2022 Annual Report

RNS Number : 3648B

Aura Energy Limited

30 September 2022

Annual Report

Aura Energy Limited is pleased to announce that it has released its Annual Report for the financial year ended 30 June 2022 to the Australian Securities Exchange.

A full version of the 2022 Annual Report can be viewed at http://www.rns-pdf.londonstockexchange.com/rns/3648B_1-2022-9-30.pdf

The 2022 Annual Report is also available on the Company's website at www.auraenergy.com.au

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

For Further Information, please contact:

Phillip Mitchell

Chairman

Aura Energy Limited

info@auraenergy.com.au

Jane Morgan

JMM

Investor & Media Relations

info@janemorganmanagement.com.au

+61 405 555 618

SP Angel Corporate Finance LLP

(Nominated Advisor and Joint Broker)

David Hignell

Kasia Brzozowska

+44 (0) 203 470 0470

WH Ireland Limited

(Joint Broker)

Jessica Cave

Andrew de Andrade

+44 (0) 207 220 1666

About Aura Energy (ASX:AEE, AIM:AURA)

Aura Energy is an Australian-based minerals company with major uranium and polymetallic projects with large resources in Africa and Europe. The Company is principally focused on initial uranium production at its Tiris Uranium Project, an evolving major greenfields uranium discovery in Mauritania, with Aura announcing a Resource Upgrade in August 2021, bringing the total JORC Resource to 56 Mlbs (at a 100 ppm U₃O₈ lower cut-off grade).

Aura also completed a 2021 capital estimate update for the Tiris Definitive Feasibility Study, to reflect current global pricing, reconfirming Tiris as one of the lowest capex, lowest operating cost uranium projects slated for development.

In October 2021, the Company entered a US$10m Offtake Financing Agreement with Curzon, which includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.

In 2022, Aura will continue to transition from an advanced uranium explorer to uranium producer, to capitalise on the growing appetite for nuclear power as a critical, baseload, near-zero-carbon energy source to help drive the global shift towards decarbonising energy generation.

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Aura Energy Limited Corporate directory

Directors Mr Philip Mitchell (appointed 21 December 2021)

Non-Executive Chairman

Dr Warren Mundine (appointed 21 December 2021)

Non-Executive Director

Mr Bryan Dixon (appointed 21 December 2021)

Non-Executive Director

Mr Patrick Mutz (appointed 18 May 2022)

Non-Executive Director

Mr Peter Reeve (resigned 21 December 2021)

Managing Director and CEO

Mr Peter Ward (resigned 21 December 2021)

Non-Executive Director

Mr Martin Rogers (resigned 21 December 2021)

Non-Executive Chairman

Secretary

Mr Phillip Hains

Principal registered office in Australia 62 Lygon Street Carlton Victoria 3053 Australia

+61 3 9824 5254

Share and debenture register Computershare Investor Services Pty Ltd Level 2, Reserve Bank Building

45 St Georges Terrace Perth WA

Auditor Hall Chadwick WA Audit Pty Ltd

283 Rokeby Road

Subiaco WA 6008

Solicitors Dentons Australia Limited

77 Castlereagh St

Sydney NSW 2000

Bankers National Australia Bank

330 Collins Street

Melbourne VIC 3000

Nominated advisor SP Angel Corporate Finance LLP Prince Frederick House

35-39 Maddox Street

London United Kingdom W1S 2PP

Joint brokers SP Angel Corporate Finance LLP WH Ireland Limited

Stock exchange listings Australian Securities Exchange (ASX), and

the AIM Market of the London Stock Exchange (AIM)

Website www.auraenergy.com.au

REVIEW OF OPERATIONS 30 JUNE 2022

Tiris Uranium Project, Mauritania

· Resource Upgrade Program commenced targeting the expansion of the Measured / Indicated Resources based within the Tiris East project area.

· $10 million Offtake Financing Agreement with Curzon, with the funds to be used for mining working capital and production commencement, with the agreement including an additional

$10m at the funder's discretion.

· Pilot scale testing confirmed Tiris uranium ore grade can be increased on average 500% using simple screening, with 80% reduction of mass reporting to the leaching circuit and containing 90% of uranium at 1,572ppm U 3 0 8.

· Commencement of Pre-Investment Decision Capex and Opex engineering optimisation with

engineers engaged for Phase 1 of the Front End Engineering Design Study.

· Tiris Uranium Definitive Feasibility Study (DFS) released incorporating the updated capital estimate which reflects current global pricing, reconfirming the Tiris as a low Capex, low Opex project.

· Bulk test work program initiated with ANSTO Minerals to optimise Tiris.

· Continued work on the integration of vanadium by-product circuit in Fast track Tiris project.

· Resource upgrade of 10% or 5 million lbs U 3 0 8 to the Tiris uranium deposit bringing the total JORC Resource to 56 Mlbs (at 100 ppm lower U 3 0 8 cut off grade).

· JORC Resource of 18.4 Mlbs V 2 0 5 defined at Tiris, with 34% classified as Measured / Indicated Resources.

· Aura continued to advance towards net zero emission uranium production at Tiris, with the initial study of Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions completed, clearly defining a Net Zero Emission Pathway for the Project.

· Completion and successful results from the water drilling program, with strong flows encountered, reconfirming results from the 2019 water drilling program.

· Aura continued to work with Mauritania's well-established radiation regulatory body to initiate the process to gain regulatory approval for export of Uranium Oxide Concentrate (OUC).

· Water drilling at Tiris encountered good flows following on from the water drilling program commenced by Aura in 2019.

Häggån Polymetallic Project, Sweden

· Appointment of leading consultancy group, Diplomat Communications, to liaise with the Swedish Government and other relevant stakeholders in relation to advancing the Häggån Project.

· Aura met with key government and stakeholders in Sweden and continued to work with

leading consultancy group, Diplomat Communications, to liaise with the Swedish Government and other relevant stakeholders in relation to advancing the project.

Tasiast South Gold Project, Mauritania

· Recommencement of field work with a gravity survey and IP survey completed, to allow better definition of geology and identification of structures.

Corporate

· Strategic Board restructure with a focus on uranium production and the high growth demand for nuclear power and carbon free energy.

· Mining M&A heavyweight Mr. Phil Mitchell appointed as Non-Executive Chairman, with significant experience having held senior roles with global mining companies Rio Tinto, Anglo American and heading acquisitions for billionaire Robert Friedland's company, High Power Exploration.

· Mr. Warren Mundine appointed as Non-Executive Director. Mr Mundine is one of Australia's prominent independent thinkers and a thought leader in the mining sector and nuclear power space as former director of the Australian Uranium Association.

· Mr. Bryan Dixon appointed as Non-Executive Director, contributing significant experience as a

chartered accountant building junior exploration companies into producers, with over 20 years in the mining sector.

· Peter Reeve transitioned to Managing Director and CEO of Aura's gold subsidiary, Archaean

Greenstone Gold.

· Dr Will Goodall appointed as the acting CEO to rapidly build momentum towards expansion of the Tiris Resource and preparation for uranium production.

· Appointment of uranium specialist, Patrick Mutz, as an independent Non-Executive Director, with over 40 years of international mining experience and former Managing Director & CEO of African focussed uranium company Deep Yellow (ASX:DYL).

· Appointment of Nigel Jones as Advisor, with over 30 years' experience in mining and

investment banking, and 20+ years in the Rio Tinto group.

· $8.8m placement (before costs) to sophisticated and institutional investors, with the funds being used to advance Tiris including the resource upgrade Program and commencement of engineering.

· Loyalty Options Entitlement Offer with strong support from eligible shareholders who applied for 68,029,541 new Loyalty Options, raising approximately $1,020,443.

· Aura Energy's Shares (ASX:AEE) recommenced trading on the ASX on 23 September 2021.

Your directors present their report on the consolidated entity consisting of Aura Energy Limited and the entities it controlled at the end of, or during, the year ended 30 June 2022. Throughout the report, the consolidated entity is referred to as the Group.

Directors and company secretary

The following persons held office as directors of Aura Energy Limited during the financial year: Mr Philip Mitchell (appointed 21 December 2021)

Dr Warren Mundine (appointed 21 December 2021)

Mr Bryan Dixon (appointed 21 December 2021) Mr Patrick Mutz (appointed 18 May 2022)

Mr Peter Reeve (resigned 21 December 2021) Mr Peter Ward (resigned 21 December 2021) Mr Martin Rogers (resigned 21 December 2021)

The following persons held office as company secretary of Aura Energy Limited during the financial year: Mr Phillip Hains

Principal activities

The principal activities of the Group during the financial year were exploration and evaluation of uranium, vanadium and gold and base metals in Mauritania and Sweden. There was no significant change in the nature of these activities during the year.

Dividends - Aura Energy Limited

No dividends were declared or paid to members for the year ended 30 June 2022. The directors do not recommend that a dividend be paid in respect of the financial year.

Review of operations

Information on the operations and financial position of the Group and its business strategies and prospects is set out in the review of operations and activities on pages 2 to 3 of this report.

Significant changes in the state of affairs

In the opinion of the directors there were no significant changes in the state of affairs of the Group that occurred during the year.

Events since the end of the financial year

The following circumstance has arisen since 30 June 2022 that has significantly affected the Group's operations, results or state of affairs, or may do so in future years.

Appointment of a new Managing Director and Chief Executive Officer

On 19 September 2022, the Group entered into an Executive Service Agreement with Mr David Woodall, pursuant to which Mr Woodall will commence as Managing Director and Chief Executive Officer, effective from 17 October 2022.

No other matter or circumstance has arisen since 30 June 2022 that has significantly affected the Group's operations, results or state of affairs, or may do so in future years.

Environmental regulation

The Group is commencing exploration and evaluation activities in Mauritania and Sweden. Both countries have environmental regulation for the conduct of exploration activities. The Company has complied with these environmental regulations in the conduct of all field activities.

The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act has no effect on the Company for the current, nor subsequent, financial year. The directors will reassess this position as and when the need arises

ASX listing rules

On 28 October 2020, the Company announced the outcome of a review by the ASX which concluded that the Company had exceeded its placement capacity under Listing Rule 7.1. Consequently, the Company is unable to issue new securities without prior security holder approval until 30 June 2022, unless the issue comes within an exception in Listing Rule 7.2. The ASX has also determined that the Company is ineligible to seek shareholder approval pursuant to Listing Rule 7.1A to entitle it to an additional 10% placement capacity until at least its annual general meeting after 30 June 2022.

