Annual Report for the Financial Year 30 June 2019

RNS Number : 1212O

Aura Energy Limited

30 September 2019

AURA ENERGY LIMITED

("Aura" or the "Company")

Annual Report for the Financial Year 30 June 2019

Aura Energy Limited wishes to advise the market that it has released its Annual Report for the financial year ended 30 June 2019 to the Australian Securities Exchange.

The Company has attached to this announcement to the AIM market, an abridged version of the 2019 Annual Report. This report excludes photos, charts, audit independence statement, auditor's report and additional disclosures required by the Australian Securities Exchange.

A full version of the 2019 Annual report can be viewed at http://www.rns-pdf.londonstockexchange.com/rns/1212O_1-2019-9-30.pdf and is also available on the Company's website at www.auraenergy.com.au

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

Aura Energy Limited

Peter Reeve (Executive Chairman)

Telephone: +61 (3) 9516 6500

info@auraenergy.com.au

SP Angel Corporate Finance Limited

(Nominated Advisor and Joint Broker)

Ewen Leggat

Caroline Rowe

Telephone: +44 (0) 203 470 0470

WH Ireland Limited

(Joint Broker)

Adrian Hadden

James Sinclair-Ford

Telephone: +44 (0) 207 220 1666

Yellow Jersey PR Limited

Charles Goodwill

Joe Burgess

Telephone:

+44 (0) 7748 843 871

+44 (0) 7769 325 254

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

CHAIRMAN'S LETTER

Dear Shareholder

During 2019 Aura continued to advance its philosophy that the best path to creating shareholder wealth is the advancement towards, and ultimately the achievement of, production from its exploration and development projects.

With the Tiris Uranium Project, the Häggån Vanadium Project and our exploration tenements for gold, base and battery metals, Aura pursued this strongly and concluded the end of 2018/19 with the business side of the Company in great shape.

Whilst the financial year was one of outstanding success from a business building point of view the response on the equity market for Aura was poor and at year end the lack of recognition of Aura's business activity resulted in a low share price. The reasons revolve around the poor outcome for Aura's February share placement, unavoidable delays in studies, uranium price and the general market tone around the US/China Trade War.

To re-iterate however, Aura's development projects are in excellent shape and the events and achievements that drove this strong business build were as follows;

· In late 2018 Aura secured the Exploitation Licence for the Tiris Uranium Project.

· Following definition of the Häggån Vanadium Project high grade zone, Aura pursued the Häggån Scoping Study aggressively and completed capital and operating cost estimates for the new project before the end of the financial year.

· With a strong vanadium price and a will to innovate, Aura also detailed the path to vanadium recovery with the Tiris Uranium Project. This vanadium will be a strong revenue contributor.

· Declaring Aura was putting "the building blocks to cashflow' in place, the Company secured a significant offtake agreement for its Tiris Uranium Project which still allowed exposure to higher uranium prices in the future.

· An additional building block was the commencement of a detail process via our London-based advisors to obtain low-cost Export Credit Finance support for both Tiris and Häggån

· After some years of patient frustration, Aura secured two highly prospective gold exploration licences near the massive Kinross Tasiast project. Nickel and cobalt also identified here.

· The Company later expanded that position securing additional ground prospective for its Tasiast South Project.

· Significantly in May 2019, Aura produced the first Mauritanian Yellowcake ever as part of the test work for Tiris.

· Subsequent to the end of the financial year, Aura announced the completion of its Tiris Uranium Project Definitive Feasibility Study with the Häggån Vanadium Scoping Study close behind.

Aura will continue to pride itself on real advancement of the projects it has already discovered in-house and this is achieved with the excellent technical team it has assembled over the years. Aura thanks this team and all it staff and directors for their efforts during the year.

In the year ahead Aura is targeting finance for the Tiris Project and, subject to a receptive uranium environment, a move towards development of the project. Additional optimization projects around Tiris have been commissioned and should result in project improvements.

The Häggån Project Study will be released and, in conjunction, Aura will pursue battery manufacturing initiatives with that project.

Also, to place the Häggån Vanadium Project and gold tenements on a stronger independent funding footing the Company will seek more optimum corporate structures for these assets.

I want to thank the shareholders for their support in the year and we look forward to delivering shareholder returns off the back of the strong business we have created.

Yours sincerely

PD Reeve

Executive Chairman and Managing Director

30 September 2019

REVIEW OF OPERATIONS

URANIUM

Tiris uranium project

By the end of the financial year, the Group had virtually completed the Tiris Definitive Feasibility Study. The formal release of the DFS took place on 29 July 2019 and confirmed the Tiris uranium project as a low cost and low operating cost development.

The DFS is designed to support a 1.25 million tonne/annum (Mtpa) uranium processing plant, an associated open cut mine, and supporting infrastructure.

The Tiris Uranium Project is based on a substantial greenfield uranium discovery by the Company with 51.8 million pounds U₃O₈ in current resources. Two exploitation licences covering 390 km² were granted to Tiris Ressources SA, a Mauritanian registered subsidiary of Aura, on 8 February 2019. The two licences cover the Eastern Tiris resources at Oued El Foule and Ain Sder. An application for a 38 km² exploitation licence remains pending over the smaller Western Tiris resource at Oum Ferkik.

This DFS is focussed primarily on the two granted exploitation permits - 2491C4 Ain Sder and 2492C4 Oued El Foule. These comprise the Eastern Tiris resource zone in Wilaya du Tiris Zemmour.

Geology

Over the years there has been three resource estimation exercises carried out with the 2017 drilling campaign substantially upgrading a portion of the resources to Measured and Indicated status (see ASX Announcement, dated 30 April 2018).

Potential exists to add to the resource base within the immediate vicinity of the recently known resources. In the Sadi zone, drilling has demonstrated that mineralisation extends at least 1.5 kilometres south of the current resource boundary. This extension has not been closed off by drilling or included in any resource boundary.

The delineation of Measured and Indicated Resources (see Table 1 of PDF link to the full annual report above) has been limited for cost reasons only to portions of the of the Lazare and Hippolyte deposits. Additional Measured/Indicated Resources will be established within the currently defined Inferred Resources zones, and within further resources yet to be outlined.

The declared Ore Reserves at a 175 ppm U₃O₈ cut-off is set out in Table 2 of the PDF link to the full annual report above.

The Ore Reserves were generated by H&S Consultants with appropriate modifying factors to apply for mining dilution This Resource model was used in an open pit optimisation process, to produce a rang of pit areas using operating costs and other inputs derived from previous studies.

Mining Plus were retained by the Group to complete the mining design for the Tiris uranium project, including Ore Reserve estimation in accordance with The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code"), 2012 Edition.

The uranium mineralisation lies largely within 3 to 5 metres of the surface in a relatively soft, free digging material containing patchy calcrete. Based on trenching and metallurgical test work to date, the mineralisation does not require blasting before mining or crushing prior to beneficiation.

Mining

The Feasibility Study (see ASX Announcement, dated 29 July 2019) has shown that the three mining areas can be developed in a practical sequence to production 800,000-1,100,000 pounds per year of UO₄ through the processing plant for over ten years. The first nine years will come from the currently defined Measured or Indicated Resources, which form the declared Ore Reserve.

The cost to develop and operate the mine for 10 years has been estimated at US$66 million or US$2.24 per tonne of material mined.

Resource optimisations for the Lazare North, Lazare South, Hippolyte, Hippolyte South and Sadi were developed for the Feasibility Study using an optimisation sales price of US$44 per pound for U₃O₈ as set in the Offtake Agreement between the Group and Curzon Uranium Trading Limited (see ASX Announcement, dated 29 January 2019).

A conventional open pit dry mining method utilising a combination of bulldozers, excavators and trucks will be employed through a contract mining arrangement. Where waste is mined it will be returned to a previously mined area without the need for building waste dumps.

Processing

The uranium is hosted with ultra-fine grained carnotite (K2(UO2)2(VO4)2.3H2O) that is loosely attached to barren gangue particles. This means uranium bearing carnotite can be readily separated from barren particles, allowing highly efficient upgrade of uranium concentration by simple scrubbing and screening. This greatly reduces the mass of material for leaching, reducing footprint and throughput for the hydrometallurgical plant.

The processing facility consists of three main sections. These are separated by surge tanks and include:

• Beneficiation circuit

• Uranium extraction circuit (Alkaline leach - solid liquid separation - Ion exchange)

• Uranium purification and precipitation circuit.

Tiris mineralisation is well suited to uranium recovery by alkaline leaching, using the sodium carbonate/ sodium bicarbonate system. The leach is undertaken at a temperature of 90°C with a residence time of 12 hours.

For alkaline systems the main process options available for recovery of uranium are ion exchange (IX), Resin in Pulp (RIP), or Direct Precipitation. For the Tiris process, ion exchange was selected. For efficient application of Direct Precipitation higher concentrations of uranium in leach solution would be required, to minimise downstream reagent requirements. Similarly, the elevated clay concentration may cause 'bLinding' of resin in an RIP system, reducing recovery efficiency.

After ion exchange the resin loaded with uranyl carbonate is eluted using sodium bicarbonate. The eluted uranium stream is then further concentrated by nano-filtration, and sodium bicarbonate recovered for recycle back to the leach circuit. Uranium is then precipitated with sodium hydroxide as sodium diuranate (SDU). The SDU precipitate is filtered and dissolved in sulphuric acid as uranyl sulphate, ready for final precipitation.

Uranium is precipitated with hydrogen peroxide to form the final uranyl peroxide (UO4) product. UO4 will then be dried or calcined to form the final Yellowcake product. Yellowcake is a term used to cover all Uranium Oxide Concentrates (UOC), which may include UO4, UO3, UO2 or U3O8.

The final UOC product will be packed in secure 205L IP-1 open head steel drums and strapped within a 6m container for transport by road to the Port of Nouakchott.

Infrastructure

The infrastructure component of the Tiris Project includes all supporting facilities located outside the mining area. Infrastructure includes the engineering design, procurement and management for the following site infrastructure works:

• Internal roads within the process site, and minor roadworks on the 665km site access road from Zouerat.

• Bulk earthworks

• Accommodation camp installation, reticulated services, waste disposal, water treatment and associated infrastructure.

• Transportable buildings including offices, change rooms, crib rooms and ablutions.

• Communications systems

• Steel framed buildings including workshops, warehouse and uranium packaging building.

• Power reticulation across the project site.

• Site security.

• Process plant security.

• Remote water borefield and pipeline.

The process plant area includes a heavy vehicle workshop, which will carry out maintenance on all the mining fleet. All the designated road areas within the process plant area, and the process plant equipment area, will require some soil compaction to avoid settlement. Key process equipment/traffic areas will be prepared by stripping the topsoil, proof rolling the area and installing a crushed compacted granite sub-base. Earthworks will thus be limited to the minimum required only. No earthworks are planned for the camp 3km north east of the process plant, due to the low building weights involved.

Capital and operating costs

Engineering company, Mincore Pty Ltd, provided the capital cost estimate for the Tiris Project which included the scope of facilities and services required to design, purchase and construct the entire project, up to practical completion and handover to operations.

An exhaustive in-country engineering review was conducted during the course of the financial year covering all infrastructure needs and, particularly, the road infrastructure to site. The in-country review found that of the 680 km road from Zouerate to Tiris, only 2km will require substantial roadworks.

Significantly, 85% of the capital cost for the Tiris uranium project has been sourced from direct supplier quotes. As a result of this thorough estimating approach, Aura is confident that the capital cost estimate for Tiris Uranium Project is robust.

No direct mining capital costs are outlined, as infrastructure to support the mining operations is included in the infrastructure numbers, there is no pre-strip required and mining costs are based direct supplier quotes from a number of mining contractors with all mobile equipment costs included in the operating cost estimation received.

The Power generation capital costs have been allocated to Operating expenses, with the delayed costs paid over three years once production commences. Aura obtained conceptual agreement to this financing arrangement, with one of the Power generation suppliers. The capital expenditure total cost is therefore reported as $62.94M USD.

The scope for the facilities also includes two specialised plant areas that were separately engineered for both quantities and prices. The specialised plant areas include:

• Leach and uranium recovery plant developed by Simulus Engineers, and

• Fluid bed precipitation, calcining and drum packing plant developed by Adelaide Control Engineering.

The costing for these two specialised packages includes full engineering, procurement of all equipment and packing ready for transportation (site erection and commissioning by others).

The operating cost estimate for the Tiris Project was developed by Aura Energy with assistance of MinCore Engineers, Simulus Engineers and MiningPlus. An estimate review was undertaken by METS Engineering. The estimate is based on the LOM ore schedule, process design criteria, steady state mass and energy balance and metallurgical test work undertaken as part of the Feasibility Study.

