Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — Australian Uranium Conference 2005
34 slides from Arafura Rare Earths's conference presentation, Oct 12, 2005
Slide 1: Australian Uranium Conference
Australian Uranium Conference Alistair Stephens — Managing Director October 2005 ARAFURA & REG DURTES w Arafura sources for the future
Slide 2: Corporate Overview, Projects, Future Activities
ARAFURBRA HES HUREES ME Corporate Overview Overview of Projects Nolans Bore Lagoon Creek Future Activities Resources for the future
Slide 3: ASX listed ARU
ASX listed ARU Shares on issue 58 m Market capitalisation $25m (fully diluted) Listed options ARUO (June 2008) Options on issue 26m Volume ARU Share Price Price 5,000,000 4,000,000 3,000,000 . 2,000,000 as L ub, 1,000,000 ARAFURBRA HES HUREES ME 0 Le io hata EET 20 September 2006 to 19 September 200
Slide 4: Northern Territory
Northern Territory | sa yd Uranium s\ * Nolans Bore ae * Lagoon Creek * Yalyirimbi JY Barrow Greek = * Lucy Creek NOLANS GORE RARE TRESS. * Future Activities + Kulgera Resources for the. future
Slide 5: Nolans Bore overview
BVESOURLES we -) Nolans Bore — 135 km north of Alice Springs » Rare earths & uranium in phosphate (apatite) host * Outlook to be a major deposit in size and grade e Within 5 km of a gas line ¢ Within 15 km off a major highway « Within 60 km off the rail line
Slide 6: Rare earths fit together
=~ 3 2 o) c = ® - o = = @ = a. rare earths fit together H 000000; : ] ©800000' | ARAFURA BWESCHRLES BE
Slide 7: History of Nolans Bore
History of Nolans Bore 1995 PNC discovered uranium mineralisation 1996-98 Gold focused exploration 1999 Arafura reviews PNC data 2000 Costeaning by Arafura 2001 First drilling - initial resource 12 holes 2004 Follow-up drilling - resource upgrade 50% 2005 Significant resource upgrade expected ARAFUR
Slide 8: Resource Table Rare Earths
Resource Table Rare Earths The total indicated and inferred resources as at December 2004 are: Tonnes Indicated 2,264,000 Inferred 3,542,000 TOTAL 5,806,000 Cerium 48.3% Lanthanum 21.1% i Neodymium 20.4% ARAEU RA Praseodymium 5.9.% REO % REO (T) 3.8 86,000 3.9 138,000 3.9 224,000 Samarium 2.37% Gado
Slide 9: Graph of Global Rare Earth Resources
Graph of Global Rare Earth Resources 12.00% @ Maen Xe Sth, Vietnec 10.00% 6.00% & 6.00% Nolans Bore current respuse . bs m KAouritein Pees, UGA. 4co% oa. Ablane Bore, target 2005 closed : i & ® Ondyrukorume, Narcbia Byan Obp, China oper atrig 2.00%, Mab Wied, Aust a a ® e - & oom 28 20.00 40.00 60.0
Slide 10: Resource Table Uranium
Resource Table Uranium The total indicated and inferred resources as at December 2004 are: Tonnes U,0, % U,0, Ibs Indicated 2,264,000 0.031 1,544,600 Inferred 3,542,000 0.032 2,497,400 TOTAL 5,806,000 0.031 4,042,000 ARAFURA KREHGERTES ME In addition Nolans contains on average 0.414% ThO, or 24,000
Slide 11: Nolans Bore Resource Drilling
BVESOURLES we _1 Nolans Bore Resource Drilling ¢ 2001 to 2004 = 2,500m ¢ 2005 = 7,500m e AAPA approved ¢ Exploration contract agreement with CLC * Safety procedures & SMP * MMP with 100% compliance on audit ¢ Radiation levels measured at 0.9 mSv pa
Slide 12: Nolans Bore Prospect plan
319 000mE : ‘319 400mE NEW EXTENSION NEW DISCOVERY off “y ZONES j . FUMIY) tctetpreted apatte’nco mineratsation HEEGAy ‘Surtace projection, main apatite zone 4 se, vein extension +. Drainage @.. ~2001-and 2004 driting @. _. Current drilling - duly.2005 New aun ~ @. Oritholes 38 to 71-- reported tesu
