Tiris Uranium Project Summary

The Tiris Uranium Project is in north-eastern Mauritania, approximately 1,200km northeast of the capital, Nouakchott. Access is via Zouérat, 744 km by bitumen road and then a further ~700km on hardpan desert roads (Figure 1). The Mineral Resource Estimate ("MRE") is based on drilling conducted on two Mineral Exploration permits held 100% by Aura Energy: 562B4 Oum Ferkik, 2365B4 Oued EL Foule Sud, and on two Exploitation permits: 2492C4 Oued El Foule, 2491C4 Ain Sder held by Tiris Ressources SA (85% Aura Energy). Oum Ferkik is under application for conversion to an Exploitation Permit.

Global Mineral Resources at Tiris currently stand at 184Mt at 225ppm for 91.3Mlbs U₃O₈  , including Measured and Indicated Resources of 83Mt @ 219ppm for 39.9Mlbs U₃O₈  and Inferred Resource of 102Mt @ 229ppm for 51.4Mlbs U₃O₈  (applying a 100ppm U₃O₈ cut-off grade)_.

The recently released FEED[9] study defined a near-term low-cost 2 Mlbs U₃O₈ pa uranium project with a 17-year mine life and very strong economics; NPV₈ US$ 388 M, IRR 36% and 2.5 year pay-back at a US$80/lb U₃O₈ price. The Project has significant optionality in the design, allowing expansion to expand to accommodate growth in Mineral Resources.  The Tiris East Mineral Resources are very shallow (less than six metres deep), free dig mineralisation, with no crushing or grinding that has proven exceptional beneficiation characteristics which gives rise to Tiris' robust economics.

Regional Geological Setting

The Tiris Uranium Project lies in the north-eastern part of the Reguibat Craton, an Archaean (>2.5 Ga) and Lower Proterozoic (1.6-2.5 Ga) aged complex composed principally of granitoids, meta-sediments and meta-volcanics (Figure 4). The resources lie within Proterozoic portions of the craton. This part of the craton generally consists of intrusive and high-grade metamorphic rocks of amphibolite facies grade. In addition to the Archaean and Paleoproterozoic basement rocks, two principal types of Cainozoic surficial sediments occur; Hamada (sand and outwash fan material) and Cailloutis (flat lying calcrete layers, typically 1 to 3 metres thick, in places partially silicified) which in this area stand out as small mesas up to a few metres above the surrounding land surface. Several small uranium occurrences were known in the Reguibat Craton from exploration during the 1950's.

Figure 4: Regional geology of Mauritania; red stars are Aura uranium resources

All the resource zones are generally at less than 5m depths lie beneath flat land surfaces covered by surficial hamada and thin aeolian sand deposits (Figure 5). This shallow overburden largely covers the basement rocks, which only appear as scattered outcrops.

Figure 5: Typical landscape within Tiris project area, trench illustrating soft sandy overburden with gravelly free digging calcrete ore generally less than 6 metres deep.

Uranium Mineralisation              

The uranium resources generally lie either within weathered, partially decomposed red granite or in colluvial gravels developed on or near red granites. Small portions occur in other rock types such as meta-volcanics and meta-sediments. The resources are believed to have developed within shallow depressions or basins, either within weathered granitic rocks or where colluvial material has accumulated in desert sheet wash events. The pebbles within the gravels are generally unweathered fragments washed in from the nearby exfoliating granites and other crystalline rocks, mixed with sand, silt, calcrete, gypsum and yellow uranium vanadates. The gravels and weathered granite occur at surface or under a very thin (<30 cm) veneer of wind-blown sand and form laterally continuous, single, thin sheets overlying fresh rock, usually granite. The uranium mineralisation generally forms thin shallow horizontal tabular bodies ranging in thickness from 1 to 12 m hosted in weathered granite and granitic sediments.

It is inferred that the deposits were formed by near-surface leaching of uranium from the uraniferous red granites by saline groundwaters during the wet Saharan "pluvial" periods. There have been several periods over the past 2.5 million years, the most recent ending only 5,900 years ago. Evaporation during the subsequent arid periods caused the precipitation of uranium vanadates, along with calcium, sodium and strontium carbonates, sulphates and chlorides.