The estimate includes all costs associated with production of an average 0.8Mlbs U3O8 per annum, including:

• Contract mining;

• Labour;

• Fuel;

• Power;

• Reagents and consumables;

• Maintenance;

• General and administration;

• Product transport;

• Sustaining capital;

• World Bank Community contributions; and

• Royalties.

The operating cost estimate is considered to have an estimate accuracy of +15% -10%.

The comparison of the DFS Capital cost estimate with the Scoping Study showed an increase of 21% from the 2014 escalated estimate. This is a good result given the greater detail in the DFS estimate. Importantly, the estimate for the main processing facility was within 3% between the studies.

VANADIUM

Haggan vanadium project

The Group commenced an infill diamond drilling campaign at Häggån in late November 2018 aimed at upgrading 250 million lbs V₂O₅ to Measured and Indicated Resource status. The drilling campaign involved a 3,000-metre of drilling in 22 holes and was completed by the end of April 2019.

The program is focussed on the northwest high-grade vanadium zone at the Haggan vanadium project. As well as containing high grade vanadium, the mineralisation comes close to surface in this zone with the top of mineralisation averaging circa 27 metres below surface in the recent drilling.

While the mineralisation is up to 200 metres thick the drilling is aiming to test only the upper 100 metres as this is likely to support mining for the first 15 years.

On 23 May 2019 (see ASX Announcement, dated 23 May 2019), the group informed the market orebody modelling had defined a significant high-grade vanadium zone close to the surface. The modelling confirmed the Global Resource of 15.1 billion pounds of V₂O₅ which included a new significant high-grade hear surface vanadium zone of 90 million tonnes at 0.42% V₂O₅ at a cut-off grade of 4000 ppm.

On 14 August 2019, the Group announced assays from the 3,000-metre drilling campaign (see ASX Announcement, dated 14 August 2019) with the most significant results:

· 103 metres at 0.41 % V₂O₅ hole 19DDHG085

· 101 metres at 0.43 % V₂O₅ hole 19DDHG089 (including 68 metres at 0.5% V₂O₅)

· 93 metres at 0.41 % V₂O₅ hole 19DDHG084

· 78 metres at 0.43 % V₂O₅ hole 19DDHG083

· 71 metres at 0.43 % V₂O₅ hole 19DDHG080

· 54 metres at 0.45 % V₂O₅ hole 19DDHG090

Depth to the top of the mineralisation in the 28 drillholes in this high- grade zone averaged 27 metres which confirms the low stripping ratio of the future/planned mining operation.

The area covered by the recent drilling in this high-grade zone covers only a small portion of the giant Häggån Resource leaving potential for repeats of the current zone to be discovered within proximity of the current resource.

By the end of the financial year, all major technical work for the Häggån Scoping Study has now been completed as per schedule with the final report being assembled currently. The Haggan Scoping Study will be released in early October 2019.

GOLD AND BASE METALS

Tasiast South tenements

On 3 April 2019 (see ASX Announcement, dated 3 April 2019) the group was granted, through its Mauritanian controlled entity, TIMCO sarl, two exploration tenements covering of 175km² in an underexplored greenstone belt The areas lie along strike from the giant 20 million ounce Tasiast gold mine operated by Kinross Gold Corporation and Tijirit gold project held by Algold Inc. The Group believes that these tenements, with the single large Tasiast gold mine along strike, and strong base and battery metal results, represent some of the best under-explored greenstone belt targets in the world.

The prospects cover portions of the Tasiast and Tijirit greenstone belts which have been previously explored by another entity but it was forced to suspend activities in the mineral industry downturn in 2012, despite having located zones of significant gold mineralisation. Drilling by the previous holder of the tenements was shallow with some limited deeper reverse circulation (RC) drilling testing below air-core drilling. A small number of RC holes have provided very good results; however. the density of drilling is very low averaging approximately one hole per 20 km².

On 11 June 2019 (see ASX Announcement, dated 11 June 2019), the group informed the market that it had extended its footprint in this greenstone belt by entering into a Farm-in and Joint Venture Agreement with Nomads Mining Company sarl.

The formal agreement was executed on 26 June 2019.

Under the agreement the Group has a right to earn 70% of the equity in Nomads Mining Company sarl of Mauritania by funding US$1,000,000 of exploration expenditure The exploration tenement, Nderik, covers approximately 50 km² of Archean greenstones in the Tasiast greenstone belt. The Nomads' Nderik tenement adjoins and is along strike from the Group's Touerig Taet exploration tenement which covers approximately 30 km in strike length of the Tasiast greenstones.

The Group is not aware of any significant prior exploration on the Nderik tenement area despite the area being previously held by Normandy La Source (who made the initial discovery of the Tasiast gold deposit) during the 1990s. The area of the Nderik tenement, which is close to the large Tasiast mine, has not been exposed to modern exploration techniques.

Initial field geological work indicates the greenstone sequences within the Nderik tenement and within the Group's Touerig Taet tenement have strong similarities in age (late Archean) and geology with those of the prolifically mineralised greenstone belts in the Yilgarn Province of Western Australia and the Superior Province in Canada. In the Mauritanian Archean greenstone belts, there is currently only one operating mine (excluding small-scale artisanal mining which is active in the area) operated by Kinross at Tasiast and one other reported gold resource at Tijirit held by Algold Limited.

DIRECTORS REPORT

The directors present their report, together with the financial statements of Aura Energy Limited (ACN 115 927 681) (hereafter referred to as the "Company"), for the financial year ended 30 June 2019.

Principal Activities

The principal activities of the Company 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.

Operating Results

The Group recorded a net loss after tax of $2,896,262 the year ended 30 June 2019 (the net loss after tax for the previous financial year was A$1,987,057). The increase in the net loss after tax was primarily due to higher employee benefits, financing costs (Convertible Security Funding Agreement) and consulting and government and public relations costs. The impairment of exploration expenditure previously capitalised on Swedish tenements also negatively impacted on the result.

State of affairs of the Company

No significant changes in the Company's state of affairs occurred during the financial year.

Dividends

No dividends were declared and paid during the year.

Events After Balance Date

On 16 July 2019 (see ASX Announcement ,dated 16 July 2019), the Group issued to:

• 11,111,111 fully paid ordinary shares to Lind Global Macro Fund LP on receipt of its first conversion notice pursuant to the terms and conditions of the Convertible Security Funding Agreement. dated 30 April 2019. The value of the shares issued to Lind Global Macro Fund LP was $100,000.

• 5,000,000 fully paid ordinary shares on the conversion of performance shares to Messrs NJ Clifford and JM Madden and DR WR Goodall under the terms and conditions of the Long-Term Incentive Plan. The value of the shares issued to management on conversion of performance shares was $105,000.

• 3,251,773 fully paid ordinary to the shareholders of Nomads Mining Company Limited pursuant to the first payment of the entry fee pursuant to the Farm-in and Joint Venture Agreement, dated 26 June 2019. The value of the shares issued to the shareholders of Nomads Mining Company sarl $36,127 (the equivalent of US$26,000).

• 1,893,233 fully paid ordinary shares to SD Capital Advisory Limited and GKB Ventures Limited pursuant to the Letter of Engagement, dated 25 January 2019, for advisory services associated with securing ECA financing. The value of the shares issued to SD Capital Advisory Limited and GKB Ventures Limited was $21,564.

On 21 July 2019 (see ASX Announcement, dated 21 July 2019), the Group issued 15,430,919 loyalty options to shareholders that subscribed to the rights issue (see ASX Announcement 21 June 2019). The loyalty options expire on 21 July 2020 and are exercisable at 2.2 cents per option over ordinary share. The loyalty options were issued at 0.5 cents per option over ordinary share and raised $77,154.

On 25 July 2019 (see ASX Announcement, dated 25 July 2019), the Group released a cleansing prospectus to enable the Group to issue a replacement convertible note to Lind Global Macro Fund LP as required by the Convertible Security Funding Agreement (see ASX Announcement, dated 30 April 2019).

On 29 July 2019 (see ASX Announcement, dated 29 July 2019), the Group released to the market the Tiris uranium project definitive feasibility study.

On 12 August 2019 (see ASX Announcement, dated 12 August 2019), the Group issued to 1,931,218 fully paid ordinary shares to SD Capital Advisory Limited and GKB Ventures Limited pursuant to the Letter of Engagement, dated 25 January 2019, for advisory services associated with securing ECA financing. The value of the shares issued to SD Capital Advisory Limited and GKB Ventures Limited was $21,475.

On 14 August 2019 (see ASX Announcement, dated 14 August 2019), the Group release a revised Mineral Resource estimate for its Haggan vanadium project.

On 6 September 2019 (see ASX Announcement, dated 6 September 2019), the Group issued to:

• 14,285,715 fully paid ordinary shares to Lind Global Macro Fund LP on receipt of its second conversion notice pursuant to the terms and conditions of the Convertible Security Funding Agreement. dated 30 April 2019. The value of the shares issued to Lind Global Macro Fund LP was $100,000.

• 2,041,281 fully paid ordinary shares to SD Capital Advisory Limited and GKB Ventures Limited pursuant to the Letter of Engagement, dated 25 January 2019, for advisory services associated with securing ECA financing. The value of the shares issued to SD Capital Advisory Limited and GKB Ventures Limited was $22,209.

On 19 September 2019, the Company and Lind Global Macro Fund LP executed an R&D Funding Agreement whereby the Company received $250,000 to fund its research and development activities and repay the R&D Funding by way of assigning its Tax Rebate.

On 25 September 2019 (see ASX Announcement, dated 25 September 2019), the Group issued to:

• 16,666,667 fully paid ordinary shares to Lind Global Macro Fund LP on receipt of its third conversion notice pursuant to the terms and conditions of the Convertible Security Funding Agreement. dated 30 April 2019. The value of the shares issued to Lind Global Macro Fund LP was $100,000.

• 18,811,250 fully paid ordinary shares to Met Forages sarl under the terms and conditions of a Drilling Settlement Agreement, dated 25 July 2019. The value of the shares issued to Met Forages sarl was $150,490.

• 2,021,250 fully paid ordinary shares to WH Ireland Limited for advisory services. The value of the shares issued to WH Ireland Limited was $16,170.

On 30 September 2019, the Company issued a supplementary prospectus to amend the terms and conditions of the options over ordinary shares set out in its prospectus, dated 19 June 2019, in relation to proposed listed options granted to subscribers to the Share Placement and Share Purchase Plan. The Company simultaneously issued 11,604,181 unlisted options and 19,544,508 loyalty options over ordinary shares pursuant to the Share Placement and Share Purchase Plan.

Information on directors

PD Reeve	Executive Chairman and Managing Director
Qualifications	Bachelor of Applied Sciences.
Experience	Board member since 13 July 2013 with over 30 years' experience positions with Rio Tinto, Billiton Australia and Newcrest Mining as well as experience as a Resource Fund Manager and Resources Corporate Finance Director at J B Were and Son. More recently Peter was Chief Executive Officer of Ivanhoe Australia Ltd.
Interest in shares and options	27,218,304 ordinary shares directly in Aura Energy Limited and 17,500,000 performance shares and 3,103,724 indirectly in Aura Energy Limited.
Directorships held in other listed entities in last 3 years	Round Oak Minerals Pty ltd (formerly CopperChem Limited) from 2013
Dr R Beeson	Director (Non-executive)
Qualifications	Bachelor of Science with Honours; PhD; Member of the Australian Institute of Geoscientists
Experience	Board member since 31 March 2006. Geologist with over 35 years of global experience in uranium and other commodity management, exploration and development.
Interest in shares and options	3,129,071 ordinary shares directly in Aura Energy Limited and 2,820,366 ordinary shares and 166,667 options over ordinary shares indirectly in Aura Energy Limited.
Directorships held in other listed entities in last 3 years	Managing Director of Drake Resources Limited from November 2004 until 31 January 2015. Non- executive director or Drake Resources Limited until 10 March 2017, Non-executive Director of Cohiba Resources Limited from 3 May 2018. No other directorships in the past three years.
BF Fraser	Director (Non-executive)
Qualifications	FCPA, F.Fin, B.Bus, FGIA
Experience	Board member since 24 August 2005. Mr Fraser has worked in the finance and securities industry for over 25 years' and has owned and operated businesses across wine, health, finance, media and mining.
Interest in shares and options	546,965 ordinary shares directly in Aura Energy Limited and 3,419,636 ordinary shares indirectly in Aura Energy Limited.
Directorships held in other listed entities in last 3 years	Non-executive director and Chairman of Blina Diamonds NL until 19 September 2019 and non- executive director and Chairman of Drake Resources Limited until 10 March 2017. Non-executive Director of Sundance Resources Limited from 10 March 2018. No other directorships in the past three years.
JC Perkins	Director (Non-executive)
Qualifications	Master of Science (Imperial College of Science and Technology) 1972; Associate of the Camborne School of Metalliferous Mining (Honours) 1967; Fellow of the Australasian Institute of Mining and Metallurgy; and Graduate of the Australian Institute of Company Directors.
Experience	Board member since 7 June 2011. Mr. Perkins has over 40 years' experience in operations and management with major companies in the international minerals industry. He was Manager of Mining and Technology (Australia) for AngloGold Ashanti Ltd, until 2006. His career includes operating and management roles on the Zambian Copperbelt, leading the mineral processing at Shell Research in the Netherlands before returning to corporate management in Australia. He was Chairman of Parker Centre Ltd for Hydrometallurgy from 2006 to 2012 and previously a director of the CRC Mining and the Australian Centre for Mining Environmental Research.
Interest in shares and options	3,799,490 ordinary shares and 500,000 options over ordinary shares indirectly in Aura Energy Limited.
Directorships held in other listed entities in last 3 years	No other directorships held in other listed entities.