Information on directors

The following information is current as at the date of this report.

Mr Philip Mitchell Non-Executive Chairman
Experience and expertise	Mr Mitchell has significant experience in mining M&A having held former roles as Head of Business Development and Strategy at Rio Tinto, CFO of Rio Tinto Iron Ore, member of the Executive Committee at Anglo American and also headed acquisitions for billionaire Robert Friedland's company, High Power Exploration. As Head of Business Development and Strategy at Rio Tinto, Mr Mitchell was responsible for managing all aspects of the company's asset and commodity portfolio, including the Ranger uranium mine in addition to the strategic positioning of the company. Mr Mitchell was also accountable for portfolio M&A acquisitions and divestments, in addition to the daily management of the BHP takeover proposal. As the Chief Financial Officer of Rio Tinto's iron ore business, one the largest Australian business units, he oversaw all commercial aspects of the business including relationships with all JV partners and with government. Mr Mitchell was also responsible for developing the strategic plan that saw Rio Tinto Iron Ore dominate profitable expansion to support China's growth. In 2021, Mr Mitchell lead the acquisition of the Nimba Iron Ore project for Robert Friedland's HPX including the purchase arrangements with BHP, Newmont and Orano and the negotiation of the agreements with the Governments of Guinea and Liberia. Mr Mitchell holds a Bachelor of Economics Degree at the Australian National University
Date of appointment	21 December 2021
Other current public directorships	None
Former public directorships in last 3 years	None
Interests in shares and options	Shares	8,000,000
	Options	-

Dr Warren Mundine Non-Executive Director
Experience and expertise	Mr Mundine is one of Australia's leading independent thinkers and a thought leader in the mining resource sector and nuclear power space. Mr Mundine has worked on numerous major resource projects for leading companies including Fortescue Metals Group, Rio Tinto, BHP and AGL Pipelines & Engineering Waanyi Downer Joint Venture. Mr Mundine is the former director of Australian Uranium Association. He is currently the Managing Director and CEO of Nyungga Black Group Pty Ltd, advisory consultancy, which holds controlling interest in several companies across a diverse range of industries including mining resource consulting. He has formerly worked as a host of Sky News and Win Television, and is currently a director of Australian Government owned television station, Special Broadcasting Services (SBS). Mr Mundine graduated from University of South Australia (Community Development) and Australian Graduate School of Management (Native Title).
Date of appointment	21 December 2021
Other current public directorships	None
Former public directorships in last 3 years	None
Interests in shares and options	Shares	2,000,000
	Options	-

Mr Bryan Dixon Non-Executive Director
Experience and expertise	Mr Dixon has contributing significant experience to the resource sector as a Chartered Accountant building junior exploration companies into mining producers with over 20 years in the mining sector. He also holds extensive experience in the management of public and listed companies, and joint winner of the Asia-Pacific Mining Executive of the year in 2017. Mr Dixon has held numerous director and management roles with emerging resource companies, and was the founding Managing Director of Blackham Resources (ASX:BLK), now Wiluna Mining Corporation (ASX: WMC). Previously, Mr Dixon was employed by an international accounting firm, Resolute Limited and Archipelago Resources, and specialises in project acquisition, exploration, feasibility, financing, development and operations of mining projects to production. Mr Dixon holds Bachelor of Commerce Degree at the University of Western Australia. He is an Associate Member of Chartered Accountants Australia and New Zealand, and an Associate Member of Governance Institute of Australia.
Date of appointment	21 December 2021
Other current public directorships	Burley Minerals Ltd (ASX: BUR)
Former public directorships in last 3 years	Lithium Australia NL (ASX: LIT), until 27 January 2021
Interests in shares and options	Shares	2,000,000
	Options	-

Mr Patrick Mutz Non-Executive Director
Experience and expertise	Specialising in uranium projects in the USA, Australia and Africa, Mr Mutz holds over 40 years of international mining experience across technical, managerial, consulting, executive and director roles, across all aspects of the mining industry from exploration through to project development, mining and mine rehabilitation. He also has uranium operational experience in open cut, underground, and in-situ mining and related processing. He formerly held the roles of Managing Director & CEO of African focussed uranium company, Deep Yellow (ASX: DYL), and Alliance Resources (ASX: AGS). Mr Mutz also held the roles of General Manager and Managing Director of General Atomics Technology Co in California, USA, a company specialising in research and technology development, including physics research in support of nuclear fission and nuclear fusion technology. Mr Mutz also previously served as Managing Director and CEO of a number of private mining companies based in Australia, primarily involved with project development and transitioning companies from exploration to production. Mr Mutz is currently Managing Director & CEO of Image Resources (ASX: IMA) ("Image"), a Western Australian mineral sands mining company, where he led Image through the successful transition from advanced explorer to profitable mining company, including feasibility study, capital raising, construction, rapid commissioning and full production that led to early repayment of all debt and payment of annual dividends after only the second and third years of operation. Mr Mutz holds a Bachelor of Science with Honours and an MBA, both from the University of Phoenix, and is a Fellow of AusIMM.
Date of appointment	18 May 2022
Other current public directorships	Image Resources NL (ASX: IMA)
Former public directorships in last 3 years	None
Interests in shares and options	Shares	-
	Options	-

Company secretary

The Company secretary is Mr Phillip Hains.

Mr Phillip Hains is a Chartered Accountant operating a specialist public practice, 'The CFO Solution'. He has over 30 years of experience in providing businesses with accounting, administration, compliance and general management services. He holds a Master of Business Administration from RMIT University and a Public Practice Certificate from the Chartered Accountants Australia and New Zealand.

Meetings of directors

The numbers of meetings of the Company's board of directors and of each board committee held during the year ended 30 June 2022, and the numbers of meetings attended by each director were:

	Full meetings of directors		Meetings of committees
	Full meetings of directors		Audit		Remuneration
	A	B	A	B	A	B
Mr Philip Mitchell	7	7	1	1	-	-
Dr Warren Mundine	5	7	1	1	-	-
Mr Bryan Dixon	7	7	1	1	-	-
Mr Patrick Mutz	1	1	-	-	-	-
Mr Martin Rogers	3	3	1	1	1	1
Mr Peter Ward	3	3	1	1	1	1
Mr Peter Reeve	3	3	1	1	1	1

A= Number of meetings attended

B= Number of meetings held during the time the director held office or was a member of the Audit & Risk Committee during the year.

Remuneration report

The directors present the Aura Energy Limited 2022 remuneration report, outlining key aspects of our remuneration policy and framework, and remuneration awarded this year.

The report is structured as follows:

(a) Key management personnel (KMP) covered in this report

(b) Remuneration policy and link to performance

(d) Link between remuneration and performance

(e) Share-based compensation

(f) Other transactions with KMP

(a) Key management personnel covered in this report

Non-executive and executive directors (see pages 6 to 9 for details about each director)

Mr Philip Mitchell, Non-Executive Chairman (appointed 21 December 2021) Dr Warren Mundine, Non-Executive Director (appointed 21 December 2021) Mr Bryan Dixon, Non-Executive Director (appointed 21 December 2021)

Mr Patrick Mutz, Non-Executive Director (appointed 18 May 2022)

Mr Peter Reeve, Managing Director and CEO (resigned 21 December 2021) Mr Peter Ward, Non-Executive Director (resigned 21 December 2021)

Mr Martin Rogers, Non-Executive Chairman (resigned 21 December 2021)

Other key management personnel

Dr Will Goodall, Acting Chief Executive Officer (appointed 13 January 2022)

(b) Remuneration policy and link to performance

Our remuneration committee is made up of independent non-executive directors. The committee reviews and determines our remuneration policy and structure annually to ensure it remains aligned to business needs, and meets our remuneration principles. In particular, the board aims to ensure that remuneration practices are:

• competitive and reasonable, enabling the Company to attract and retain key talent

• aligned to the Company's strategic and business objectives and the creation of shareholder value

• transparent and easily understood, and

• acceptable to shareholders.

The following table shows details of the remuneration expense recognised for the Group's executive key management personnel for the current and previous financial year measured in accordance with the requirements of the accounting standards.

The following table shows details of remuneration expenses of each director or other key management personnel recognised for the year ended 30 June 2022.

2022 Short-term benefits Post- employment

benefits

Long- term benefits

Share- based payments

Cash salary		Annual		Super-	Long service		Loan funded
and fees		leave	Other	annuation	leave	Options	shares	Total
$		$	$	$	$	$	$	$
Non-executive directors Mr Philip Mitchell	31,774	-	-	-	- - 474,902			506,676
Dr Warren Mundine	19,257	-	-	1,926	- - 118,725			139,908
Mr Bryan Dixon	21,183	-	17,000	-	- - 118,725			156,908
Mr Patrick Mutz	4,301	-	-	430	- - -			4,731
Mr Martin Rogers	75,000	-	-	-	- - -			75,000
Mr Peter Ward	40,000	-	-	-	- - -			40,000
Executive directors Mr Peter Reeve	94,203	-	-	9,420	- - -			103,623
Other KMP Dr Will Goodall	137,500	11,437	-	-	- - 104,429			253,366
Total KMP compensation	423,218	11,437	17,000	11,776	- - 816,781			1,280,212
Notes

• During the year ended 30 June 2022, the Group also engaged Mr Bryan Dixon, Mr Patrick Mutz and Dr Will Goodall for consulting services prior to their appointments as KMP. These services amounted to $2,151, $12,563 and $47,700, respectively.

• On 21 December 2021, the Group issued loan funded shares to Dr Will Goodall as an eligible consultant prior to his appointment as KMP. During the year ended 30 June 2022, $14,297 has been recognised as a share-based payment to Dr Goodall as a consultant.

Similarly, on 21 December 2021, the Group issued loan funded shares to Mr Peter Reeve as an eligible employee after his resignation as KMP. During the year ended 30 June 2022, $118,725 has been recognised as a share-based payment to Mr Reeve.

The following table shows details of remuneration expenses of each director or other key management personnel recognised for the year ended 30 June 2021.

