HMAS AE2 was launched in the yard of Vickers Ltd at Barrow-in-Furness, England on 18 June 1913 by Mr WH Wharton. She was commissioned at Portsmouth on 28 February 1914 under the command of Lieutenant Commander Henry Hugh Gordon Dacre Stoker, RN. Her crew of 35 comprised officers and ratings from both the Royal Navy and Royal Australian Navy and she was the second of two E-Class submarines built for the fledgling RAN.