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AURA Aura Energy Limited

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Share Name Share Symbol Market Type Share ISIN Share Description
Aura Energy Limited LSE:AURA London Ordinary Share AU000000AEE7 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 9.00 8.50 9.50 9.00 9.00 9.00 30,294 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Uranium-radium-vanadium Ores 0 -6.49M -0.0110 -15.45 100.72M

Aura Energy Limited Haggan Resource Upgrade (4628P)

10/10/2019 9:42am

UK Regulatory


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TIDMAURA

RNS Number : 4628P

Aura Energy Limited

10 October 2019

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

AURA ENERGY LIMITED

("AURA" OR THE "COMPANY")

HÄGGÅN BATTERY METALS PROJECT

RESOURCE UPGRADE ESTIMATE SUCCESSFULLY COMPLETED

INDICATED RESOURCE OF 320 MILLION LBS V(2) O(5) at 0.35% V(2) O(5)

HIGH-GRADE ZONE VANADIUM CONFIRMED FROM SURFACE TO APPROX. 100 METRES DEPTH

Aura Energy Limited (AEE; ASX, AURA; AIM) is pleased to advise the results from its 100% owned Häggån Battery Metals Project, Sweden resource upgrade drilling program and resource modelling. A full version of the announcement can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/4628P_1-2019-10-10.pdf

This has resulted in a new Global Resource of 2 Billion tonnes at an average grade of 0.3% V(2) O(5) , containing 13.3 Billion lbs V(2) O(5) (,) at a 0.2% V(2) O(5) cutoff, which includes 320 million lbs V(2) O(5) at 0.35% V(2) O(5) as Indicated Resource, and 13.0 Billion lbs V(2) O(5) at 0.3% V(2) O(5) as Inferred Resource. (Refer Table 1)

Importantly, the infill drilling and modelling work has confirmed 42 million tonnes at 0.35% V(2) O(5) at 0.2% V(2) O(5) cut-off as Indicated Resource in a coherent near-surface zone.

Häggån is a large poly-metallic deposit containing economically significant levels of V (vanadium), Ni (nickel), Zn (zinc), Mo (molybdenum) and other metals. Resource estimates have previously been conducted and reported on the Häggån Project in 2010, 2011, 2012 and 2018 and since then additional infill drilling has been carried out.

In summary, the new Resource Estimate at Häggån, at a range of V(2) O(5) cut-offs, is presented in Table 1. The 0.2% V(2) O(5) cut-off is used to report the Häggån Resource Estimate.

 
                                                                     Million 
 V2O5 Cut-Off   Class       Mt Ore   V2O5   Mo    Ni    Zn    K2O     lbs 
 %                                   %      ppm   ppm   ppm   %      V2O5 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
                Indicated       45   0.34   213   365   501   4.11       332 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
        0.10%   Inferred     2,503   0.27   200   312   433   3.73    14,873 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
                Indicated       42   0.35   217   375   512   4.13       320 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
        0.20%   Inferred     1,963   0.30   212   337   463   3.80    13,010 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
                Indicated       31   0.38   223   398   536   4.23       258 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
        0.30%   Inferred       954   0.35   226   374   503   3.95     7,390 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
                Indicated       11   0.44   225   429   580   4.46       101 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
        0.40%   Inferred       113   0.43   232   419   562   4.25     1,072 
               ----------  -------  -----  ----  ----  ----  -----  -------- 
 

Table 1: 2019 Resource Statement, Häggån.

At a higher cut-off grade of 0.4% V(2) O(5,) the resource contains approximately 113 million tonnes at an average grade of 0.43% V(2) O(5) containing 1.1 billion lbs of V(2) O(5) in Inferred Resources(,) and 11 million tonnes at an average grade of 0.44% V(2) O(5) containing 101 million lbs V(2) O(5.) in Indicated Resource.

Of particular interest within this global resource, is the definition as Indicated Resource of a coherent zone of mineralisation of 42 million tonnes at +0.35% vanadium pentoxide commencing at surface and extending to +100 metres below surface. This is referred to as the Northwest High-Grade zone.

The Resource Estimate is based on 16,500m of diamond drilling in 91 drillholes. The Indicated Resource is based on 3,530m in 25 diamond drillholes.

The high-grade V(2) O(5) zone defined as Indicated Resource is open in all horizontal directions. More drilling will be required to define the limits of the high-grade resource.

Project Location

The Häggån Project is located in central Sweden in a rural area, approximately one hour by car from the city of Östersund in the province of Jämtland. Östersund is well served by national and international air services, by rail and by road.

Häggån Tenements

Through its 100% owned Swedish subsidiary Vanadis Battery Metals AB, Aura holds five exploration permits, totalling 57.6 km(2) over and around the Häggån resource. The entire Häggån resource lies within one of these, Häggån nr1 which covers 18.3 km(2) . The Häggån nr1 permit is currently in its final period of tenure which expires on 28 August 2022. After this the area can be retained as a mining licence.

Geology

The Häggån polymetallic mineralisation lies within a Cambrian to Lower Ordovician age geological unit known as the Alum Shale Formation. The Alum Shale was laid down within an ancient ocean which formed when what is now Greenland rifted apart from Scandinavia. The shallow marine waters coupled with prolonged stability resulted in the deposition of highly bituminous shales. This shale facies is generally between 10 and 60 metres thick and extends sporadically in Scandinavia from northern Norway to southern Sweden. The Alum Shale contains elevated but variable levels of a number of metals, principally vanadium, nickel, molybdenum, zinc, cobalt and in places copper and uranium. These metals are believed to have been derived by weathering of granitic rocks in the adjoining Fennoscandian Shield and transported to the Iapetus Sea where the extreme anoxic conditions allowed the metals to precipitate or chelate with organic matter during sedimentation.

During the mid-Palaeozoic the former sea closed due to the collision of the Laurencia (Greenland) continental plate with the Baltica plate (Scandinavia). This collision resulted in thrusting of the lower Palaeozoic sequences, including the Alum Shale, from the west to the east over older basement rocks of the Fennoscandian shield. Together with slices of older basement, the sedimentary rocks were thrust several hundred kilometres eastwards over the edge of the Fennoscandian Shield in several large sub-horizontal thrust sheets c. 400 Ma ago.

Häggån lies close to the eastern edge of this sedimentary thrust-sheet package. (Refer to Figure 3 in the full announcement).

Mineralisation

The mineralisation in the Alum Shale in the area investigated by Aura is enriched in various elements, principally:

   --    Vanadium 
   --    Nickel 
   --    Molybdenum 
   --    Cobalt 
   --    Zinc 

Vanadium occurs within the lattice of the mineral roscoelite, a variety of mica. Nickel, molybdenum, cobalt and zinc are present as sulphides. All minerals, with the exception of recrystallised carbonates, are very fine grained, typically around 10 microns in grain size.

The highest metal concentrations generally occur in the upper parts of the Alum Shale, and the highest vanadium grades in the Aura licences appear to occur in the upper thrust sheet.

The NWHG Zone here extends approximately 1 kilometre in both north-south and east-west directions. The coherence of this zone is shown in both cross-sections and plan in Figures 6 and 7 in the full announcement.

Potential to Expand Measured/Indicated Resources

The 2018/19 resource upgrade drilling program was designed for cost reasons to upgrade approximately 70% of the resource on which a scoping study will be based into measured/indicated categories. However, the recent infill drilling has not defined the limits of the high grade (+0.4% V(2) O(5) ) mineralisation. There is therefore excellent potential to expand the Indicated Resource on high grade mineralisation.