The host material at Tiris is granitic gravel or weathered granite containing powdery calcium carbonate (calcrete) and sulphates. Although the Tiris mineralisation is associated with calcium carbonates, it differs from other well-known calcrete uranium deposits such as Langer Heinrich and Yeelirrie, in that they are river valley-fill deposits. The Tiris deposits have formed in shallow depressions in unconsolidated and uncemented gravels and in partially decomposed granites. In Namibia and Western Australia, the mineralisation is typically within calcareous clays or massive hard calcrete which forms below the water table, often at several levels related to the changing positions of the water table. In contrast, Aura's Tiris deposits are believed to be pedogenic calcrete occurrences that formed in the vadose zone by capillary action above the permanent water table.

The uranium mineralisation occurs principally as carnotite K₂(UO₂)₂(VO₄)₂.3H₂O) and possibly some of the chemically-similar calcium uranium vanadate, tyuyamunite Ca(UO₂)₂(VO₄)₂.5-8H₂O) in varying proportions. In this report, "carnotite" refers to any mineral in the carnotite-tyuyamunite series. The carnotite occurs as fine dustings and coatings on granite or granite mineral fragments, and on the surfaces or partly within the calcite cement that forms the patches of calcrete. The carnotite is mostly ultrafine, micron scale in grain size. The carnotite is distributed erratically in numerous patches and strings over short distances.

Twelve prospect areas have been identified in Tiris East and were drilled in this program (Figure 2). Of these, eleven prospects returned economic resources, grouped into eight MRE's (Table 1). The four Marie Prospects (E,F,G,H) have been grouped into one MRE. A further MRE was completed over Oum Ferkik (previously referred to as Tiris West), despite no new drilling being completed, so that the resource estimation methods are consistent with that used at Tiris East. The form of mineralisation in each MRE is as follows:

1. The Sadi MRE occurs in an irregular NNW trending area with a north-south length of 10.6km and an average east-west extent of ~3.0km. There are a few smaller patches of mineralisation outside the main zone. The MRE starts at surface and extends to a maximum depth of 17m below surface, although the majority of mineralisation occurs within 8m of surface.

2. The Lazare North MRE occurs over an area of 4.8km east-west and averages ~2.0km north-south. It comprises two main areas with an additional small patch in the north-west. The MRE starts at surface and extends to a maximum depth of 12m below surface, although the majority of mineralisation occurs within 7m of surface.

3. The Lazare South MRE occurs over an area of 7.8km east-west and averages ~1.5km north-south. It comprises two main areas with an additional smaller patch to the east. The MRE starts at surface and extends to a maximum depth of 19m below surface, although the majority of mineralisation occurs within 6m of surface.

4. The Hippolyte North MRE occurs as multiple lenses over an area of 6.1km east-west and 9.6km north-south and was divided into 7 separate zones for grade estimation. The MRE starts at surface and extends to a maximum depth of 11m below surface, although the majority of mineralisation occurs within 6m of surface.

5. The Hippolyte South MRE occurs as multiple lenses over an area of 8.0km east-west and 9.2km north-south and was divided into 5 separate zones for grade estimation. The MRE starts at surface and extends to a maximum depth of 9m below surface, although the majority of mineralisation occurs within 6m of surface.

6. The Hippolyte East MRE occurs as four separate lenses over an area of 3.8km east-west and 4.3km north-south and was divided into three separate zones for grade estimation. The MRE starts at surface and extends to a maximum depth of 8m below surface, although the majority of mineralisation occurs within 5m of surface.

7. The Hippolyte West C MRE occurs as a single irregular zone over an area of 3.6km north-south and averages ~1.3km east-west. The MRE starts at surface and extends to a maximum depth of 10m below surface, although the majority of mineralisation occurs within 7m of surface.

