Aura Energy : Quarterly Report December 2016 and Appendix 5B .pdf

DECEMBER QUARTERLY REPORT 31 January 2017 KEY POINTS: TIRIS PROJECT (Mauritania)

• Tiris Definitive Feasibility Study (DFS) recommenced in all project aspects

• Resource definition work underway

• Environmental Study commenced

• Water search geophysics and testing underway

• Metallurgical test work planning advanced

• Appointments of key project people undertaken

• Preparation of documents for the Mining Lease Application

• Two additional Exploration Permits were granted to Aura

  TASIAST SOUTH GOLD PROJECT (Mauritania)

• Planning continued for exploration of Aura's gold tenements

• Excellent drill results report on adjacent Algold Resources (TSX) tenements

AMARE LITHIUM AND SODA ASH PROJECT (Mauritania)

• Sampling of the Amare lithium and soda ash prospect was undertaken

  HÄGGÅN PROJECT (Sweden)

• Preparation for a diamond drilling program to commence in February 2017

• Work continues establishing a brief for the Community Liaison program

  CORPORATE

• Meetings with Mines Minister and other officials in Mauritania

QUARTERLY OVERVIEW

Following Aura Energy's successful London Stock Exchange (AIM) listing and significant funding in September 2016 the company recommenced its key task of completing the Tiris Definitive Feasibility Study (DFS). With a positive sentiment returning to the uranium price and equities, Aura's ability to get Tiris into production is the main near-term driver of shareholder returns.

As such, a major activity for the December quarter was the recommencement of the Tiris DFS. This involved the re-establishment of the project team, planning of the DFS activities and significant work on the ground in Mauritania.

Aura also continued to evaluate the best approach for exploration on its significant Tasiast South gold prospects and noted the significant results on the adjacent of Algold Resources (TSX) which justifies Aura's conviction that our gold strategy has considerable strength.

The Sabkha adjacent to Aura's uranium projects was sampled for lithium and soda ash for the first time and the company will continue to review opportunities in this area as they arise.

Planning of community engagement for the Häggån Project in Sweden has continued.

The commodity backdrop in uranium has become more buoyant improving sentiment in the sector and the company remains in a well-funded position.

TIRIS PROJECT, MAURITANIA (AURA 100%) Tiris Project Overview

Aura is conducting a feasibility study on its 100% owned 49 million pound U₃O₈ calcrete project in Mauritania (See Figure 1). The project has low operating costs and low

development capital with strong financial returns under long-term pricing scenarios.

Figure 1: Location of Aura's Tiris Project Uranium Resources