Intention to Float on AIM

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

This announcement is an advertisement and not an admission document or a prospectus. It does not constitute an offer of securities for sale or subscription in any jurisdiction. Investors should not subscribe for or purchase any securities referred to in this announcement except in compliance with applicable securities laws on the basis of information in the final version of the pre-admission announcement  (the "Pre-Admission Announcement") to be published by Aura Energy Limited in due course in connection with the proposed placing  (the “Placing”) and admission of its ordinary shares, and to be issued ordinary shares (the "Shares") to trading on AIM, a market of the London Stock Exchange plc (the "London Stock Exchange"). The Financial promotion number is FP303.

15 August 2016

AURA ENERGY LIMITED
(“Aura” or the “Company”)

INTENTION TO FLOAT ON AIM

Aura Energy Limited, an ASX listed uranium development company focused on developing projects in Africa and Europe towards production, announces its intention to seek admission of its Shares to trading on AIM, a market of the London Stock Exchange ("Admission"). WH Ireland Limited is acting as Nominated Advisor and Sole Broker to the Company in relation to Admission.

Aura has a simple development approach as it looks to build itself into a cash-generative uranium producer in the near to mid term.  Its immediate growth strategy is focused on development of its 49Mlbs Tiris uranium project in Mauritania ("Tiris"), a Feasibility Study of which is currently underway and expected to be completed in late 2017. The Company is also advancing its longer-term 803Mlbs HäggÃ¥n uranium project in Sweden (“HäggÃ¥n”). In addition, the Company is exploring opportunities in gold, lithium and soda ash in Mauritania.

Placing Highlights

• The Directors intend that the Placing funds will be used to contribute towards the costs of progressing the Tiris Feasibility Study towards completion in 2017, general working capital, and costs of placing and admission.

• Admission expected to occur in Q3 2016.

Company Key Strengths

• 100% ownership of a portfolio of the following prospective uranium projects where scoping studies ⁽¹⁾ indicate:

• Tiris, Mauritania: shallow open-pit mining project with a 49Mlbs U₃0₈ Indicated and Inferred Resource, 94% recovery rates and simple processing allowing a potential 500% grade uplift, C1 Cash costs of US$30/lb U?O? and low-capex costs of US$45m and an MOU signed with a Chinese engineering group for project and equipment financing.

• HäggÃ¥n, Sweden: a 803Mlbs U₃0₈ Indicated and Inferred Resource, C1 Cash costs US$13.50/lb U?O? (including associated metal credits) and US$537m capital cost. The information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

• Summaries of the relevant Scoping Studies are available on the Company’s website (www.auraenergy.com.au).

• Uranium market opportunity: the directors believe there will be increased uranium demand and price growth due to the increasing nuclear energy supply deficit (World Nuclear Association, March 2016).

• Additional exploration upside: The Company has applied for Mauritanian gold, soda ash and lithium exploration permits.

• Management has extensive resource experience.

• The directors intend to use the proposed Placing proceeds to move the Tiris’ Feasibility Study towards completion in 2017 and for associated corporate costs.

(1)           A scoping study is an order-of-magnitude technical and economic study of the potential viability of Mineral Resources.  The studies were completed by both management and consultants.  The outcomes of the studies were then verified by Tenova Mining (Tiris project) and RMDSTED (Haggan project).

Peter Reeve, Executive Chairman of Aura, commented: “We are looking to dual list on AIM, an attractive marketplace for us given our European and African focus, at a transformational time of Aura Energy’s development as we continue to position ourselves as a leading uranium developer, advancing our projects towards high-margin, profitable production in the near to medium term.

“We believe the market opportunity for the next generation of uranium production projects is evident and the long-term uranium growth fundamentals are highly positive.  There has been little new investment into the uranium sector, yet the world’s energy needs are growing exponentially and we believe the resultant supply deficit in nuclear energy is significant.  Aura intends to help balance this potential supply deficit by developing uranium projects for the nuclear energy sector.

 â€œAura has an attractive proposition with a low-capex, near-term 49 Mlbs U₃O₈ production asset in Mauritania (Tiris) and a exciting project in Sweden (HäggÃ¥n).  At Tiris, a Feasibility Study is in progress and expected to be completed in late 2017 with mine construction following, subject to funding. In addition the Company has applied for gold, lithium and soda ash permits in Mauritania which, with our in-country knowledge and resources, we believe will add further shareholder value.

“We believe these assets, coupled with our clear strategy of phased development and low capital costs to allow early cashflow generation, and a management team with extensive resource experience, sets Aura apart from other uranium exploration and development companies on the market.”