8. The Marie MRE occurs as four separate zones (E, F, G, H) over an area of ~12km east-west and ~7.5km north-south. Marie E extends 1.8km N-S and 0.6km E-W; Marie F is 1.8km N-S and 0.75km E-W; Marie G is 1.5km N-S and 2.0km E-W; and Marie H is 4.0km N-S and 0.6km E-W. The MRE starts at surface and extends to a maximum depth of 9m below surface, although the majority of mineralisation occurs within 6m of surface.

The Oum Ferkik area comprises two separate deposits, grouped into one MRE, within a rectangle around 3.4km north-south and 7.2km east-west.

9. The Oum Ferkik K MRE occurs as a single irregular zone over an area with maximum dimensions of 2.6km north-south and 2.4km east-west. The MRE starts at surface and extends to a maximum depth of 11m below surface, although the majority of mineralisation occurs within 6m of surface.

10. The Oum Ferkik L MRE occurs as a single irregular zone over an area with maximum dimensions of 2.9km north-south and 1.9km east-west. The MRE starts at surface and extends to a maximum depth of 11m below surface, although the majority of mineralisation occurs within 6m of surface.

These dimensions do not account for sand dunes that overlay parts of some deposits. The models account for sand dunes that overlie mineralisation in places and can be over 10m high. These dunes move on an annual basis within specific corridors. AEE provided the outlines of the base of sand dunes from aerial imagery and H&S Consulting generated volumes based on a nominal height of 10m. The modelling of these volumes and their location is somewhat subjective, but it does give a nominal indication of the location of the sand dune corridors.

Drilling techniques, hole spacing and mapping

Approximately 7,944 drill holes were used in this Resource Estimate using predominantly air core drilling, with small diamond drilling programs in 2017 and 2022 utilising triple tube PQ core allowing grade estimation by both chemical analysis and downhole gamma logging for validation purposes. In approximately 76% of these, U₃O₈ grade was determined by downhole gamma logging with disequilibrium factor applied, and in the remainder (44%), U₃O₈ grade was determined by chemical assay. Table 2 presents the drilling metres undertaken on the project, broken down by drilling and sampling methods and year of completion.

Table 2. Drilling quantity and method, along with sampling method per year on the Tiris Project for holes included in this MRE.

In most cases, Measured Resources are based on 50m x 50m spaced drill holes, Indicated Resources are based on 100m x 100m spaced holes, and Inferred Resources on 100m x 200m spaced holes. For the 2022 drilling, the drill spacing for Measured Resources was undertaken at 50m x 50m or 70m by 70m spacing. In 2017, three 100m x 100m squares were drilled at 12.5m hole spacing in both N-S and E-W directions to investigate grade anisotropy. In 2022, a further two such detailed patterns were drilled. Variography constructed by the resource consultants confirmed that the drill spacings are appropriate for the Resource classifications. In 2024, drilling assessed potential for Inferred mineralisation so drilling began on initial wide-spaced programs and was closed into 200m x 100 m collar spacing to achieve coverage required for at least Inferred resources.

The uranium mineralisation is flat lying to sub-horizontal so vertical holes were drilled, intersecting the mineralisation at a high angle. The collars are spaced in a grid pattern to provide adequate coverage of the mineralisation.

The mineralisation sits within sediment and weather rock, and while most areas have very limited outcrop, some zones such as Hippolyte North had a significant amount of outcrop. In some areas this outcropping material can be soft, weathered and contain visible carnotite, but most outcrops are of very hard granitic material, so are unlikely to be mineralised and not amenable to be dug freely. To account for solid outcrop in the resource statements, geological outcrop mapping was undertaken in the field by Aura geologists for a small portion of the work and, where adequate field data was not available, the outcrop was digitised from Worldview 3-HD Satellite Imagery to 15cm resolution provided by Geoimage Pty Ltd. Three versions of the outcrop map were produced (that were based upon different interpretations of the imagery) so the effect of three amounts of outcrop upon the resource was assessed. Given that the drillholes are already very shallow in the areas of outcrop, there was not a significant different in the results after applying the three different interpretations of imagery. The middle-case outcrop scenario was used for the MRE. Field investigations will be undertaken in the future to determine fact-check the digitised plans.