Meetings of directors

During the financial year, the board of directors held 12 meetings (including committee meetings of directors) with the remainder of meetings conducted by way of written resolution. Attendances by each director during the year were as follows:

			COMMITTEE MEETINGS
	DIRECTORS' MEETINGS		REMUNERATION COMMITTEE		AUDIT & RISK COMMITTEE
	NUMBER ELIGIBLE TO ATTEND	NUMBER ATTENDED	NUMBER ELIGIBLE TO ATTEND	NUMBER ATTENDED	NUMBER ELIGIBLE TO ATTEND	NUMBER ATTENDED
PD Reeve	8	8	-	-	-	-
Dr R Beeson	8	7	2	2	2	2
BF Fraser	8	8	2	2	2	2
JC Perkins	8	8	2	2	2	1

During the financial year, the board of directors held 11 meetings (including committee meetings of directors) with the remainder of meetings conducted by way of written resolution. Attendances by each director during the year were as follows:

Non-Audit Services

Bentleys, the external auditor for the Group, provided the parent entity, Aura Energy Limited, with taxation services during the financial year totalling $3,200 (2018: $894). Details of remuneration paid to the auditor can be found within the financial statements at Note 3 Auditor's remuneration.

The directors are satisfied that the provision of non-audit services during the year by Bentleys (or by another person or firm on Bentley's behalf) is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 (Cth).

Indemnifying officers or auditor

During or since the end of the financial year the Group has given an indemnity or entered into an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

• The Group has entered into agreements to indemnify all directors and provide access to documents, against any liability arising from a claim brought by a third party against the Company. The agreement provides for the Company to pay all damages and costs which may be awarded against the directors.

• The Group has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the Company. The amount of the premium was $41,140 (2018: $31,959).

No indemnity has been paid to auditors of the Group

Environmental regulations

The Company 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

Options

At the date of this report, the unissued ordinary shares of the Company under options (listed and unlisted) are as follows:

Grant date	Expiry date	Exercise price	Option number

14 June 2018	30 September 2019	3.3 cents	96,815,790
14 June 2018	30 September 2019	3.3 cents	5,000,000
14 June 2018	30 September 2019	3.3 cents	2,747,788
14 June 2018	30 September 2019	3.3 cents	1,172,566
18 July 2019	18 July 2020	2.2 cents	15,430,919
30 April 2019	30 April 2022	1.6 cents	62,500,000
30 September 2019	31 July 2021	2.2 cents	11,604.161
30 September 2019	31 July 2020	2.2 cents	19,544,508
			214,815,732

REMUNERATION REPORT

Remuneration policy

The remuneration policy of the Group has been designed to align director and management objectives with shareholder and business objectives by providing a fixed remuneration component, and offering specific long-term incentives based on key performance areas affecting the Group's financial results. The board of directors believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best management and directors to run and manage the Group, as well as create goal congruence between directors, executives and shareholders.

The policy of the board of directors for determining the nature and amount of remuneration for board members and senior executives of the Group is described in the following paragraphs.

The remuneration policy of the Group sets the terms and conditions for executive directors and other senior executives. Due to the rapidly changing circumstances of the Group in recent years, the policy is reviewed annually by the board of directors with the purpose of maintaining alignment of the board and management with the Group's strategic objectives. Management is also entitled to participate in employee share and option arrangements. All executives receive a base salary which takes into account such factors as length of service and experience, superannuation and share based incentive such as options. The board of directors review executive packages annually by reference to the performance of the Group, individual executives and relevant comparable remuneration data from similar listed companies and appropriate industry sectors. Independent expert advice is sought as required

The total amount of non-executive directors' remuneration is proposed by the board of directors from time to time at the Annual General Meeting and is subject to formal approval by shareholders. Within this limit, the board of directors presently remunerates non-executive directors at around the average of those obtained from relevant comparable data from similar listed companies and appropriate industry sectors. A measure of longer-term incentive is provided by the allocation of options to non-executive directors. The board of directors determines remuneration to individual non-executive directors, working within the limit set by shareholders, and taking into account any special duties or accountability. Payments to non-executive directors are not linked to Company performance but in order to align their interest with those of shareholders, non-executive directors are encouraged to hold shares in Aura Energy Limited.

Executives and non-executive directors have received a superannuation guarantee contribution as required by law, which increased to 9.5% on 1 July 2014, but do not receive any other retirement benefits.

All remuneration paid to non-executive directors and executives is valued at the cost to the Company and is expensed. Options over ordinary shares granted to directors and employees are valued using the Black-Scholes methodology. Details of directors' and executives' interests in options as at 30 June 2018 are provided in the Remuneration Report of the financial statements.

The Chairman became Executive Chairman and Managing Director of the Company with effect on 1 January 2015 and accordingly, is a fulltime employee. The Executive Chairman and Managing Director had agreed to settle 20% of his salary by way of fully paid ordinary shares in the Company. On 2 November 2017, the above arrangement was varied by the Company and the Executive Chairman and Managing Director to convert the share-based remuneration to a cash-based remuneration.

Under clause 14.7 of the Constitution of the Company, shareholders approved at the annual general meeting on 30 November 2017 the total aggregate amount fixed sum per annum to be paid to non- executive directors increase from $200,000 to $300,000.

At the annual general meeting on 14 November 2018, 78.7% of votes cast for the adoption of the remuneration report voted in favour of the resolution. The number of votes cast in favour of the resolution totaled 142,294,652.

Remuneration details for the year ended 30 June 2019

There were no cash bonuses paid during the year and there are no set performance criteria for achieving cash bonuses.

The following table of benefits and payment details, in respect to the financial year, the components of remuneration for each member of the key management personnel of the Group:

GROUP KEY MANAGEMENT PERSONNEL 2019	SHORT-TERM BENEFITS				POST- EMPLOYMENT BENEFITS	LONG-TERM BENEFITS	EQUITY-SETTLED SHARE- BASED PAYMENTS		TOTAL	COMPENSATION CONSISTINGOF SHARE-BASED PAYMENTS
	SALARY, FEES AND LEAVE	PROFIT SHARE AND BONUSES	NON- MONETARY	OTHER	SUPER- ANNUATION	OTHER	EQUITY	OPTIONS/ PERFORMANCE SHARES		COMPENSATION CONSISTINGOF SHARE-BASED PAYMENTS
	$	$	$	$	$	$	$	$	$	%
PD Reeve	425.000	-	-	-	25,000	-	-	362,882	812,832	44.6%
Dr R Beeson	40,000	-	-	-	3,800	-	-	-	43,800	-
BF Fraser	40,000	-	-	-	3,800	-	-	-	43,800	-
JC Perkins	40,000	-	-	-	3,800	-	-	-	43,800	-
JM Madden	151,300	-	-	-	-	-	-	56,000	207,300	27.00
	696,300	-	-	-	36,400	-	-	418,832	1,151,532	41.1%

GROUP KEY MANAGEMENT PERSONNEL 2018	SHORT-TERM BENEFITS				POST- EMPLOYMENT BENEFITS	LONG-TERM BENEFITS	EQUITY-SETTLED SHARE- BASED PAYMENTS		TOTAL	COMPENSATION CONSISTING OF SHARE-BASED PAYMENTS
	SALARY, FEES AND LEAVE	PROFIT SHARE AND BONUSES	NON- MONETARY	OTHER	SUPER- ANNUATION	OTHER	EQUITY	OPTIONS/ PERFORMANCE SHARES		COMPENSATION CONSISTING OF SHARE-BASED PAYMENTS
	$	$	$	$	$	$	$	$	$	%
PD Reeve	400,000	-	-	-	25,000	-	25,000	297,916	519,552	43.20%
Dr R Beeson	40,000	-	-	-	3,800	-	-	-	43,800	-
BF Fraser	40,000	-	-	-	3,800	-	-	-	43,800	-
JC Perkins	43,800	-	-	-	3,800	-	-	-	43,800	-
JM Madden	-	-	-	99,936	-	-	-	-	99,936	-
	523,800	-	-	99,936	32,600	-	25,000	297,916	979,252	32.90%

Service Agreements

The Executive Chairman and Managing Director, Peter Reeve, is employed under a contract of employment, effective 1 January 2015.

The employment deed stipulates a four weeks' resignation period. The Company may terminate the employment contract without cause by providing four weeks' written notice, or making payment in lieu of notice based on the individual's annual salary component.

If employment is terminated other than for serious misconduct, and the employee is not then otherwise in default of this contract and his employment, the Managing Director will, in connection with his retirement from the office, receive in addition to the required four weeks' notice period, three months' salary. An additional benefit may be paid in the amount of one month for every year of service. This is subject to the provisions of the Corporations Act 2001 (Cth), which may require shareholder approval.

Mr JM Madden does not have a contract with Aura Energy Limited and is employed on a limited basis for 3-4 days per week and is paid a daily rate; however, during the course of 2018 and 2019 Mr Madden spent approximately 12 weeks in Mauritania and therefore, worked effectively on a full time basis during the period in Mauritania Mr Madden is not entitled to annual leave or superannuation guarantee levy.

Share-based compensation

a. Incentive Option Scheme

Options are granted under the Aura Energy Limited Incentive Option Scheme. All staff who have been continuously employed by the Company for a period of at least one year are eligible to participate in the plan. Options are granted under the plan for no consideration.

b. Director and Key Management Personnel Options

At the general annual meeting of shareholders on 30 November 2017, shareholders approved resolutions to cancel 35,000,000 options over ordinary shares previously granted to the Executive Chairman and Managing Director and to award the Executive Chairman and Managing director 35,000,000 performance shares for zero consideration with tranche 1 of 17,500,000 performance shares vesting on 30 November 2019 and Tranche 2 of 17,500,000 performance shares vesting on 30 November 2020.

c. Performance shares of Aura Energy Limited held by each KMP

Group KMP	Balance at start of year	Awarded as remuneration during year	Converted during the year	Other changes during the year	Balance at end of the year	Vested and convertible
No	No	No	No	No	No	No

2019
Reeve	35,000,000	-	(17,500,000)	-	17,500,000	-
Madden	-	5,000,000	-	-	5,000,000	1,666,666
	35,000,000	5,000,000	(17,500,000)	-	22,500,000	1,666,666

2018
Reeve	35,000,000	-	-	-	35,000,000	-
	35,000,000	-	-	-	35,000,000	-

At the annual general meeting of shareholders on 30 November 2017, shareholders approved a resolution to cancel 35,000,000 options over ordinary shares previously granted to Mr PD Reeve and grant 35,000,000 performance shares for zero consideration. The Group expended $362,832 (2018: $275,042) during the financial year for these performance shares.

The performance shares issued to Mr PD Reeve vested over two years with the first tranche of 17,500,000 vesting on 30 November 2018 and the second tranche of 17,500,000 vesting on 30 November 2019.

The amount expensed during the financial year represents the share price on the date of award for the performance shares (2.2 cents per share) multiplied by the number of performance shares issued and subject to a probability of milestone achievement evaluated each balance date.

On 17 June 2018, the Group awarded Messrs NJ Clifford and JM Madden and Dr WR Goodall with each issued 5,000,000 performance shares. The board of directors ratified the issue of the performance shares on 4 September 2018. The performance shares vest over three years from 17 June 2019 through to 17 June 2021.

The amount expensed during the financial year represents the share price on the date of grant for the performance shares (2.1 cents per share) multiplied by the number of performance shares issued and subject to a probability of milestone achievement evaluated each balance date.