Summary of Resource Estimation and Reporting Criteria

Summary of Resource Estimation and Reporting Criteria

In accordance with Australian Securities Exchange Listing Rule 5.8 and the JORC 2012 reporting guidelines, a summary of the material information used to estimate the Mineral Resource is set out below (for further detail please refer to the Appendix to this Announcement).

Geology and Geological Interpretation

Mineralisation at Häggån is hosted by bedded black shales of the Cambrian to Ordovician Alum Shale in tectonically or otherwise stratigraphically thickened metal enriched north-north-west striking elongated geological domains. The mineralised sequence outcrops in an area in the east of the tenement but elsewhere underlies a variably thin cover of limestone and glacial till. Minor inter-beds of carbonate enriched shale or siltstone occasionally occur within the mineralised sequence. The mineralised unit overlies a mixed sequence of siltstone and massive mineralized black shale above a granitoid gneissic basement. It is interpreted that there are a series of overthrusts which have displaced and caused thickening of Alum Shale within the resource area.

Drilling Techniques and Hole Spacing

The 2019 Häggån Resource Estimate is based on several drilling campaigns:

2008: 3,453 metres in 17 diamond drillholes

2010: 5,091 metres in 25 diamond drillholes

2011: 2,279 metres in 10 diamond drillholes

2012: 1,625 metres in 9 diamond drillholes

   2015:  149 metres   in 1 diamond drillhole 
   2017:  374 metres   in 2 diamond drillholes 

2018/19: 2,930 metres in 22 diamond drillholes

All drillholes except one were vertical. The majority of the holes were drilled with BQTQ bit (core diameter 47 mm).

Hole spacing within the Inferred Resource is approximately 400 metres by 400 metres, with precise locations determined by ease of access. Hole spacing within the Indicated Resource is approximately 100 metres x 100 metres.

Sampling and Sub-Sampling Techniques

Half-core was cut by diamond saw using a sample interval of 2 metres unless the interval included a lithological contact in which case each lithology was sampled separately. Samples were dried at 105degC, then prepared by ALS method Prep 22 (Crush to 70% less than 6mm, pulverize entire sample to finer than 85% passing 75 microns). A 100 gram sample of pulp was taken by mini-riffle splitter for analysis.

Sampling Analysis Method

All samples were analysed by ICPMS & ICPAES for a wide range of elements following 4-acid digestion.

Cut-off Grades

The 2019 Resource Estimate is reported at a lower cut-off grade of 0.2% V(2) O(5.) Open pit modelling based on the resource block model has indicated a break-even grade of 755 ppm (0.076%) V(2) O(5) . A resource cut-off grade of 0.2% V(2) O(5) is therefore conservative.

Tonnages and grades are reported for comparison also at a range of other cut-off grades.

Estimation Methodology

The vanadium, nickel, zinc, molybdenum, calcium and sulphur concentrations were estimated by Ordinary Kriging using Micromine software by H&S Consultants (H&SC). H&SC considers Ordinary Kriging to be an appropriate estimation technique for this type of mineralisation.

H&SC created a wireframe solid to define the volume represented by vanadium grades above background concentrations. This wireframe is largely limited to the shale unit. Only the volumes inside the wireframes were estimated using only assays from within the respective wireframes.

The absence of extreme values precluded the need for top-cutting.

No assumptions were made regarding the recovery of by-products.

Variography was performed for vanadium, nickel, zinc, molybdenum, calcium and sulphur on composite data from the Häggån mineralised volume.

Block dimensions for Indicated Resource are 50 x 50 x 10 metres and for Inferred Resource 200 x 200 x 10 metres (east, north, and vertical respectively). The plan dimensions were chosen as they are nominally half the drill hole spacing. The vertical dimension was shortened to reflect downhole data spacing and flat-lying nature of the mineralisation.

Three search passes were employed with progressively larger radii and decreasing search criteria. The blocks in the Häggån deposit that were populated in the first pass are classified as Indicated, and those populated in the second pass are classified as Inferred Mineral Resources. Blocks populated in the third pass formed the foundation of an Exploration Target which is not reported here. The criteria for each search pass is detailed below:

Pass 1: Search radii = 130 x 130 x 8 metres, minimum points = 13, maximum points = 24 (6 per quadrant), minimum drill holes = 4, maximum points per drill hole = 6

Pass 2: Search radii = 400 x 400 x 10 metres, minimum points = 9, maximum points = 24 (6 per quadrant), minimum drill holes = 2, maximum points per drill hole = 6

Pass 3: Search radii = 800 x 800 x 20 metres, minimum points = 6, maximum points = 24 (6 per quadrant), minimum drill holes = 1, maximum points per drill hole = 6

The maximum extrapolation of Inferred Mineral Resource estimates is 380 metres. The relatively large extrapolation distances is supported by the continuity and predictability indicated in the areas drilled. H&SC estimate that approximately 10% of the Inferred Resources are extrapolated beyond the drilling. None of the Indicated Resource is extrapolated.

The estimation procedure was reviewed as part of an internal H&SC peer review. The final H&SC block model was reviewed visually by H&SC and it was concluded that the block model fairly represents the grades observed in the drill holes. H&SC also validated the block model statistically using a variety of histograms, and summary statistics.

Mining and processing methods and parameters

Given the flat lying nature of the mineralisation and the low overburden to resource ratios the resource is very well suited to standard open pit mining.

A significant volume of test work has been undertaken on definition of vanadium deportment and process behaviour, and for the other resource metals. This demonstrated that vanadium is present mainly in the form of V(III) hosted within the mica mineral roscoelite.

Refer to ASX Release: "High Grade Vanadium Zone Defined, 23(rd) May 2018"

For more information please visit www.auraenergy.com.au or contact the following:

 
Aura Energy Limited                     Telephone: +61 (3) 9516 6500 
  Peter Reeve (Executive Chairman)        info@auraenergy.com.au 
 SP Angel Corporate Finance LLP          Telephone: +44 (0) 203 470 
  (Nominated Advisor and Joint Broker)    0470 
  Ewan Leggat 
  Caroline Rowe 
 
  WH Ireland Limited 
  (Joint Broker) 
  Adrian Hadden                           Telephone: +44 (0) 207 220 
  James Sinclair-Ford                     1666 
 
  Yellow Jersey PR Limited                Telephone: +44 (0) 7769 325 
  Felicity Winkles                        254 
  Joe Burgess 
 

Competent Person Statements

The Competent Person for the 2012 Häggån Mineral Resource Estimate and classification, updated in 2019, is Mr Rupert Osborn MSc of H&S Consultants Pty Ltd. The information in the report to which this statement is attached that relates to the 2019 Resource Estimate is based on information compiled by Mr Rupert Osborn, who has sufficient experience that is relevant to the resource estimation. This qualifies Mr Osborn as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Osborn is an employee of H&S Consultants Pty Ltd, a Sydney based geological consulting firm. Mr Osborn is a Member of The Australian Institute of Geoscientists (AIG) and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Competent Person for drill hole data, cut-off grade and prospects for eventual economic extraction is Mr Neil Clifford MSc. The information in the report to which this statement is attached that relates to drill hole data for both existing and new drill holes (with the new drill holes are from 18DDHG070 to 19DDHG091 and the results set out in Table 2), cut-off grade and prospects for eventual economic extraction is based on information compiled by Mr Neil Clifford. Mr Clifford has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford is an independent consultant to Aura Energy. Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

 
 