Logging and Sampling

A summary of sampling methods is presented in Table 2. Prior to 2017, analysis of mineralisation was undertaken using chemical assay from chip samples. Sampling in 2009 was from reverse circulation drilling, but due to excessive sample loss, these results were not used in any MRE's. Sampling in 2010, 2011, 2012 and 2015 were from AC chips but the 2015 was also found to suffer from sample loss, so subsequent programs relied on downhole geophysical methods in AC holes, supported by chemical assays/downhole geophysics from PQ diamond core. The samples from 2015 were not included in the MRE and most areas covered by these holes were redrilled and surveyed with downhole gamma.

For drilling programs prior to 2017, all drilled material provided by the AC rig was collected in its entirety in 1m intervals except for the first metre which was sampled in 0.5m intervals. All intervals were geologically logged.  AC drill cuttings were riffle split on-site to extract samples for assay. PQ diamond drill core lengths were measured to an accuracy of ~1cm immediately on removal from the core barrel to determine and record core recovery. After transportation to the core yard in Nouakchott, depths were marked on the core at 1-metre intervals and recovery data was checked again. Assays taken from the PQ core were compared against downhole gamma information from the same hole.  Table 1 in the appendices contains all material information to understand the estimates of Mineral Resources.

For holes drilled from 2017 onwards, uranium concentrations were measured by downhole total count gamma logging, which was converted to equivalent uranium grades (eU₃O₈) by applying calibration information, an air correction and minor smoothing. A check was undertaken on the disequilibrium between U₂₃₈ and its gamma-emitting daughter products. To test for radioactive disequilibrium, 343 pulped-core samples were sent to Australian Nuclear Science and Technology Organisation ("ANSTO"). Results were compiled and interpreted by D Wilson of 3D Exploration. Disequilibrium factors were produced in two different ways. The first was based on laboratory measurements made at ANSTO, which resulted in a disequilibrium factor of 1.29. The second was a comparison of drill core assay results against downhole gamma logging resulting in a conversion factor of 1.16. When the apparent underestimation of grade by ICP analysis (in comparison to the more accurate DNA analysis) by 7% is taken into consideration the drill hole assay data imply a conversion factor of 1.24. Aura personnel decided a disequilibrium factor of 1.25 was appropriate and applied this to convert raw gamma eU₃O₈ grades to U₃O₈ grades.

Downhole geological logging on AC holes was traditionally undertaken only in the final metre, which was washed and stored in chip trays, to determine the rock character at end of hole. This process continued in 2024, except the upper portion of the hole was also logged from photos. Full logs were completed for PQ core holes. Differentiation of the weathered granite from granitic sediments is unreliable from air-core sample returns.

 Table 3. Proportion of holes geologically logged per program

Sample analysis and Quality Assurance and Quality Control ("QAQC")

2011/12 AC drill samples were submitted to Stewart Laboratories sample preparation facility near Zouérat in Mauritania. Samples were crushed by jaw crusher to -12mm and 1kg was riffle split for pulverising to +85% passing 75 microns. An ~100g split was bagged and sent to Stewart Laboratories in Ireland for analysis by pressed pellet XRF. Previous analysis comparing different analytical methods (XRF, ICP, DNC) had indicated that XRF is an accurate method on this material, if an x-ray band is selected for measurement that is not affected by the presence of strontium, and this was done. This method will measure total uranium.

The drill core was cut in half longitudinally by a diamond saw. For each half-metre of core, half-core was bagged for assay. This task was completed in 2017 by ALS Laboratories and in 2022 by MMM Laboratories in Nouakchott, under the supervision of an Aura Geologist. Bagged ½ core samples were prepared by ALS Laboratories Nouakchott by Method Prep 22 (Crush to 70% less than 6mm, pulverize entire sample to better than 85% passing 75 microns). A 100g sample of pulp was split off using a mini-riffle splitter. For diamond core drilled in 2022, sample preparation was completed by MMM Laboratories in Nouakchott, using the same method as for the 2017 core samples, except the 100g sample of pulp was split off using rotary splitter. Sample pulps were forwarded by air to ALS in Ireland for uranium analysis by ALS Method U-MS62 (U by ICP-MS after four-acid digestion) which provides near total extraction. ROL-21 agitation was carried out on the pulps before selecting assay aliquot.