Mr NJ Clifford and Dr WR Goodall are not classified as Group KMP.

d. Options over ordinary shares of Aura Energy Limited held by each KMP

Group KMP	Balance at start of year	Granted as remuneration during year	Exercised during the year	Other changes during the year	Balance at end of the year	Vested and Exercisable
No	No	No	No	No	No	No

2019	-	-	-	-	-	-
	-	-	-	-	-	-


2018
Reeve	35,000,000	-	-	35,000,000	-	-
	35,000,000	-	-	(35,000,000)	-	-

Dr R Beeson, Mr JC Perkins and Mr JM Madden subscribed to the Share Placement and Share Purchase Plan during the course of the financial year. As at the date of this annual report, listed options and loyalty options over ordinary shares have not been issued. Dr R Beeson is entitled to 172,667 options over ordinary shares, Mr JC Perkins is entitled to 1,072,398 options over ordinary shares and Mr JM Madden is entitled to 594.371 options over ordinary shares.

e. Description of options issued as remuneration

On 10 June 2015, shareholders at an extraordinary general meeting approved the issue of 35,000,000 options over ordinary shares to Mr PD Reeve. Note the options over ordinary shares granted to Mr PD Reeve were cancelled at the annual general meeting on 30 November 2017.

The terms of the options over ordinary shares were as follows:

GROUP KEY MANAGEMENT PERSON	GRANT DATE	GRANT VALUE $ (NOTE 1)	REASON FOR GRANT	VESTING DATE	PERCENTAGE VESTED DURING YEAR %	PERCENTAGE FORFEITED DURING YEAR %	PERCENTAGE REMAINING AS UNVESTED %	EXPIRY DATE	RANGE OF POSSIBLE VALUES RELATING TO FUTURE PAYMENTS
2019
-	-	-	-	-	-	-	-	-	-

2018
PD Reeve	10 Jun 2015	66,436	Note 1	9 Jun 2018	100	-	-	9 Jun 2019	-
	10 Jun 2015	57,884	Note 1	9 Feb 2018	100	-	-	9 Feb 2019	-
	10 Jun 2015	19,445	Note 1	9 Feb 2018	100	-	-	9 Feb 2019	-
	10 Jun 2015	87,364	Note 1	9 Feb 2019	-	-	100	9 Feb 2020	-
	10 Jun 2015	103,555	Note 1	9 Feb 2019	-	-	100	9 Feb 2021	-

Note 1.

The options have been granted to the Executive Chairman and Managing Director as part of his remuneration and for future performance. The vesting conditions of the options are as follows:

• Tranche 1: vest at immediately, exercisable at 10 cents, expire 9 June 2019.

• Tranche 2: vest at 8 months from issue, exercisable at 10 cents, expire 9 February 2019.

• Tranche 3: vest at 8 months from issue, exercisable at 15 cents, expire 9 February 2019.

• Tranche 4: vest at 20 months from issue, exercisable at 15 cents, expire 9 February 2020.

• Tranche 5: vest at 32 months from issue, exercisable at 15 cents, expire 9 February 2021.

•

At the annual general meeting of shareholders on 30 November 2018, shareholders approved resolutions to cancel 35,000,000 options over ordinary shares (as set out above) previously granted to Mr PD Reeve and award 35,000,000 performance shares for zero consideration.

GRANT DATE	ISSUER	ENTITLEMENT ON EXERCISE	DATES EXERCISABLE	EXERCISE PRICE $	VALUE PER OPTION AT GRANT DATE $	AMOUNT PAID/ PAYABLE BY RECIPIENT $
			From vesting date to			-
10 Jun 2015			9 Jun 2019 (expiry)	0.10	0.0076	-
10 Jun 2015			9 Feb 2019 (expiry)	0.10	0.0093	-
10 Jun 2015	Aura Energy Ltd	1:1 ordinary share	9 Feb 2019 (expiry)	0.15	0.0078	-
10 Jun 2015			9 Feb 2020 (expiry)	0.15	0.0100	-
10 Jun 2015			9 Feb 2021 (expiry)	0.15	0.0118	-

Options over ordinary shares values at grant date were determined using the Black-Scholes method.

Details relating to service and performance criteria required for the vesting of options over ordinary shares have been provided in the within the financial statements at Note 21 Share-based payments.

e. Fully paid ordinary shares held by key management personnel

2019
GROUP KEY MANAGEMENT PERSON	BALANCE AT START OF YEAR NO.	RECEIVED DURING THE YEAR AS COMPENSATION NO.	RECEIVED DURING THE YEAR ON THE EXERCISE OF OPTIONS NO.	OTHER CHANGES DURING THE YEAR NO.	BALANCE AT END OF YEAR NO.
PD Reeve	12,812,365	-	17,500,000	-	30,312,365
RF Beeson	5,636,937	-	-	312,500	5,949,437
BF Fraser	3,957,600	-	-	-	3,957,600
JC Perkins	2,861,990	-	-	937,500	3,799,490
JM Madden	215,833	2,293,806	-	625,000	3,134,639
	25,484,725	2,293,806	17,500,000	1,875,000	25,484,725

During the financial Mr JM Madden was issued fully paid ordinary shares in lieu of amounts due as a contract employee.

In the previous year, Mr PD Reeve was issued fully paid ordinary shares pursuant to his contract of employment and Mr JM Madden was issued fully paid ordinary shares in lieu of amounts due as a contract employee.

2018
GROUP KEY MANAGEMENT PERSON	BALANCE AT START OF YEAR NO.	RECEIVED DURING THE YEAR AS COMPENSATION NO.	RECEIVED DURING THE YEAR ON THE EXERCISE OF OPTIONS NO.	OTHER CHANGES DURING THE YEAR NO.	BALANCE AT END OF YEAR NO.
PD Reeve	11,599,599	927,766	-	285,000⁽¹⁾	12,812,365
RF Beeson	5,636,937	-	-	-	5,636,937
BF Fraser	3,957,600	-	-	-	3,957,600
JC Perkins	2,861,990	-	-	-	2,861,990
JM Madden	-	215,833	-	-	215,833
	24,056,126	1,143,599	-	285,000	25,484,725

f. Options over ordinary shares held by key management personnel

2019
GROUP KEY MANAGEMENT PERSON	BALANCE AT START OF YEAR NO.	GRANTED AS REMUNERATION DURING THE YEAR NO.	EXERCISED DURING THE YEAR NO.	OTHER CHANGES DURING THE YEAR NO.	BALANCE AT END OF YEAR NO.	VESTED AND EXERCISABLE NO.
Dr R Beeson	-	-	-	172,667	172,667	-
JC Perkins	-	-	-	1,072,398	1,072,398	-
JM Madden	-	-	-	594,371	594,371	-
	-	-	-	1,839,436	1,839,436	-

Dr R Beeson and Messrs JM Madden and JC Perkins subscribed to the Share Placement and Share Purchase Plans during the course of the financial year and were issued unlisted options and loyalty options on 30 September 2019 pursuant to the terms and conditions of the above-mentioned equity raising initiatives.

Consolidated statement of profit or loss and other comprehensive

For the financial year ended 30 June 2019

	NOTE	2019 $	2018 $
Continuing operations
Revenue	2	32,293	6,838
		32,293	6,838
Accounting and audit fees		(80,600)	(147,225)
Computers and communications		(27,457)	(33,945)
Depreciation		(7,659)	(12,377)
Employee benefits		(895,326)	(651,703)
Exchange fluctuation		35,635	(90,145)
Financing costs		(149,067)	-
Impairment of exploration expenditure previously capitalised		(179,152)	-
Insurance		(59,848)	(42,378)
Consulting fees and corporate advisory		(458,904)	(335,026)
Public relations		(202,769)	(23,158)
Rent and utilities		(75,022)	(71,632)
Share-based payments		(530,832)	(297,916)
Share registry and listing fees		(189,874)	(160,433)
Travel and accommodation		(70,707)	(72,622)
Other expenses		(38,712)	(55,335)
Loss before income tax		(2,971,237)	(1,987,057)
Income tax benefit	4	42,682	-
Loss from continuing operations		(2,896,262)	(1,987,057)
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss
Items that may be reclassified subsequently to profit or loss:
Foreign currency movement for controlled entity no longer consolidated		-	-
Foreign currency movement		60,410	(99,732)
Other comprehensive income for the year, net of tax		60,410	(99,732)
Total comprehensive income attributable to members of the parent entity		(2,835,852)	(2,086,789)

		¢	¢
Earnings per share:
Basic loss per share (cents per share)	5	(0.26)	(0.23)

The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.

Consolidated statement of financial position

As at 30 June 2019

	NOTE	2019 $	2018 $
Current assets
Cash and cash equivalents	6	812,296	2,844,169
Trade and other receivables	7	37,294	23,881
Financial assets	8	57,710	60,926
Total current assets		907,300	2,928,976

Non-current assets
Plant and equipment	9	4,064	8,124
Exploration and evaluation assets	10	21,008,293	17,687,868
Total non-current assets		21,012,357	17,695,992
Total assets		21,919,657	20,624,968

Current liabilities
Trade and other payables	11	464,959	303,133
Provisions	12	63,499	28,405
Financial liabilities	13	266,667	-
Vendor consideration	14	71,295	-
Borrowings	15	694,215	-
Total current liabilities		1,560,635	331,538

Non-current liabilities
Borrowings	15	694,216	-
Provisions	16	15,341	-
Total non-current liabilities		709,557	-
Total liabilities		2,270,192	331,539

Net assets		19,649,465	20,293,430

Equity
Issued capital	17	46,315,150	44,698,295
Reserves	18	1,273,829	638,387
Accumulated losses	18	(27,939,514)	(25,043,252)
Total Equity		19,649,465	20,293,430

The consolidated statement of financial position is to be read in conjunction with the accompanying notes.

Consolidated statement of changes in equity

For the financial year ended 30 June 2019

	ISSUED CAPITAL $	ACCUMULATED LOSSES $	OPTIONS RESERVE $	FOREIGN EXCHANGE TRANSLATION RESERVE $	TOTAL $
Balance at 1 July 2017	39,558,943	(23,503,501)	384,190	457,481	16,897,113
Loss for the year attributable owners of the parent	-	(1,987,057)	-	-	(1,987,057)
Other comprehensive income for the year attributable owners of the parent	-	-	-	(99,732)	(99,732)
Total comprehensive income for the year attributable owners of the parent	-	(1,987,057)	-	(99,732)	(2,086,789)
Transaction with owners, directly in equity
Shares issued during the year	4,945,381	-	-	-	4,945,381
Transaction costs	(303,613)	-	-	-	(303,613)
			68,712
Options expired during the year	-	334,684-	(334,684)	-	68,712
Options cancelled during the year	-	112,622	(112,622)	-	-
Options exercised during the year	497,584	-	-	-	497.584
Performance shares issued during the year	-	-	275,042	-	497,584
Balance at 30 June 2018	44,698.295	(25,043,252)	280,638	357,749	20,293,430

Balance at 1 July 2018	44,698,295	(25,043,252)	280,638	357,749	16,897,113
Loss for the year attributable owners of the parent	-	(2,896,262)	-	-	(2,896,262)
Other comprehensive income for the year attributable owners of the parent	-	-	-	60,410	60,410)
Total comprehensive income for the year attributable owners of the parent	-	(2,896,262)	-	60,410	(2,835,852)
Transaction with owners, directly in equity
Shares issued during the year	666,000	-	-	-	666,000
Transaction costs	-	-	-	-	-
Share-based payments	565,855				565,855
Options issued during the year	-	-	429,200	-	429,200
Options cancelled during the year	-	-	-	-	-
Options expired during the year	-	-	-	-	-
Options exercised during the year	497,584	-	-	-	497,584
Performance shares issued during the year		-	530,832	-	530,832
Performance shares converted during the year	-	-	(385,000)	-	(385,000)
Balance at 30 June 2019	46,315,150	(27,939,514)	855,670	418,159	19,649,465

The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.

Consolidated statement of cash flows

For financial year ended 30 June 2019

	NOTE	2019 $	2018 $
Cash flows from operating activities
Receipts from customers		-	-
Interest received		8,936	6,838
Other income		66,039	-
Payments to suppliers and employees		(1,822,113)	(1,741,985)
Payments for exploration expenditure		(2,912,693)	(3,140,343)
Interest paid		(14,769)	-
Net cash used in operating activities	20	(4,674,600)	(4,875,490)

Cash flows from investing activities
Purchase of plant and equipment		(3,600)	(1,596)
Net cash used in investing activities		(3,600)	(1,596)

Cash flows from financing activities
Proceeds from issue of shares		666,000	4,771,051
Exercise of options		-	497,584
Capital raising costs		-	(110,195)
Proceeds from borrowings		2,000,000	-
		(50,000)	-
Net cash provided by financing activities		5,158,440	5,158,440

Net increase/(decrease) in cash held		(2,062,200)	281,354
Cash at 1 July		2,844,169	2,652,960
Change in foreign currency held		30,327	(90,145)
Cash at 30 June	6	812,296	2,844,169

The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.

