Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (January 2006)
18 slides from Arafura Rare Earths's investor presentation, Jan 10, 2006
Slide 1: Arafura Resources Investor Update
Arafura Resources Investor Update Managing Director’s Presentation i January 2006 ARAFURA REG DURTES w Arafura sources for the future
Slide 2: Corporate Overview
HES HUREES ME Corporate Overview Corporate Strategy Rare Earths Review and 2006 Plan Uranium Review and 2006 Plan Gold Review and 2006 Plan Divestments Review and 2006 Plan Summary Resources for the future
Slide 3: Corporate snapshot and share price
ana ARAFURBRA HES HUREES ME ASX listed Shares on issue Market capitalisation Listed options Options on issue ARU 58 m $20m ARUO (June 2008) 26m Volume 6000060 ARU Share Price Price 5000000 000000 + | 3000000 } 2000000 #7 1000000 o Lae 5 January 2005 to 4 January 2006 020 Cash at 025 31 Dec 05 020 $2
Slide 4: Resources: Corporate Strategy
Resources for the future Rare earths will be instrumental in supporting changes to the transport industry through the development of clean and fuel efficient vehicles Uranium is the clean economic solution to power generation Creating Value Define our gold potential at Kurinelli tarura. Capturing ma
Slide 5: Project portfolio and partners
[om son ) f= J | 7 ) | oe ( ) f ~ — MelasTO) = Lagoon Creek JV Mt Porter veovanies Segue Resources XN J XX / f ~ f ~ — seo = exepeation Kurinelli Jervois Mithril Resources X J XY S A ) f ~ i 7 | Feasibility Study — New properties eg a, DPRAS / X A ABA HES HUREES ME Arafura esources for the future
Slide 6: Market Outlook
“Market Outlook AR A F Fe, URA BRESTORTES WE Eoin REO Demand and Price "SOS 9S Booo Ro CE) mes paneer ED ere DD ae Hoe CE) ee Be assn
Slide 7: Achievements 2005
Achievements 2005 * Nolans Bore Resource — 3 fold increase — 18.6MT @ 3.1% REO, 14%P,0, — Mine life > 20 years ¢ Metallurgical Test work — Initiated testwork for recovery of REO,Uranium,P.,O, — ANSTO * Scoping Study — Engaged SKM he ARAFURA BVESOURLES we Earths owering Technology
Slide 8: Resource Table Rare Earths
1 Resource Table Rare Earths The total indicated and inferred resources as at November 2005 are: MT REO% REO(kt) P,0,% U,O,lb/t High grade 3.9 4.4 174 18.3 0.70 Medium grade 6.6 2.4 158 11.1 0.37 Total Indicated 10.5 3.1 332 13.8 0.50 Total Inferred 8.1 3.0 245 14.3 0.43 . _ TOTAL 18.6 3.1 577 14.0
Slide 9: Plan 2006
| Plan 2006 ¢ Nolans Bore Feasibility Study — Resource * Geological Model — Technical * Appoint Project Manager * Complete flow sheet * Mine Design — Regulatory * Environmental baseline — Marketing * Engage offtake parties ARAFURA BVESOURLES we owering Technology
Slide 10: Uranium price chart
DO Re rE Eee rer rere PPE ETE T Te eee TPE eee PPT TTP @iec 03 403 705 1003 104 404 Pe dae 10S ams 75 1005 A RA PFU BA KESOURCES we Energy of the future...
Slide 11: Achievements 2005
Achievements 2005 ¢ Lagoon Creek JV — Agreement for $5.5m over 5 years to earn 60% equity — Geophysical aerial survey completed ¢ Regional Ground Acquisitions — 7,550 Km? over 5 tenements — Yalyirimbi, Lucy Creek, Woodforde River, Burts Plain, Sandover. * Nolans Bore — 8.7m lbs U0, in resource A RA
Slide 12: Plan 2006
Plan 2006 ¢ Lagoon Creek JV — Drill test targets defined from aerial survey * Regional — Reconnaissance Exploration — Geophysics, geochemistry ¢ Nolans Bore — Recovery testwork A RA PFU BA KESOURCES we
Slide 13: Gold price (USD)
S o o = ie 2) ter o < Sun Si 1 Year Gold ($USD) January 06, 2005 to January 05, 2006 MAX $535.50 on Dec 12,2005, MIN $411.10 on Febos, 2005 ~ SQUETGO gosanzz sovango GOMONEZ GOACNOT | GoWOLZ GOW0ET godasaz Godasgt godasto Gosriyet Gosnypa Solar te Sornréa gounrez gounreo Gorey GofeWZT Goudyez Goudy
Slide 14: Achievements 2005
Achievements 2005 * Kurinelli — Soil sampling defines anomaly 4km x 1km — Sample to 5.0g/t Au ¢ Frances Creek — Mt Porter Resource 34,2000z — NLC mining agreement — PER largely completed — Union Reef Mill target to recommence July 2006 ARAEUBA RESCUES we
Slide 15: Plan 2006
Plan2006—ts * Kurinelli — Drill Test Targets * Frances Creek — Continue negotiations to realise value ARAEUBA RERGUWREEE we
Slide 16: Divestments Review
¢ Frances Creek Iron — Territory Iron Limited — Resource increase to 4.5MT ¢ Hammer Hill — Mithril Resources Ltd — $5m over 6 years to earn 70% — Mithril has a strategic alliance with BHPB * Coronet Hill - Segue Resources — Sold Coronet Hill for $50k cash and 500,000 shares @ $0.50 4 .° Lagoon Creek
Slide 17: Divestments Plan 2006
¢ Frances Creek Iron — Due to commence mining in H2 2006 — Lease applications / approvals in progress — Royalties to commence in 2007 * Coronet Hill — Shares out of escrow in August 2006 ARAFURBRA HES HUREES ME Arafura R sources for the future
Slide 18: Summary of 2006 plan
* Nolans Bore (REO, U, P.O.) — Feasibility Study * Metallurgical test work * Pilot Plant * Geological modelling inc drilling « Uranium — Drill test Lagoon Creek — Reconnaissance * Gold ’ — Drill test targets at Kurinelli a ae Divestments — Ongoing evaluation AR HES HUREES ME Arafura Resources for th
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