For the 2017, 2022 and 2024 programs, downhole gamma logging was performed by 2 down-hole Auslog gamma sondes utilising an A075 Natural Gamma Tool. Drill holes were gamma logged as soon as possible after drilling to avoid radon build-up. Each borehole was logged in both directions to verify consistency. Logging speed was 2 metres per minute, with a sample interval of 1cm. At least one hole was re-logged after each 20 holes as a repeatability check. A reference hole was established and relogged every 2 days as a check on consistency. Gamma logging procedures & interpretation were supervised by consultant David Wilson who qualifies as a Competent Person in these matters.

For the assayed sample, duplicates, blanks, and standards were inserted in the assay sample stream at regular intervals. QAQC procedures for the 2011/12 AC drilling involved submission of 1 QAQC sample in every 5 samples, comprised of: field duplicates every twelve samples, blanks every 31 samples, umpire assays every 11 samples, certified reference material every 129 samples. Umpire analysis was carried on 427 sample intervals. For each of these, the original pressed pellet XRF sample assayed by Stewart Labs was re-assayed by ICP at Stewart Labs. Each of these samples was also assayed by XRF and by ICP at ALS Labs. Accuracy & precision were within acceptable limits. QAQC procedures for the 2017 and 2022 diamond drilling comprise, submission of one standard, blank and field duplicate every 25 samples. In each set of 25 samples, a blank was inserted at every tenth position, standard at every twentieth position and field duplicate every 25th position. Accuracy & precision were within acceptable limits.

Specific Gravity measurements.

Dry bulk density of diamond drill core samples was measured at the ALS facility in Nouakchott using an immersion method (Archimedes principle) on selected PQ diamond drill core intervals ranging in size from 10cm to 30cm. Competent pieces of drill core were selected on a nominal interval of 50cm. The samples chosen are believed to be representative of the surrounding rock type. All density samples are wrapped in cling film to avoid water absorption. A total of 412 density measurements have been taken from drill core at the Tiris deposits with values ranging from 1.50 to 2.66t/m3 and averaging 2.13t/m3.

Measured density values show that there is a reasonable correlation between density and the depth of the sample. A regression was used to assign densities to each block in the block models based on depth below surface.

Geological Interpretation

The interpretation of the mineralisation as flat lying tabular bodies is undisputed. The lateral extents of the mineralisation are poorly defined and recent drilling around the edges of the deposits shows that mineralisation is not necessarily limited to areas with stronger surface radiometric anomalies. The continuity of both grade and geology are affected by the extent of weathering of the granitic host. Continuity does not appear to be affected by faulting. The extent of outcrop/subcrop and its relationship to free-digging mineralisation is somewhat uncertain but a conservative approach has been taken to minimise this risk. Alternative interpretations of the geology are unlikely to significantly impact estimated resources.

Modelling was undertaken to generate surfaces representing the base of the mineralisation at each deposit in order to limit the extrapolation of grades into volumes that have no data. This is important at Tiris as there is a general decrease in uranium grades with depth. These basal surfaces generally represent the top of fresh granite, where air-core drilling could penetrate no further. The basal surfaces were produced using the locations of the end of the deepest assay from each drill hole. Most AC holes were drilled using a blade, to refusal, so the end of hole generally represents the base of weathering. The exceptions are the 2022 air-core drilling, when a hydraulic hammer was used instead of a conventional blade bit, and all diamond core holes. Therefore, these holes could penetrate fresh rock, while the blade bit used in other years could not. This difference is important to the Tiris project because the DFS assumes that mining will be free-digging. Consequently, fresh rock intersected in the 2022 air-core holes and all diamond core drilling will not be mineable under current assumptions and needs to be excluded from the MRE. Therefore, in deposits with 2022 air-core holes and diamond core drilling (Sadi, Lazare South and Hippolyte North), an additional surface was created to represent the top of fresh rock, which may be shallower than the base of mineralisation in places. The material logged as fresh in descriptions of either regolith, weathering or oxidation was not material but was nonetheless excluded from the MRE.