2021 Short-term benefits Post-

employment

benefits

Cash

Long- term benefits Long

Share- based payments

Fully paid

salary

Super-

service

ordinary

	and fees $	Other $	annuation $	leave $	Options $	shares $	Total $
Non-executive directors Mr Martin Rogers	75,000	-	7,125	-	535,096	-	617,221
Mr Peter Ward	40,000	-	3,800	-	200,661	-	244,461
Mr Robert Beeson	-	-	-	-	-	25,550	25,550
Mr John Bennett	-	-	-	-	-	25,550	25,550
Mr Robert Craigie	14,247	-	1,354	-	-	15,601	31,202
Mr Paul Heber	31,202	-	-	-	-	-	31,202
Mr Julian Perkins	14,247	-	1,354	-	-	15,601	31,202
Executive directors Mr Peter Reeve	156,989	-	23,347	26,798	-	100,000	307,134
Other KMP Mr John Madden	62,800	5,000	-	-	-	-	67,800

Total KMP compensation 394,485 5,000 36,980 26,798 735,757 182,302 1,381,322

(d) Link between remuneration and performance

(i) Relative proportions of fixed vs variable remuneration expense

The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed, based on the amounts disclosed as statutory remuneration expense on page 12 above:

Name Fixed remuneration	LTI
2022 2021	2022	2021
% %	%	%
Non-executive director Mr Philip Mitchell 6 -	94	-
Dr Warren Mundine 15 -	85	-
Mr Bryan Dixon 24 -	76	-
Mr Patrick Mutz 100 -	-	-
Mr Martin Rogers 100 100	-	-
Mr Peter Ward 100 100	-	-
Mr Robert Beeson - 100	-	-
Mr John Bennett - 100	-	-
Mr Robert Craigie - 100	-	-
Mr Paul Heber - 100	-	-
Mr Julian Perkins - 100	-	-
Executive directors Mr Peter Reeve 100 100	-	-
Other KMP Mr John Madden - 100	-	-
Dr Will Goodall 59 -	41	-
(e) Share-based compensation
(i) Terms and conditions of the share-based payment arrangements
Options

Aura Energy Limited operates an ownership-based scheme for directors and executives of the Group. In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors and executives may be granted options to purchase parcels of ordinary shares at an exercise price as determined at the time options are granted.

Each option converts into one ordinary share of the Group on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

The number of options granted is approved by shareholders at a previous annual general meeting. The scheme rewards directors and executives against the extent of the Group's and individual's achievement against criteria from the following measures:

• improvement in share price

• improvement in return to shareholders

(i) Terms and conditions of the share-based payment arrangements (continued) Loan funded securities

Aura Energy Limited operates a loan funded equity scheme for directors, executives and senior consultants of the Group. In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors, executives and senior consultants may be granted loan funded securities.

Each loan funded share converts into one ordinary share of the Group on issue. The loan funded shares will rank equally with all other fully paid ordinary shares on issue in the capital of the Group.

The number of loan funded shares granted is approved by shareholders at the annual general meeting of the Group.

For detailed disclosures please refer to Note 8(b).

(ii) Reconciliation of options, performance rights and ordinary shares held by KMP Option holdings

2022

Balance at start Granted as

of the year¹remuneration Exercised

Other changes²

Balance at end of the year³

Vested and exercisable

Options
Mr Philip Mitchell	-	- - -	-	-
Dr Warren
Mundine	-	- - -	-	-
Mr Bryan Dixon	-	- - -	-	-
Mr Patrick Mutz	-	- - -	-	-
Mr Peter Reeve	-	- - 3,751,051	3,751,051	3,751,051
Mr Peter Ward	5,769,230	- - 1,076,922	6,846,152	6,846,152
Mr Martin
Rogers	15,384,615	- - 1,923,076	17,307,691	17,307,691
Dr Will Goodall	1,317,678	- - -	1,317,678	1,317,678
	22,471,523	- - 6,751,049	29,222,572	29,222,572

Notes

^1. Balance may include shares held prior to individuals becoming KMP. For individuals who became KMP during the period, the balance is as at the date they became KMP.

^2. Other changes incorporates changes resulting from the issue of options pursuant to rights issue.

^3. For former KMP, the balance is as at the date they ceased being KMP.

(ii) Reconciliation of options, performance rights and ordinary shares held by KMP (continued)

Share holdings

Balance at the start of the

Granted as

Received on conversion of performance

Balance at the

2022

year¹

remuneration

rights Other changes² end of the year³

Ordinary shares
Mr Philip Mitchell	-	8,000,000	- - 8,000,000
Dr Warren Mundine	-	2,000,000	- - 2,000,000
Mr Bryan Dixon	-	2,000,000	- - 2,000,000
Mr Patrick Mutz	-	-	- - -
Mr Peter Reeve	11,275,077	-	- - 11,275,077
Mr Peter Ward	3,230,768	-	- - 3,230,768
Mr Martin Rogers	5,769,229	-	- - 5,769,229
Dr Will Goodall	953,034	2,000,000	- - 2,953,034
	21,228,108	14,000,000	- - 35,228,108

Notes

^1. Balance may include shares held prior to individuals becoming KMP and exclude shares held by individuals resigned as KMP in prior year. For individuals who became KMP during the year, the balance is as at the date they became KMP.

^2. Other changes incorporates changes resulting from the acquisition or disposal of shares.

^3. For former KMP, the balance is as at the date they cease being KMP.

(f) Other transactions with KMP

Mr Peter Reeve was owed $253,006 as at 30 June 2021 in remuneration pursuant to agreed terms and conditions of a revised contract of employment with the base salary from 17 March 2021 being $200,000 plus superannuation. During the current financial year, $50,000 of the amount owing was paid in July 2021 and the balance was paid out on resignation in December 2021.

(g) Voting of shareholders at last year's annual general meeting

Aura Energy Limited received more than 75% of favourable votes on its remuneration report for the 2021 financial year. The Group did not receive any specific feedback at the 2021 annual general meeting or throughout the year on its remuneration practices.

[This concludes the remuneration report, which has been audited]

Proceedings on behalf of the company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.

Non-audit services

During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, its related practices and non-related audit firms:

2022

2021

Taxation services

Hall Chadwick WA Audit Pty Ltd:

Tax compliance services 2,971 1,500

Total remuneration for taxation services 2,971 1,500

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001is set out on page 19.

Shares under option

(a) Unissued ordinary shares

Unissued ordinary shares of Aura Energy Limited under option at the date of this report are as follows:

Date options issued Expiry date

Issue price of

Number under

option

2021-05-28 (AEEAAB) 2024-06-30 $0.052 384,616

2021-05-28 (AEEAAD) 2023-03-31 $0.104 3,039,528

2021-11-15 (AEEO) 2024-06-30 $0.052 118,766,583

122,190,727

No option holder has any right under the options to participate in any other share issue of the Company or any other entity.

(b) Shares issued on the exercise of options

The following ordinary shares of Aura Energy Limited were issued during and after the year ended 30 June 2022 on the exercise of options. No amounts are unpaid on any of the shares.

Date options issued	Date options expire	Issue price of Shares	Number of shares issued
2019-04-30	2022-04-30	$0.208	4,807,692
2019-04-30	2022-04-30	$0.098	1,538,462
2021-04-09	2024-06-30	$0.052	18,499,998
2021-05-28	2023-03-31	$0.104	2,938,035
2021-11-15	2024-06-30	$0.052 24,237,630
		52,021,817

This report is made in accordance with a resolution of directors.

Mr Philip Mitchell Director

London

30 September 2022

To the Board of Directors

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit director for the audit of the financial statements of Aura Energy Limited for the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:

· the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

· any applicable code of professional conduct in relation to the audit.

Yours Faithfully,

HALL CHADWICK WA AUDIT PTY LTD D M BELL CA

Director

Dated this 30 th day of September 2022

Aura Energy Limited

ABN 62 115 927 681

Audited Financial Report - 30 June 2022

Financial statements

Consolidated statement of profit or loss and other comprehensive income 21

Consolidated statement of financial position 23

Consolidated statement of changes in equity 24

Consolidated statement of cash flows (direct method) 26

Notes to the financial statements 27

Directors' declaration 58

	Notes	2022 $	2021 $
Continuing operations Other income	2(a)	92,496	31,156
Other gains/(losses)	2(b)	(58,782)	159,054
Employee benefits		(505,389)	(678,221)
General and administration expenses	2(c)	(1,470,842)	(1,507,050)
Share-based payments	8	(1,187,254)	(767,645)
Operating loss (3,129,771) (2,762,706)
Finance income	2(d)	1,676	36
Finance expenses	2(d)	-	(232,821)
Finance costs		1,676	(232,785)
Loss before income tax		(3,128,095)	(2,995,491)
Income tax benefit	3	-	-
Profit from continuing operations		(3,128,095)	(2,995,491)
Profit/(loss) from disposal group	11(b)	(275,696)	9,992
Loss for the year		(3,403,791)	(2,985,499)
Attributable to:
Owners of Aura Energy Limited		(3,573,298)	(2,985,499)
Non-controlling interests		169,507	-
		(3,403,791)	(2,985,499)
Other comprehensive income Exchange differences on translation of foreign operations		333,919	(122,711)
Other comprehensive income for the year		333,919	(122,711)
Total comprehensive loss for the year		(3,069,872)	(3,108,210)
Attributable to:
Owners of Aura Energy Limited		(3,245,917)	(3,108,210)
Non-controlling interests		176,045	-
		(3,069,872)	(3,108,210)

(continued)

Cents Cents

Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company:

From continuing operations attributable to the ordinary equity holders of

the company 18 (0.73) (1.34)

From continuing operations and disposal group attributable to the ordinary

equity holders of the company (0.79) (1.34)

	Notes	2022 $	2021 $
ASSETS
Current assets Cash at banks	4(a)	9,950,777	3,206,855
Trade receivables	4(b)	21,501	798
Other current assets		155,246	104,149
Assets classified as disposal group	11	2,453,620	-
Total current assets		12,581,144	3,311,802
Plant and equipment		4,557	-
Exploration and evaluation	5(a)	22,323,176 20,396,634
Total non-current assets		22,327,733 20,396,634
Total assets		34,908,877 23,708,436
LIABILITIES
Current liabilities Trade and other payables	4(c)	1,201,706	1,171,601
Borrowings	4(d)	-	312,500
Employee benefit obligations	5(b)	14,947	198,421
Other current liabilities		1,067	25,000
Liabilities directly associated with assets classified as disposal group	11	76,707	-
Total current liabilities		1,294,427	1,707,522
Total liabilities		1,294,427	1,707,522