 Sampling techniques          Nature and quality of                         The 2019 Häggån resource 
                              sampling (e.g. cut                            estimate was based on several drilling 
                              channels, random chips, or                    campaigns: 
                              specific specialised                           *    2008: 3453m in 17 diamond drillholes 
                              industry 
                              standard measurement tools 
                              appropriate to the                             *    2010: 5091m in 25 " 
                              minerals under 
                              investigation, such as 
                              down hole                                      *    2011: 2279m in 10 " 
                              gamma sondes, or handheld 
                              XRF instruments, etc). 
                              These examples should not                      *    2012: 2226m in 14 " 
                              be taken as limiting 
                              the broad meaning of 
                              sampling.                                      *    2015: 149m in 1 " 
                              Include reference to 
                              measures taken to ensure 
                              sample representativity                        *    2017: 374m in 2 " 
                              and the appropriate 
                              calibration of any 
                              measurement tools or                           *    2018/19: 2930m in 22 " 
                              systems used. 
                              Aspects of the 
                              determination of 
                              mineralisation that are 
                              Material to the Public                        All drill samples were obtained by diamond 
                              Report.                                       drilling. Drillcore samples were provided 
                              In cases where 'industry                      to ALS 
                              standard' work has been                       Global at Piteå in Sweden (ALS) for 
                              done this would be                            preparation. Samples were analysed by ICP 
                              relatively simple (e.g.                       by ALS. 
                              'reverse circulation                          The Alum Shale, host to the 
                              drilling was used to                          mineralisation, has a relatively 
                              obtain 1 m samples from                       consistent content of the target 
                              which 3 kg was pulverised                     metals. 
                              to produce a 30 g charge                      Half-core was cut by diamond saw using a 
                              for fire assay'). In other                    sample interval of 2m unless the interval 
                              cases, more explanation                       included 
                              may be required,                              a lithological contact in which case each 
                              such as where there is                        lithology was sampled separately. Samples 
                              coarse gold that has                          were dried 
                              inherent sampling                             at 105degC, then prepared by ALS method 
                              problems. Unusual                             Prep 22 (Crush to 70% less than 6mm, 
                              commodities                                   pulverize entire 
                              or mineralisation types                       sample to better than 85% passing 75 
                              (e.g. submarine nodules)                      microns). A 100g sample of pulp was taken 
                              may warrant disclosure of                     by mini-riffle 
                              detailed information.                         splitter for analysis. 
 Drilling techniques          Drill type (e.g. core,       Diamond drill core; standard tube; all BQTQ (core diameter 
                              reverse circulation,         47mm) or an equivalent size depending 
                              open-hole hammer, rotary     on the contractor used. 
                              air blast, auger, Bangka,    All 2018/19 holes & approximately 20% of previous holes 
                              sonic, etc) and details      were surveyed downhole, generally 
                              (e.g. core diameter,         at 3m intervals. The majority of holes surveyed have 
                              triple or standard tube,     limited deviation, with a maximum deviation 
                              depth of diamond tails,      at the bottom of a hole of c. 11 m. 
                              face-sampling bit or other   All holes but 1 drilled in 2010 were collared vertically. 
                              type, whether core is        The 1 inclined hole was drilled 
                              oriented and if so, by       at an angle of -65deg to 090deg and drillcore was oriented. 
                              what method, etc). 
 Drill sample recovery        Method of recording and      Any core loss was marked by the drillers and measured and 
                              assessing core and chip      recorded by the geologist during 
                              sample recoveries and        core logging. 
                              results assessed.            The Alum Shale, host to the mineralisation, consistently 
                              Measures taken to maximise   has recoveries of +95%. 
                              sample recovery and ensure   Assays in the few intervals which include higher core loss 
                              representative nature of     appear typical of assays in areas 
                              the samples.                 of high recovery nearby. There is no evidence of any grade 
                              Whether a relationship       bias that might arise from the 
                              exists between sample        small number of intervals with poor or no core recovery. 
                              recovery and grade and 
                              whether sample bias may 
                              have occurred due to 
                              preferential loss/gain of 
                              fine/coarse material. 
 Logging                      Whether core and chip        Core was aligned and checked for continuity and marked out 
                              samples have been            in one-meter intervals. It was 
                              geologically and             checked for drill bit marking as bit matrices are known to 
                              geotechnically logged to a   contain molybdenum. Comments were 
                              level                        recorded in the database regarding the presence of bit 
                              of detail to support         marks. 
                              appropriate Mineral          Core was geologically logged, recording lithology, 
                              Resource estimation,         oxidation, mineralogy (where possible), 
                              mining studies and           texture, fracture density & structure and radiation levels 
                              metallurgical                recorded by handheld scintillometer. 
                              studies.                     Down hole depth intervals were recorded with an accuracy of 
                              Whether logging is           20 cm. 
                              qualitative or               All core was photographed. 
                              quantitative in nature.      All core was geologically logged. 
                              Core (or costean, channel, 
                              etc) 
                              photography. 
                              The total length and 
                              percentage of the relevant 
                              intersections logged. 
 Sub-sampling techniques      If core, whether cut or      Core was sawn in half using a core saw. 
 and sample preparation       sawn and whether quarter,     All drill holes were diamond drill holes. 
                              half or all core taken.        *    Half core was taken using a sample interval of 2 m. 
                              If non-core, whether                Sample was dried at 105degC, then crushed to 70% -2 
                              riffled, tube sampled,              mm using ALS method Prep 22 (crush to 70% less than 
                              rotary split, etc and               6mm, pulverize entire sample to better than 85% 
                              whether sampled wet or              passing 75 microns). c. 100g sample of pulp to split 
                              dry.                                off using mini-riffle splitter for analysis. 
                              For all sample types, the 
                              nature, quality and 
                              appropriateness of the         *    Precision of sampling and analysing pulps is, based 
                              sample preparation                  on QC sample results, considered to be within +/- 5% 
                              technique.                          and acceptable for use in resource estimation at any 
                              Quality control procedures          confidence level. 
                              adopted for all 
                              sub-sampling stages to 
                              maximise representivity        *    The grain size of the Alum Shale is extremely fine, 
                              of samples.                         less than 10 microns, and commonly around 1 micron. 
                              Measures taken to ensure            The uranium mineralisation is finely disseminated 
                              that the sampling is                throughout the shale, again at a micron scale or 
                              representative of the               less. Consequently, the mineralisation and its host 
                              in-situ material                    rock are very well represented in the 2m samples of 
                              collected,                          core collected (average sample 3.3 kg). Sample size 
                              including for instance              is therefore appropriate. 
                              results for field 
                              duplicate/second-half 
                              sampling. 
                              Whether sample sizes are 
                              appropriate to the grain 
                              size of the material being 
                              sampled. 
 Quality of assay data and    The nature, quality and      Multi-element assaying was done by ALS Method ME-ICP61 on a 
 laboratory tests             appropriateness of the       0.25g sample (4 acid digestion 
                              assaying and laboratory      with ICP-AES finish). The ICP method after 4 acid digestion 
                              procedures used and          is reported to give near total 
                              whether the technique is     assay for all resource elements. 
                              considered partial or        For quality control every 25 samples submitted for assay 
                              total.                       included 1 duplicate, 1 blank, and 
                              For geophysical tools,       1 CRM (certified reference material). The 3 CRMs used in 
                              spectrometers, handheld      the resource upgrade drilling were 
                              XRF instruments, etc, the    produced from Häggån Alum Shale to ensure matrix 
                              parameters used in           matching and certified by OREAS. 
                              determining the analysis     QAQC data were inspected by Aura before data were accepted 
                              including instrument make    and entered into the Aura database. 
                              and model, reading times,    Review of these QAQC results indicates acceptable levels of 
                              calibrations                 accuracy and precision have been 
                              factors applied and their    established. 
                              derivation, etc. 
                              Nature of quality control 
                              procedures adopted (e.g. 
                              standards, blanks, 
                              duplicates, external 
                              laboratory checks) and 
                              whether acceptable levels 
                              of accuracy (i.e. lack of 
                              bias) and precision 
                              have been established. 
 Verification of sampling     The verification of          No twin holes were drilled. 
 and assaying                 significant intersections    The following information primary data is recorded: Collar, 
                              by either independent or     alteration, assays, drilling type, 
                              alternative company          Geology, Geotech, Magnetic susceptibility, mineralisation, 
                              personnel.                   radiometrics, samples, scintillometer, 
                              The use of twinned holes.    spectrometer, structure, veining, surface samples, batch 
                              Documentation of primary     details. 
                              data, data entry             All logging was done by the geologist and entered in an 
                              procedures, data             Excel spreadsheet. Photos of the core 
                              verification, data storage   are taken after the hole was logged. Data is kept on site 
                              (physical                    on an external hard drive as well 
                              and electronic) protocols.   as being sent by email to Aura Energy in Australia where it 
                              Discuss any adjustment to    was uploaded into the independently 
                              assay data.                  managed EarthSQL data base. 
                                                           No data enters the database without verification by the 
                                                           Database Manager. 
                                                           Database is managed by external contractor EarthSQL. 
                                                           No adjustment has been made to assay data as received from 
                                                           the laboratory. 
 Location of data points      Accuracy and quality of      Initial hole collar location was taken during drilling with 
                              surveys used to locate       handheld GPS at an accuracy of 
                              drill holes (collar and      +/-3 metres. All holes on which the Indicated Resource are 
                              down-hole surveys),          based were subsequently surveyed 
                              trenches, mine workings      at the conclusion of the program by DGPS with an accuracy 
                              and other locations used     of better than 20cm. 
                              in Mineral Resource          All drill collars prior to 2015 were recorded in Swedish 
                              estimation.                  grid system RT 90 2.5. Subsequent 
                              Specification of the grid    holes were recorded in grid system SWEREF 99 TM following a 
                              system used.                 change by the Swedish Government. 
                              Quality and adequacy of      All collars were converted to SWEREF 99 TM for the 2018 and 
                              topographic control.         2019 resource estimation. 
                                                           Holes were vertical in all cases except Hole 39 which was 
                                                           inclined at 65deg towards 090 UTM. 
                                                           All drillholes since 2015 have been downhole surveyed. 
                                                           Approximately 20% of drillholes prior 
                                                           to 2015 were downhole surveyed. The maximum deviation 
                                                           occurred in Hole 22 which had a dip 
                                                           of 75 at 250 m. This represents an average deviation of 0.3 
                                                           degrees per meter and a maximum 
                                                           location error at the bottom of the hole of 11 m for holes 
                                                           assumed to be vertical. Other surveyed 
                                                           holes had visibly less deviation. 
                                                           Drillholes on which the Indicated Resource is based were 
                                                           drilled on an approximately 100m 
                                                           x 100m pattern, and holes on which the Inferred Resource is 
                                                           based are located on an approximate 
                                                           400 m by 400 m grid; precise locations depended partially 
                                                           on access. 
                                                           Topography: Collar RLs were determined by GPS to an 
                                                           accuracy of approx. 3m. Holes collars 
                                                           used in the Indicated Resource estimate were re-surveyed by 
                                                           DGPS to an accuracy better than 
                                                           20cm. 
 Data spacing and             Data spacing for reporting   Exploration Results are not reported here as Mineral 
 distribution                 of Exploration Results.      Resource Estimates exist. 
                              Whether the data spacing     H&S Consultants (H&SC) consider the drillhole spacing to be 
                              and distribution is          sufficient for their Resource 
                              sufficient to establish      Classification as Indicated and Inferred. 
                              the degree of geological     The vast majority of sample intervals are 2 m in length. 
                              and grade continuity         For the purposes of Resource Estimation, 
                              appropriate for the          samples were composited to 2 m intervals. The boundaries of 
                              Mineral Resource and Ore     the mineralisation wireframes 
                              Reserve estimation           were honoured. 
                              procedure(s) 
                              and classifications 
                              applied. 
                              Whether sample compositing 
                              has been applied. 
 Orientation of data in       Whether the orientation of   As the mineralisation occurs in sub-horizontal sheets, 
 relation to geological       sampling achieves unbiased   vertical drilling is an appropriate 
 structure                    sampling of possible         drilling orientation. 
                              structures and 
                              the extent to which this 
                              is known, considering the 
                              deposit type. 
                              If the relationship 
                              between the drilling 
                              orientation and the 
                              orientation of key 
                              mineralised 
                              structures is considered 
                              to have introduced a 
                              sampling bias, this should 
                              be assessed and reported 
                              if material. 
 Sample security              The measures taken to        Drillcore was collected by Aura personnel from the drill 
                              ensure sample security.      sites and immediately taken and housed 
                                                           in Aura's local locked core shed. After logging the core 
                                                           was transported to ALS Laboratories 
                                                           facility by either Aura or ALS personnel for core sawing, 
                                                           sample preparation and assaying. 
 Audits or reviews            The results of any audits    Procedures were reviewed during visits by independent 
                              or reviews of sampling       consultants Rupert Osborn of H&S Consulting 
                              techniques and data.         in Dec 2018 and by W H Ireland in 2016 and no issues were 
                                                           identified. 
===========================  ===========================  ============================================================ 
 