Areas of obvious outcrop were excised from the MRE assuming a dip of 45 degrees between weathered granite/granitic sediments and the fresh granite.

At the time that the estimates were completed, no topographic survey data were available. The majority of the recent drill collar locations were surveyed using a Differential Global Positioning System (DGPS). HSC used the locations of all drill hole collars that had been located with the DGPS to create a wireframe representing the topographic surface. The elevations of all drill holes that had been located using a handheld GPS were then derived from this topographic surface.

All geological models contain block proportions of material:

•             Below topography

•             Above base of mineralisation

•             Above top of fresh rock

•             Above top of holes

These proportions were later combined to assess estimates of material between the different surfaces.

The block proportion below topography was used to assign average block depth, which was used to calculate dry bulk density and allow assessment of mineralisation in one metre slices below surface.

Estimation and classification methodology

New estimates were generated for all deposits reported here, determined by H&S Consultants Pty Limited ("HSC"). There is significant additional recent drilling for all the Tiris East deposits, while Tiris West was re-estimated with existing historical data using the same methodology as Tiris East to make all estimates consistent and compatible.

Uranium concentration was estimated by recoverable Multiple Indicator Kriging ("MIK") using GS3 geostatistical software. The uranium grades at the Tiris deposits exhibit a positively skewed distributions and therefore show reasonable sensitivity to a small number of high grades. MIK is considered an appropriate estimation method for the uranium grade distribution at the Tiris deposits because it specifically accounts for the changing spatial continuity at different grades through a set of indicators variograms at a range of grade thresholds. It also reduces the need to use the practice of top cutting.

All drill hole intervals were composited to 0.5m for estimation. No direct top-cuts were applied but the average of the mean and median grades was applied to the top indicator class to address any potential extreme values. The larger deposits were subdivided into a number of subzones for estimation, with conditional statistics generated for each of the subzones. All class grades used for estimation of the mineralised domains were derived from the class mean grades, except the top indicator class.

The base of mineralisation surface was used to limit the extrapolation of grades into volumes that had no data. The proportion of outcrop was estimated for each block based on digitising provided by AEE and used to deplete the MRE on the assumption that this material cannot be dug freely.

Vanadium is a potential by-product and vanadium oxide (V₂O₅) has been estimated for the mineral resources using the stoichiometric V₂O₅/U₃O₈ ratio for carnotite group minerals. These V₂O₅ values represent potentially recoverable vanadium in carnotite and not total vanadium occurring in mineralisation, which is significantly higher in almost all cases. These potentially recoverable V₂O₅ values are based on the analysis of a substantial database of available sample data and represent average values that may be conservative. This procedure relies on the correlation between uranium and vanadium in carnotite group minerals, which are the only uranium-vanadium minerals identified to date at Tiris.

The recoverable MIK technique employed by HSC in this case requires a set of 14 variogram models, one for each of the fourteen grade thresholds used. Sets of variogram models were created for the major Subzones and were applied to subzones that did not have sufficient data to generate reliable models.

Drill hole spacing varies from 50x50m or 70x70m in the better drilled deposits, out to 100x200m in the less well drilled deposits.

Sample length varies by assay type and year. Earlier chemical assays (2009-2012) are typically 1.0m in length, apart from 0.5m intervals for the first metre in each hole. Later (2017-2022) chemical assays are consistently 0.5m in length. All raw radiometric data (one-centimetre readings) has been composited to regular 0.5m intervals. All drill hole grade data were composited to nominal 0.5m intervals for analysis and estimation.

The block dimensions were 50x50m in plan-view and 1m vertically. The plan dimensions were chosen as it is the nominal drill hole spacing (preferable for MIK estimation). The vertical dimension was chosen to reflect the anisotropy of the mineralisation and the downhole data spacing.

