Fortbridge Media Release

Resource Capital Research [RCR] - RCR Company Update, Aura Energy Limited (ASX:AEE), May 2014

Resource Capital Research has released an equity research report on Aura Energy Limited (ASX:AEE)

Reguibat uranium project: shaping up to hit the markets sweet spot with high beneficiation grade, large resource, easy mining, modest scale plant, low opex/capex and expected streamlined permitting. Scoping Study expected June 2014. 12 month target price AU dollar 0.14/share. Longer term, the massive Haggan project is well positioned to drive growth and currently represents a free option.

Investment points:

* Reguibat Project, Mauritania (AEE 100/70 percent): Exciting new calcrete uranium province. AEE resource 49mlbs. Exploration Target indicates potential to exceed 100mlbs.

* Reguibat Project: Highly amenable to beneficiation: Initial testwork (4Q13) indicates 5-9X grade uplift may be achievable.

* Reguibat Scoping Study at Zone A, due June 2014 is expected to be a key turning point for AEE; Feasibility Study possible 2H15 � subject to funding (est. AU dollar 3-5m required); production potential 4Q16.

* World class Haggan Project, Sweden: One of the largest uranium projects in the world.

* Haggan Project is large capacity, long life, easy to mine, in a stable mining friendly jurisdiction, with proximal key infrastructure, staged low capital development, and low opex in the bottom 2 quartiles of the WNA 2010 cost curve. Awaiting improved market conditions to advance to PFS; long term value driver for AEE.

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

* AEE equity funding facility for AU dollar 3.8m in place through 1Q16.

* We expect AEE to be rerated as key technical and permitting milestones at Reguibat are achieved: 12 month target price AU dollar 0.14/share (mkt cap AU dollar 28m).

*The uranium price is US dollar 29.00/lb (spot); US dollar 45/lb (contract). Challenging market conditions are expected to persist short to mid-term, though a turnaround is anticipated as Japanese reactors start to come back online, possibly 2H14. Significantly, uranium fund UPC raised C dollar 57.6m Feb 2014 in a sign that investors are starting to look to a market turnaround. Positive fundamentals longer term are expected to drive the incentive price above US dollar 60/lb later this decade.

To view the full announcement please click on the link below:

For further information please contact:

John Wilson
Analyst
+61 2 9439 1919