Section 2. Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 
 
 Mineral          Type, reference name/number, location and ownership including     All Resources of the 
 tenement and     agreements or material issues                                     Häggån Project are located 
 land tenure      with third parties such as joint ventures, partnerships,          on Exploration Permit 
 status           overriding royalties, native title                                Häggån 
                  interests, historical sites, wilderness or national park and      No. 1. This permit is held in the 
                  environmental settings.                                           name of the Aura Energy Ltd 
                  The security of the tenure held at the time of reporting along    100%-owned Swedish subsidiary 
                  with any known impediments                                        company, Vanadis Battery Metals AB, 
                  to obtaining a licence to operate in the area.                    which holds a 100% interest in this 
                                                                                    permit and adjoining 
                                                                                    permits. 
                                                                                    Only standard Swedish Government 
                                                                                    royalties apply to these permits. 
                                                                                    No native title interests are known 
                                                                                    to exist in the permits. 
                                                                                    A small, 2-hectare Natura 2000 area 
                                                                                    occurs against the eastern boundary 
                                                                                    of Häggån 
                                                                                    No.1 permit; this area is not in the 
                                                                                    vicinity of the currently-planned 
                                                                                    mining area should 
                                                                                    a project be initiated at 
                                                                                    Häggån. 
                                                                                    The Häggån Nr 1 
                                                                                    Exploration Permit on which the 
                                                                                    entire resource is situated is valid 
                                                                                    until 28/8/2022. 
 Exploration      Acknowledgment and appraisal of exploration by other parties.     Aura is not aware of any prior 
 done by other                                                                      exploration by others. 
 parties 
 Geology          Deposit type, geological setting and style of mineralisation.     Mineralisation at Häggån 
                                                                                    is hosted by bedded black shales of 
                                                                                    the Cambrian to Ordovician 
                                                                                    Alum Shale in tectonically or 
                                                                                    otherwise stratigraphically 
                                                                                    thickened metal-enriched 
                                                                                    north-north-west-striking 
                                                                                    elongated geological domains. The 
                                                                                    mineralised sequence outcrops in an 
                                                                                    area in the east of 
                                                                                    the tenement but elsewhere underlies 
                                                                                    a variably thin cover of limestone. 
                                                                                    Minor inter-beds 
                                                                                    of carbonate-enriched shale or 
                                                                                    siltstone occasionally occur within 
                                                                                    the mineralised sequence. 
                                                                                    The mineralised unit overlies a 
                                                                                    mixed sequence of siltstone and 
                                                                                    massive mineralized back shale 
                                                                                    above a granitoid gneissic basement. 
                                                                                    It is interpreted that there is a 
                                                                                    series of overthrusts which have 
                                                                                    displaced and caused thickening 
                                                                                    of Alum Shale within the resource 
                                                                                    area, and the sub-horizontal thrust 
                                                                                    sheets have influenced 
                                                                                    the grade distribution within the 
                                                                                    Häggån deposit. 
 Drill hole            A summary of all information material to the understanding   Drillhole collar locations are shown 
 Information           of the exploration results including                         in figures in the ASX Announcement 
                       a tabulation of the following information for all Material   which this table accompanies. 
                       drill holes:                                                 Collar locations for all holes on 
                        *    easting and northing of the drill hole collar          which the Indicated Resource is 
                                                                                    based are presented in Table 
                                                                                    2 of the ASX announcement. 
                        *    elevation or RL (Reduced Level - elevation above sea 
                             level in metres) of the drill hole collar 
 
 
                        *    dip and azimuth of the hole 
 
 
                        *    down hole length and interception depth 
 
 
                        *    hole length. 
 
