Aura Energy Ltd.

Aura Energy Ltd. is a junior uranium development company headquartered in Melbourne, Australia, operating primarily in Africa and Europe. The company's portfolio consists of 3 projects, comprising 1 development and 2 advanced exploration projects. Key assets include Tiris and Häggån. The business model centers on advancing assets with distinct operational and processing advantages. One development asset features shallow, free-dig mineralization within unconsolidated material, eliminating the need for drilling, blasting, crushing, or grinding. Its processing flowsheet involves simple scrubbing and screening to produce a high-grade concentrate for a small-scale alkaline leach plant, a method proven at other industrial operations. This approach facilitates a low-cost, high-margin operational profile with a simplified logistical chain. A second, large-scale asset is characterized by its polymetallic nature, offering strategic optionality in producing a range of materials to support clean energy applications. The company's competitive positioning is enhanced by a dual-asset strategy, balancing a near-term, low-capital development project with a long-term, large-scale resource that provides significant unrealized value and diversification.

Strategic priorities center on advancing a near-term development asset to a final investment decision by early 2025, with a target for initial production in late 2026. This involves finalizing a comprehensive funding package through a dual-track process managed by appointed advisors, engaging both debt financiers and potential strategic equity partners. A key objective is the cost-effective expansion of the resource base, with a demonstrated discovery cost of only US$0.14 per lb, to support future production scalability. For its large-scale polymetallic asset, the strategic approach involves securing necessary permits and navigating evolving legislative frameworks to unlock its value, which has been demonstrated to be robust even without the inclusion of certain contained commodities. The organization also focuses on de-risking its projects through advanced engineering studies, securing key operational permits, and strengthening its development team with experienced personnel.

Executive leadership was strengthened with the appointment of a new Managing Director and CEO on 30 January 2024, who brings over 30 years of experience in financing, developing, and operating projects, including the successful acquisition of Chesser Resources. The board of directors consists of a Non-Executive Chairman and 4 other directors, including the CEO. Governance is managed through an Audit and Risk Committee and a Remuneration and Nomination Committee. In response to a 'first strike' on the 2023 remuneration report, the Remuneration and Nomination Committee engaged an independent advisor to develop a revised Long-Term Incentive Plan to better align executive compensation with shareholder returns. This new framework, which utilizes nil-cost share options with a 3-year cliff vesting period and performance hurdles, will be implemented in fiscal year 2025. The board increased its oversight during the year through its committees, which conducted a comprehensive risk review and engaged regularly with the auditor.

The organization's sustainability framework is guided by a purpose statement focused on developing materials for a cleaner energy world while creating value for host nations and local communities. Key environmental initiatives include incorporating renewable energy generation into project designs to support emissions reduction and confirming in-pit disposal for waste and process residue to minimize the operational footprint. Social responsibility is demonstrated through active stakeholder engagement, including financial support for the Tiris Zemmour Cultural Week and ongoing consultations with local communities and Sami villages to incorporate feedback into project planning. The company has established a set of ESG-related values covering business integrity, health and safety, diversity, environmental stewardship, and social responsibility. Management plans for environmental, social, and radiation aspects are under review to align with updated production targets.

The corporate structure includes an 85% ownership interest in its primary development asset, with the remaining 15% held by a government entity. Its secondary large-scale asset is held through a 100% owned subsidiary, Vanadis Battery Metals AB. During 2024, the company restructured a key offtake agreement with Curzon Uranium Ltd, which resulted in a 70% increase in the fixed contract price for a portion of future production. As part of the restructure, Curzon became a substantial shareholder through a US$3.5 million equity placement and the receipt of a US$3.5 million restructuring fee paid in company shares, creating strong alignment between the two parties. On 28 June 2024, the parent entity entered into a deed of cross guarantee with 4 of its wholly-owned Australian subsidiaries: Archaean Greenstone Gold Limited, Aura Energy Mauritania Pty Ltd, Tiris Zemmour Resources Pty Ltd, and North East Resources Pty Ltd.