Net assets 33,614,450 22,000,914

EQUITY
Share capital	6(a)	69,357,543	56,227,736
Other equity		314,346	314,346
Other reserves	6(b)	3,946,825	2,065,843
Accumulated losses (40,240,837) (36,607,011)
Capital and reserves attributable to owners of Aura Energy Limited	33,377,877		22,000,914
Non-controlling interests	236,573		-

Total equity 33,614,450 22,000,914

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Attributable to owners of

Aura Energy Limited

Accumulated

Total

	Share capital $	Other equity $	Other reserves $	losses $	equity $
Balance at 1 July 2020	50,967,094	357,056	1,147,314	(33,717,722)	18,753,742
Loss for the year	-	-	-	(2,985,499)	(2,985,499)
Other comprehensive loss	-	-	(122,711)	-	(122,711)
Total comprehensive loss for the year	-	-	(122,711)	(2,985,499)	(3,108,210)
Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax	4,621,385	-	-	-	4,621,385
Conversion of convertible notes	310,000	34,445	-	-	344,445
Options issued	-	-	1,065,470	-	1,065,470
Options expired	-	(77,155)	-	77,155	-
Options exercised	329,257	-	(37,063)	-	292,194
Performance rights forfeited	-	-	(19,055)	19,055	-
Performance rights vested	-	-	31,888	-	31,888
	5,260,642	(42,710)	1,041,240	96,210	6,355,382
Balance at 30 June 2021	56,227,736	314,346	2,065,843	(36,607,011)	22,000,914

(continued)

Attributable to owners of Aura Energy Limited

	Share capital $	Other equity $	Other reserves $	Accumulated losses $	Total $	Non- controlling interests $	Total equity $
Balance at 1 July 2021	56,227,736	314,346	2,065,843	(36,607,011)	22,000,914	-	22,000,914
(Loss)/profit for the year	-	-	-	(3,573,298)	(3,573,298)	169,507	(3,403,791)
Other comprehensive income	-	-	327,381	-	327,381	6,538	333,919
Total comprehensive income/(loss) for the year	-	-	327,381	(3,573,298)	(3,245,917)	176,045	(3,069,872)
Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax	7,787,082	-	-	-	7,787,082	-	7,787,082
Transfer to non-controlling interests	-	-	-	(60,528)	(60,528)	60,528	-
Options issued	-	-	2,030,390	-	2,030,390	-	2,030,390
Options exercised	5,167,725	-	(1,489,043)	-	3,678,682	-	3,678,682
Performance shares converted	175,000	-	(175,000)	-	-	-	-
Loan funded securities	-	-	1,187,254	-	1,187,254	-	1,187,254
	13,129,807	-	1,553,601	(60,528)	14,622,880	60,528	14,683,408
Balance at 30 June 2022	69,357,543	314,346	3,946,825	(40,240,837)	33,377,877	236,573	33,614,450

Consolidated statement of cash flows For the year ended 30 June 2022

	Notes	2022 $	2021 $
Cash flows from operating activities Payments to suppliers and employees (inclusive of GST)		(2,692,262)	(996,205)
Other income		-	30,450
Interest received		1,676	36
Interest paid		-	(130)
Net cash (outflow) from operating activities	9(a)	(2,690,586)	(965,849)
Cash flows from investing activities Payments for property, plant and equipment		(5,753)	-
Payments for exploration and evaluation		(2,723,064)	(608,306)
Net cash (outflow) from investing activities		(2,728,817)	(608,306)
Cash flows from financing activities Proceeds from issues of shares and other listed securities		10,805,390	4,113,644
Proceeds from borrowings		-	417,000
Share issue transaction costs		(1,216,818)	(103,413)
Repayment of borrowings		(312,500)	(76,000)
Options exercise		3,679,749	200,000
Proceeds from other current liabilites		-	25,000
Net cash inflow from financing activities		12,955,821	4,576,231
Net increase in cash and cash equivalents		7,536,418	3,002,076
Cash and cash equivalents at the beginning of the financial period		3,206,855	234,689
Effects of exchange rate changes on cash and cash equivalents		(36,573)	(29,910)
Cash and cash equivalents at end of year	4(a)	10,706,700	3,206,855

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

1 Segment information

(a) Description of segments and principal activities

The Group operates predominately in the mining industry. This comprises exploration and evaluation of uranium projects. Inter-segment transactions are priced at cost to the consolidated Group.

The Group has identified its operating segments based on the internal reports that are provided to the board of directors on a monthly basis. Management has identified the operating segments based on the three principal project - uranium, vanadium and gold and base metals. The Group also maintains a corporate function primarily responsible for overall management of the operating segments, raising capital and distributing funds to operating segments.

Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.

Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements. Financial assets including cash and cash equivalents, and investments in financial assets, are reported in the Treasury segment.

(b) Financial breakdown

The segment information for the reportable segments for the year ended 30 June 2022 is as follows:

Gold and base

2022	Uranium $	Vanadium $	metals $	Corporate $	Total $
Segment income	-	-	-	92,496	92,496
Realised & unrealised gains/(losses)	920,600	(957,403)	-	(21,979)	(58,782)
Total income	920,600	(957,403)	-	70,517	33,714
Employee benefits	-	-	-	(505,389)	(505,389)
General & administration expenses	(299)	(26,512)	-	(1,444,031)	(1,470,842)
Finance costs	(495,429)	(239,749)	-	736,854	1,676
Share-based payments	-	-	-	(1,187,254)	(1,187,254)
Profit/(loss) from disposal group	-	-	17,905	(293,601)	(275,696)
Loss for the year	424,872	(1,223,664)	17,905	(2,622,904)	(3,403,791)
Assets Segment assets	15,680,668	6,642,508	1,694,213	10,891,488	34,908,877
Total assets	15,680,668	6,642,508	1,694,213	10,891,488	34,908,877
Liabilities Trade and other payables	-	-	-	1,201,706	1,201,706
Provisions	-	-	-	91,654	91,654
Financial liabilities	-	-	-	1,067	1,067
Total liabilities	-	-	-	1,294,427	1,294,427

1 Segment information (continued)

(b) Financial breakdown (continued)

The segment information for the reportable segments for the year ended 30 June 2021 is as follows:

Gold and base

2021	Uranium $	Vanadium $	metals $	Corporate $	Total $
Segment income	-	-	-	706	706
Covid 19 Relief	-	-	-	30,450	30,450
Realised & unrealised gains/(losses)	181,976	(16,944)	-	(5,978)	159,054
Total income	181,976	(16,944)	-	25,178	190,210
Employee benefits	-	-	-	(678,221)	(678,221)
General & administration expenses	-	(37,166)	-	(1,469,884)	(1,507,050)
Finance costs	-	-	-	(232,785)	(232,785)
Share-based payments	-	-	-	(767,645)	(767,645)
Profit/(loss) from disposal group	-	-	10,472	(480)	9,992
Loss for the year	181,976	(54,110)	10,472	(3,123,837)	(2,985,499)
Assets Segment assets	12,413,115	7,222,843	805,234	3,267,244	23,708,436
Total assets	12,413,115	7,222,843	805,234	3,267,244	23,708,436
Liabilities Trade and other payables	-	3,395	-	1,168,206	1,171,601
Provisions	-	-	-	198,421	198,421
Borrowings	-	-	-	312,500	312,500
Other current liabilities	-	-	-	25,000	25,000
Total liabilities	-	3,395	-	1,704,127	1,707,522
2 Other income and expense items
(a) Other income
				2022 $	2021 $
Other income				92,496	706
Government grants				-	30,450
				92,496	31,156
(b) Other gains/(losses)
				2022 $	2021 $
Net gain/(loss) on foreign currency				(58,782)	159,054
				(58,782)	159,054

2 Other income and expense items (continued)
(c) Breakdown of expenses by nature
	2022 $	2021 $
General and administration expenses Accounting and audit	(419,511)	(145,950)
Computers and communication	(41,429)	(29,238)
Consulting	(345,378)	(251,115)
Depreciation	(1,196)	(499)
Insurance	2,610	(18,161)
Investor relations	(144,841)	(22,291)
Legal	(116,693)	(826,652)
Listing and share registry	(274,895)	(123,822)
Occupancy	(24,796)	(61,824)
Travel and entertainment	(96,176)	(2,256)
Other	(8,537)	(25,242)
(1,470,842) (1,507,050)
(d) Finance income and costs
	2022 $	2021 $
Finance income Interest from financial assets not at fair value through profit or loss	1,676	36
	1,676	36
Finance costs Interest and finance charges paid/payable for financial liabilities not at fair value through profit or loss	-	(232,821)
	-	(232,821)
Net finance costs	1,676	(232,785)
3 Income tax expense
(a) Income tax expense
	2022 $	2021 $
Income tax expense	-	-

3 Income tax expense (continued)
(b) Numerical reconciliation of income tax expense to prima facie tax payable
	2022 $	2021 $
Loss from continuing operations before income tax expense	(3,128,095)	(2,995,491)
(Loss)/profit from disposal group before income tax expense	(275,696)	9,992
	(3,403,791)	(2,985,499)
Tax at the Australian tax rate of 25% (2021: 26%) Tax effect of amounts which are not deductible (taxable)	(850,948)	(776,230)
in calculating taxable income:
Share-based payments	296,814	199,588
Other	140,703	1,477
Unrealised currency (gains)/losses	(42,562)	(41,086)
Fines and penalities	-	130,119
Superannuation liability	(12,999)	11,248
Covid-19 relief	-	(7,917)
Employee leave obligations	(42,745)	15,552
Subtotal	(511,737)	(467,249)
Difference in overseas tax rates	11,091	2,327
Tax losses and other timing differences for which no deferred tax asset is recognised	500,646	464,922
Income tax expense/(benefit)	-	-

(c) Tax losses
	2022 $	2021 $
Unused tax losses for which no deferred tax asset has been recognised	22,362,674	20,360,090
Potential tax benefit @ 25% (2021: 26%)	5,590,669	5,293,623

The unused tax losses were incurred by a dormant subsidiary that is not likely to generate taxable income in the foreseeable future. They can be carried forward indefinitely.