 
                       If the exclusion of this information is justified on the 
                       basis that the information is not 
                       Material and this exclusion does not detract from the 
                       understanding of the report, the Competent 
                       Person should clearly explain why this is the case. 
 Data             In reporting Exploration Results, weighting averaging             No Exploration Results are reported 
 aggregation      techniques, maximum and/or minimum grade                          here as they are superseded by 
 methods          truncations (e.g. cutting of high grades) and cut-off grades      Mineral Resource Estimates. 
                  are usually Material and should 
                  be stated. 
                  Where aggregate intercepts incorporate short lengths of high 
                  grade results and longer lengths 
                  of low grade results, the procedure used for such aggregation 
                  should be stated and some typical 
                  examples of such aggregations should be shown in detail. 
                  The assumptions used for any reporting of metal equivalent 
                  values should be clearly stated. 
 Relationship     These relationships are particularly important in the reporting   As the mineralisation occurs in 
 between          of Exploration Results.                                           sub-horizontal sheets, downhole 
 mineralisation   If the geometry of the mineralisation with respect to the drill   lengths are believed to be 
 widths and       hole angle is known, its nature                                   a close approximation to true 
 intercept        should be reported.                                               widths. 
 lengths          If it is not known and only the down hole lengths are reported, 
                  there should be a clear statement 
                  to this effect (e.g. 'down hole length, true width not known'). 
 Diagrams         Appropriate maps and sections (with scales) and tabulations of    Appropriate maps and sections and 
                  intercepts should be included                                     tabulations of intersects can be 
                  for any significant discovery being reported These should         found on the Aura Energy 
                  include, but not be limited to a                                  website (www.auraenergy.com.au) or 
                  plan view of drill hole collar locations and appropriate          in releases to the Australian Stock 
                  sectional views.                                                  Exchange (ASX), available 
                                                                                    on the ASX website. 
 Balanced         Where comprehensive reporting of all Exploration Results is not   No Exploration Results are reported 
 reporting        practicable, representative                                       here as they are superseded by 
                  reporting of both low and high grades and/or widths should be     Mineral Resource Estimates. 
                  practiced to avoid misleading 
                  reporting of Exploration Results. 
 Other            Other exploration data, if meaningful and material, should be     This information has been reported 
 substantive      reported including (but not                                       to the ASX over the 11 years since 
 exploration      limited to): geological observations; geophysical survey          the discovery drillhole 
 data             results; geochemical survey results;                              in 2008. 
                  bulk samples - size and method of treatment; metallurgical test 
                  results; bulk density, groundwater, 
                  geotechnical and rock characteristics; potential deleterious or 
                  contaminating substances. 
 Further work     The nature and scale of planned further work (e.g. tests for                            Further work 
                  lateral extensions or depth extensions                                                  plans are 
                  or large-scale step-out drilling).                                                      outlined in 
                  Diagrams clearly highlighting the areas of possible extensions,                         the report 
                  including the main geological                                                           which this 
                  interpretations and future drilling areas, provided this                                table 
                  information is not commercially sensitive.                                              accompanies. 
                                                                                                          Areas for 
                                                                                                          likely 
                                                                                                          extension of 
                                                                                                          the 
                                                                                                          mineralisation 
                                                                                                          are indicated 
                                                                                                          on block model 
                                                                                                          sections in 
                                                                                                          the report 
                                                                                                          that this 
                                                                                                          table 
                                                                                                          accompanies. 
===============  ================================================================  ===================================== 
 

Section 3 Estimation and Reporting of Mineral Resources

 
 
