole radiometric logging to re-assess the potential for economic mineralisation, in line with results observed through the Tiris East Deposits.

The primary targets will include areas of the Tiris West deposits where strong radiometric anomalies have been observed, however uranium grades by traditional air-core drilling and chemical assay were marginal. Some of these areas, such as that in Figure 3, will be tested by downhole radiometric logging to identify whether chemical analysis had under-reported total uranium grades.

Figure 3: An example at Tiris West of a very strong radiometric anomaly on which drilling & assaying returned mediocre U3O8 grades. Background image is uranium channel airborne radiometrics.

Aura Energy Limited

Suite 1, Level 3, 62 Lygon Street

Carlton South, VIC 3053