Arafura Rare Earths Limited · ASX:ARU

Arafura Rare Earths — Arafura Resources — SACOME Breakfast Briefing (September 2011)

14 slides from Arafura Rare Earths's conference presentation, Sep 15, 2011

1. Slide 1: SACOME Breakfast Briefing

   For personal use only SACOME Breakfast Briefing Dr Steve Ward Managing Director & CEO September 15th 2011

2. Slide 2: Disclaimer

   Disclaimer Important Notice For personal use only This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa

3. Slide 3: Rare Earths - Introduction

   Rare Earths - Introduction An exciting market outlook in new high technology applications and clean and efficient For personal use only energy uses, with increasing demand driven by consumers, society & regulators ….. Global REO Production 2009 Australia Brazil China CIS Global REO Reserves 2009 Chi

4. Slide 4: Market Overview

   Market Overview  Current annual global consumption 130kt For personal use only  Major geographic markets are China and Japan  Current annual value US$ 30 Billion  China currently produces 97% of global supplies  Future demand growth very strong: 2 to 5 times GDP depending on application  China

5. Slide 5: Supply and Demand

   Supply and Demand For personal use only  Total Rare Earth Oxide (REO) supply growth does Global REO Supply - Demand Balance Metric tons % Cap. Util. not keep up with demand 400,000 200% growth rates in any year!  Capacity utilizations 350,000 180% bottoms out in 2015 at 300,000 160% 107%  Global

6. Slide 6: Price trends

   Price trends Prices in real terms have returned to long term levels prior to low price ‘Chinese era’ …… For personal use only  1990 to 2005 low priced era driven by unsustainable low cost Chinese production  2006 prices begin to rise with first Chinese Value of 1 Kg Nolans ore - Sep. 2011 export q

7. Slide 7: Introduction to Arafura

   Introduction to Arafura Corporate Summary  Australian Public Company – formed 1997 Business Model - Adding Value in Australia For personal use only  Listed on ASX in 2003 (code ARU)  Nolans Project for Rare Earths  Own technology developed  Bankable Feasibility Study due H2 2012  Project Finan

8. Slide 8: Nolans Project - Key Information

   For personal use only Nolans Project - Key Information  Excellent support from Federal, Northern Territory and South Australian governments  Major project status from South Australian Government  Strong support from local communities in both NT and SA locations – community engagement ongoing  Te

9. Slide 9: Technology

   Technology The flowsheet has been proven as shown and is now undergoing demonstration and optimization to For personal use only de-risk further, focus on rare earths, customize products for target customers, provide detailed design data, confirm EIS data and capture more of intrinsic value …………. Min

10. Slide 10: Creating Opportunities and Value in Australia

    Creating Opportunities and Value in Australia Arafura will act as a catalyst and ’critical mass’ for value creation in Northern Territory For personal use only and South Australia … Nolans Bore mine will act as a hub for regional development. Approximately 150 direct jobs and $25M annual value creat

11. Slide 11: Arafura in Whyalla

    Arafura in Whyalla The Whyalla Rare Earths Complex will be a very substantial chemical For personal use only processing operation by Australian standards.  Comprises facilities for production of feed chemicals, and final products;  Arafura will prompt: • Synergistic developments • Supply service o

12. Slide 12: Where are we now?

    Where are we now? We are here Completed with project For personal use only finance in place by end 2012 Exploration Prefeasibility Study Bankable Feasibility Study Construction Operations Approx 15 years for a rare earths project  At time of completed BFS:  Exploration Began 2000  Approx 100km of

13. Slide 13: Summary

    For personal use only Summary  A high tech industry with exciting outlook  Applications in clean green energy and energy efficiency  Arafura will put South Australia on the world map as a significant supplier  Aligns with South Australia’s resource and mineral processing vision  Substantial cap

14. Slide 14: Thank You

    For personal use only THANK YOU SACOME Breakfast Briefing

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