 Database integrity                      Measures taken to ensure that data      Data was collated by Aura Energy from 
                                         has not been corrupted by, for          assays received from independent 
                                         example, transcription or               certified laboratories. 
                                         keying errors, between its initial      All data is entered into the Aura 
                                         collection and its use for Mineral      database maintained by EarthSQL after 
                                         Resource estimation                     validation. 2019 assay 
                                         purposes.                               data has been received by EarthSQL 
                                         Data validation procedures used.        directly from the laboratory and 
                                                                                 automatically merged with 
                                                                                 geological logs and sampling details 
                                                                                 provided by the site geologist. Any 
                                                                                 discrepancies or 
                                                                                 inconsistencies are highlighted by 
                                                                                 the database software and corrected. 
                                                                                 The assay data has 
                                                                                 then been manually reviewed for 
                                                                                 reasonableness. 
                                                                                 Basic drill hole database validation 
                                                                                 completed by H&SC include: 
                                                                                 Assayed intervals were assessed and 
                                                                                 checked for duplicate entries, sample 
                                                                                 overlaps and unusual 
                                                                                 assay values. 
                                                                                 Downhole geological logging was also 
                                                                                 checked for interval overlaps and 
                                                                                 inconsistent data. 
                                                                                 The downhole survey data provided was 
                                                                                 checked for unrealistic deviations. 
                                                                                 During a site visit in December 2018 
                                                                                 H&SC also checked the location of a 
                                                                                 selection of drill 
                                                                                 hole collars and compared drill hole 
                                                                                 geological logs to drill core. 
                                                                                 Assessment of the data confirms that 
                                                                                 it is suitable for resource 
                                                                                 estimation. 
 Site visits                             Comment on any site visits undertaken   Neil Clifford of Aura Energy visited 
                                         by the Competent Person and the         the Häggån resource site 
                                         outcome of those visits.                immediately before 
                                         If no site visits have been             and after the 2018/19 resource 
                                         undertaken indicate why this is the     drilling program.. A site visit was 
                                         case.                                   conducted by and reported 
                                                                                 on by the Independent Geologist 
                                                                                 acting for Wardell Armstrong as part 
                                                                                 of Aura's AIM listing 
                                                                                 requirements. 
                                                                                 Rupert Osborn of H&SC visited the 
                                                                                 Häggån Project for two days 
                                                                                 in December 2018. 
                                                                                 Mr Osborn discussed the geology and 
                                                                                 logging procedures with the site 
                                                                                 geologist, observed drill 
                                                                                 core and checked the location of ten 
                                                                                 drill holes using a handheld GPS. 
 Geological interpretation               Confidence in (or conversely, the       The estimated mineralisation is 
                                         uncertainty of ) the geological         located almost entirely within a 
                                         interpretation of the mineral           shale unit (the Alum Shale). 
                                         deposit.                                The interpretations of deposit scale 
                                         Nature of the data used and of any      geology and mineralisation that 
                                         assumptions made.                       formed the basis of the 
                                         The effect, if any, of alternative      mineral resource estimates are based 
                                         interpretations on Mineral Resource     on original interpretations of the 
                                         estimation.                             extents of the Alum 
                                         The use of geology in guiding and       Shale that were provided by Aura 
                                         controlling Mineral Resource            Energy in 2011. These interpretations 
                                         estimation.                             are based on drill 
                                         The factors affecting continuity both   hole logs and assay data. H&SC used 
                                         of grade and geology.                   this information as well as data from 
                                                                                 the recent close 
                                                                                 spaced drilling to construct 
                                                                                 wireframes defining the volume 
                                                                                 represented by vanadium grades 
                                                                                 elevated relative to background 
                                                                                 concentrations. 
                                                                                 The wireframe was treated as a hard 
                                                                                 boundary during estimation so that 
                                                                                 blocks inside the wireframe 
                                                                                 were estimated using only drill hole 
                                                                                 data from within the wireframe. 
                                                                                 Oxidation was not considered. 
                                                                                 The shale unit is predominantly 
                                                                                 overlain by limestone and underlain 
                                                                                 by quartzite. 
                                                                                 The confidence in the interpretation 
                                                                                 of the shale unit is high, as the 
                                                                                 sedimentary package 
                                                                                 is reasonably predictable over large 
                                                                                 areas. However, the recent 
                                                                                 close-spaced drilling indicated 
                                                                                 that faulting appears to have 
                                                                                 occurred in the area. The exact 
                                                                                 location and orientation of 
                                                                                 the fault is poorly constrained. 
                                                                                 Preliminary analysis suggest that the 
                                                                                 vertical displacement 
                                                                                 is up to 70 m with an unknown lateral 
                                                                                 displacement. 
                                                                                 The interpreted geology and 
                                                                                 mineralisation is reasonably simple 
                                                                                 and the grade variability 
                                                                                 is reasonably low (with Coefficients 
                                                                                 of Variation (CV) less than 1). It is 
                                                                                 therefore expected 
                                                                                 that any alternative interpretations 
                                                                                 are unlikely to significantly alter 
                                                                                 the Mineral Resource 
                                                                                 estimates. 
 Dimensions                              The extent and variability of the       The estimated Mineral Resource covers 
                                         Mineral Resource expressed as length    a roughly oval area around 4,400 m 
                                         (along strike or otherwise),            wide east-west and 
                                         plan width, and depth below surface     3,400 m north-south. This Mineral 
                                         to the upper and lower limits of the    Resource is split into two discrete 
                                         Mineral Resource.                       patches separated by 
                                                                                 200 to 1,500 m. The mineralisation is 
                                                                                 interpreted to span the swathe 
                                                                                 between the patches. 
                                                                                 Mineralisation in this swathe forms 
                                                                                 part of the Exploration Target 
                                                                                 inventory as lack of drilling 
                                                                                 precludes the classification as a 
                                                                                 Mineral Resource. 
                                                                                 The upper limit of the Mineral 
                                                                                 Resource occurs at surface although 
                                                                                 the average depth is about 
                                                                                 130 m. The maximum depth of the 
                                                                                 Mineral Resource is 275 m 
 Estimation and modelling techniques     The nature and appropriateness of the   The vanadium, molybdenum, nickel, 
                                         estimation technique(s) applied and     zinc, uranium, calcium, sulphur and 
                                         key assumptions,                        potassium concentrations 
                                         including treatment of extreme grade    were estimated by Ordinary Kriging 
                                         values, domaining, interpolation        using the Micromine software. H&SC 
                                         parameters and maximum                  considers Ordinary Kriging 
                                         distance of extrapolation from data     to be an appropriate estimation 
                                         points. If a computer assisted          technique for this type of this 
                                         estimation method was chosen            mineralisation. 
                                         include a description of computer       There are moderate correlations 
                                         software and parameters used.           between vanadium, and molybdenum, 
                                         The availability of check estimates,    nickel, zinc, uranium and 
                                         previous estimates and/or mine          sulphur, especially at low 
                                         production records and                  concentrations. Calcium and potassium 
                                         whether the Mineral Resource estimate   concentrations are not correlated 
                                         takes appropriate account of such       with any of the other estimated 
                                         data.                                   elements. 
                                         The assumptions made regarding          The low CV and absence of extreme 
                                         recovery of by-products.                values precluded the need for 
                                         Estimation of deleterious elements or   top-cutting. 
                                         other non-grade variables of economic   Uranium concentrations were derived 
                                         significance (eg                        from Delayed Neutron Counting (DNC) 
                                         sulphur for acid mine drainage          analysis where available. 
                                         characterisation).                      DNC uranium values are not available 
                                         In the case of block model              from drill core drilled in 2008 or 
                                         interpolation, the block size in        for the 2019 drilling. 
                                         relation to the average sample          The majority of intervals that did 
                                         spacing and the search employed.        not have DNC uranium values did have 
                                         Any assumptions behind modelling of     mixed acid ICP uranium 
                                         selective mining units.                 assays. Regression analysis of 
                                         Any assumptions about correlation       intervals that had both DNC and ICP 
                                         between variables.                      uranium values showed that 
                                         Description of how the geological       the DNC derived uranium values are, 
                                         interpretation was used to control      on average, slightly higher than the 
                                         the resource estimates.                 ICP derived values 
                                         Discussion of basis for using or not    and it is believed that the mixed 
                                         using grade cutting or capping.         acid ICP method is likely to slightly 
                                         The process of validation, the          understate the more 
                                         checking process used, the comparison   refractory proportion of uranium. The 
                                         of model data to drill                  ICP uranium values for intervals that 
                                         hole data, and use of reconciliation    did not have DNC 
                                         data if available.                      values were modified using the 
                                                                                 regression from ICP uranium assays to 
                                                                                 DNC uranium values. 
                                                                                 In some cases, where scintillation 
                                                                                 counts indicate low levels of 
                                                                                 ionising radiation, samples 
                                                                                 within the mineralisation wireframes 
                                                                                 were not assayed using either ICP or 
                                                                                 DNC. In these cases, 
                                                                                 uranium concentrations were derived 
                                                                                 from the scintillation counts using 
                                                                                 the relationship between 
                                                                                 DNC and radiometrics. For these 
                                                                                 intervals, where no samples had been 
                                                                                 taken, the concentrations 
                                                                                 of vanadium, molybdenum, nickel, zinc 
                                                                                 and sulphur were derived from the 
                                                                                 derived uranium concentration 
                                                                                 using regressions from the DNC 
                                                                                 uranium assays. Calcium 
                                                                                 concentrations did not show a 
                                                                                 correlation 
                                                                                 with uranium and unsampled intervals 
                                                                                 were therefore assigned values based 
                                                                                 on the average value 
                                                                                 for the logged rock type. 
                                                                                 H&SC created a wireframe solid to 
                                                                                 define the volume represented by 
                                                                                 vanadium grades above background 
                                                                                 concentrations for the 
                                                                                 Häggån deposit. This 
                                                                                 wireframe is largely limited to the 
                                                                                 shale unit. Blocks outside the 
                                                                                 wireframe are not included in the 
                                                                                 reported Mineral Resource. 
                                                                                 The block model and composites were 
                                                                                 flattened relative to the top surface 
                                                                                 of the mineralisation 
                                                                                 wireframe for estimation. 
                                                                                 A total of 5,254 two metre composites 
                                                                                 were used to estimate the mineralised 
                                                                                 wireframe at Häggån. 
                                                                                 The resources at Häggån 
                                                                                 were previously estimated by Rupert 
                                                                                 Osborn of H&SC in August 
                                                                                 2012 and updated in May 2018. The 
                                                                                 estimated grades in the new estimate 
                                                                                 are very close to those 
                                                                                 estimated in previous models although 
                                                                                 the reported resources are different 
                                                                                 owing to a change 
                                                                                 in the cut-off grade used for 
                                                                                 reporting. The classification has 
                                                                                 increased from Inferred to 
                                                                                 Indicated in the area covered by the 