The Directors of Aura believe that an AIM Admission will assist the Group by enhancing its market profile. The Directors also believe that this increased profile and status should assist the Company by improving its ability to advance its mineral exploration, develop its projects, attract funding and where appropriate, attract joint venture partners. In particular, the Directors consider that Admission will facilitate future investment in the Company by European investors, and anticipate it will encourage the recruitment of additional high quality, experienced local staff.

The Directors intend that the Placing funds will be used to contribute towards the costs of progressing the Tiris Feasibility Study towards completion in 2017, general working capital, and costs of placing and admission.

For more information please visit www.auraenergy.com.au or contact the following:

Aura Energy Limited Peter Reeve (CEO and Chairman)	Telephone: [phone]
WH Ireland Limited Adrian Hadden Katy Mitchell James Bavister	Telephone: [phone]
Yellow Jersey PR Pty Limited Felicity Winkles Joe Burgess	Telephone:  [phone] [phone]

Additional Information:

Board of Directors
Peter Reeve, Executive Chairman 

Peter Reeve has been involved in the Australian resources industry for approximately 25 years and, as a professional metallurgist, has held positions with Rio Tinto, Shell-Billiton, Newcrest Mining and Normet Consulting.  For seven years Peter worked at JB Were as a Resource Specialist Fund Manager and a Resource Corporate Finance Director.  He has been a management consultant in South Africa and was involved in an African iron ore start-up.

Peter was Managing Director and Chief Executive Officer of Ivanhoe Australia, which he co-founded with Robert Friedland, and was a Director of both EXCO Resources and Emmerson Resources.

Peter’s specialisation is the development of company strategy and the commercialisation of projects, and alignment with the global investment community and international resource corporations.

Dr Bob Beeson BSc (Hons), PhD, Non-Executive Officer 

Dr. Bob Beeson is a professional geologist with over 35 years' experience in mineral exploration and development. He has held senior management positions with Billiton Australia, Acacia Resources, North Limited and New Hampton Goldfields and has extensive experience in leading and managing teams in many regions of the world. He was Managing Director of Aura Energy Ltd since its listing in 2006 and in 2015 vacated the position and is now Non-Executive Director. He is also a Non-Executive Director of Drake Resources Limited.

Highlights of Dr. Beeson’s specific uranium exploration experience include:

• Led major geochemical exploration programmes for sediment-hosted and magmatic uranium deposits throughout South Africa;
• Specialist geochemist in a multi-national team in the Middle East;
• Conducted major review and targeting programme of the Alligator Rivers Uranium field for Mobil Energy Minerals; and
• Led Aura’s team that has made greenfields uranium discoveries in Sweden, West Africa and Western Australia.

Brett Fraser FCPA, F.Fin, B.Bus, Non-Executive Director 

Mr Fraser is a qualified accountant with more than 29 years’ experience in the mining, finance and securities industry Mr Fraser is an experienced company executive having served as a director and been involved in governance, negotiation, finance, development, forensic accounting and operation for a number of private and ASX listed companies. As the founder or officer of businesses in mining, securities trading, the beverage industry, media, leisure health and corporate finance Mr Fraser has extensive knowledge and skills in company operations.  Mr Fraser is the Non-Executive Chairman of Blina Minerals, Non-Executive Chairman of Drake Resources Limited, former Chairman of Doray Minerals Ltd and the Securities Institute Education, WA chapter, and also a former director of Gage Roads Brewing Co and Brainytoys Limited.  Mr Fraser holds a Bachelor of Business degree, is a Fellow of Certified Practising Accountants, is a Fellow of the Financial Services Institute of Australasia and has completed post graduate studies in finance and marketing.  

Julian Perkins MSc, DIC, ACSM, FAusIMM, MAICD, Non-Executive Director  

Julian Perkins has over 40 years’ experience in the global minerals industry. He has held senior technical management positions in Australia for AngloGold Ashanti Ltd, Acacia Resources Ltd, Shell Australia, and prior to that for Billiton International Metals (part of the Shell Group) in the Netherlands. He has degrees in mining and metallurgical engineering, with operational experience in underground mining in South Africa and the metallurgical operations at Nchanga on the Zambian Copperbelt.  He is a Graduate of the Australian Institute of Company Directors.