Notes to the consolidated financial statements

Note 1 Corporate information

These are the consolidated financial statements and notes of Aura Energy Limited and controlled entities ("Consolidated Group" or "Group"). Aura Energy Limited is a company limited by shares, domiciled and incorporated in Australia.

The separate financial statements of the parent entity, Aura Energy Limited, have not been presented with this financial report as permitted by the Corporations Act 2001 (Cth).

a. Basis of preparation

i. Statement of compliance

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 (Cth).

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of these financial statements are presented below. They have been consistently applied unless otherwise stated.

The financial statements were authorised for issue on 27 September 2019 by the directors of the Company.

ii. Financial position

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

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 $2,896,262 (2018: $1,987,057) and a net cash out-flow from operating activities of $4,674,600 (2018: $4,875,490).

As at 30 June 2019, the Group had working capital of $378,842 (2018: $2,597,438) (excluding financial liabilities, the current portion of convertible notes and amounts due to shareholders of Nomads Mining Company sarl on execution of the Farm-in and Joint Venture Agreement, in part, settled by way of the issue of shares.)

The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds by raising capital from equity markets or by other means, and by managing cash flows in line with available funds, and/or the successful development of the Group's exploration assets. These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to continue as a going concern.

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.

Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due.

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 2q Critical accounting estimates and judgments.

v. Comparative figures

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

Note 2 Basis of preparation and accounting policies

A controlled entity is any entity over which Aura Energy Limited has the power to govern the financial and operating policies so as to obtain benefits from its activities. In assessing the power to govern, the

existence and effect of holdings of actual and potential voting rights are considered. A list of controlled entities is contained in Note 19 Controlled entities in the financial statements.

All inter-group balances and transactions between entities in the Consolidated Group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity.

As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial statements as well as their results for the year then ended. Where controlled entities have entered (left) the Consolidated Group during the year, their operating results have been included (excluded) from the date control was obtained (ceased).

a. Business combinations

Business combinations occur when an acquirer obtains control over one or more businesses.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as an asset or liability is remeasured each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to the business combination are expensed to the statement of profit or loss and comprehensive income.

The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

(i) The Group raising sufficient additional funding from shareholders or other parties;

(ii) The group converting existing loans to equity and if necessary, deferring deferred payment arrangements; and

(iii) The Group reducing expenditure in line with available funding.

b. Exploration and development expenditure

i. Recognition and measurement

Exploration, evaluation, and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

ii. Subsequent measurement

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest will be amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area of interest.

iii. Site restoration and rehabilitation

Costs of site restoration will be provided over the life of the project, when such costs are incurred or the Group becomes liable pursuant to a development agreement with government agencies. In the exploration and evaluation phase, all drill holes are collared and any site disturbance is restored with the costs incorporated in the costs of exploration and evaluation. Site restoration costs will include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

c. Income tax

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items recognised outside profit or loss.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date.

Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Where the Group receives the Australian Government's Research and Development Tax Incentive, The Group accounts for the refundable tax offset under AASB 112. Funds are received as a rebate through the parent company's income tax return and disclosed as such in Note 4 Income tax.

d. Plant and equipment

i. Recognition and measurement

Each class of plant and equipment is measured at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

Items of property, plant and equipment are measured at cost less accumulated depreciation (see below) and impairment losses (see Note 2l Impairment of non- financial assets and Note 2b Exploration and development expenditure).

ii. Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the Consolidated Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Plant and equipment 20.00%

Computers 33.00%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. 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 the carrying amount. These gains and losses are included in the statement of comprehensive income. When re-valued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings

e. Employee benefits

For the period ending 30 June 2019 the Company has three employees.

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 Company 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 Company 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.

f. 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 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.

g. 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 2h Value-added taxes).

h. 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 in Mauritanian (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.

i. Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to entities in the Group are classified as finance leases.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the Group will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term

j. Financial instruments

i. Initial recognition and measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss.

Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

ii. Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity securities, trade and other receivables, cash and cash equivalents and trade and other payables.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transactions costs. Subsequent to initial recognition non-derivative financial instruments are measured as described below.

iii. Classification and subsequent measurement

(1) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short borrowings in current liabilities on the Statement of financial position.

(2) Loans

Loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

Loans are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period.

(3) Trade and other receivables

Trade and other receivables are stated at amortised cost. Receivables are usually settled within 30 to 90 days.

Collectability of trade and other debtors is reviewed on an ongoing basis. An impairment loss is recognised for debts which are known to be uncollectible. An impairment provision is raised for any doubtful amounts.

(4) Trade and other payables

Trade payables and other payable are recognised when the Group becomes obligated to make future payments resulting from the purchase of goods and services which are unpaid and stated at their amortised cost.

The amounts are unsecured and are generally settled on 30-day terms.

(5) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

(6) Share capital

Ordinary issued capital is recorded at the consideration received. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any related income tax benefit. Ordinary issued capital bears no special terms or conditions affecting income or capital entitlements of the shareholders.

iv. Amortised cost

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

v. Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models.

vi. Effective interest method

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

vii. Impairment

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in Groups that share similar credit risk characteristics.

All impairment losses are recognised in the income statement.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost the reversal is recognised in the income statement.

viii. Derecognition

Financial assets are derecognised where the contractual rights to cash flow expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset.

Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

ix. Financial income and expenses

Finance income comprises interest income on funds invested (including available-for-sale financial assets), gains on the disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Financial expenses comprise interest expense on borrowings calculated using the effective interest method, unwinding of discounts on provisions, changes in the fair value of financial assets at fair value through profit or loss and impairment losses recognised on financial assets. All borrowing costs are recognised in profit or loss using the effective interest method.

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in income in the period in which they are incurred.

Foreign currency gains and losses are reported on a net basis.

k. 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.

l. Impairment of non-financial assets

The carrying amounts of the Company's non-financial assets, other than deferred tax assets (Note 2c Income tax) and exploration and evaluation assets (Note 2b Exploration and development expenditure) 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.

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.

m. Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will results and that outflow can be reliably measured.

n. Foreign currency transactions and balances

i. Functional and presentation currency

The functional currency of each of the Group's entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and presentation currency.

ii. Transaction and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year- end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the profit or loss except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the gain or loss is directly recognised in other comprehensive income, otherwise the exchange difference is recognised in the profit or loss.

iii. Group entities

The financial results and position of foreign operations whose functional currency is different from the Group's presentation currency are translated as follows:

Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date.

Income and expenses are translated at average exchange rates for the period.

Retained earnings are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign currency translation reserve in the statement of financial position. These differences are recognised in the profit or loss in the period in which the operation is disposed.

o. Fair value estimation

A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Information about the assumptions made in determining fair values of assets and liabilities is disclosed in the notes specific to that asset or liability.

p. 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:

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

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

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

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:

(1) 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.

(2) 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.

(3) 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.

q. 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.

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 2b Exploration and development expenditure.

The carrying value of capitalised expenditure at reporting date is $21,008,293 (2018: $17,687,868).

During the financial year, the Group undertook assessment of its tenement assets, as a result of this assessment, the Group decided to impair some of its exploration assets. Refer to Note 10 Exploration and evaluation 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 Company's development and its current environmental impact, the directors believe such treatment is reasonable and appropriate.

iii. Key Estimate - 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 Company 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 4 Income tax.

iv. Key Estimate - 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 Estimate - 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 is determined by an internal valuation using a Black-Scholes option pricing model, using the assumptions detailed in Note 21 Share-based payments

r. New standards, interpretations and amendments adopted by the Group

A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet mandatorily applicable to the Group have not been applied in preparing these financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early

i. AASB 16: Leases (applicable to annual reporting periods commencing on or after 1 January 2019).

AASB 16 removes the classification of leases as either operating leases or finance leases for the lessee effectively treating all leases as finance leases. Short term leases (less than 12 months) and leases of a low value are exempt from the lease accounting requirements. Lessor accounting remains similar to current practice.

The Directors has have still assessing the likely impact.

ii. AASB 2016-1 Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of deductible temporary difference related to unrealised losses.

Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. The Group applied amendments retrospectively.

However, their application has no effect on the Group's financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments.

iii. AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 107

The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses).

However, their application has no effect on the Group's financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments.

iv. AASB 2017-2 Amendments to Australian Accounting Standards - Further Annual Improvements 2014-2016 Cycle

The amendments clarify that the disclosure requirements in AASB 12, other than those in paragraphs B10-B16, apply to an entity's interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.

However, their application has no effect on the Group's financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments

Note 2 Revenue and other income

	2019 $	2018 $
Revenue
Interest received from financial institutions	6,838	6,838
Other	23,357	-
Total Revenue	6,838	6,838

Note 3 Auditor's remuneration

	2019 $	2018 $
Remuneration of the auditor of the Group for:
Auditing or reviewing the financial reports	46,053	44,605
Taxation services provided by a related practice of the auditor	3,200	894
	45,499	51,410

Note 4 Income tax

	NOTE	2019 $	2018 $
Income tax expense/(benefit)
Current tax		-	-
Deferred tax		-	-
Tax rebate for research and development		42,682	-
		42,682	-
Deferred income tax expense included in income tax expense comprises:
Increase/(decrease) in deferred tax assets		-	-
(Increase)/decrease in deferred tax liabilities		-	-
		-	-
Reconciliation of income tax expense to prima facie tax payable

	NOTE	2019 $	2018 $
The prima facie tax payable/(benefit) on loss from ordinary activities before income tax is reconciled to the income tax expense as follows:
Prima facie tax on operating loss at 27.5% (2018: 30%)		(808,210)	(546,441)
Add/(less)
Tax effect of:
Capital-raising costs deductible		(27,500)	(37,500)
Financing costs		36,932	-
Impairment of exploration expenditure previously capitalised		49,267	-
Share-based payments		145,979	92,479
Other		1,460	27,044
Deferred tax asset not brought to account		602,072	464,418
Incoem tax expense/(benefit)		-	-
Less Tax rebate for research and development		(42,682)	-
Income tax expense/(benefit)		(42,682)	-

		%	%
The applicable weighted average effective tax rates attributable to operating profit are as follows		Nil	Nil
		$	$
Balance of franking account at year end		Nil	Nil

Deferred tax assets
Tax losses	5,270,331	4,697,290
Provisions and accruals	(12,467)	(7,066)
Other	(12,404)	(57,797)
	5,245,460	4,632,427
Set-off deferred tax liabilities	-	-
Net deferred tax assets	5,245,460	4,632,427
Less deferred tax assets not recognised	(5,245,460)	(4,632,4270
Net tax assets	-	-

Deferred tax liabilities
Exploration expenditure	-	-
	-	-
Set-off deferred tax assets	-	-
Net deferred tax liabilities	-	-

Tax losses
Unused tax losses for which no deferred tax asset has been recognised, that may be utilised to offset tax liabilities:
Revenue losses	17,450,851	17,450,851
Capital losses	2,083,905	2,083,905
	19,534,756	19,534,756

Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to account at 30 June 2019 because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if:

i. The Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss and exploration expenditure to be realised.

ii. The Group continues to comply with conditions for deductibility imposed by law.

iii. No changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the loss and exploration expenditure.

Note 5 Earnings per share

	2019 $	2018 $
a. Loss from continuing operations for the year	(2,896,262)	(1,987,057)

	2019 NO.	2018 NO.
b. Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS	1,109,267,274	865,506,202

	2019 ¢	2018 ¢
c. Basic and diluted earnings per share (cents per share)	(0.26)	(0.23)

i. The Group is in a loss-making position and it is unlikely that the conversion to, calling of, or subscription for, ordinary share capital in respect of potential ordinary shares would lead to diluted earnings per share that shows an inferior view of the earnings per share. Therefore, in the event the Company has dilutionary equity instruments on issue, the diluted loss per share for the year ended 30 June 2019 is the same as basic loss per share, whilst the Company remains loss making.

Note 6 Cash and cash equivalents

	NOTE	2019 $	2018 $
Cash at bank		812,296	2,529,005
Short-term bank deposits		-	315,164
		812,296	2,844,169

The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 26 Financial risk management.

Note 7 Trade and other receivables

	NOTE	2019 $	2018 $
Current
Value-added tax receivable		37,294	23,221
Other		-	660
		37,294	23,881

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

b. The Group's exposure to interest rate rick and a sensitivity analysis for financial assets and liabilities are disclosed in note 26 Financial Risk Management.