4 Financial assets and financial liabilities

(a) Cash and cash equivalents

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise the following at 30 June:

	2022 $	2021 $
Current assets Cash at banks	9,950,777	3,206,855
Cash at banks attributable to disposal group	755,923	-
Cash and cash equivalents	10,706,700	3,206,855

(a) Cash and cash equivalents (continued)

(i) Classification as cash equivalents

Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours notice with no loss of interest. See Note 20(f) for the Group's other accounting policies on cash and cash equivalents.

(b) Trade and other receivables

	2022			2021
	Non-			Non-
Current	current	Total	Current	current	Total
$	$	$	$	$	$

Other receivables 21,501 - 21,501 798 - 798

(i) Fair value of trade and other receivables

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

(c) Trade and other payables

	Current $	2022 Non- current $	Total $	Current $	2021 Non- current $	Total $
Trade payables	251,814	-	251,814	408,156	-	408,156
Accrued expenses	938,297	-	938,297	410,979	-	410,979
Payroll tax and other statutory liabilities	7,926	-	7,926	16,067	-	16,067

Other payables 3,669 - 3,669 336,399 - 336,399

1,201,706 - 1,201,706 1,171,601 - 1,171,601

(d) Borrowings

Total

Year ended 30 June 2021

Opening balance 310,000

New borrowings 432,000

Settlement (518,000)

Finance charges 88,500

Closing balance 312,500

Total

Year ended 30 June 2022

Opening balance 312,500

Settlement (312,500)

Closing balance -

(d) Borrowings (continued)

L1 Capital Global Opportunities Master Fund Convertible note

On 19 August 2020, the Group entered into a Convertible Securities Agreement with L1 Capital Global Opportunities Master Fund. The Group issued 250,000 convertible securities for a consideration of $250,000. A facility fee of $9,000 was payable by the Group on inception of the agreement. L1 Capital advanced the Group the net amount on inception of the agreement. The securities have a face value of $312,500 and $62,500 finance costs have been recognised accordingly.

Under the Convertible Securities Agreement, L1 Capital was entitled to 50,000,000 options (pre consolidation) over 2 series.

Series A: 25,000,000 options with an exercise price of 0.4 pence, converted into AUD using the Exchange Rate on the day immediately prior to the Execution Date and rounded down to the nearest ($0.001) and an expiry date of 3 years from the date of issue.

Series B: 25,000,000 Options with an exercise price equal to the closing VWAP on the London Stock Exchange on the Actual Trading Day immediately prior to the date Shareholder Approval is obtained converted into AUD using the Exchange Rate on the same day and rounded down to the nearest ($0.001) and an expiry date of 3 years from the date of issue.

On 21 December 2020, the options component of the agreement was amended. On 9 April 2021, L1 Capital was issued 3,846,153 options (post consolidation) with an exercise price of $0.052 and expiring on 30 June 2024.

On 13 September 2021, the Group repaid L1 Capital the face value of the borrowings $312,500.

Other loans

On 10 February 2021, Peter Reeve and Phillip Hains each advanced the Group $38,000 in an arm's length transaction. Both advances were repaid on 18 February 2021.

5 Non-financial assets and liabilities
(a) Exploration and evaluation
		Haggan	Tasiast South
	Tiris uranium	vanadium	gold	Total
	$	$	$	$
Year ended 30 June 2021 Opening net book value	11,769,138	7,220,847	747,766	19,737,751
Expenditure capitalised during the financial period	434,054	14,710	139,174	587,938
Exchange differences	165,365	(12,714)	(81,706)	70,945
Closing net book value	12,368,557	7,222,843	805,234	20,396,634
Haggan Tasiast South
	Tiris uranium	vanadium	gold	Total
	$	$	$	$
Year ended 30 June 2022 Opening net book value	12,368,557	7,222,843	805,234	20,396,634
Expenditure capitalised during the financial period	2,294,636	94,839	847,789	3,237,264
Exchange differences	1,017,475	(675,174)	41,190	383,491
Assets transferred to disposal group	-	-	(1,694,213)	(1,694,213)
Closing net book value	15,680,668	6,642,508	-	22,323,176

The value of the Group's interest in exploration expenditure is dependent upon:

• The continuance of the Group's right to tenure of the areas of interest;

• The result of future exploration; and

• The recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.

The Group's exploration properties may be subjected to claim(s) under Native Title (or jurisdictional equivalent), or contain sacred sites, or sites of significance to the indigenous people of Sweden and Mauritania.

As a result, exploration properties or areas within the tenements may be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify whether such claims exist, or the quantum of such claims.

On 22 May 2018, the Group lodged exploitation applications for Ain Sder, Oued El Foule and Oum Ferkik.

The Islamic Republic of Mauritania granted exploitation licenses for the Ain Sder and Oued El Foule on 9 February 2019. The Group is in discussions with the government to secure an exclusivity over the Oum Ferkik tenement.

In the exploitation permits for Ain Sder and Oued El Foule, Tiris Ressources SA undertakes to begin production within 24 months of grant of the permits. Due to the COVID-19 pandemic, the Group was not able to undertake development activities as planned. Pursuant to the exploitation permits, the Department of Petroleum, Mines, and Energy of Mauritania reserves the right to cancel the permits. The Group has requested an extension to the production period and has received verbal indication from the Department of Petroleum, Mines, and Energy of Mauritania this would be granted. The Board has not received a notice to cancel the permits. During this period, the Group has continued development activities and the Board are confident that the extension will be granted.

5 Non-financial assets and liabilities (continued)

(a) Exploration and evaluation (continued)

The pandemic has delayed the Group from continuing negotiations of an exclusivity over the Oum Ferkik tenement and as a consequence the board of directors decided to recognise an impairment of the carrying value of the Oum Ferkik tenement of $2.508 million in prior years. The board of directors believes its relationship with the government will result in it eventually securing an exclusivity and notes that the government has not revoked the Oum Ferkik tenement due to the representations made by the Group to secure the exclusivity.

On 20 June 2022, the licenses for Hadeibet Bellaa and Touerig Taet, part of the Tasiast South gold project, expired. The Group has applied to the Ministry of Petroleum, Mines and Energy to renew the licenses and has paid the renewal fees and 1st years' surface fee for the 3 year renewal period, in accordance with the regulatory provisions. The Group has received confirmation from the Ministry of Petroleum, Mines and Energy confirming the renewal of licenses will follow the normal route and will therefore be renewed shortly.

Similarly, the Group has applied for and paid the fees for the renewal of the Nderik license together with the joint venture partner, Nomads Mining Co. The Ministry provided the same confirmation regarding this application.

(b) Employee benefit obligations

	2022			2021
	Non-			Non-
Current	current	Total	Current	current	Total
$	$	$	$	$	$

Leave obligations (i) 14,947 - 14,947 198,421 - 198,421

(i) Leave obligations

The leave obligations cover the Group's liabilities for long service leave and annual leave which are classified as either other long-term benefits or short-term benefits, as explained in Note 20(i).

The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees have completed the required year of service and also for those employees that are entitled to pro-rata payments in certain circumstances. The entire amount of the provision of $14,947 (2021:

$198,421) is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

6 Equity

(a) Share capital

2022

2021

2022

2021

Ordinary shares

Fully paid 503,825,028 395,962,187 69,357,543 56,227,736

Total share capital 503,825,028 395,962,187 69,357,543 56,227,736

6 Equity (continued)

(a) Share capital (continued)

(i) Movements in ordinary shares:

Details	Number of shares	Total $
Balance at 1 July 2020	2,557,535,966	50,967,094
Share consolidation 13:1 (25 Mar 2021)	(2,360,803,231)	-
Shares issued pursuant to resolutions passed at AGM (9 Apr 2021)	64,422,301	1,814,980
Shares issued at $0.026 pursuant to rights issue (28 May 2021)	130,576,382	3,395,015
Shares issued at $0.052 on exercise of options (4 June 2021)	3,846,153	329,257
Shares issued pursuant to resolution passed at AGM (28 May 2021)	384,616	20,000
Less: Transaction costs arising on share issues	-	(298,610)

Balance at 30 June 2021 395,962,187 56,227,736

	Number of shares	Total $
Shares issued on conversion of performance rights, valued at $0.273 (3 August 2021)	641,025	175,000
Shares issued at $0.104 on exercise of options (23 September 2021)	2,553,420	265,556
Shares issued at $0.052 on exercise of options (15 October 2021)	5,384,614	280,000
Shares issued at $0.098 on exercise of options (18 October 2021)	1,538,461	150,769
Shares issued at $0.104 on exercise of options (19 November 2021)	384,615	40,000
Shares issued at $0.052 on exercise of options (7 December 2021)	10,083,251	524,329
Shares issued at $0.052 on exercise of options (21 December 2021)	4,178,812	217,298
Shares issued at $0.052 on exercise of options (5 Jan 2022)	149,353	7,766
Shares issued at $0.052 on exercise of options (18 Jan 2022)	1,754,252	91,221
Shares issued at $0.052 on exercise of options (1 Feb 2022)	416,238	21,644
Shares issued at $0.052 on exercise of options (17 Feb 2022)	929,407	48,329
Shares issued at $0.052 on exercise of options (3 Mar 2022)	465,294	24,195
Shares issued at $0.250 pursuant to placement (17 Mar 2022)	35,200,000	8,800,000
Shares issued at $0.052 on exercise of options (23 Mar 2022)	2,237,476	116,349
Shares issued at $0.208 on exercise of options (23 Mar 2022)	2,000,000	416,000
Directors and consultants loan funded shares issued (1 Apr 2022)	20,000,000	-
Shares issued at $0.052 on exercise of options (6 Apr 2022)	7,056,673	366,947
Shares issued at $0.052 on exercise of options (21 Apr 2022)	8,027,502	417,430
Shares issued at $0.208 on exercise of options (3 May 2022)	2,807,692	584,000
Shares issued at $0.052 on exercise of options (20 May 2022)	2,054,756	106,847
Transfer from reserves on exercise of options during the period	-	1,489,044
Less: Transaction costs arising on share issues	-	(1,012,918)

Balance at 30 June 2022 503,825,028 69,357,542

(ii) Share consolidation

At the AGM on 17 March 2021, the shareholders resolved to consolidate the issued shares and options on a 13:1 basis. The consolidation was effective of 25 March 2021. The consolidation of shares and options adjusted the capital structure in a manner that will align the Group's share structure with its peers on the ASX and the AIM. The consolidation should result in a share price level that is more attractive to a wider range of investors and particularly, for institutional investors and large sophisticated and professional investors.