                                                                                 recent drilling campaign. The 
                                                                                 similarity between the 
                                                                                 estimates is expected as the 
                                                                                 methodology is similar and the 
                                                                                 resource estimates are considered 
                                                                                 to be relatively stable. 
                                                                                 No assumptions were made regarding 
                                                                                 the recovery of by-products. The 
                                                                                 molybdenum, nickel, zinc 
                                                                                 and uranium concentrations were 
                                                                                 estimated but it is unclear if these 
                                                                                 can be economically recovered 
                                                                                 through beneficiation. 
                                                                                 Variography was performed for 
                                                                                 vanadium, molybdenum, nickel, zinc, 
                                                                                 uranium, calcium and sulphur 
                                                                                 on composite data from the 
                                                                                 Häggån mineralised volume. 
                                                                                 Drill holes at Häggån are 
                                                                                 on an irregular grid with a nominal 
                                                                                 spacing of 400x400 
                                                                                 m. Recent drilling conducted in 
                                                                                 2018-2019 focused on infilling 
                                                                                 drillhole spacing an area to 
                                                                                 100x100 m on a regular grid. Drill 
                                                                                 hole assays were composited to two 
                                                                                 metres for estimation. 
                                                                                 Block dimensions in the area covered 
                                                                                 by the close spaced are 50x50x10 m 
                                                                                 (E, N, RL respectively) 
                                                                                 and are 200x200x10 m in the 
                                                                                 surrounding areas. The plan 
                                                                                 dimensions were chosen as they are 
                                                                                 nominally half the drill hole 
                                                                                 spacing. The vertical dimension was 
                                                                                 shortened to reflect downhole 
                                                                                 data spacing and flat-lying nature of 
                                                                                 the mineralisation. Discretisation 
                                                                                 was set to 5x5x2 
                                                                                 (E, N, RL respectively). 
                                                                                 Three search passes were employed 
                                                                                 with progressively larger radii and 
                                                                                 decreasing search criteria. 
                                                                                 The blocks in the Häggån 
                                                                                 deposit that were populated in the 
                                                                                 first pass are classified 
                                                                                 as Indicated, and those populated in 
                                                                                 the second pass are classified as 
                                                                                 Inferred Mineral Resources. 
                                                                                 Blocks populated in the third pass 
                                                                                 formed the foundation of an 
                                                                                 Exploration Target and is not 
                                                                                 reported. The criteria for each 
                                                                                 search pass is detailed below: 
                                                                                 Pass 1: Search radii= 130x130x8m, 
                                                                                 minimum points= 13, maximum points= 
                                                                                 24 (6 per quadrant), 
                                                                                 minimum drill holes= 4, maximum 
                                                                                 points per drill hole = 6 
                                                                                 Pass 2: Search radii= 400x400x10m, 
                                                                                 minimum points= 9, maximum points= 24 
                                                                                 (6 per quadrant), 
                                                                                 minimum drill holes= 2, maximum 
                                                                                 points per drill hole = 6 
                                                                                 Pass 3: Search radii= 800x800x20m, 
                                                                                 minimum points= 6, maximum points= 24 
                                                                                 (6 per quadrant), 
                                                                                 minimum drill holes= 1, maximum 
                                                                                 points per drill hole = 6 
                                                                                 The maximum extrapolation of Inferred 
                                                                                 Mineral Resource estimates is 380 m. 
                                                                                 The relatively 
                                                                                 large extrapolation distances is 
                                                                                 supported by the continuity and 
                                                                                 predictably indicated by 
                                                                                 the areas drilled. 
                                                                                 The estimation procedure was reviewed 
                                                                                 as part of an internal H&SC peer 
                                                                                 review. No independent 
                                                                                 check models were produced due to the 
                                                                                 similarity between the previous 
                                                                                 estimates. 
                                                                                 Estimates of the calcium and sulphur 
                                                                                 concentrations were conducted in 
                                                                                 order to better understand 
                                                                                 the possibility of acid leach 
                                                                                 processing and to begin to assess 
                                                                                 their importance as possible 
                                                                                 deleterious elements. It is unclear 
                                                                                 at this stage whether uranium will be 
                                                                                 considered as a 
                                                                                 deleterious element due to the 
                                                                                 changes in Swedish mining law in 
                                                                                 2018. 
                                                                                 The final H&SC block model was 
                                                                                 reviewed visually by H&SC and it was 
                                                                                 concluded that the block 
                                                                                 model fairly represents the grades 
                                                                                 observed in the drill holes. H&SC 
                                                                                 also validated the block 
                                                                                 model statistically using a variety 
                                                                                 of histograms, boundary plots and 
                                                                                 summary statistics. 
                                                                                 No production has taken place, so no 
                                                                                 reconciliation data is available. 
 Moisture                                Whether the tonnages are estimated on   Tonnages were estimated on a dry 
                                         a dry basis or with natural moisture,   weight basis. The moisture constant 
                                         and the method                          was not determined. 
                                         of determination of the moisture 
                                         content. 
 Cut-off parameters                      The basis of the adopted cut-off        A vanadium pentoxide (V(2) O(5) ) 
                                         grade(s) or quality parameters          cut-off of 0.2% was used to report 
                                         applied.                                the resources as it was 
                                                                                 assumed that material can be 
                                                                                 economically mined at this grade in 
                                                                                 an open-pit scenario. This 
                                                                                 cut-off grade was used at the request 
                                                                                 of Aura Energy, which takes 
                                                                                 responsibility for reasonable 
                                                                                 prospects for eventual economic 
                                                                                 extraction. 
 Mining factors or assumptions           Assumptions made regarding possible     The Mineral Resources reported here 
                                         mining methods, minimum mining          have been estimated on the assumption 
                                         dimensions and internal                 that the deposits 
                                         (or, if applicable, external) mining    will be bulk mined by open pit. 
                                         dilution. It is always necessary as     The minimum model block size 
                                         part of the process                     (50x50x10m) is the effective minimum 
                                         of determining reasonable prospects     mining dimension for this 
                                         for eventual economic extraction to     estimate. 
                                         consider potential                      Any internal dilution has been 
                                         mining methods, but the assumptions     factored in with the modelling and as 
                                         made regarding mining methods and       such is appropriate to 
                                         parameters when estimating              the block size. 
                                         Mineral Resources may not always be 
                                         rigorous. Where this is the case, 
                                         this should be reported 
                                         with an explanation of the basis of 
                                         the mining assumptions made. 
 Metallurgical factors or assumptions    The basis for assumptions or            Three programs of preliminary 
                                         predictions regarding metallurgical     metallurgical test work have 
                                         amenability. It is always               monitored vanadium extraction 
                                         necessary as part of the process of     including 
                                         determining reasonable prospects for    two programs dedicated to the 
                                         eventual economic                       evaluation of vanadium processing 
                                         extraction to consider potential        options. The key features 
                                         metallurgical methods, but the          relating to vanadium recovery are 
                                         assumptions regarding metallurgical     noted below. 
                                         treatment processes and parameters      Vanadium is present in the V(III) 
                                         made when reporting Mineral Resources   valence state, hosted in the mica 
                                         may not always be                       mineral roscoelite (K(V3+, 
                                         rigorous. Where this is the case,       Al, Mg)2AlSi3O10(OH)2). 
                                         this should be reported with an         Vanadium was identified as mainly in 
                                         explanation of the basis                the V(III) valence state, generally 
                                         of the metallurgical assumptions        refractory to direct 
                                         made.                                   acid leaching. Atmospheric acid 
                                                                                 leaching showed only up to 1.8% 
                                                                                 vanadium recovery. 
                                                                                 Desliming with hydrocyclones 
                                                                                 increased the vanadium feed grade by 
                                                                                 a factor of 1.35, with 73% 
                                                                                 recovery and rejection of 45% of feed 
                                                                                 mass. 
                                                                                 Oxalate salt roasting followed by 
                                                                                 acid leaching yielded up to 59% 
                                                                                 vanadium recovery. 
                                                                                 Calcination followed by acid leaching 
                                                                                 yielded up to 32% vanadium recovery. 
                                                                                 Acid pressure leaching yielded up to 
                                                                                 61% vanadium recovery. 
                                                                                 No vanadium penalty elements have 
                                                                                 been identified in work so far. 
 Environmental factors or assumptions    Assumptions made regarding possible     No environmental impact assessments 
                                         waste and process residue disposal      have been conducted at this early 
                                         options. It is always                   stage of evaluation. 
                                         necessary as part of the process of     The planning and costing of remedial 
                                         determining reasonable prospects for    action to limit and control the 
                                         eventual economic                       environmental impacts 
                                         extraction to consider the potential    of mining and processing will be 
                                         environmental impacts of the mining     addressed in the Prefeasibility 
                                         and processing operation.               Study. 
                                         While at this stage the determination 
                                         of potential environmental impacts, 
                                         particularly for 
                                         a greenfields project, may not always 
                                         be well advanced, the status of early 
                                         consideration 
                                         of these potential environmental 
                                         impacts should be reported. Where 
                                         these aspects have not 
                                         been considered this should be 
                                         reported with an explanation of the 
                                         environmental assumptions 
                                         made. 
 Bulk density                            Whether assumed or determined. If       A total of 238 bulk density samples 
                                         assumed, the basis for the              were taken from 22 drillholes during 
                                         assumptions. If determined, the         the recent 2018-2019 
                                         method used, whether wet or dry, the    drilling. Density determinations were 
                                         frequency of the measurements, the      conducted by ALS Global at Piteå 
                                         nature, size and representativeness     on 30cm whole 
                                         of the samples.                         drillcore lengths taken every 10m 
                                         The bulk density for bulk material      through the shale unit. Core was oven 
                                         must have been measured by methods      dried, sealed by wrapping 
                                         that adequately account                 in clingwrap prior to SG 
                                         for void spaces (vugs, porosity,        determination by water displacement. 
                                         etc), moisture and differences          32 samples were determined with 
                                         between rock and alteration             & without sealing and the results 
                                         zones within the deposit.               agreed to within 0.2% on average. 
                                         Discuss assumptions for bulk density    QAQC (quality assurance, 
                                         estimates used in the evaluation        quality control) steps consisted of 
                                         process of the different                determinations of at least one sample 
                                         materials.                              of reference material 
                                                                                 in each batch of approximately 
                                                                                 eleven. 32 duplicate determinations 
                                                                                 were conducted, which agreed 
                                                                                 to better than 0.2% on average. 
                                                                                 The results indicated that the 
                                                                                 density of the shale unit is 
                                                                                 reasonably consistent, although 
                                                                                 further analysis is recommended to 
                                                                                 explain the variations observed. The 
                                                                                 average density of 
                                                                                 2.57 t/m(3) from the 237 samples from 
                                                                                 the shale unit was applied to the 
                                                                                 entire volume represented 
                                                                                 by the mineralisation wireframes. The 
                                                                                 value of 2.73 t/m(3) from the one 
                                                                                 limestone sample was 
                                                                                 assumed for all blocks outside the 
                                                                                 mineralisation wireframe. No 
                                                                                 reduction was made for weathering. 
 
