Fortbridge Media Release

Resource Company Research [---] - RCR Company Update - Aura Energy Limited (ASX:AEE), 20 March 2015

Summary
The rapidly advancing Tiris uranium project has low capex US dollar 45M, opex US dollar 30 per pound, large resource (49Mlbs), high beneficiation grade (0.25 percent U308), and likely streamlined permitting. Breakeven NPV is less than US dollar 40 per pound U308. Drilling strong uranium anomalies at Western Tiris 1Q15 with potential to establish a new district. Longer term, the large Haggan project in Sweden represents a free option

Investment Highlights
* Tiris Project, Mauritania (AEE 100/70 percent): Exciting new calcrete uranium province. AEE resource 49Mlbs at 0.033 percent U308 at or near surface (includes 32Mlbs at 0.042 percent). Exploration Target indicates potential for global resource of 100mlbs.

* Tiris Scoping Study (July 2014) confirms economic viability with project breakeven NPV uranium price less than US dollar 40 per pound. 15 year LOM producing 10.7Mlbs U308 from shallow open pits. Feasibility Study expected mid-2016. production potential 1H17.

* Tiris Project � RCR after tax NPV10 A dollar 74M (dollar 0.27 per share or US dollar 1.33 per pound resource assuming uranium price US dollar 60 per pound, AUD to USD 0.90).

* Highly amenable to beneficiation � a defining and distinctive element of the Tiris Project: Initial testwork indicates 700 percent grade uplift. This could see the 66Mt resource concentrated to around 15Mt grading +2500ppm U308 (0.25 percent).

* High upgrade is a key factor driving low capex and opex underlying robust project economics. Such high grade uplift is unusual in calcrete deposits and occurs in this case due to all uranium mineralization occurring as fine grained carnotite deposited around coarse gangue material which enables easy, low cost separation.

* Haggan Project (Sweden) is a world class uranium project, large capacity, long life, easy to mine, in a stable mining friendly jurisdiction, proximal key infrastructure, staged low capital development, and low opex: 5Mtpa case � capex US dollar 190M, opex A dollar 18-22 per pound U308. The project represents a long term value driver for AEE.

* Sweden and Mauritania are pro uranium jurisdictions with strong mining sectors. Global miners active in Mauritania include Glencore (US dollar 900M Askaf North iron ore project on hold), Kinross (Tasiast), and First Quantum (Guelb Moghrein).

* AEE represents a good risk reward investment opportunity with potential for an 8 fold share price lift from dollar 0.03 per share to greater than dollar 0.25 per share over the next few years.

* The uranium price is US dollar 39.25 per pound (spot, 16 Mar). US dollar 49.50 per pound (contract, 28 Feb). Investor confidence continues to build with uranium fund UPC registering a C dollar 200M capital raise Oct 2014. Positive fundamentals longer term are expected to drive the incentive price above US dollar 60 per pound from 2H16.

For a complete copy of the research report, please click on the link below

Analyst
John Wilson
+61 2 9439 1919