The minimum selective mining unit size is assumed to be 10x10x0.5m.

A three-pass search strategy was used to estimate the U₃O₈ grades at each of the deposits. Each pass required a minimum number of samples with data from a minimum number of octants of the search ellipse to be populated. Discretisation was set to 5x5x2 points in X, Y and Z, respectively. The search criteria are shown below. The last short axis of the search ellipse is vertical. The maximum distance of extrapolation of the reported estimates from drill hole data points is limited to around 220m.

80x80x2.0m search, 16-48 samples, minimum 4 octants

160x160x2.0m search, 16-48 samples, minimum 4 octants

240x240x3.0m search, 8-48 samples, minimum 2 octants

HSC validated the models statistically using histograms, boxplots, scatter plots and summary statistics. No independent check estimates were produced but the new models were compared to previous estimates and found to be consistent and compatible. The new MRE takes appropriate account of previous estimates.

Classification is based on the search pass used to estimate the block. In some cases, the blocks at surface were populated in a later search pass than blocks immediately below, as these blocks did not meet the minimum search criteria due to the fact that there are no samples above the topography. In order to alleviate this, the minimum search pass from a column of blocks was propagated upwards.

Pass one nominally equates to Measured Resources, pass two translates to Indicated Resources and Pass three equates to Inferred Resources.

In deposits drilled entirely at 100x200m hole spacing, the entire resource was classified as Inferred, regardless of estimation pass, to maintain consistency with previous estimates.

A small number of estimated model blocks occur outside the current AEE leases, and these were excluded from the reported MRE.

Reason for difference in resource quantity and modifying factors due to Mining and Metallurgical Parameters

The drilling undertaken in Tiris East this year represents an approximate 37% increase in the number of holes drilled into the resource. Given that the previous resources included areas that had been drilled in a much denser pattern, this percentage understates the actual surface area of resource drilled. The area of MRE covered in 2023 was 39km², while the current MRE covers 85km², so the current MRE has a surface area approximately 2.2 times the size of the 2023 MRE. The increase in contained metal (Mlbs U₃O₈) is a factor of 1.3 (from 60.6 to 76.6 Mlbs).

The MRE at Oum Ferkik presents an increase in resource tonnage despite having no additional drilling in that Prospect. The contained metal has changed from 11.2 to 14.6 Mlbs U₃O₈, presenting a 3.4 Mlb increase. Surface area increased from 2.9 to 6.5 km². This increase can be attributed to several factors:

1.    This (2024) resource estimation was undertaken utilising MIK, while the earlier model used ordinary kriging ("OK"). The OK method used a 100ppm boundary on the resource, so is considered to be conditionally biased, given there is no natural hard geological boundary at the 100ppm limit. Mineralisation does continue outside of the drill pattern and, with the spotty grades, is not sufficiently assessed to close off the boundary.

2.    Holes or intervals with no data that were previously not assayed due to failing a sample screening process were not included at all in the previous modelling. With the generation of new data, we have been able to show that the sample screening method used historically was not accurate, and these holes may indeed be mineralised. A low-grade value was assigned to these holes and they were included in the MRE.

3.    Both OK and MIK both used 50x50m mining blocks, but MIK assumed a 10x10m selective mining unit ("SMU") while effectively the OK model had an SMU of 50x50m. This means that in the OK model, 10x10m areas that are above 100ppm but surrounded by lower grade material would have been diluted by lower grade material, and potentially excluded from the contained tonnage. This highlights the need for effective consideration of mining parameters in the resource estimate.

All of the resources reported here have been estimated on the assumption that the deposits will be mined by open-pit and free digging, with no blasting or crushing. Recoverable MIK includes block support correction to account for the change from sample size support to the size of a mining block. This process requires an assumed grade control drill spacing and the assumed size of the SMU. The variance adjustment factors were estimated from the U₃O₈ metal variogram models assuming a minimum SMU of 10x10x0.5m (east, north, vertical) with high quality grade control sampling on a 10x10x0.5m pattern (east, north, vertical).