                                                                                 More density test work and analysis 
                                                                                 is recommended in order to raise the 
                                                                                 confidence of the 
                                                                                 resource estimate. 
 Classification                          The basis for the classification of     The blocks in the Häggån 
                                         the Mineral Resources into varying      deposit that were populated in the 
                                         confidence categories.                  first pass are classified 
                                         Whether appropriate account has been    as Indicated Resources and those 
                                         taken of all relevant factors (ie       populated in the second pass are 
                                         relative confidence                     classified as Inferred Mineral 
                                         in tonnage/grade estimations,           Resources. Blocks populated in the 
                                         reliability of input data, confidence   third pass formed the foundation of 
                                         in continuity of geology                an Exploration Target 
                                         and metal values, quality, quantity     which is not reported here. 
                                         and distribution of the data).          Relevant factors are considered to 
                                         Whether the result appropriately        have been accounted for the Indicated 
                                         reflects the Competent Person's view    and Inferred Resources. 
                                         of the deposit.                         Confidence and classification of the 
                                                                                 Mineral Resources may be improved by: 
                                                                                 additional drilling to tighten the 
                                                                                 spacing between drill holes 
                                                                                 conducting more density test work and 
                                                                                 data analysis 
                                                                                 improving the structural and 
                                                                                 geological model 
                                                                                 regional mapping to identify major 
                                                                                 faults 
                                                                                 The classification appropriately 
                                                                                 reflects the Competent Person's view 
                                                                                 of the deposit. 
 Audits or reviews                       The results of any audits or reviews    The Mineral Resource estimate 
                                         of Mineral Resource estimates.          presented here were completed in 
                                                                                 August 2019. The Mineral Resource 
                                                                                 estimate has not been independently 
                                                                                 audited or reviewed but has been 
                                                                                 subject to an internal 
                                                                                 H&SC review. 
 Discussion of relative accuracy/        Where appropriate a statement of the    The relative accuracy and confidence 
 confidence                              relative accuracy and confidence        level in the Mineral Resource 
                                         level in the Mineral                    estimates are considered 
                                         Resource estimate using an approach     to be in line with the generally 
                                         or procedure deemed appropriate by      accepted accuracy and confidence of 
                                         the Competent Person.                   Indicated and Inferred 
                                         For example, the application of         Mineral Resources. This has been 
                                         statistical or geostatistical           determined on a qualitative, rather 
                                         procedures to quantify the relative     than quantitative, basis, 
                                         accuracy of the resource within         and is based on the Competent 
                                         stated confidence limits, or, if such   Person's experience. 
                                         an approach is not deemed               The geological nature of the deposit, 
                                         appropriate, a qualitative discussion   and the low coefficients of variation 
                                         of the factors that could affect the    lend themselves 
                                         relative accuracy                       to reasonable level of confidence in 
                                         and confidence of the estimate.         the resource estimates. 
                                         The statement should specify whether    The Indicated portion of the resource 
                                         it relates to global or local           is considered to be a local estimate 
                                         estimates, and, if local,               and is suitable 
                                         state the relevant tonnages, which      for technical and economic 
                                         should be relevant to technical and     evaluation. 
                                         economic evaluation.                    The Inferred portion of the resource 
                                         Documentation should include            is considered to be a global 
                                         assumptions made and the procedures     estimate. The block model 
                                         used.                                   was created using blocks of a size 
                                         These statements of relative accuracy   considered appropriate for local 
                                         and confidence of the estimate should   grade estimation however 
                                         be compared with                        none of the material is considered to 
                                         production data, where available.       be relevant for technical and 
                                                                                 economic analysis as it 
                                                                                 has been classified as Inferred or 
                                                                                 Exploration Target. Reserve 
                                                                                 calculation must be conducted 
                                                                                 on Resources classified as Indicated 
                                                                                 or Measured. 
                                                                                 No mining of the deposit has taken 
                                                                                 place so no production data is 
                                                                                 available for comparison. 
======================================  ======================================  ====================================== 
 

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