Mr Perkins has extensive experience in research and development.  He was head of the mineral processing department at the Arnhem metals research centre of Shell Research in the Netherlands for three years. In Australia he was Chairman of the Board of Parker Centre Ltd, which managed the A J Parker Cooperative Research Centre (CRC) for Hydrometallurgy from 2006 to 2012, having been a director prior to that. He has also been a director on the boards of the Cooperative Research Centre for Mining and the Australian Centre for Mining Environmental Research. He designed and managed the early metallurgical testwork and flowsheet design for both of Aura’s projects. He has been a non-executive director of Aura Energy Limited since 2011.  

Senior Management
Neil Clifford BSc (Hons), MSc, Country Manager Mauritania 

Neil Clifford is a geologist with extensive and successful experience in international minerals discovery and deposit evaluation. He has played key roles in the discovery of at least nine major mineral deposits in Australia, South America and Africa, for a variety of commodities including gold, uranium, copper and tin. These discoveries have included 20 million ounces of gold and seven have subsequently become mines. He played the lead role in the discovery of Aura's Tiris uranium deposits in Mauritania. He has held senior management positions in Australia and in Europe including roles as Exploration Manager with Billiton, Acacia Resources, and AngloGold. He has been involved in West Africa since 2005.

John Madden, Company Secretary 

John started his career with Rio Tinto Limited (formerly CRA Limited) and held a number of positions in accounting, planning, business analysis and taxation as well as the acquisitions group.  Between 1996 and 2000, John was the Manager-Finance for Rio Tinto at the Grasberg copper-gold project in West Papua.  On leaving Rio Tinto in 2000, John worked in Papua New Guinea for three years on the Hidden Valley/Wafi gold projects feasibility studies and for five years on the Tampakan copper-gold project in the Philippines where he was the General Manager-Commercial & Company Secretary for Indophil NL.

John has provided strategic and commercial advice as well as specialist financial modelling services to OK Tedi Mining Limited, Intrepid Mines Limited, the Australian Iron Ore Joint Venture and Mesa Minerals Limited from 2008 to 2011.

John has extensive commercial and legal experience in Francophone Africa as he co-founded Indian Pacific Resources Limited, a Madagascar-based iron ore explorer and served as an executive officer from 2011 to 2015.

Competent Person’s Statement

The Competent Person for the Tiris Metallurgical Testwork is Dr Will Goodall.

The information in the report to which this statement is attached that relates to the testwork is based on information compiled by Dr Will Goodall.  Dr Goodall has sufficient experience that is relevant to the testwork program and to the activity which he is undertaking.  This qualifies Dr Goodall as a Competent Personas defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Dr Goodall is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM).  Dr Goodall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Competent Persons for Häggån Resource

Mr. Simon Gatehouse takes responsibility for estimation of uranium and associated metals in the Häggån Resource. This work was completed while Mr. Gatehouse was a consultant geologist, and a fulltime staff member of H&S. He is a competent person in the meaning of JORC having had a minimum of five years relevant experience in exploration and estimation of uranium and other metal resources in many parts of the world. He is a member of the Australian Institute of Geoscientists. Mr. Gatehouse consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Dr Robert Beeson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking.  This qualifies Dr Beeson as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Dr Robert Beeson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Beeson is a member of the Australian Institute of Geoscientists. Dr Beeson takes responsibility for the requirement of “reasonable prospects for eventual economic extraction” for the reporting of HäggÃ¥n Resources at the quoted cut-off grades.

The information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported

Competent Persons for Tiris Resource

The Competent Person for the Tiris Resource estimation and classification is Mr Oliver Mapeto from Coffey Mining.

The Competent Person for the drill hole data and data quality is Dr Robert Beeson from Aura Energy.

The information in the report to which this statement is attached that relates to the Mineral Resource and is based on information compiled by Oliver Mapeto. Oliver Mapeto has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking.  The qualifies Mr Mapeto as a Competent Person as defined in the 2004 edition of the “ Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ Mr Mapeto is a Member of The Australasian Institute of Mining and Metallurgy and was employed by Coffey Mining Pty Ltd.  Mr Mapeto consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Dr Robert Beeson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking. This qualifies Dr Beeson as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Robert Beeson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Beeson is a member of the Australian Institute of Geoscientists.

The information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported

Forward-looking statements

This announcement includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''plans'', ''may'', ''will'' or ''should'' or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical fact included in this announcement are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding the Directors' or the Company's intentions, beliefs or current expectations concerning, among other things, its operating results, financial condition, prospects, growth, expansion plans, strategies, the industry in which the Company operates and the general economic outlook.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and therefore are based on current beliefs and expectations about future events. Forward-looking statements are not guarantees of future performance and the Company's actual operating results and financial condition, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. In addition, even if the Group's operating results, financial condition and liquidity, and the development of the industry in which the Company operates are consistent with the forward- looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Accordingly, prospective investors should not rely on these forward-looking statements.

