Aura Energy Limited — Capital/Financing Update 2021

Oct 18, 2021

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19 October 2021

Dear Option Holder,

Participation in Entitlement Offer

Aura Energy Limited (ACN 141 647 529) (“ AEE ” or “ Company ”) announced on 19 October 2021 that it will undertake a non-renounceable pro-rata offer of one (1) Listed Option (exercisable at $0.052 each and an expiry of 30 June 2024) (“ Listed Option ”) for every three (3) Shares held on the Record Date at an issue price of $0.015 to raise up to approximately $2,030,399 before costs (“ Entitlement Offer ”).

The Entitlement Offer is fully underwritten by KTM Capital Pty Ltd.

Based on the current capital structure of the Company as at the date of this letter, a maximum of 135,359,902 Listed Options will be issued pursuant to this Entitlement Offer to raise up to approximately $2,030,399.

The Entitlement Offer will raise up to $2,030,399 (before costs) if all shareholders subscribed for their entire entitlement to Listed Options.

The Entitlement Offer is only being extended to holders of ordinary shares with a registered address in Australia and New Zealand as at 5.00 pm (AEDT) on 22 October 2021 (“ Record Date ”). Notwithstanding the above, the Company may (in its absolute discretion) extend the Entitlement Offer to certain shareholders who have registered addresses outside the eligible countries in accordance with applicable law.

This notice is sent to you as a holder of options to acquire Listed Options in AEE. Your options do not carry a right to participate in the Entitlement Offer. The purpose of this letter is to give you notice of the Entitlement Offer and to give you the opportunity to exercise any of your options should you wish to participate in the Entitlement Offer in respect of the Listed Options that would be issued to you upon exercise of any of your options (assuming that you have a registered address in Australia or New Zealand). You would need to exercise the options in time to allow the underlying Listed Options to be issued to you before 5.00 pm (EST) on the Record Date.

Before deciding whether to exercise any options you hold prior to the Record Date and participate in the Entitlement Offer you should consider the terms of the Entitlement Offer carefully and, if in doubt, you should consult your stockbroker, accountant or other professional adviser. If you have any queries about the Entitlement Offer, please contact the Company on +61 3 9824 5254.

Phillip Hains Company Secretary

Aura Energy Limited ACN 115 927 681 Suite 1, Level 3, 62 Lygon Street Carlton South, VIC 3053