Note 8 Financial assets

	2019 $	2018 $
Current
Bonds and prepayments	57,710	60,926
	57,710	60,926

Note 9 Plant and equipment

	2019 $	2018 $
Non-current
Plant and equipment	30,420	26,820
Accumulated depreciation	(26,358)	(18,696)
	4,064	8,124
Movements in carrying amounts
Balance at the beginning of year	8,124	18,905-
Additions	3,600	1,5964
Depreciation expense	(7,660)	(12,377)
Carrying amount at the end of year	4,064	8,124

Note 10 Exploration and evaluation assets

	NOTE	2019 $	2018 $
Non-current
Exploration expenditure capitalised:
Exploration and evaluation phase at cost		21,047,373	17,782,994
Add: Effect of exchange rate changes on exploration and evaluation assets		140,072	(95,128)
Less: Exploration expenditure impairment	11b	(179,152)	-
Net carrying value	11a	21,008,293	17,687,868

a. The value of the Group interest in exploration expenditure is dependent upon:

• The continuance of the Group's rights to tenure of the areas of interest.

• The results of future exploration.

• 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.

b. The Group has recorded an impairment to the carrying value of its Swedish tenements for the financial year ended 30 June 2019 of $179,152l (2018: Nil).

The Company received exploitation licences for the Ain Sder and Oued El Foule Est on 9 February 2019 by the government of its review of the applications. The Group is in discussions with the government to secure an exclusivity over the Oum Ferkik tenement. The carrying value of the Oum Ferkik tenement is $2.583 million.

Note 11 Trade and other payables

	NOTE	2019 $	2018 $
Current
Unsecured
Trade payables		145,882	60,112
Accrued expenses		303,040	193,350
Other taxes payable		16,036	49,671
		464,959	303,133

a. Trade payables are non-interest bearing and arise from the usual operating activities of the Group. Trade payables and other payables and accruals, except directors' fees, are usually settled within the lower of terms of trade or 30 days.

Note 12 Short-term provisions

	2019 $	2018 $
Current
Employee benefits	63,499	28,405
	63,499	28,405

	2019 NO.	2018 NO.
Number of employees at year end	4	4

Note 13 Other financial liabilities

	2019 $		2018 $
Current
Conversion rights		266,667		-
		266,667		-

On 30 April 2019, the Group entered into a Convertible Security Financing Agreement with Lind Global Marco Fund LP. On applicable of AASB 9 Financial Instruments the Group accounted for Convertible Security Financing on a present value basis and recognised the implicit value of conversion rights granted to Lind Global Macro Fund LP.

The conversion rights will be recognised as equity on the extinguishment of the convertible note facility.

Note 14 Vendor obligations

	2019 $		2018 $
Current
Vendors of Nomads Mining Company sarl		71,295		-
		71,295		-

On 11 June 2018, 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 a 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 the shareholders an entry fee of US$25,000 in cash and the Australian dollar equivalent of US$25,000 in fully paid ordinary shares.

Nomads Mining Company sarl is the holder of Exploration Licence 2688 Nderik.

The Company extinguished its cash obligations of 4 July 2019 and share obligation on 12 July 2019.

Note 15 Borrowings

	2019 $		2018 $
Convertible note
Current portion	694,215	-
Non-current portion	694,216	-
	1,388,431

Opening balance	-
Drawdown	2,000,000	-
Conversion rights	(266,667)	-
Options over ordinary shares	(429,200)	-
Finance costs	84,298	-
	1,388,431	-

Present value	1,388,431	-
Finance costs	1,011,569	-
	2,400,000	-

On 30 April 2019, the Group entered into a convertible note agreement with Lind Global Macro Fund, LLP (see ASX Announcement, dated 30 April 2019). Pursuant to the terms and conditions the Group issued a convertible note with a face value of $2,400,000 to the Investor.

On 19 June 2019, the Company held a general meeting to seek approval for, amongst other resolutions, the issuance of the Replacement Convertible Note to the Investor. All resolutions were passed at the general meeting (see ASX Announcement, dated 20 June 2019).

Under the terms and conditions, Lind Global Macro Fund LP is entitled to convert a maximum of $100,000 of convertible notes each month at 1.6 cents per share or 90% of the average 5 daily VWAPs chosen by Lind from the daily VWAPs for the 20 trading Days immediately prior to the conversion notice date.

The Group also issued Lind 50,000,000 Collateral Shares and 62,500,000 options over ordinary shares. On the Group fulfilling its obligations under the convertible note and repaying the convertible note in full by way of the issue of shares or payment of cash, Lind Global macro Fund LP will transfer that number of Collateral Shares to the Group for no consideration to or at the direction of the Company; or, subject to the shares trading on ASX on the relevant day and trading for at least 5 trading days prior to payment, pay the Company in immediately available funds an amount equal to the outstanding Collateral Shareholding number multiplied by the Collateralisation Price.

The options over ordinary shares expire 3 years from the date of issue and have an exercise price of 1.6 cents per option over ordinary share.

Since balance date, Lind Global Macro Fund LP has converted three tranches of convertible notes into fully paid ordinary shares in Aura Energy Limited. Accordingly, the convertible note has been reduced from $2,400,000 to $2,100,000 and Aura has issued 42,063,494 fully paid ordinary shares (see ASX Announcements, dated 12 July 2019, 4 September 2019 and 25 September 2019).

Note 16 Short-term provisions

	2019 $	2018 $
Current
Employee benefits	15,341	-
	15,341	--

Note 17 Issued capital

	NOTE	2019 $	2018 $
The Company has issued share capital amounting to 1,223,891,343 (2018: 1,069,390,795 fully paid ordinary shares at no par value.		46,315,108	44,698,295
a. Equity raised during the financial year
At the beginning of the reporting period		44,698,295	39,558,943
Shares issued during the year:
377,732 Shares issued on 10 August 2018	A	-	13,375
550,034 Shares issued on 10 August 2018	B	-	13,375
55,425,000 Shares issued on 15 November 2018	C	-	1,108,500
400,000 Shares issued on 15 November 2018	D	-	8,000
333,333 Shares issued on 21 December 2018	E	-	6,666
2,653,934 Shares issued on 21 December 201	F	-	54,140
1,770,489 Shares issued on 21 December 2018	G	-	42,492
6,000,000 Shares issued on 18 January 2019	H	-	150,000
712,500 Shares issued on 24 January 2019	I	-	14,250
1,333,333 Shares issued on 30 January 2019	J	-	26,667
84,052,630 Shares issued on 5 April 2019	K	-	1,597,000
28,947,370 Shares issued on 16 April 2019	L	-	550,000
7,000,000 Shares issued on 1 May 2018	M	-	175,000
5,000,000 Shares on 15 May 2018	N	-	125,000
80,613,579 Shares issued on 14 June 2018	O	-	1,532,000
1,394,737 Shares issued on 14 June 2018	P	-	26,500
2,000,001 Shares issued on 19 September 2018	Q	40,000	-
1,441,425 Shares issued on 19 September 2018	R	33,081	-
852,381 Shares issued on 19 November 2018	S	16,707	-
17,500,000 Shares issued on 4 January 2019	T	385,000	-
20,750,000 Shares issued on 12 February 2019	U	332,000	-
4,687,500 Shares issued on 25 February 2019	V	75,000	-
13,687,500 Shares issued on 22 March 2019	W	219,000	-
26,89,922 Shares issued on 22 April 2019	X	322,691	-
50,000,000 Shares issued on 30 April 2019	Y	-	-
4,600,229 Shares issued on 22 May 2019	Z	63,483	-
2,261,872 Shares issued on 29 May 2019	AA	21,777	-
9,828,718 Shares issued on 29 May 2019	AB	108,116	-
		1,616,855	5,442,965
Transaction costs relating to share issues		-	(303,613)
		1,616,855	5,139,352
At reporting date		46,315,150	44,698,295

	NOTE	2019 $	2018 $
Ordinary shares on issue at the start of the financial year.		1,069,390,795	792,808,124
Shares issued during the year:
377,732 Shares issued on 10 August 2018	A	-	377,732
550,034 Shares issued on 10 August 2018	B	-	550,034
55,425,000 Shares issued on 15 November 2018	C	-	55,425,000
400,000 Shares issued on 15 November 2018	D	-	400,000
333,333 Shares issued on 21 December 2018	E	-	333,333
2,653,934 Shares issued on 21 December 201	F	-	2,653,934
1,770,489 Shares issued on 21 December 2018	G	-	1,770,489
6,000,000 Shares issued on 18 January 2019	H	-	6,000,000
712,500 Shares issued on 24 January 2019	I	-	712,500
1,333,333 Shares issued on 30 January 2019	J	-	1,333,333
84,052,630 Shares issued on 5 April 2019	K	-	84,052,630
28,947,370 Shares issued on 16 April 2019	L	-	28,947,370
7,000,000 Shares issued on 1 May 2018	M	-	7,000,000
5,000,000 Shares on 15 May 2018	N	-	5,000,000
80,613,579 Shares issued on 14 June 2018	O	-	80,631,579
1,394,737 Shares issued on 14 June 2018	P	-	1,394,737
2,000,001 Shares issued on 19 September 2018	Q	2,000,001	-
1,441,425 Shares issued on 19 September 2018	R	1,441,425	-
852,381 Shares issued on 19 November 2018	S	852,381	-
17,500,000 Shares issued on 4 January 2019	T	17,500,000	-
20,750,000 Shares issued on 12 February 2019	U	20,750,000	-
4,687,500 Shares issued on 25 February 2019	V	4,687,500	-
13,687,500 Shares issued on 22 March 2019	W	13,687,500	-
26,89,922 Shares issued on 22 April 2019	X	26,890,922	-
50,000,000 Shares issued on 30 April 2019	Y	50,000,000	-
4,600,229 Shares issued on 22 May 2019	Z	4,600,229	-
2,261,872 Shares issued on 29 May 2019	AA	2,261,872	-
9,828,718 Shares issued on 29 May 2019	AB	9,828,718	-
		154,500,548	276,582,671
At reporting date		1,223,891,343	1,069,390,795

The details of each issue of shares are as follows:

A Issue of shares to Executive Chairman pursuant to contract of employment

B Issue of shares to Executive Chairman pursuant to contract of employment

C Working capital raising

D Issue of shares to a consultant pursuant to Letter of Engagement

E Exercise of options over ordinary shares (expiry 15 November 2018)

F Issue of shares for settlement of supplier obligations

G Issue of shares for settlement of supplier obligations

H Exercise of options over ordinary shares (expiry 5 February 2018)

I Exercise of options over ordinary shares (expiry 15 November 2018)

J Exercise of options over ordinary shares (expiry 15 November 2018)

K Issue of shares pursuant to private placement

L Issue of shares pursuant to private placement

M Exercise of options over ordinary shares (expiry 9 May 2018)

N Exercise of options over ordinary shares (expiry 9 May 2018)

O issue of shares pursuant to private placement

P Issue of shares to advisors pursuant to Letter of Engagement

Q Exercise of options over ordinary shares (expiry 15 November 2018)

R Issue of shares for settlement of supplier obligations

S Issue of shares for settlement of supplier obligations

T Conversion of performance shares into ordinary shares

U Issue of shares pursuant to private placement

V Issue of shares pursuant to private placement

W Issue of shares under terms and conditions of share purchase plan

X Issue of shares for settlement of supplier obligations

Y Issue of collateral shares to Lind Global Macro Fund LP

Z Issue of shares for services under Letter of Engagement

AA Issue of shares for services under Letter of Engagement

AB Issue of shares pursuant to securing option of gold exploration licence in Mauritania

Ordinary shares

Ordinary shares have the rights to receive dividends as declared and, in the event of winding up, participate in the proceeds from the sale of all surplus assets in proportion to the number of, and amounts paid up on, the shares held.

Each fully paid ordinary share carries one vote.

Ordinary shares issued to shareholders since incorporation have had no par value.

Options over ordinary shares

There are no options over ordinary shares on issue.

Performance shares

At the general meeting of shareholders on the 30 November 2017, the Executive Chairman of the Company was awarded 35,000,000 performance shares with 17,500,000 vesting on 30 November 2018 and the remainder on the 30 November 2019.

On 17 June 2018, Messrs NJ Clifford, WR Goodall and JM Madden were awarded 5,000,000 performance shares with 33.3% vesting on 17 June 2019, 33.3% vesting on 17 June 2020 and 33.4% vesting on 17 June 2021.