6 Equity (continued)

(b) Other reserves

The following table shows a breakdown of the consolidated statement of financial position line item 'other reserves' and the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the table.

Foreign

	Share-based payments $	currency translation $	Total other reserves $
At 1 July 2020	551,998	595,316	1,147,314
Currency translation differences	-	(122,711)	(122,711)
Other comprehensive income	-	(122,711)	(122,711)
Transactions with owners in their capacity as owners Issue of options	1,065,470	-	1,065,470
Options exercised	(37,063)	-	(37,063)
Performance rights forfeited	(19,055)	-	(19,055)
Performance rights vested	31,888	-	31,888
At 30 June 2021	1,593,238	472,605	2,065,843

At 1 July 2021	1,593,238	472,605	2,065,843
Currency translation differences	-	327,381	327,381
Other comprehensive income	-	327,381	327,381
Transactions with owners in their capacity as owners
Issue of options	2,030,390	-	2,030,390
Options exercised	(1,489,043)	-	(1,489,043)
Conversation of performance shares	(175,000)	-	(175,000)
Loan funded securities	1,187,254	-	1,187,254
At 30 June 2022	3,146,839	799,986	3,946,825

(i) Nature and purpose of other reserves Foreign currency translation

Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in Note 20(d) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.

7 Options

Set out below are summaries of all listed and unlisted options:

2022 2021

Average exercise price per option

Number of options

Average exercise price per option

Number of

options

As at 1 July	$0.08		40,249,998	$0.02	95,541,679
Consolidation	-		-	-	(88,192,319)
Granted during the year	$0.05		135,359,309	$0.06	36,746,791
Expired during the year	$0.29		(1,003,206)	-	-
Exercised during the year	$0.07		(52,021,817)	$0.05	(3,846,153)
As at 30 June	$0.05		122,584,284	$0.08	40,249,998
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Grant and vesting date	Expiry date	Exercise price $		No. of options 30 June 2022	No. of options 30 June 2021
30 April 2019	30 April 2022	0.208		-	4,807,692
30 April 2019	30 April 2022	0.098		-	1,538,462
23 June 2019	31 August 2021	0.286		-	1,003,206
17 March 2021	30 June 2024	0.052		-	26,538,459
17 March 2021	31 March 2023	0.104		3,039,528	5,977,563
17 March 2021	30 June 2024	0.052		384,616	384,616
17 March 2021	30 June 2024	0.052		8,038,461	-
15 November 2021	30 June 2024	0.052 111,121,679 -
Total		122,584,284 40,249,998

Weighted average remaining contractual life of options outstanding at 30 June 1.97 2.04

(i) Value of options granted

The options were granted pursuant to the loyalty options rights issue on 15 November 2021. They have been recorded at original cost, the offer price of $0.015 per option.

8 Share-based payments

(a) Performance rights

On 17 June 2018 the Group approved the award of 15,000,000 performance rights (pre consolidation) to Messrs Neil Clifford, John Madden and Dr William Goodall with the board of directors ratifying the award on 4 September 2018. The performance rights were awarded under the Employee Share Plan.

The following tranches set out the vesting periods for the award of performance rights to the above-mentioned management of the Company. Each tranche consists of 5,000,000 (pre consolidation) or 384,615 (post consolidation), vested as follows:

• Tranche 1 on 17 June 2019

• Tranche 2 on 17 June 2020

• Tranche 3 on 17 June 2021

In 2021, $31,888 was the deemed cost of the performance rights for the financial year. The performance rights held no voting or dividend rights and were not transferable.

John Madden resigned on 22 December 2020 and is not entitled to his share of Tranche 3 performance rights.

On 3 August 2021, the Group converted the remaining Tranche 2 and Tranche 3 performance right into 641,025 ordinary shares of the Group.

(b) Loan funded shares

The shareholders authorised the issue of loan funded shares to directors, executives and senior consultants at the AGM on 21 December 2021. The loan funded shares have the following vesting conditions:

• Tranches 1, 2 and 3:

• Continuous employment/engagement with the Group; and

• Tranche 1:

• when the daily volume weighted average price ("VWAP") of the Group's shares meets the share price performance hurdle of $0.50 on 10 days on any 20 sequential trading days; and

• eligible to vest 12 months after grant date;

• Tranche 2:

• when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and

• eligible to vest 24 months after grant date;

• Tranche 3:

• when the daily VWAP of the Group's shares meets the share price performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and

• eligible to vest 36 months after grant date.

The loan funded shares granted have been valued using a Monte Carlo Simulation, taking into account the terms and conditions upon which the loan funded shares were granted. The valuation of loan funded shares is summarised as follows:

8 Share-based payments (continued)

(b) Loan funded shares (continued)

Key Management Personnel	Tranche 1	Tranche 2	Tranche 3
Share price hurdle	$0.50	$0.75	$1.00
Share price at grant date	$0.245	$0.245	$0.245
Grant date	21 December 2021	21 December 2021	21 December 2021
Expected volatility	145.6%	145.6%	145.6%
Expiry date	21 December 2026	21 December 2026	21 December 2026
Expected dividends	-	-	-
Risk Free interest rate	1.35%	1.35%	1.35%
Value per loan share	$0.2313	$0.2273	$0.1987
Number of loan shares	2,800,000	4,200,000	7,000,000
Consultants	Tranche 1	Tranche 2	Tranche 3
Share price hurdle	$0.50	$0.75	$1.00
Share price at grant date	$0.245	$0.245	$0.245
Grant date	21 December 2021	21 December 2021	21 December 2021
Expected volatility	145.6%	145.6%	145.6%
Expiry date	21 December 2026	21 December 2026	21 December 2026
Expected dividends	-	-	-
Risk Free interest rate	1.35%	1.35%	1.35%
Value per loan share	$0.2313	$0.2273	$0.1987
Number of loan shares	1,200,000	1,800,000	3,000,000

As at 30 June 2022, $1,187,254 has been recognised as a share-based payment expense.

9 Cash flow information

(a) Reconciliation of profit after income tax to net cash inflow from operating activities

	Notes	2022 $	2021 $
Loss for the year Adjustments for		(3,403,791)	(2,985,499)
Depreciation and amortisation	2(c)	1,196	499
Exchange fluctuation Exploration and evaluation expenditure capitalised and included in		25,720	(71,552)
operating cash flows		-	2,826
Finance costs		-	232,757
Payments to employees and consultants by way of the issue of shares		-	772,759
Provisions		-	59,818
Share-based payments		1,187,254	767,645
Other Change in operating assets and liabilities, net of effects from purchase of controlled entity and sale of engineering division:		-	706
(Increase) in trade receivables	(20,703)		92,369
(Increase)/decrease in other operating assets	23,072		-
Increase/(decrease) in trade creditors	(319,860)		161,823

Increase/(decrease) in other operating liabilities (183,474) -

Net cash inflow (outflow) from operating activities (2,690,586) (965,849)

(b) Non-cash investing and financing activities

Non-cash investing and financing activities disclosed in other notes are:

• options and loan funded shares issued for no cash consideration - Note 8 ; and

• settlement of borrowings - Note 4(d)

Balance at start of the

year Cashflow Other

Balance at end of the

year

$ $ $ $ Current loans and borrowings 312,500 (312,500) - - Other current liabilities 25,000 1,067 (25,000) 1,067

337,500 (311,433) (25,000) 1,067

For further information please refer to Note 4(d).

10 Financial risk management

(a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The board meets on a regular basis and considers the Group's exposure currency and interest rate risk.

(i) Foreign exchange risk

The Group has exposure to foreign currency risk in relation to US dollars for asses the Group holds in Mauritania. The following table illustrates sensitivities to the Group's exposures to changes in the AUD/USD exchange rate. The table indicates the impact on how profit and equity values reported at balance date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.

The table below sets out the financial impact of the strengthening or weakening of the Australian dollar against the US dollar on a profit after tax and equity basis as at the end of the financial year, with all other variables constant.

Exposure

The Group's exposure to foreign currency risk at the end of the reporting year, expressed in Australian dollar, was as follows:

30 June 2022 30 June 2021

	USD $	MRU $	GBP $	SEK $	USD $	MRU $	GBP $	SEK $
Cash and cash
equivalents	310,448	19,430	285,449	854	12,142	18,406	7,361	7,836
Trade payables	42,467	-	-	10,540	89,539	-	109,190	3,402
Sensitivity

The Group has conducted a sensitivity analysis of its exposure to foreign currency risk. The Group is currently materially exposed to the United States dollar (USD) and the Pound Sterling (GBP). The sensitivity analysis is conducted on a currency-by-currency basis using the sensitivity analysis variable, which has been set as 10% change in the respective exchange rates for the year ended 30 June 2022, keeping all the other variables constant.

Impact on post-tax profit

	2022 $	2021 $
USD/AUD exchange rate - increase 10%*	35,292	10,168
MRU/AUD exchange rate - increase 10%*	1,943	1,841
GBP/AUD exchange rate - increase 10%*	28,545	11,655
SEK/AUD exchange rate - increase 10%* * Holding all other variables constant	1,139	1,124
(ii) Cash flow and fair value interest rate risk

The Group's main interest rate risk arises from cash and cash equivalents held, which expose the Group to cash flow interest rate risk. During 2022 and 2021, the Group's cash and cash equivalents at variable rates were denominated in Australian dollars.

(a) Market risk (continued)

The Group's exposure to interest rate risk at the end of the reporting year, expressed in Australian dollars, was as follows:

2022

2021

Financial instruments with cash flow risk

Cash at banks 9,950,777 3,206,855

(b) Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group.

There has been an increase in the Group's exposure to credit risk in 2022 due to increased cash and cash equivalents. The Group's exposure to other classes of financial assets with credit risk is not material.

(i) Risk management

Risk is minimised through investing surplus funds in financial institutions that maintain a high credit rating.

(ii) Impairment of financial assets

While cash and cash equivalents and deposits at call are subject to the impairment requirements of AASB 9, the identified impairment loss was immaterial.

