Data collated by Aura Energy from assays received from independent certified laboratories. All data is entered into the Aura database maintained by Reflex Hub after validation.

No core photographs were available.

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.

Assessment of the data confirms that it is suitable for resource estimation.

Neil Clifford of Aura Energy has visited the Häggån resource site in 2015.  A site visit was conducted by and reported on by the Independent Geologist acting for Wardell Armstrong as part of Aura's AIM listing requirements.

No site visit to the Häggån Project was completed by H&SC due to time and budgetary constraints.  All the estimated Mineral Resources are classified as Inferred.

The interpretations of deposit scale geology and mineralisation that formed the basis of the mineral resource estimates are based on interpretations provided by Aura Energy. These interpretations are based on drill hole logs and assay data.

The confidence in the geological interpretation is high as the sedimentary package is reasonably predictable over large areas.

The interpreted geology and mineralisation is simple and therefore any alternative interpretations are unlikely to significantly alter the Mineral Resource estimates. Faults might cross-cut the estimated resource but are unlikely to effect the global Mineral Resource estimate.

The estimated mineralisation is located almost entirely within a shale unit (the Alum Shale). A wireframe was constructed to define 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. Due to the high continuity of the vanadium mineralisation the wireframes were extended beyond drilled extents and estimates were limited by search criteria. Oxidation was not considered. The shale unit is predominantly overlain by limestone and underlain by quartzite.

The estimated Mineral Resource covers a roughly oval area around 4,400 m wide east-west and 3,400 m north-south. This Mineral Resource is split into two discrete 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 is at a depth below surface of 10 m although the average depth is about 130 m. The maximum depth of the Mineral Resource is 275 m

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

There are moderate correlations between vanadium, and molybdenum, nickel, zinc, uranium and sulphur. Calcium concentrations are not correlated with any of the other estimated elements.

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

Uranium concentrations were derived from Delayed Neutron Counting (DNC) analysis where available. DNC uranium values are not available from drill core drilled in 2008 and for some drill holes and intervals after this. The majority of intervals that did not have DNC uranium values did have mixed acid ICP uranium assays. Regression analysis of intervals that had both DNC and ICP uranium values showed that the DNC derived uranium values are, on average, slightly higher than the ICP derived values and it is believed that the mixed acid ICP method is likely to slightly understate the more refractory proportion of uranium. The ICP uranium values for intervals that did not have DNC 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 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 4,155 two metre composites were used to estimate the mineralised wireframe at Häggån.

The resources at Häggån were estimated in August 2011 by Simon Gatehouse of Hellman & Schofield Pty Ltd and by Rupert Osborn of H&SC in August 2012. The estimated grades in the 2018 estimate are very close to those reported in previous estimates. The tonnage has increased as the resources are now reported at a V₂O₅ cut-off. 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. Drill hole assays were composited to two metres for estimation. Block dimensions are 200x200x10m (E, N, RL 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. Discretisation was set to 5x5x2 (E, N, RL respectively).

Two 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 were classified as Inferred Mineral Resources. Blocks populated in the second pass formed the foundation of an Exploration Target quotient. The first pass used radii of 400x400x10m whereas the second 800x800x20m (along strike, across strike and vertical respectively). The search ellipses formed flat discs. Both passes used a four-sector search and a maximum of six composites per sector (total maximum = 24 composites). The first pass required a minimum of eight composites and the second pass required a minimum of six composites. Both passes required a minimum drill hole count of two.

The maximum extrapolation of Inferred Mineral Resource estimates is 380 m. The relatively large extrapolation distances are 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 recent changes in Swedish mining law.

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.

Tonnages are estimated on a dry weight basis. The moisture constant was not determined.

A vanadium cut-off of 1000 ppm is used to report the resources as it is 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, who take responsibility for reasonable prospects for eventual economic extraction

The Mineral Resources reported here have been estimated on the assumption that the deposits will be bulk mined by open-pit.

The model block size (200x200x10m) is the effective minimum mining dimension for this estimate.

Any internal dilution has been factored in with the modelling and as such is appropriate to the block size.

Three programs of preliminary metallurgical test work have monitored vanadium extraction including two programs dedicated to the evaluation of vanadium processing options. The key features relating to vanadium recovery are noted below.

Vanadium is present in the V(III) valence state, hosted in the mica mineral roscoelite (K(V3+, Al, Mg)2AlSi3O10(OH)2).

Vanadium was identified as mainly in the V(III) valence state, generally refractory to direct acid leaching. Atmospheric acid leaching showed up to 1.8% vanadium recovery.

Upgrade by de-slime hydrocyclone of 1.35 times vanadium feed grade could be achieved with 73% recovery and rejection of 45% of feed mass

Oxalate salt roast with acid leach showed up to 59% vanadium recovery.

Calcination with acid leach showed up to 32% vanadium recovery.

Acid pressure leach showed up to 61% vanadium recovery.

Parts of the uranium mineralisation in the Alum Shale have been mined in the past.

No penalty elements identified in work so far.

No environmental impact assessments have been conducted. It is assumed that any remedial action to limit the environmental impacts of mining and processing will not significantly affect the economic viability of the project. Parts of the uranium mineralisation in the Alum Shale have been mined elsewhere in Sweden in the past.

A total of 16 bulk density measurements were taken using an Archimedes Principle technique from diamond drill core of the 2010 drilling campaign. Only five of these measurements were taken from the shale unit that hosts the vast majority of the mineralisation. The density of these five intersections show low variability and average 2.52 t/m3. This density was applied to the entire volume represented by the mineralisation wireframes. No reduction was made for weathering.

The bulk density is the bulk density of samples on a moisture corrected dried mass basis and was determined using the following formula:

Bulk Density = (WA/(Ww-WA)) * (WD/WA)

Where:

·        WA Weight of sample in air, with natural moisture

·        Ww Weight of sample in water

·        WD Weight of sample in air after drying at 105 -110ºC

More density test work is recommended in order to raise the confidence of the resource estimate.

The blocks in the Häggån deposit that were populated in the first pass are classified as Inferred Mineral Resources. A small proportion of blocks at the top of the mineralised wireframe were populated in the second pass as the requirements for the minimum number of data were not met. These blocks were also classified as Inferred in areas where blocks below were populated in the first pass.

Blocks populated in the second pass formed the basis of an Exploration Target inventory not reported here.

Relevant factors are considered to have been accounted for the Inferred Resources.

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

•     regional mapping to identify major faults

•     additional density measurements

The classification appropriately reflects the Competent Person's view of the deposit.

The Mineral Resource estimates presented here were completed in May 2018. The Mineral Resource estimate has not been independently audited or reviewed but has been subject to an internal H&SC review.