core sector communique

23 March 2010
RESOURCE DRILLING PROGRAMME AT STORSJÖN IN SWEDEN INTERSECTS THICKEST INTERCEPT OF URANIUM-MINERALISED ALUM SHALE RECORDED TO DATE

Aura Energy Limited (ASX Code AEE, “Aura”) is pleased to announce that the drilling programme to define the first compliant uranium resource in the Storsjön Uranium-Molybdenum-Vanadium-Nickel Project is now nearing completion with 23 holes drilled since January and 4 holes remaining.

Drilling has identified a new area with outcropping mineralised Alum Shale in the south eastern portion of the Häggån exploration permit. The outcropping area contains the longest intercept of mineralised Alum Shale so far intersected in drilling in the region; the hole commenced in mineralised shale at surface, and was still in the shale at 249 metres depth when drilling stopped.
Each of the eighteen holes in the 2010 programme penetrated the full mineralised sequence and contained an average of 115 metres of mineralisation as determined by radiometric logging of drill core. Aura’s confidence has heightened on the extent of the uranium mineralisation in the permit.

It should be noted that this resource drilling programme will test only 5% of Aura’s permits in the region. Aura’s previous drilling in 2008 included 17 holes in its Häggån permit. These 17 holes contained an average of 116 metres of uranium mineralisation. The Aura Board approved a $1.6 million budget for the programme in December 2009. Aura’s programme aims to build a major JORC-compliant resource within its permits. Continental Precious Minerals Inc. has reported one of the largest JORC or 43-101 compliant uranium resources (1.05 billion pounds) in the world in permits adjoining the Storsjön Project. This resource also includes 1.5 billion pounds of molybdenum.

The resource drilling forms part of Aura’s 2010 programme to define the potential value of this vast, multi-metal deposit. The overall programme includes this drilling, plus metallurgical testwork, mineralogical studies, and continuing discussions with potential partners. An update on the progress of metallurgical investigations will be released to the market in the coming weeks.