Internal dilution within the SMUs is accounted for by the estimation method; external mining dilution and other mining recovery factors are not included in the estimates. If a larger SMU size or a broader grade control drill pattern is implemented, then the selectivity assumed in the reported resources may not be realised.

The FEED Study[10] completed in February 2024 indicates that the Tiris deposits are amenable to a free digging mining operations without the need for crushing and grinding, and ore beneficiation will deliver a high-grade leach feed. A cut-off grade of 100ppm was selected due to the upgrade indicated by the metallurgical testwork. The Enhanced Definitive Feasibility Study[11] completed in March 2023 declared an Ore Reserve Estimate at a 110ppm U₃O_8, so the current resource cut-off grade is considered appropriate.

ENDS

The Board of Aura Energy Ltd has approved this announcement.

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

For further information, please contact:

About Aura Energy (ASX: AEE, AIM: AURA)  

Aura Energy is an Australian-based mineral company with major uranium and polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. The February 2024 FEED study demonstrated Tiris to be a near-term low-cost 2 Mlbs U₃O₈ pa near term uranium mine with a 17-year mine life with excellent economics and optionality to expand to accommodate resource growth.

Aura plans to transition from a uranium explorer to a uranium producer to capitalise on the rapidly growing demand for nuclear power as the world shifts towards a decarbonised energy sector.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden. Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash ("SOP") and uranium resource. Utilising only 3% of the resource, a 2023 Scoping Study outlined a 27-year mine life based on mining 3.5 Mtpa.

Disclaimer Regarding Forward-Looking Statements 

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance or achievements to differ materially from the expectations described in such forward-looking statements. The Company does not give any assurance or guarantee that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved.

Notes to Project Description

The Company confirms that the material assumptions underpinning the Tiris Uranium Production Target and the associated financial information derived from the Tiris production target as outlined in the Aura Energy release dated 28 February 2024 for the Tiris FEED study continue to apply and have not materially changed.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Concerning the Resource statements, there is a low level of geological confidence associated with the inferred mineral resource and there is no certainty that further exploration work will result in the determination of indicated measured resource or that the production target will be realised.

Competent Persons

The Competent Person for the 2024 Tiris Mineral Resource Estimates for all deposits is Mr Arnold van der Heyden of H&S Consulting Pty Limited. The information in the report to which this statement is attached that relates to the 2024 Mineral Resource Estimate is based on information compiled by Mr van der Heyden. Mr van der Heyden has sufficient experience that is relevant to the resource estimation to qualify Mr van der Heyden as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr van der Heyden is an employee of H&S Consultants Pty Limited, a Sydney based geological consulting firm. Mr van der Heyden is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy ("AusIMM") and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Competent Person for drill hole data and for integrating the different resource estimates from September 2022 to [December 2023] is Dr Michael Fletcher. The information in the report to which this statement is attached that relates to compiling resource estimates and to drill hole data is based on information compiled by Dr Michael Fletcher. Dr Fletcher has sufficient relevant experience in the preparation and compilation of exploration data across a broad range of deposits to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Fletcher is a consultant to Aura Energy and a full-time employee of GeoEndeavours Pty Ltd. Dr Fletcher is a Member of the Australasian Institute of Geoscientists and consents to the inclusion in the report of the matters based on his information.

The Competent Person for drill hole data and for integrating the different resource estimates prior to September 2022 is Mr Neil Clifford. The information in the report to which this statement is attached that relates to compiling resource estimates and to drill hole data is based on information compiled by Mr Neil Clifford. Mr Clifford has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify Mr Clifford as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford is a consultant to Aura Energy. Mr Clifford is a Member of the Australasian Institute of Geoscientists. Mr Clifford consents to the inclusion in the report of the matters based on his information.

The Competent Person for interpreting downhole gamma information, disequilibrium analysis and assay results is Mr David Wilson. Mr Wilson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Wilson is a consultant to Aura Energy and is a full-time employee of 3D Exploration. Mr Wilson is a Member of the Australasian Institute of Geoscientists and consents to the inclusion in the report of the matters based on his information.