(c) Liquidity risk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms:

• preparing forward looking cash flow analyses in relation to its operating, investing and financing activities;

• obtaining funding from a variety of sources;

• maintaining a reputable credit profile;

• managing credit risk related to financial assets;

• investing cash and cash equivalents and deposits at call with major financial institutions; and

• comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

(c) Liquidity risk (continued)

(i) Maturities of financial liabilities

The tables below analyse the Group's financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Contractual maturities of financial liabilities

Less than 6 months

6 - 12

months

Between 1 and 5 years

Over 5 years

Total

contractual Carrying cash amount flows liabilities

At 30 June 2022 Trade and other payables	$ 1,201,706	$ -	$ -	$ -	$ 1,201,706	$ 1,201,706
Total	1,201,706	-	-	-	1,201,706	1,201,706
At 30 June 2021 Trade and other payables	1,171,601	-	-	-	1,171,601	1,171,601
Total	1,171,601	-	-	-	1,171,601	1,171,601

11 Disposal group

(a) Description

In December 2022, the Group plans to spin out Archaean Greenstone Gold Limited ("Archaean"), Tiris International Mining Company SARL ("TIMCO") and the Nomads Joint Venture ("disposal group") by means of an IPO of Archaean. The disposal group contains all of the Group's interest in the Tasiast South Gold project. The spin out was announced on 22 November 2021.

(b) Financial performance and cash flow information

The results of the disposal group, which have been included in the loss for the year, were as follows:

2022

2021

Other gains/(losses) 33,927 10,508

Expenses on disposal group (309,623) (516) Profit before income tax (275,696) 9,992

Income tax expense - -

Loss of the disposal group (275,696) 9,992

During the financial year, the disposal group accounted for $240,179 (2021: $516) to the Group's net operating cash flows, paid $515,744 (2021: nil) in respect of investing activities and paid no cash (2021: nil) in respect of financing activities.

A loss of $275,696 (2021: a gain of $9,992) was incurred from the disposal group.

(c) Assets and liabilities of disposal group classified as disposal group

On 22 November 2021, the Group announced the spin out of the Tasiast South Gold project. The spin out is consistent with the Group's long-term policy to focus its activities on the Group's other businesses. These operations, which are expected to be sold within 12 months, have been classified as a disposal group and presented separately in the consolidated statement of financial position. The proceeds of disposal, if any, are expected to substantially exceed the carrying amount of the related net assets and accordingly no impairment losses have been recognised on the classification of these operations as the disposal group.

The following assets and liabilities were classified as the disposal group as at 30 June 2022:
	2022
	$
Assets Cash at banks attributable to disposal group	755,923
Tasiast South Gold project exploration and evaluation	1,697,697
Assets classified as disposal group	2,453,620
Liabilities
Trade and other payables	76,707
Liabilities directly associated with assets classified as disposal group	76,707
Net assets directly associated with disposal group	2,376,913

12 Interests in other entities

(a) Subsidiaries

The Group's subsidiaries at 30 June 2022 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business.

Name of entity

Place of business/ country of incorporation

Ownership interest held by the group

		2022 %	2021 %
Vanadis Battery Metals AB	Sweden	100	100
Aura Energy Mauritania Pty Ltd	Australia	100	100
Tiris Ressources SA	Mauritania	85	85
Tiris International Mining Company sarl	Mauritania	100	100
Archaean Greenstone Gold Limited	Australia	100	-

(a) Contingent liabilities

(i) Nomads Mining Company sarl

On 11 June 2019, the Group executed a Binding Term Sheet (see ASX Announcement, dated 11 June 2019) with the shareholders of Nomads Mining Company sarl, an entity incorporated in Mauritania, to acquire 70% equity interest in Nomads Mining Company sarl and on 26 June 2019 the Group and the shareholders of Nomads Mining Company sarl executed a Farm-in and Joint Venture Agreement.

Under the terms and conditions of the above agreement, the Group agreed to pay the shareholders of Nomads an entry fee of US$150,000. The first entry fee of US$25,000 in cash and the Australian dollar equivalent of US$25,000 in fully paid ordinary shares were paid on execution of the agreement. The second instalment of the Entry Fee (US$50,000) and third instalment of the Entry Fee (US$50,000) were paid in full in cash on 8 and 9 September 2020 respectively.

On completion of US$1,000,000 exploration program (the Farm-in Commitment) on the tenement held by Nomads, the shareholders of Nomads will assign 70% of their uncertificated equity interest in Nomads to the Group. On the Group being assigned the uncertificated equity interest by the shareholders of Nomads, the Group and the existing shareholders of Nomads, will form a joint venture with the Group to be appointed manager.

The Group will provide the shareholders of Nomads with a free-carry through to development and a deferred carry following the decision to mine. The deferred carry is repayable with interest out of dividends declared by Nomads once in operations.

(ii) Tiris International Mining Company sarl

On 25 June 2016, the Group, Tiris International Mining Company sarl ("TIMCO") and Sid Ahmed Mohamed Lemine Sidi Reyoug executed the Tasiast South sale and purchase agreement. On 2 April 2019, TIMCO was granted tenements 2457 (Hadeibet Bellaa) and 2458 (Touerig Taet) by the Ministry of Petroleum, Energy and Mines.

Under the terms and conditions of the agreement, if the Group proves up an 'Indicated Resource' greater than one million ounces of gold will be required to pay Sid Ahmed Mohamed US$250,000 and, on commencement of production, Aura is required to pay Sid Ahmed Mohamed US$5/ounce of gold and a 0.4% net sales revenue royalty on other commodities with total royalty payments capped to a maximum of US$5 million.

Both the Nomads Joint Venture and TIMCO form part of the disposal group (see Note 11) that the Group plans to spin out.

(iii) Tiris Ressources SA

14 Commitments

As at 30 June 2022, the Group had commitments of $73,146 ($73,146 <1 year). These represent renewal of exploration licenses and committed exploration expenditure.

The following circumstance has arisen since 30 June 2022 that has significantly affected the Group's operations, results or state of affairs, or may do so in future years.

Appointment of a new Managing Director and Chief Executive Officer

No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial years.

16 Related party transactions

(a) Subsidiaries

Interests in subsidiaries are set out in Note 12(a).

(b) Key management personnel compensation

	2022 $	2021 $
Short-term employee benefits	451,655	399,485
Post-employment benefits	11,776	36,980
Long-term benefits	-	26,798

Share-based payments 816,781 918,059

1,280,212 1,381,322

Detailed remuneration disclosures are provided in the remuneration report on pages 11 to 16.

(c) Transactions with other related parties

During the year ended 30 June 2022, the Group engaged Mr Bryan Dixon, Mr Patrick Mutz and Dr Will Goodall for consulting services prior to their appointments as KMP. These services amounted to $2,151, $12,563 and

$47,700, respectively.

On 21 December 2021, the Group issued loan funded shares to Dr Will Goodall as an eligible consultant prior to his appointment as KMP. During the year ended 30 June 2022, $14,297 has been recognised as a share-based payment to Dr Goodall, as a consultant.

17 Remuneration of auditors

During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related audit firms:

(a) Hall Chadwick WA Audit Pty Ltd

2022

2021

Audit and other assurance services

Audit and review of financial statements 46,892 47,048

Taxation services

Tax compliance services 2,971 1,500

Total remuneration of Hall Chadwick WA Audit Pty Ltd 49,863 48,548

18 Loss per share
(a) Loss used in calculating loss per share
	2022 $	2021 $
Basic and diluted loss per share
Loss attributable to the ordinary equity holders of the Company used in
calculating basic loss per share:
From continuing operations	3,128,095	2,995,491
From continuing operations and disposal group	3,403,791	2,985,499
(b) Weighted average number of shares used as the denominator
	2022 Number	2021 Number
Weighted average number of ordinary shares used as the denominator in

calculating basic earnings per share 428,181,481 223,319,972

19 Parent entity financial information

(a) Summary financial information

The individual financial statements for the parent entity show the following aggregate amounts:

2022

2021

Assets and liabilities

Current assets 9,976,907 3,245,168

Non-current assets 24,592,325 20,459,873

Total assets 34,569,232 23,705,041

Current liabilities	954,782	1,704,127
Total liabilities	954,782	1,704,127

Net assets 33,614,450 22,000,914

Shareholders' equity
Share capital	69,357,543	56,227,736
Other contributed equity Reserves	314,346	314,346
Share-based payments	1,959,585	1,593,238
Loan funded shares	1,187,254	-
Retained earnings	(39,204,278) (36,134,406)
Total Equity	33,614,450 22,000,914
Loss for the year	(3,069,872) (2,873,968)
Total comprehensive loss	(3,069,872) (2,873,968)

(b) Guarantees entered into by the parent entity

The parent entity has not entered into any guarantees in relation to debts of its subsidiaries in the year ended 30 June 2022 (2021: nil).

(c) Contingent liabilities of the parent entity

The parent entity had contingent liabilities at 30 June 2022 identical to those of the Group, as outlined in note 13.

(d) Contractual commitments for the acquisition of property, plant or equipment

The parent entity has not entered into any contractual commitments for the acquisition of property, plant or equipment in the year ended 30 June 2022 (2021: nil).

(e) Determining the parent entity financial information

The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements, except as set out below.

(i) Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries are accounted for at cost in the financial statements of Aura Energy Limited.

Contents of the summary of significant accounting policies

Page

(a) Basis of preparation 50

(b) Principles of consolidation and equity accounting 51

(d) Foreign currency translation 51

(e) Income tax 51

(f) Cash and cash equivalents 52

(g) Plant and equipment 52

(h) Provisions 52

(i) Employee benefits 53

(j) Equity-settled compensation 53

(k) Revenue and other income 53

(l) Value-added taxes 54

(m) Earnings per share 54

(n) Impairment of non-financial assets 54

(o) Fair value of assets and liabilities 55

(p) Critical accounting estimates and judgements 56

20 Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Aura Energy Limited and its subsidiaries.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Aura Energy Limited is a for-profit entity for the purpose of preparing the financial statements.

(i) Compliance with IFRS

The consolidated financial statements of the Aura Energy Limited Group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

(ii) Historical cost convention

The consolidated financial statements have been prepared on a historical cost basis.

(iii) Going concern

The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Group incurred a loss for the year of $3,403,791 (2021: $2,985,499) and a net cash outflow from operating activities of $2,690,586 (2021: $965,849).

As at 30 June 2022, the Group had surplus working capital of $11,286,717 (2021: $1,604,280).

Based upon cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate, including the meeting of exploration commitments. In addition, given the Group's history of raising funds to date, the directors are confident of the Group's ability to raise additional funds as and when they are required.

