Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — Investor Presentation (September 2006)
22 slides from Arafura Rare Earths's investor presentation, Sep 25, 2006
Slide 1: Arafura Resources NL
A Arafura Resources NL Alistair J Stephens Managing Director Nolans Bore Rare Earths Phosphate Calcium Chloride Uranium Arafura Resources for the future
Slide 2: Strong asset base
Strong asset base Short term cash flow from gold and iron ore Developing project with long life Commercial ready grant to support feasibility Multiple revenue streams from Nolans An emerging chemicals and Industrial minerals producer in high growth markets Arafura’ Resources for the future
Slide 3: Arafura Resources - Nolans
ARAFURA RESOURCES NL AusIndustry support in progress fura Resources - lity Nolans. ree re urce Met testwork success Arafura’ Resources for the. future
Slide 4: Large resource
ge resource _. RESOURCESNL _Nolans Bore Feasibility |. ae mee Nolans Bore currently has a JORC —_= — Resource of 18.6 mt containing; Pilot plantin 2007 2.6mt of Phosphate - PO; ne 577kt of Rare Earths - REO _ muderocucuon 8.7 million Ibs of Uranium oxide - UO, Arafura _ Resources for the future
Slide 5: Kilometres north of Alice Springs
135 kilometres north of Alice Springs 5km to gas 10km to road 60km to rail Resources for the future
Slide 6: Nolans Bore - resources
A _Nolans Bore — resources Beseomere we Multi commodity deposit Rare Earths, Phosphate, Uranium, Calcium Chloride 18.6 mt resource Rare Earths Phosphate Uranium 3.1% REO 14% P.O, 0.47 Ib/t U0, 577,000 t REO 2.6mt P.O; 8.7m lbs U,0., Resource has extensive upside potential Thorium 0.36% ThO, 67,000 t
Slide 7: ROSES
ROSES Pin, ees Le ee iio a oo Le
Slide 8: 2006 Drill Program
2006 Drill Program and newly identified apatite mineralisation Extension to Mineralisation Not reported as a resource Myonite q] MBO - Gneissic Granite LAB Mica Schist/ Gniess! Quartite LAB - Cord-Nigt Pele Greiss © Track Drainage Nov 2005 Resource Limit NBRCO97-147 (208A) NBRC_C_DHO01-096 (pre-2006
Slide 9: Nolans Bore - Mining
ARAB RIA Beseomere we @& Nolans Bore - Mining NORTHWEST. NBRCO39. 1,0, Uranium tis g GEES Envelope of Apatite Zone REO -Race Earth Oxide NBRDOZ HANGINGWALL ZONE ‘Wineraisation inlaevad- ¢ 0% REF Cut ot : NBRCOO NBRCOM: "SOUTHEAST: 20H 160:6m, ARAFURA RESOURCES NL NOLANS BORE PROSPECT OBLIQUE SECTION
Slide 10: Nolans Bore - Processing
A _Nolans Bore - Processing Crushing and grinding - 500,000 tpa Pre-leaching with hydrochloric acid Caustic cracking Precipitation & Solvent extraction Waste management ering Technology
Slide 11: Nolans Bore - Process overview
A Nolans Bore — Process overview HCl acid [ Phosphoric — 7 AC oo Heavy metal extraction Soluble | Stream Calcium: Chloride | (Rare Earths =e | uranium | Products | “Tasoluble Stream
Slide 12: Rare Earths
‘RareEarths Blue & Green — in development Grey — identified but yet to be determined through test work ering Technology
Slide 13: Phases and Types of Project Risk, Mitigating Strategies and Underlying Support
Phases and Types of Project Risk, Mitigating Strategies and Underlying Support Define a resource for 20 year ming ite Completed Phase 6 | Phase 7 | Control Construction costs and timeaie Stictine tie | debt to equiy | rato to opine | fetus Dating an economic Shallow open pit 1 Metanurdicn process Pr
Slide 14: Nolans Bore - development stages
A _Nolans Bore - development stages 1. Environmental studies Metallurgical testing and pilot plant Marketing negotiations Government and regulatory approvals 2 3 4. Engineering design 5 6. Construction / commissioning 7 Production ering Technology
Slide 15: Development Timeline
A Safety Environment Test work I&II Metailurgy ill Metailurgy IV Pilot plant Demo plant Commercial Design Construction Production Approvals Development Timeline Qi Q2 Q3 a4 2008 rth & Phospha Qi Q2 Q3 ite recovery Q4 | Qi Q2 Q3
Slide 16: Arafura - the RE Industry
A _Arafura — the RE Industry Beseomere we Demand * To grow on average at least 10% to 15% per annum « Demand driven by Automotive industry and Electronics Supply « Chinese resource conservation strategies will limit raw material supply « — Industry reforms in place « Export quoter system (40,000 tpa
Slide 17: Rare Earth Market Growth
4% Rare Earth Market Growth 200,000 150,000 100,000 + tonnes 50,000 2006 2007 2008 2009 2010 The supply / demand differential Other imma, Phos phors Metal Alloys mum Glass » Polishing Batteries wmmem Magnets mu Catalysts —a— Total Supply ering Technology
Slide 18: Rare Earth Products
Rare Earth Products Hybrid cars Plasma TV l-Pods Disc drives Magnets Automotive catalysts Petroleum refining
Slide 19: Product price assumptions
2006 RE carbonate 50% Neodymium 98% Pr 98% Ce+La 98% Dysprosium 98% Europium 98% Phosphoric acid Calcium Chloride A$5,000 per tonne A$24,000 per tonne A$18,000 per tonne A$2,700 per tonne A$18,000 per tonne A$300,000 per tonne A$500-550 /tonne A$300-350 /tonne US$/A$ = 0.75 Earths ing Technology
Slide 20: Nolans revenue breakdown
py Nolan e u AKAEURA Wee omere we Revenue REO Rev $m in 10,000t Cacl2 —_—— La, 8 Pr, 12 Sm+Gd, 2 REO Dy, 4 55% i | ——Y, 1.5 Phosphoric acid 20% Nd, 50 other, 10 Ce, 11 Based on the sale of 99% grade separated rare earth products. REO carbonate is 50% grade and commands about 60% the sale price of 99
Slide 21: Nolans Bore
Nolans Bore « A resource supporting a long mine life Multiple products Rare earths Phosphoric acid Calcium Chloride Uranium...Thorium Burgeoning industry Close to existing infrastructure Government support for development ing Technology
Slide 22: Arafura Resources NL
Arafura Resources NL Nolans Bore Rare Earths Phosphoric acid Calcium Chloride Uranium Oxide Arafura Resources for the future
Arafura Resources NL — Investor Presentation (September 2006) on 6ix