Executive Chairman's Message

Welcome to Aura Energy

Hollins Hollins - Sunday, July 26, 2015

Welcome to Aura Energy Limited and thank you for taking the time to review our website. Aura Energy is very positive about the future of our uranium projects and for the nuclear energy industry as a whole. With 76 million people being added to our population annually the world’s energy needs are growing exponentially and Aura intends to be part of that solution by exploring for, and developing, uranium projects that will supply the resultant growth in nuclear energy.

Aura is fortunate to have two attractive, 100% owned, development stage assets with resources totalling 852 million pounds of uranium which positions Aura to be a major producer in the years ahead. The near term project, the Tiris Uranium Project in Mauritania, is currently in the Feasibility Study stage and is a low capital expenditure project that can be brought on stream in a couple of years to provide near term cash flow to the company. The second asset, the Häggån Uranium Project, is a world class, strategic European uranium deposit located in Sweden with the potential to be a major supplier to northern European nuclear reactors.

Both projects have very low operating costs and exceptionally capital efficient development cost requirements stemming from the innovative science and design. Aura is in this fortunate position because of the experience and technical strength of the management and operating team Aura has assembled.

For just $US45 million the Tiris Project will be able to produce at around 1 m lbs U₃O₈ per annum for 15 years at a very low cash cost of US$30/lb which is below many of our competitor companies. The project study indicated a life of mine pre tax cashflow of $360 million whilst only utilising 20% of the known resources so there is much upside to these numbers. Quite a remarkable project!

The project has some excellent natural attributes which reduce the process plant footprint substantially, eliminate grinding and allow fast leaching which, along with a mine depth of only 5 metres, is the reason we are proceeding straight to the Feasibility Study. And whilst it is early days with great promise there will, no doubt, be technical challenges as the study progresses.

Aura’s other project, Häggån, is a major source of European uranium and whilst displaced in timing by our enthusiasm for Tiris it is by no means forgotten or sidelined. In fact, as one of the world’s largest undeveloped uranium deposits, it is a stunning longer term development project for Aura and a very valuable option for a rising uranium price. You may need reminding but, despite the Fukushima incident, the Häggån project was squarely in the sights of some of the world’s largest uranium companies.

On the strategy front Aura is determined to get its projects, and particularly Tiris, into production as soon as possible with the lowest possible dilution to shareholders. This is a challenging task given the weak uranium market but we can, and must, work on a number of things in order for this to happen.

Some of these steps include;

  • • Advance the Tiris Feasibility Study as quickly as possible
  • • Seek funding via corporate alliances, offtake funding or strategic partners
  • • Improving Aura Energy’s profile with investors and the uranium sector
  • • Closing the glaring valuation gap between Aura and its closest peers
  • • Expand the companies projects via use of its free cashflow
  • • Maintain a strong imperative to progress Häggån despite the Tiris focus

2015 has seen a new management team take on the company running with a strong commercial drive and focus and Aura does not apologise for driving forward as hard as it prudently can to progress the development of its excellent assets.

Uranium prices are widely forecast to improve strongly from the current levels as the 400 nuclear reactors that are under planning or construction globally begin to come on stream in the next few years. In emerging economies millions of people will rely on efficient, reliable power supply and nuclear energy remains the dominant future electricity choice for this base load growth in many regions.

You can be assured that the prospects for both shareholders and management are in total alignment and our team at Aura will be doing all we can to increase shareholder value as we progress the sustainable and successful development of the Aura Energy’s projects.

If you are a shareholder or intend to become a shareholder of Aura Energy then I welcome you at a fortunate time for the company as we embark on the initial development stages of our near term production project at Tiris in Mauritania and then our world scale Häggån project, which will then make Aura Energy one of the most significant uranium producers in the world.

I would like to thank shareholders both new and old for their recent support. It is an exciting time for the company and we need your continuing support of Aura Energy as we move to this exciting development phase.