These forward looking statements speak only as of the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.

Important notice

This announcement, which constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 and which has been prepared by, and is the sole responsibility of, the Company, has been approved solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 by WH Ireland Limited of 24 Martin Lane, London EC4R 0DR. WH Ireland Limited is authorised and regulated by the Financial Conduct Authority.

This announcement does not constitute a prospectus within the meaning of section 85 of Financial Services and Markets Act 2000 ("FSMA"), has not been drawn up in accordance with the Prospectus Rules and does not constitute an offer of transferable securities to the public within the meaning of FSMA or otherwise.

Important information

Neither this announcement nor any copy of it may be made or transmitted into the United States of America (including its territories or possessions, any state of the United States of America and the District of Columbia) (the "United States"), or distributed, directly or indirectly, in the United States. Neither this announcement nor any copy of it may be taken or transmitted directly or indirectly into Canada, The Republic of South Africa or Japan or to any persons in any of those jurisdictions, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States, Canadian, South African or Japanese securities laws. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for securities in the United States, Australia, Canada, The Republic of South Africa or Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

The securities to which this announcement relates have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any regulatory authority or under any applicable securities laws of any state or other jurisdiction of the United States, and may not be offered or sold within the United States unless registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with applicable state laws. There will be no public offer of the securities in the United States.

The securities referred to herein have not been registered under the applicable securities laws of Canada, The Republic of South Africa or Japan and, subject to certain exceptions, may not be offered or sold within Canada, The Republic of South Africa or Japan or to any national, resident or citizen of Canada, The Republic of South Africa or Japan.

The securities to which this announcement relates have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States or any United States regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the offering of the securities or the accuracy of adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.

In any EEA Member State that has implemented Directive 2003/71/EC, as amended including by Directive 2010/73/EU (together with any applicable implementing measures in any Member State, the "Prospectus Directive"), this announcement is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.

This announcement is an advertisement. Investors should not subscribe for or purchase any securities referred to in this announcement except in compliance with applicable securities laws on the basis of information in the final version of the Pre-Admission Announcement to be published by the Company in due course in connection with the placing of its Shares and the proposed admission of its Shares to trading on AIM, a market of the London Stock Exchange.

Any purchase of Shares in the proposed Placing should be made solely on the basis of the information contained in the Pre-Admission Announcement, which contains detailed information about the Company and its management, as well as financial statements. Before purchasing any Shares, persons viewing this announcement should ensure that they fully understand and accept the risks that are set out in the Pre-Admission Announcement. The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any Shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor.

This announcement does not constitute a recommendation concerning the Placing. The price and value of securities and any income from them can go down as well as up. Past performance is not a guide to future performance. When you sell your investment you may get back less than you originally invested. Information in this announcement or any of the documents relating to the Placing and Admission cannot be relied upon as a guide to future performance. There is no guarantee that Admission will occur and you should not base your financial decisions on the Company's intentions in relation to Admission at this stage. Potential investors should consult a professional advisor as to the suitability of the Placing for the entity concerned.

WH Ireland Limited ("WHI"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and no one else in connection with the Placing and Admission, and will not regard any other person as its customer or be responsible to any other person for providing the protections afforded to its customers, nor for providing advice in relation to the Placing, Admission or any other transaction or arrangement referred to in this announcement. WHI's responsibilities as the Company's nominated adviser under the 'AIM Rules for Companies' and the 'AIM Rules for Nominated Advisers' are owed solely to London Stock Exchange and are not owed to the Company or to any Director or to any other person in respect of such person's decision to acquire Shares in the Company in reliance on any part of this announcement. No representation or warranty, express or implied, is made by the Company or WHI as to any of the contents of this announcement, including its accuracy, completeness or for any other statement made or purported to be made by it or on behalf of it, the Company, the Directors or any other person, in connection with the Placing and Admission, and nothing in this announcement shall be relied upon as a promise or representation in this respect, whether as to the past or the future (without limiting the statutory rights of any person to whom this announcement is issued). WHI does not accept any liability whatsoever for the accuracy of any information or opinions contained in this announcement or for the omission of any material information from this announcement for which the Company and the Directors are solely responsible.

Certain figures contained in this announcement, including financial information, may have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly to the total figure given.