(iv) Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in Note 20(p) Critical accounting estimates and judgements.

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Company based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Company operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Company unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

(a) Basis of preparation (continued)

(v) Comparative figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(vi) New standards and interpretations not yet adopted

There are no new standards and interpretations that are not yet effective and that would be expected to have a material impact on the Group in the current or future reporting years and on foreseeable future transactions.

(b) Principles of consolidation and equity accounting

(i) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

(c) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. This has been identified as the chief executive officer.

(d) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Australian dollar ($), which is Aura Energy Limited's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.

(e) Income tax

The income tax expense or credit for the year is the tax payable on the current year's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting year in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

(e) Income tax (continued)

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting year and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity respectively.

(f) Cash and cash equivalents

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the consolidated statement of financial position.

(g) Plant and equipment

Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting year in which they are incurred.

The depreciation methods and years used by the Group are as follows:

• Computer equipment - 3 years

• Other plant & equipment - 2-5 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting year.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.

(h) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

(h) Provisions (continued)

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting year. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

(i) Employee benefits

For the year ending 30 June 2022 the Group has three types of employee benefits.

(i) Defined contribution superannuation funds

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions onto a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution superannuation funds are recognised as an expense in the income statement as incurred. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.

(ii) Short-term benefits

Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees' services provided to the reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay at the reporting date including related on-costs, such as workers compensation insurance and payroll tax.

Non-accumulating non-monetary benefits, such as medical care, housing, cars and free or subsidised goods and services, are expensed based on the net marginal cost to the Group as the benefits are taken by the employees.

(iii) Other long-term benefits

Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(j) Equity-settled compensation

The Group operates an employee share ownership scheme. Share-based payments to employees are measured at the fair value of the instruments issued and amortised over the vesting periods. Share-based payments to

non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using the Black-Scholes pricing model. The fair value of loan funded shares is determined using the Monte Carlo simulation. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest.

(k) Revenue and other income

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Management fees are recognised on portion of completion basis.

Gain on disposal of tenements, and revenue from equipment chargebacks, are recognised on receipt of compensation.

All revenue is stated net of the amount of value added taxes (see Note 20(l) Value-added taxes).

(l) Value-added taxes

Value-added taxes (VAT) is the generic term for the broad-based consumption taxes that the Group is exposed to such as: Australia (GST); Sweden (MOMS); and Mauritania (VAT).

Revenues, expenses, and assets are recognised net of the amount of VAT, except where the amount of VAT incurred is not recoverable from the relevant country's taxation authority. In these circumstances the VAT is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of VAT.

Cash flows are presented in the statement of cash flows on a gross basis, except for the VAT component of investing and financing activities, which are disclosed as operating cash flows.

Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable to, the taxation authority.

(m) Earnings per share

(i) Basic earnings per share

Basic earnings (or loss) per share is determined by dividing the profit or loss attributable to equity holders of the parent company, excluding any costs of service equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings (or loss) per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares which comprise share options granted as share-based payments.

The Group does not report diluted earnings per share, as dilution is not applied to annual losses generated by the Group.

(n) Impairment of non-financial assets

The carrying amounts of the Group's non-financial assets, other than deferred tax assets (Note 3 Income tax expense) and exploration and evaluation assets (Note 5(a) Exploration and evaluation) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the income statement, unless the asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through the income statement.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the greater of its fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

(n) Impairment of non-financial assets (continued)

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.

(o) Fair value of assets and liabilities

The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based payment arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial instruments, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements.

(i) Valuation techniques

In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation techniques to measure the fair value of the asset or liability, the Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of the following valuation approaches:

• Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

• Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

• Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

(o) Fair value of assets and liabilities (continued)

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable

(ii) Fair value hierarchy

AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

• Level 1

Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

• Level 2

Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3

Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

The Group would change the categorisation within the fair value hierarchy only in the following circumstances:

• if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or

• if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.

When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event

or change in circumstances occurred.

(p) Critical accounting estimates and judgements

The directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information.

Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.

(p) Critical accounting estimates and judgements (continued)

(i) Key Judgements - Exploration and evaluation expenditure

Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current. These costs are carried forward in respect of an area that has not at reporting date reached a stage that permits reasonable assessment of the existence of economically recoverable reserves, refer to the accounting policy stated in Note 5(a) Exploration and evaluation.

The carrying value of capitalised expenditure at reporting date is $22,323,176 (2021: $20,396,634).

During the financial year, the Group undertook assessment of its tenement assets. As a result of this assessment, the Group decided not to impair any of its exploration assets.

(ii) Key Judgements - Environmental issues

Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation, and the directors understanding thereof. At the current stage of the Group's development and its current environmental impact, the directors believe such treatment is reasonable and appropriate.

(iii) Key Judgements - Taxation

Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the Group as they pertain to current income taxation legislation, and the directors understanding thereof.

No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors' best estimate, pending an assessment by tax authorities in relevant jurisdictions. Refer to Note 3 Income tax expense.

(iv) Key Judgements - Impairment

The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.

(v) Key Judgements - Share-based payments

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of options is determined by an internal valuation using a Black-Scholes pricing model with the assumptions and inputs detailed in Note 8 Share-based payments. The fair value of loan funded shares is determined by a Monte Carlo simulation. The assumptions and inputs to the models are detailed in Note 7 Options.

In the directors' opinion:

(a) the financial statements and notes set out on pages 20 to 57 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001and other mandatory professional reporting requirements, and

(ii) giving a true and fair view of the consolidated entity's financial position as at 30 June 2022 and of its performance for the financial year ended on that date, and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of directors.

Mr Philip Mitchell Director

London

30 September 2022

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF AURA ENERGY LIMITED

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Aura Energy Limited ("the Company") and its subsidiaries ("the Consolidated Entity"), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion:

a. the accompanying financial report of the Consolidated Entity is in accordance with the

Corporations Act 2001 , including:

(i) giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2022 and of its financial performance for the year then ended; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 .

b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 20(a)(i).

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants(the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

How our audit addressed the Key Audit Matter

Exploration and Evaluation

(Refer to Note 5(a))

The Consolidated Entity had an exploration and evaluation balance of $22,323,176 as at 30 June 2022.

Exploration and evaluation is a key audit matter due to:

· The significance of the balance to the Consolidated Entity's financial position.

· The level of judgement required in evaluating management's application of the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. AASB 6 ('AASB 6') is an industry specific accounting standard requiring the application of significant judgements, estimates and industry knowledge. This includes specific requirements for expenditure to be capitalised as an asset and subsequent requirements which must be complied with for capitalised expenditure to continue to be carried as an asset.

· The assessment of impairment of exploration and evaluation expenditure requiring significant judgement.

Our procedures included, amongst others:

· Assessing management's determination of its areas of interest for consistency with the definition in AASB 6. This involved analysing the tenements in which the Consolidated Entity holds an interest and the exploration programs planned for those tenements.

· For each area of interest, we assessed the Consolidated Entity's rights to tenure on a sample basis by verifying to permits, agreements or checking that exploration permits have been registered for renewal and their annual fees have been paid in accordance with regulatory provisions.

· We considered the activities in each area of interest to date and assessed the planned future activities for each area of interest by evaluating budgets.

· Substantiated a sample of expenditure by agreeing to supporting documentation.

· We assessed each area of interest for one or more of the following circumstances that may indicate impairment of the capitalised expenditure:

o the licenses for the right to explore expiring in the near future or are not expected to be renewed;

o substantive expenditure for further exploration in the specific area is neither budgeted or planned;

Key Audit Matter

How our audit addressed the Key Audit Matter

o decision or intent by the Company to discontinue activities in the specific area of interest due to lack of commercially viable quantities of resources; and

o data indicating that, although a development in the specific area is likely to proceed, the carrying amount of the exploration asset is unlikely to be recovered in full from successful development or sale.

· Examination of the disclosures made in the financial report.

Share-Based Payments

(Refer to Note 8)

During the year, the Consolidated Entity incurred share-based payments totalling

$1,187,254 from the issue of 20 million loan funded shares to directors, executives and senior consultants.

Share-based payments are considered to be a key audit matter due to:

· The significance of the transactions to the Consolidated Entity's financial position and performance; and

· The level of judgement required in evaluating management's application of the requirements of AASB 2 Share- based Payment ("AASB 2").

A Monte Carlo model was used to value the loan funded shares with market based vesting conditions. This process involved significant estimation and judgement required to determine the fair value of the equity instruments granted.

Our procedures included, amongst others:

· Analysed arrangements to identify key terms and conditions of the share-based payments and relevant vesting conditions in accordance with AASB 2;

· Evaluated the valuation methods used and assessed the assumptions and inputs;

· Assessed the amount recognised during the period in accordance with the relevant vesting conditions; and

· Examination of the disclosures made in the financial report.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity's annual report for the year ended 30 June 2022, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 20(a)(i), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards.

In preparing the financial report, the directors are responsible for assessing the Consolidated Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity's internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

· Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2022. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor's Opinion

In our opinion, the Remuneration Report of the Consolidated Entity, for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001.

HALL CHADWICK WA AUDIT PTY LTD D M BELL CA

Director

Dated this 30 th day of September 2022

Aura Energy Limited Shareholder information

30 June 2022

Tenement report

Country	Tenement number	Name	Grant/ application date	Expiry date	Kms/sq	Holder	Equity
Mauritania	2491C4	Ain Sder	28/1/2019	2/8/2049	207	Tiris Ressources SA	85%
	2492C4	Oued El Foule	28/1/2019	2/8/2049	190	Tiris Ressources SA	85%
	2457B2	Hadeibet Belaa*	20/6/2019	20/6/2022	41	Tiris International Mining Company sarl	100%
	2458B2	Touerig Taet*	20/6/2019	20/6/2022	134	Tiris International Mining Company sarl	100%
Sweden	2007-243	Haggan nr 1	28/8/2007	28/8/2024	18.3	Vanadis Battery Metals AB	100%
	2018-9	Mockelasen nr 1	21/1/2019	21/1/2024	17.6	Vanadis Battery Metals AB	100%
	2018-7	Skallbole nr 1	20/1/2019	20/1/2024	7.8	Vanadis Battery Metals AB	100%
Joint Venture	2688B2	Nderik*	9/7/2019	13/11/2021	260	Nomads Mining Co	70%

* Renewal applications have been submitted and are being processed.

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