23 December 2024

Swedish Government inquiry recommends lifting uranium mining ban

Aura Energy Limited (ASX: AEE, AIM: AURA) ('Aura' or the 'Company') is pleased to provide an update in relation to the Swedish government taking an important step towards lifting the uranium ban which has been in place since 2018.

In announcing the results of its inquiry into uranium mining on 20th December 2024, the Government of Sweden has taken an important step towards lifting the ban which has been in place since 2018.

The Government inquiry into uranium mining has recommended that uranium be regulated as a concession mineral within the Minerals Act. This would allow deposits containing economic quantities of uranium to be exploited like other natural resources in the country.

This aligns Sweden's mining legislation with its energy policy that calls for a substantial expansion of nuclear power. Sweden already generates one third of the country's electricity from nuclear power but currently relies completely on imported raw material for nuclear fuel.

Extracting uranium from its substantial endowment of geology which hosts uranium as a by-product would greatly increase Sweden's energy security. The Häggån deposit alone could fuel Sweden's existing nuclear reactor fleet for over three centuries. It would also bring investment, create jobs and generate exports for the economy.

All parties in the governing coalition have expressed their support to overturn the current uranium mining ban. The next step in the legislative process is for the results of the inquiry to be referred for wider consultation before it is converted into a legislative proposal and brought to Parliament for consideration. The governing coalition holds a majority of the seats in Parliament.

Following the inquiry and the referral process, the Government can proceed with a legislative proposal to Parliament to enact the proposed changes. The proposed date for legislative changes to come into effect is 1st January 2026. 

Aura is pleased to be included in the list of consultation parties for the uranium inquiry.

Aura Energy Managing Director and Chief Executive Officer, Andrew Grove said:

"This is an important first step for Sweden to continue its path towards low carbon energy self-sufficiency. Sweden has a rich geological endowment that can be harnessed to provide zero emissions nuclear power for both its own domestic use, as well as for export.

Sweden has high environmental standards and a robust permitting system, which would of course also cover uranium extraction should this proposal be enacted. Uranium can be mined safely and put to use in support of the transition to carbon free energy in Sweden, Europe and across the globe. It will also reduce Sweden's dependence on imported energy sources and release significant value for Sweden's economy. 

This will be of special importance now given the Europen Union's critical raw material act legislation. Our polymetallic Häggån resource has the potential to become a valuable contributor to Sweden's economy, and its contribution would be enhanced if uranium mining was to be permitted.

We are looking forward to continuing our work with the Swedish government and community stakeholders to deliver a project that meets Sweden's economic, social and environmental goals."

The Häggån project is located in the municipality of Berg in the county of Jämtland. It is a polymetallic resource, and its primary metals and minerals are vanadium and sulphate of potash, with nickel, molybdenum, uranium and zinc also present. 

Häggån contains approximately 800Mlbs of uranium[1]. Since Sweden uses 2.4Mlbs annually[2], the resource could meet Sweden's needs for over 300 years at current usage levels.

Aura Energy's Häggån 2023 Scoping Study[3] outlined its strong economics, including a base case NPV of between US$380M, and US$1.23B, excluding uranium. Including uranium lifted the NPV by 37%.

In August 2024, Aura Energy submitted to the Swedish Mining Inspectorate[4] (an application for a processing concession for Häggån K1). A Swedish processing concession (exploitation permit) is valid for 25 years. 

ENDS

This release has been approved by the Board of Aura Energy Ltd.

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

For further information, please contact:

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

Aura Energy is an Australian-based mineral company with major uranium and polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. The 2024 FEED Study[5] and Production Target Update[6] demonstrates Tiris to be a near-term low-cost uranium mine producing 2Mlbs pa U₃O₈ over a 25-year mine life with excellent economics and optionality to expand and to accommodate future exploration success.

Aura plans to transition from a uranium explorer to a uranium producer to capitalise on the rapidly growing demand for nuclear power as the world shifts towards a decarbonised energy sector.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden. Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash (SOP)[7] and uranium[8] resource. Utilising only 3% of the resource, a 2023 Scoping Study[9] outlined a 17-year mine life based on mining 3.5Mtpa.

Disclaimer Regarding Forward-Looking Statements 

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance or achievements to differ materially from the expectations described in such forward-looking statements. The Company does not give any assurance or guarantee that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved.

The Company has concluded that it has a reasonable basis for providing the forward-looking statements and production targets included in this announcement and that material assumptions remain unchanged. The detailed reasons for this conclusion are outlined throughout this announcement, and in the ASX Releases:

1.     29 March 2023 - Tiris Uranium Project Enhanced Definitive Feasibility Study

2.     28 February 2024 - Aura's Tiris FEED Study returns Excellent Economics

3.     11 Sep 2024 - Updated Production Target Improves Economics at Tiris

4.     5 September 2023 - Scoping Study Confirms Scale and Optionality of Häggån

The Company confirms that it is not aware of any new information materially affecting the information included in the ASX and AIM announcements:

1.     12 June 2024 - Aura increases Tiris Mineral Resources by 55% to 91.3Mlbs U₃O₈

2.     16 Dec 2024 - Substantial increase in Tiris Uranium Project Ore Reserves

3.     22 Aug 2012 - Outstanding Häggån Uranium Resource expands to 800 million pounds

4.     10 Oct 2019 - Häggån Battery Metal Project Resource Upgrade Estimate

All material assumptions and technical parameters underpinning the Häggån Project Mineral Resources Estimates continue to apply. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.