The group has accounted for the above-mentioned performance shares in accordance with AASB 2 Share-based payments.

a. Options over ordinary shares and performance shares on issue

For information relating to the Aura Energy Limited employee options scheme, including details of options issued, issued and lapsed during the financial year, and the options outstanding at balance date, refer to Note 21 Share-based payments. The total number of options and performance shares on issue is as follows:

	2019 NO.	2018 NO.
Performance shares	27,500,000	35,000,000
Unlisted options over ordinary shares	214,815,732	124,697,108
Unlisted warrants over ordinary shares	6,578,699	6,578,699
	248,894,431	166,275,807

b. Capital Management

i. Capital management policy

The directors' objectives when managing capital are to ensure that the Group can fund its operations and continue as a going concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders.

Due to the nature of the Group's activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group's capital risk management is the current working capital position against the requirements of the Group to meet exploration programmes and corporate overheads.

The Group's strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required.

ii. Current ratio

The current ratio the Group at 30 June 2019 and 30 June 2018 was as follows:

NOTE

2019

NO.

2018

NO.

Current ratio

1.51

12.72

iii. Working capital position

The working capital position of the Group at 30 June 2019 and 30 June 2018 was as follows:

	NOTE	2019 NO.	2018 NO.
Cash and cash equivalents	6	812,296	2,844,169
Trade and other receivables	7	37,294	23,881
Financial assets	8	57,710	60,926
Trade and other payables	11	(464,959)	(303,133)
Provisions	12	(63,499	(28,405)
Vendor obligations	14	(71,295)	-
Working capital surplus / (deficit)		307,547	2,597,438

Note 18 Reserves

	NOTE	2019 $	2018 $
Option reserve	18a	855,670	353,929
Foreign exchange reserve	18b	418,159	284,458
		1,273,829	638,387

a. Option reserve

The option reserve records items recognised as expenses on the value of employee and consultant share options.

b. Foreign exchange translation reserve

The foreign exchange reserve records exchange differences arising on translation of foreign controlled subsidiary.

Note 19 Controlled entities

CONTROLLED ENTITIES	COUNTRY	CLASS OF SHARES	PERCENTAGE OWNED
CONTROLLED ENTITIES	COUNTRY	CLASS OF SHARES	2019	2018
Vanadis Battery metals AB (formerly Aura Energy Sweden AB)	Sweden	Ordinary	100%	100%
Aura Energy Mauritania Pty Limited	Australia	Ordinary	100%	100%
Tiris Ressources SA	Mauritania	Ordinary	85%	90%
Tiris International Mining Company sarl	Mauritania	Ordinary	100%	100%

Note 20 Cash flow information

a. Reconciliation of cash flow from operations to loss after income tax

	2019 $	2018 $

Loss after income tax	(2,896,262)	(1,987,057)
Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit from ordinary activities:
Share-based payments expense	530,832	297,916
Payments to employees and corporate advisor by way of shares	135,0480	26,750
Finance costs	134,298	-
Depreciation	7,660	12,377
Effects of foreign exchange on foreign currency balances	(30,327)	90,145
Impairment of exploration expenditure previously capitalised	179,152	-
Capitalised exploration expenditure included in cash flows from operations	(2,912,693)	(3,140,343)
Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:
(Increase)/decrease in receivables and prepayments	18,657	31,065
(Decrease)/Increase in trade and other payables	(108,600)	(115,800)
(Decrease)/Increase in provisions	50,435	(90,543)
Cash flow from operations	(4,875,490)	(4,875,490)

b. Credit standby facilities

The Group has no credit standby facilities.

c. Non-Cash Investing and Financing Activities

The Group has no non-cash investing and financing activities.

d. Restrictions on Cash Balance

The Group does not have any restrictions over its cash balance.

Note 21 Share-based payments

	2019 $	2018 $
Options over ordinary shares	-	22,874
Performance shares	530,832	275,042
	530,832	297,916

a. On 9 June 2015, shareholders approved the grant of 35,000,000 options over ordinary shares to Mr PD Reeve pursuant to the Contract of Employment agreed between the Company and Mr PD Reeve on 9 February 2015. The unamortised cost of the options over ordinary shares was fully expensed during the financial year as the arrangement between the Company and Mr PD Reeve was cancelled:

The following tranches set out the options over ordinary shares originally granted to the Executive Chairman and Managing Director of the Company:

• 8,750,000 at an exercise price of $0.10 each. The options are exercisable on or before 9 June 2018.

• 6,250,000 at an exercise price of $0.15 each. The options are exercisable on or before 9 February 2019.

• 2,500,000 at an exercise price of $0.15 each. The options are exercisable on or before 9 June 2019.

• 8,750,000 at an exercise price of $0.15 each. The options are exercisable on or before 9 June 2020.

• 8,750,000 at an exercise price of $0.15 each. The options are exercisable on or before 9 June 2021.

$22,878 was the deemed cost of the options over ordinary shares for the financial year. The options over ordinary shares hold no voting or dividend rights and are not transferable.

b. On 30 November 2017, shareholders approved the award of 35,000,000 performance shares to Mr PD Reeve pursuant to an amendment to the Contract of Employment agreed between the Company and Mr PD Reeve on 9 February 2015:

The following tranches set out the vesting periods for the award of performance shares to Executive Chairman and Managing Director of the Company:

• 17,500,000 will vest on 30 November 2018.

• 17,500,000 will vest on 30 November 2019.

$362,832 (2018: $275,042) was the deemed cost of the performance shares for the financial year. The performance shares hold no voting or dividend rights and are not transferable.

c. On 17 June 2018, the Company approved the award of 17,500,000 performance shares to Messrs NJ Clifford and JM Madden and Dr WR Goodall with the board of directors ratifying the award on 4 September 2018. The performance shares were awarded under the Employee Share Plan.:

The following tranches set out the vesting periods for the award of performance shares to the above-mentioned management of the Company:

• 5,000,000 will vest on 17 June 2019.

• 5,000,000 will vest on 17 June 2020.

• 5,000,000 will vest on 17 June 2021

$168,000 (2018: Nil) was the deemed cost of the performance shares for the financial year. The performance shares hold no voting or dividend rights and are not transferable.

d. Summary of options over ordinary shares issued as share-based payments

	2019		2018
	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE
Outstanding at the beginning of the year	15,499,053	$0.0275	54,078,699	$0.1018
Issued	62,500,000	$.01600	8,920,354	$0.0330
Expired	-	-	(12,500,000)	($0.0700)
Cancelled	-	-	(35,000,000)	(0,1286
Outstanding at year-end	77,999,053	$0.0183	15,499,053	$0.02758
Exercisable at year-end	77,999,053	$0.0183	15,499,053	$0.0275

The weighted average remaining contractual life of options outstanding at year end is 2.23 years (2018: 1.23 years). The weighted average exercise price of outstanding shares at the end of the reporting period is $0.0183 (2018: $0.0275).

e. Summary of performance shares issued as share-based payments

	2019		2018
	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE
Outstanding at the beginning of the year	32,500,000	$0.0217	35,000,000	$0.1018
Issued	-	-	15,000,000	$0.0210
Expired	-	-	(17,500,000)	($0.0220)
Cancelled	-	-	-	-
Outstanding at year-end	32,500,000	$0.0217	32,500,000	$0.0218
Convertible at year-end	5,000,000	$0.0210	-	-

e. Fair value of options grants during the period

The Company granted WH Ireland Limited on 12 September 2016, 6,578,699 3-year warrants at an exercise price of 2 cents per warrants. The share price on the date of the grant was 2.5 cents per share with a volatility of 84% and risk-free rate of 2%.

Note 22 Key management personnel compensation

a. Key management personnel

The names of the key management personnel are as follows:

PD Reeve Executive Chairman and managing Director

R Beeson Non-executive director

BF Fraser Non-executive director

JC Perkins Non-executive director

JM Madden Company Secretary

b. KMP compensation

The totals of remuneration paid to KMP during the year are as follows:

	2019 $	2018 $

Short-term employee benefits	696,300	523,800
Post-employment benefits	36,400	32,600
Share-based payments in equity	-	25,000
Share-based payments in options	-	22,874
Share-based payments in performance shares	418,832	275,042
Other long-term benefits	-	-
Termination benefits	-	-
Payments to contractors for accounting and secretarial services	-	99,936
Total	1,151,532	979,252

Refer to the Remuneration Report contained in the Director's Report for details of the remuneration paid to each member of the Group's KMP for the year ended 30 June 2019.

Note 23 Related party transactions

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Other transactions with key management personnel are set out in the Remuneration report, there are no other related party transactions.

Note 24 Commitments

	2019 $	2018 $

a. Exploration expenditure commitments:
Exploration tenement minimum expenditure requirements	677,084	915,322
Payable:
not later than 12 months	109,139	263,835
between 12 months and 5 years	311,804	420,943
greater than 5 years	256,141	230,544
	677,084	915,322
The Group does not have any expenditure commitments under the terms and conditions of the tenements it holds. The exploration expenditure commitments relate to annual renewal fees,
b. Operating lease commitments:
Operating leases contracted for or committed to but not capitalised in the financial statements
Payable:
not later than 12 months	52,975	33,949
between 12 months and 5 years	36,016	-
greater than 5 years	-	-
	88,991	33,949

Note 25 Operating segments

i. Identification of reportable segments

The Group operates predominantly 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 projects - 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.

ii. Basis of accounting for purposes of reporting by operating segments

(1) Accounting policies adopted

Unless stated otherwise, all amounts reported to the board of directors, being the chief decision maker with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

(2) Inter-segment transactions

An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly and is based on what would be realised in the event the sale was made to an external party at arm's length. All such transactions are eliminated on consolidation of the Group's financial statements.

Corporate charges are allocated to reporting segments based on the segments' overall proportion of revenue generation within the Group. The board of directors believes this is representative of likely consumption of head office expenditure that should be used in assessing segment performance and cost recoveries.

Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to fair value based on market interest rates. This policy represents a departure from that applied to the statutory financial statements.

(3) Segment assets

Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.

(4) Segment liabilities

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings.

(5) Unallocated items

The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:

• Non-exploration impairment of assets and other non-recurring items of revenue or expense

• Income tax expense

• Deferred tax assets and liabilities

• Current tax liabilities

• Other financial liabilities

FOR THE YEAR TO 30 JUNE 2019	URANIUM $	VANADIUM $	GOLD AND BASE METALS	CORPORATE $	TOTAL $
Segment revenue	-	-	-	32,293	32,293
Segment results	-	(383,650)	-	32,293	(351,357
Amounts not included in segment results but reviewed by Board:
Expenses not directly allocable to identifiable segments or areas of interest
Accounting and audit fees					(80,600)
Depreciation					(7,660)
Employee benefits expense					(895,326)
Exchange fluctuation					30,327
Exploration expenditure related to project generation					(35,635)
Finance costs					(149,067)
Insurance					(58,590)
Consulting fees and corporate advisory					(487,551)
Rent and utilities					(68,229)
Share-based payment expenses					(530,832)
Share registry and listing fees					(189,874)
Travel and accommodation					(70,707)
Other expenses					(43,844)
R&D Tax rebate					42,682
Loss after income tax					(2,896,262)

FOR THE YEAR TO 30 JUNE 2019	URANIUM $	VANADIUM $	GOLD AND BASE METALS	CORPORATE $	TOTAL $
Segment assets	13,786,983	6,860,687	494,587	702,746	21,845,003
Unallocated assets:
Trade and other receivables					70,590
Plant and equipment					4,064
Other non-current assets					-
Total assets					21,919,657
Segment asset increases for the period:
Capital expenditure-exploration	2,168,212	1,100,746	258,787	-	3,527,745
Less: Write-off of exploration assets	-	(179,152)		-	(179.152)-
	21,68,212	921,594	258,787	-	3,346,593

Segment liabilities	152,701	54,450	71,295	-	277,446
Unallocated liabilities:
Trade and other payables					258,808
Short-term provisions					78,840
Financial liabilities					266,667
Borrowings					1,388,431
Total liabilities					2,270,192

•

FOR THE YEAR TO 30 JUNE 2019	URANIUM $	SWEDEN EXPLORATION $	CORPORATE $	TOTAL $
Segment revenue	-	-	6,838	6,838
Segment results	-	(14,328)	6,838	(7,490)
Amounts not included in segment results but reviewed by Board:
Expenses not directly allocable to identifiable segments or areas of interest
Accounting and audit fees				(144,541)
Computers and communications				(33,945)
Depreciation				(12,377)
Employee benefits expense				(651,703)
Exchange fluctuation				(90,145)
Insurance				(42,378)
Consulting fees and corporate advisory				(335,026)
Public relations				(40,332)
Rent and utilities				(64,299)
Share-based payment expenses				(297,916)
Share registry and listing fees				(160,433)
Travel and accommodation				(72,622)
AIM listing costs				-
Other expenses				(33,850)
Loss after income tax				(1,987,057)

AS AT 30 JUNE 2019
Segment assets	11,940,312	5,747,556	2,844,169	20,532,037
Unallocated assets:
Trade and other receivables				84,807
Plant and equipment				8,124
Other non-current assets				-
Total assets				20,624,968
Segment asset increases for the period:
Capital expenditure-exploration	2,625,573	286,805	-	2,912,378
Less: Write-off of exploration assets	-	-	-	-
	2,625,573	247,510	-	2,912,378

Segment liabilities	98,783	31,360	-	130,143
Unallocated liabilities:
Trade and other payables				172,990
Short-term provisions				28,405
Financial liabilities				-
Total liabilities				331,538

Note 26 Financial risk management

i. Financial risk management objectives and policies

The Group's principal financial instruments comprise of cash and short-term deposits and other financial assets.

