JUNE QUARTERLY REPORT 30 JUNE 2016

KEY POINTS:

TIRIS PROJECT (Mauritania)

• Initial planning conducted for restart of Tiris Feasibility Study

• Soda Ash / Lithium position secured near to Tiris

  HÄGGÅN PROJECT (Sweden)

• Plans developed for Community Liaison program and Economic Impact Statement

  CORPORATE

• Acquisition of significant tenement position on the underexplored Mauritanian Archean Greenstone belts - multi million ounce gold potential

• Secured tenements for potential Soda Ash and Lithium sources

• Funding and development initiatives continue to be pursued

• Detailed final execution steps for AIM (Alternative Listing Market) listing in the UK undertaken - August listing target

Level 1 34-36 Punt Rd Windsor VIC 3181 Tel: +61 3 9516 6500 Email: [email protected] Website: www.auraenergy.com.au

QUARTER OVERVIEW

Aura Energy's main activity during the June quarter was focussed on progressing the AIM listing in the UK. The company believes this is the best option for a sustained progression of the Tiris Project as it will provide the funds to advance the feasibility study towards completion. Substantial progress was made in the quarter on this listing which is on target for August completion.

With the potential of a funding path for the Tiris Feasibility Study (FS) looking likely to be achieved preliminary planning steps around management structure and priority programs were undertaken to recommence the study in the third quarter.

Additionally, discussions were held in Stockholm for planning of a community liaison program for the Häggån Project in Sweden which remains a key asset for the company.

Aura also undertook two important asset and tenement acquisitions in Mauritania during the quarter which broadened its asset base and were in line with its Mauritanian mineral development strategy. The two transactions were;

• Securing a significant position on the 2 major Archean Greenstone belts just south of Kinross' large Tasiast Gold Mine and,

• A tenement position on a Sabkha adjacent to Aura's uranium projects for a possible Soda Ash source required for leaching the Tiris uranium ore. Sabkha's are known Lithium sources

Aura believes these acquisitions strengthen Aura's asset base and provides additional opportunities for creation of value without distraction from its core focus of achieving production from the Tiris Uranium Project.

TIRIS PROJECT, MAURITANIA (AURA 100%)

Tiris Project Overview

Aura is conducting a Feasibility Study on its 100% owned 50 million pound U₃O₈ calcrete project in Mauritania. The project has low operating costs and low development capital

with strong financial returns even at current low market prices.

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

Tiris Project Studies

The Tiris Feasibility Study has been ongoing but at a constrained rate to conserve cash.

With the potential for possible funding via the AIM listing, Aura has commenced preliminary planning steps to recommence the study in the third quarter.

The key areas are;

• The optimum management structure for the study and project

• Determining the priority technical programs to be undertaken

• Detailing work required to move the Mineral Resource to the Measured category

• Immediate recommencement the Environmental Study

• Continue the planned water study program

• Planning for permitting steps within a 12 month window

This program of work will commence as soon as possible and most likely early in the 3rd quarter 2016.

This definitive program of works will aim to have the Tiris Feasibility Study complete within 12 months of commencement and leading to a possible decision to mine in late 2017.

HÄGGÅN PROJECT, SWEDEN (AURA 100%)

Häggån Development

The Häggån Project in central Sweden has an Inferred Resource of 803 million pounds of U3O8. Scoping studies previously completed by Aura have indicated that the Häggån Project has the potential be a very large low cost uranium producer.

Minimal work was carried on the ground at Häggån during the quarter, however, discussions were held in Stockholm for planning of a community liaison program for the Häggån Project.

Aura continues to press the Häggån Project as a unique and strategic energy source in Europe which the European nuclear energy sector understands can play an important role as a uranium source in the future.

Aura believes Häggån is a 5-7 year proposition as a development project and is scoping its work program around that time frame.