Strong Hippolyte South Uranium Survey

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19 April 2017

STRONG RESOURCE POTENTIAL AT HIPPOLYTE SOUTH INDICATED BY ULTRA DETAILED GROUND RADIOMETRIC SURVEY

INDICATES A STRONGLY MINERALISED ZONE SIMILAR
TO HIPPOLYTE RESOURCE

A SEPARATE PROGRAM OF DOWNHOLE GAMMA LOGGING HAS PROVIDED CONFIRMATION OF PREVIOUS U₃O₈ GRADES

TECHNIQUE WILL BE USED IN RESOURCE UPGRADE DRILLING TO COMMENCE SHORTLY

Aura Energy Limited (AEE; ASX, AURA; AIM) is pleased to announce that recent field programs of both ultra-detailed ground radiometric surveying and of downhole gamma logging have resulted in two important outcomes for the Tiris Project currently under development by Aura Energy.

The first important outcome is that the Hippolyte South prospect which the company pegged following the completion of the Tiris Scoping study, has been surveyed using ultra-detailed ground radiometric methods and this has highlighted several strongly mineralised zones larger in area than Hippolyte Zone 1 which contains 4.6 million pound U₃O₈   as Inferred Resource.

In May 2015, Aura announced that it had made an application for a mineral exploration permit over an area of 224 km² adjoining to the south of its important Hippolyte uranium resource.

The Hippolyte South permit area had indicated strong uranium responses in regional airborne radiometric data, similar in strength and size to those over Aura's nearby resources.  The anomalies within this new tenement extend for more than 15 km and cover an area of approximately 10 km².

In 2011, Aura carried out a brief reconnaissance drilling program over these radiometric highs as part of a possible JV arrangement over the area.  This drilling was broadly spaced with holes 200 metres apart on lines 800 metres or more apart.

More than 25% of these reconnaissance holes intersected ore-grade mineralisation (i.e. at least one metre at 100 ppm U3O8 or greater) with values ranging up to 646 ppm U₃O₈ (see Figure 2).  Details of results are set out in Table 1.

This latest survey is the first more detailed testing of the broad mineralised zones following the initial reconnaissance drilling and has confirmed the confidence in the prospect and indicated large zones of continuous uranium bearing mineralisation with strong similarities to Aura’s key Hippolyte uranium deposit.

Peter Reeve, Aura Energy's Executive Chairman said, “The indication of potential extensions to Aura’s Tiris Uranium Project resource position is extremely pleasing and highlights that Tiris is still at an early stage in our knowledge and understanding of the project. Tiris contains a large 49 million pound resource of uranium but as time goes on and we refine our methods and techniques the potential for new discovery in the Tiris field is high”.

Hippolyte Downhole Logging Success

The second important outcome is that a downhole gamma logging survey was conducted on 63 drillholes in the key Tiris Resource zone, Hippolyte Zone 1 and has validated previous drilling and sampling of the project. This coverage is shown in Figure 5.

The downhole gamma logging indicated U₃O₈ grades that compare well with grades determined by chemical assay.  Aura will proceed to utilise downhole gamma logging in its next resource upgrade drilling which will commence next month aimed at converting more of the Tiris Resource into Measured and Indicated categories.
 

Table 1:  Hippolyte South reconnaissance aircore drilling results as previously released by Aura Energy Ltd to the Australian Stock Exchange:  27/5/2015

Table 1: Assay Results for all holes containing at least 1 metre at 100ppm U308

HoleID	Easting	Northing	Depth from	Depth To	U3O8 ppm		HoleID	Easting	Northing	Depth from	Depth To	U3O8 ppm
10TSFAC004	682805	2805602	0	0.5	73		10TSFAC039	686804	2803200	0	0.5	13
			0.5	1	106					0.5	1	19
			1	2	104					1	2	33
			2	3	84					2	3	358
			3	4	37					3	4	206
			4	5	19					4	5	47
			5	6	22					5	6	20
10TSFAC010	687799	2805596	0	0.5	-		10TSFAC041	687273	2803189	0	0.5	12
			0.5	1	-					0.5	1	57
			1	2	46					1	2	215
			2	3	26					2	2.5	48
			3	4	147		10TSFAC042	687413	2803211	0	0.5	8
			4	5	147					0.5	1	14
			5	6	160					1	2	17
10TSFAC011	688000	2805603	0	0.5	13					2	3	320
			0.5	1	156					3	4	171
			1	2	25					4	5	77
			2	3	32					5	6	50
10TSFAC015	682803	2805201	0	0.5	53		10TSFAC043	687623	2803201	0	0.5	73
			0.5	1	53					0.5	1	646
			1	2	157					1	2	356
			2	3	147					2	3	364
			3	4	13					3	4	167
			4	5	14					4	5	70
			5	6	20					5	6	8
10TSFAC017	683240	2805204	0	0.5	13		10TSFAC046	683001	2801993	0	0.5	40
			0.5	1	42					0.5	1	134
			1	2	337					1	2	38
			2	3	93					2	3	24
			3	3.5	53		10TSFAC047	683198	2801995	0	0.5	66
10TSFAC018	687000	2804799	0	0.5	13					0.5	1	106
			0.5	1	28					1	2	141
			1	2	468					2	3	107
			2	3	585					3	4	62
			3	4	347					4	5	11
			4	5	118					5	6	13
			5	6	68		10TSFAC048	683400	2801993	0	0.5	24
10TSFAC028	683604	2804009	0	0.5	45					0.5	1	371
			0.5	1	97					1	2	180
			1	2	61					2	2.5	585
			2	3	123		10TSFAC049	683598	2802002	0	0.5	15
			3	4	24					0.5	1	17
			4	5	46					1	2	173
			5	6	33					2	3	450
10TSFAC035	686001	2803207	0	0.5	9					3	4	367
			0.5	1	15					4	5	31
			1	2	18					5	6	45
			2	3	51		10TSFAC050	683803	2802000	0	0.5	9
			3	4	251					0.5	1	9
			4	5	421					1	2	246
			5	6	393					2	3	88
10TSFAC038	686604	2803197	0	0.5	17		10TSFAC056	683800	2801200	0	0.5	64
			0.5	1	22					0.5	1	271
			1	2	40					1	2	138
			2	3	604					2	2.5	22
			3	4	189		10TSFAC079	684000	2797600	0	0.5	6
			4	5	145					0.5	1	67
			5	6	124					1	2	251
										2	3	218
										3	3.5	6

Indicated and Inferred Resources for the Tiris Project at a 100ppm U₃O₈ cut-off grade

	Cut-off grade	Tonnes	Grade (ppm)	Mlb U3O8
Total Indicated & Inferred	100	66	334	49
Indicated	100	2	300	2
Inferred	100	64	335	47

Competent Person

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 2012 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 related to resources for the Tiris Project is extracted from the report given below in this document. This report is available to view on the company’s website www.auraenergy.com.au. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. This information was prepared and first disclosed under the JORC code 2004.  It has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was reported.

Aura Energy Ltd release to the Australian Stock Exchange: First uranium resource in Mauritania, 19/07/2011

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

Aura Energy Limited Peter Reeve (Executive Chairman)	Telephone: [phone]  [e-mail]
WH Ireland Limited Adrian Hadden James Bavister	Telephone: [phone]
Yellow Jersey PR Limited Felicity Winkles Joe Burgess	Telephone:  [phone] [phone]