The main purpose of these financial instruments is to invest funds raised by the Group until utilised in exploration activities.

The Group has other financial instruments such as current receivables and payables arising from corporate activities.

The main risks arising from the Group's financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. The Chief Financial Officer is responsible for the management of the Group's financial risk. The Chief Financial Officer updates the board of directors regularly on financial risk management measures that he implements.

	FLOATING INTEREST RATE $	FIXED INTEREST RATE $	NON- INTEREST BEARING $	2019 TOTAL $	FLOATING INTEREST RATE $	FIXED INTEREST RATE $	NON- INTEREST BEARING $	2018 TOTAL $
Financial assets
Cash and cash equivalents	812,296	-	-	812,296	2,844,169	-	-	2,844,169
Trade and other receivables	-	-	37,294	23,881	-	-	23,881	23,881
Financial assets	-	-	57,710	60,926	-	-	60,926	60,926
Total financial assets	812,296	-	95,004	907,300	2,844,169	-	84,807	2,928,976
Financial liabilities
Financial liabilities at amortised cost
Trade and other payables	-	-	(464,959)	(464,959)	-	-	(303,133)	(303,133)
Financial liabilities	-	-	-	-	-	-	-	-
Total financial liabilities	-	-	(464,959)	(464,959)	-	-	(303,133	(303,133)
Net financial assets	812,296	-	(369,955)	442,341	2,844,169	-	(218,326)	2,625,843

b. Specific financial risk exposures and management

The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate, foreign currency risk and equity price risk.

The board of directors has overall responsibility for the establishment and oversight of the risk management framework. The board of directors has adopted practices designed to identify significant areas of business risk and to effectively manage those risks in accordance with the risk profile. This includes assessing, monitoring and managing risks for the Group and setting appropriate risk limits and controls. The Group is not of a size nor is its affairs of such complexity to justify the establishment of a formal system for risk management and associated controls. Instead, the Board approves all expenditure, is intimately acquainted with all operations and discuss all relevant issues at the Board meetings. The operational and other compliance risk management have also been assessed and found to be operating efficiently and effectively.

i. 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

The Group does not have any material credit risk exposure to any single receivable or Group of receivables under financial instruments entered into by the Group.

Credit risk exposures

The maximum exposure to credit risk is that to its alliance partners and that is limited to the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance with approved Board policy. Such policy requires that surplus funds are only invested with financial institutions residing in Australia, where ever possible.

Impairment losses

Group's financial assets that are past due total $nil (2018: $nil).

There has been no allowance for impairment in respect of the financial assets of the Group during this year.

II. 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 liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash and marketable securities are available to meet the current and future commitments of the Group.

Due to the nature of the Group's activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. The board of directors constantly monitor the state of equity markets in conjunction with the Group's current and future funding requirements, with a view to initiating appropriate capital raisings as required. Any surplus funds are invested with major financial institutions.

The financial liabilities of the Group are confined to trade and other payables as disclosed in the statement of financial position. All trade and other payables are non-interest bearing and due within 30 days of the reporting date.

iii. 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.

(1) Interest rate risk

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Group is also exposed to earnings volatility on floating rate instruments.

Interest rate risk is not material to the Group as no debt arrangements have been entered into, and movement in interest rates on the Group's financial assets is not material.

(2) Foreign exchange risk

Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the Australian dollars functional currency of the Group.

With instruments being held by overseas operations, fluctuations in foreign currencies may impact on the Group's financial results. The Group's exposure to foreign exchange risk is minimal; however, the Board continues to review this exposure regularly.

(3) Price risk

Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

The Group is exposed to securities price risk on investments held for trading or for medium to longer terms.

The investment in listed equities has been valued at the market price prevailing at balance date. Management of this investment's price risk is by ongoing monitoring of the value with respect to any impairment.

At balance date, the Group does not hold financial instruments that would give rise to price risk.

iv. Sensitivity analyses

Interest rates

The following table illustrates sensitivities to the Group's exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at balance sheet 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.

A change of 100 basis points in the interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. The analysis was performed on a change of 100 basis points for 2019.

At the end of the financial period, the Group had no financial liabilities exposed to variable interest rate risks.

The Group's cash management policy is to invest surplus funds at the best available rate received from the Commonwealth Bank of Australia.

Set out below is a sensitivity analysis of the financial implications of interest rate risk exposure as at the end of the financial year. If interest rates had moved, with all other variables constant, profit after tax and equity would have been:

	PROFIT $	EQUITY $
Year ended 30 June 2019
± 100 basis points change in interest rates	±2,021	±2,031
Year ended 30 June 2018
± 100 basis points change in interest rates	±10,938	±10,938

At the end of the financial period, the Group had no financial liabilities exposed to variable interest rate risks.

The Group's cash management policy is to invest surplus funds at the best available rate received from the Commonwealth Bank of Australia.

Year ended 30 June 2019
± 10% of Australian dollar strengthening/weakening against the SEK	Nil	+100,068 -122,305
Year ended 30 June 2018
± 10% of Australian dollar strengthening/weakening against the SEK	Nil	+92,822 -45,855

The movement in equity is directly linked to the movement in the Statement of Comprehensive Income as the Group does not undertake any interest rate hedging.

Foreign currency risk

The Group has exposure to foreign currency risk in relation to US dollars for assets 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 sheet 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:

PROFIT

EQUITY

Year ended 30 June 2019

± 10% of Australian dollar strengthening/weakening against the US dollar

Nil

+197,110

-240,912

Year ended 30 June 2018

± 10% of Australian dollar strengthening/weakening against the US dollar

Nil

+151,014

-540,863

At balance date, the Group does not hold financial instruments that would give rise to price risk

iv. Fair values

The fair values of financial assets and financial liabilities are presented in the table below and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Cash and cash equivalents, trade and other receivables, and trade and other payables are short-term investments in nature whose carrying value is equivalent to fair value.

The methods and assumptions used in determining the fair values of financial instruments are disclosed in the accounting policy notes specific to the asset or liability.

Note 27 Events subsequent to reporting date

On 16 July 2019 (see ASX Announcement ,dated 16 July 2019), the Group issued to:

On 29 July 2019 (see ASX Announcement, dated 29 July 2019), the Group released to the market the Tiris uranium project definitive feasibility study.

On 14 August 2019 (see ASX Announcement, dated 14 August 2019), the Group release a revised Mineral Resource estimate for its Haggan vanadium project.

On 6 September 2019 (see ASX Announcement, dated 6 September 2019), the Group issued to:

• 14,285,715 fully paid ordinary shares to Lind Global Macro Fund LP on receipt of its first conversion notice pursuant to the terms and conditions of the Convertible Security Funding Agreement. dated 30 April 2019. The value of the shares issued to Lind Global Macro Fund LP was $100,000.

On 25 September 2019 (see ASX Announcement, dated 25 September 2019), the Group issued to:

• 16,666,667 fully paid ordinary shares to Lind Global Macro Fund LP on receipt of its first conversion notice pursuant to the terms and conditions of the Convertible Security Funding Agreement. dated 30 April 2019. The value of the shares issued to Lind Global Macro Fund LP was $100,000.

• 2,021,250 fully paid ordinary shares to WH Ireland Limited for advisory services. The value of the shares issued to WH Ireland Limited was $16,170.

Note 28 Contingent liabilities

Global Coal Management plc

On 15 October 2010, the Company and Global Coal Management plc entered into a Share Sale and Purchase Agreement which resulted in the Company acquiring all the shares on issue in GCM Africa Uranium, the entity which held the beneficial interest of GCM in the above- mentioned research permits in Mauritania.

The Company paid GCM US$100,000 on execution of the Share Sale and Purchase Agreement; US$472,183 in cash plus 2,000,000 fully paid ordinary shares in the Company on completion (due diligence); and, US$500,000 on the first anniversary of completion.

The Company also agreed to pay a contingent consideration:

• US$2,000,000 (in cash and shares as determine by the Company) on the delineation of 75 million pounds or more Initial Resource (not defined in the Letter Agreement) under the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves; and

• US$400,000 in cash and 400,000 fully paid ordinary shares in the Company for each Subsequent Resource of 6,500,000 pounds up to a maximum of US$4,000,000 in cash and 4,000,000 in fully paid ordinary shares.

The obligations to make the contingent consideration payments are held by the Company and the contingent consideration is only payable if the Initial Resource and Subsequent Resource are achieved within 10 years of the date of the Share Sale and Purchase Agreement. Accordingly, the obligation to pay the contingent consideration expires on 15 October 2020.

Servico sarl

The Group executed a Letter Option Agreement with Servico sarl on 29 May 2019 over a tenement prospective for gold within the vicinity of tenements held by the Group through its controlled entity Tiris International Mining Company Sarl. Under the terms and conditions of the Letter Option Agreement, the Company agreed to pay service:

• US$25,000 in cash; and

• US$75,000 in fully paid ordinary shares;

on execution of the Letter Option Agreement.

On or prior to each anniversary of the commencement date and for a period of five years Aura must inform Servico whether it wishes to continue to hold its Option or terminate the Option. If the Group elects to continue to hold its Option by way of written notice to Servico on each anniversary date after the commencement it will pay Servico US$25,000, at Aura's election, in either cash or fully paid ordinary shares. (If Aura holds the Option for the duration of the Option Period set out in this Agreement it will make total payments to Servico of US$125,000.) If the Group elects to terminate its Option it must inform Servico within seven days of its decision and arrange for its legal representative in Mauritania to return to Servico the share transfer book and the Tenement title documents.

On termination of the Option Servico is free to explore and exploit the tenement at its own cost and the rights and obligations of the Group under this Agreement will cease

If the Group elects to exercise its Option and notifies Servico in writing of this decision to exercise the Option:

• Servico must transfer the tenement to a nominated Mauritanian-incorporated entity of the Group within 30-days of the written notice; and

• Aura must pay Servico US$500,000, at Group's election, by way of cash or in fully paid ordinary shares within 30-days of the notice and issue Servico with shares in the nominated Mauritanian incorporated entity equal to 30 per cent of the paid-up capital of the Mauritanian entity.

If mining and treatment are undertaken on the tenement by the joint venture and Aura is a 70% party to the Joint Venture, Servico will be entitled to a royalty equal to US$1,000,000 for every 200,000 ounces of gold produced from mining and treatment of minerals extracted from the tenement (or US$5 per ounce of gold produced from mining and treatment of minerals extracted from the tenement). If mining and treatment are undertaken on the tenement by the joint venture and the Group is a 70% party to the Joint Venture, Servico will be entitled to a one-off payment of US$1,000,000 from the first US$1,000,000 of gold proceeds.

If a party to the joint venture is unable to fund its share of developing of mining and treatment, the non-defaulting parties will have rights to dilute the defaulting venturer.

Geogruppen I Goteburg AB and Met Forages sarl

The Company executed a Drilling Services Agreement with Geogruppen on 14 February 2019 and a Drilling Services Agreement with Met Forages on 8 August 2019. Geogruppen and Met Forages agreed to have drilling invoices settled by way of the issue of fully paid ordinary shares in the Company. The Company agreed to pay the face value of all Swedish Kroner and US dollar invoices submitted by Geogruppen and Met Forages, respectively, and therefore, any difference between the proceeds on sale of its shares and the face value of the invoices will be reimbursed by the Company.

At the date of this annual report, both Geogruppen and Met Forages have not sold any shares issued to each party under their respective Drilling Settlement Agreements.

Nomads Mining Company sarl

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 was paid on execution of the agreement. The second instalment of the entry fee (US$50,000) is payable, no later than six months after the date of execution and third instalment of the entry fee (US$50,000) by way of either cash or fully paid ordinary is payable no later than twelve months from the date of execution. The second and third instalment fees are conditional on the Group continuing to exploration the ground held by Nomads.

On completion of US$1,000,000 exploration programme (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 is assigned the uncertificated equity interest is assigned the shareholders of Nomads, comprising 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.

Tiris International Mining Company sarl

On 25 June 2016, the Group Tiris International Mining Company sari ("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 it 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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