Slide 13: Nolans Bore Prospect plan
~, $19 000mE 319 400mE NEW EXTENSION Possible new vein extension niger Apatite/REO mineralisation a projection, main apatite zone s. Drainage @.. ~2001-and 2004 driting New auton @. _. Current drilling - duly.2005 @. Oritholes 38 to 71-- reported tesults oo @. Dvithotes 72 to 96 - results panding N
Slide 14: Nolans Bore Mining
Nolans Bore Mini egoennchinseneenensonezaind Bak tomcoscttouintore ARAFURA RESOURCES NL brett Hl laad . MOLANS BORE PROSPECT CROSS SECTION * Mining rate @ 500ktpa * Strip Ratio -0.5:1 e No overburden * No waste in first 3 yrs e Low cost mining ¢ 18,000 tonne per vertical section Ae owering Technolog
Slide 15: Nolans Bore Metallurgy
|? Nolans Bore Metallurgy ¢ Metallurgy testing at ANSTO commenced ° Feasibility 2006 « ~80% recovery expected on REO and U * Processing rate = 500,000 tpa * Small grinding process and acid digestion ARAFU BVESOURLES we
Slide 16: Nolans Desktop Economics — Inputs
|| Nolans Desktop Economics — INPUTS | * REO con (50%) @ US$1.75/Ib= A$200/tn in ore ¢ Uranium @ US$20/ib = A$20/tn in ore ¢ Capital cost A$100m * Operating cost of A$50m pa ($100/tn ore) ° 80% recovery, hurdle rate 8%, A/JUS 0.75 ¢ Mine life +20 years Z ARAFURA HESOOREES HE
Slide 17: Nolans Desktop Economics — Outcomes
| 1 Nolans Desktop Economics - OUTCOMES ¢ REO metal 15,000 tpa ¢ Uranium 150 tpa ¢ Revenue A$88m pa ° NPV @ 8% = >A$250m & IRR >25% * payback of <5 years ¢ EBIT +A$25m pa ARAFU BVESOURLES we
Slide 18: Nolans Bore Feasibility Study
_) Nolans Bore Feasibility Study ¢ Drilling —> Geology modeling * Mining Study ¢ Scoping and pilot plant at ANSTO e Engineering ° Safety, environmental and community ¢ Marketing . * Progress project financing options AR UA BVESOURLES we
Slide 19: Northern Territory Uranium: Lagoon Creek
a nanwin Northern Territory Uranium LAGOON CREEK UPRANL)4 Js « Nolans Bore - Lagoon Creek ° Yalyirimbi {9 Bareow Greek # Titres —— a « Lucy Creek Yani! | /) * Future activities + Kulgera Resources for the future
Slide 20: Lagoon Creek — on the NT-Queensland border
ag oon Creek — on the NT - Queensland border ; ¢ Known uranium/gold mineralisation * Shallow — 20 m below surface * Widths of 1 to 20 metres ° Grades of 0.07% to 2.4% uranium oxide ¢ Grades of 6.7 g/T gold * Similar to Westmoreland style ARAFURA BREST ORTES mE lum Energy of the
Slide 21: Lagoon Creek Joint Venture
| Lagoon Creek Joint Venture. Laramide Joint Venture e HOA signed May 2005 ¢ $5.5m expenditure over 5 yrs = 60% equity ¢ Laramide (TSX:LAM) funding complete = $13m e Airborne survey completed October 2005 ¢ 2000m drilling to be completed by June 2006 Energy of the futur
Slide 22: Lagoon Creek uranium occurrences map
i ZAFURA RESOURCES NL Northern Territory | Queensiand WESTMORELAND & ~ ; LAGOON CREEK Te | URANIUM OCCURRENCES } : . 4 Seigal | or 6 McDermott Yoleanics | fo Formation | Ly o ee "30 e® ¢ j od oe 8 PROJECT » AREA Q ~m > on, EL 23573 o 10 20kra ss @ Uranlun + geld occurrences [-] medermett Formation 4
Slide 23: Northern Territory Uranium
NNN MMU ANNI Northern Territory Uranium AEE rvecorctotone McArthur River LAGOON CREEK: URANIUM # e Nolans Bore * Lagoon Creek < Yalyirimbi «Lucy Creek Ls Baccaw Greek # Tictree * Future activities + Kulgera Resources for th 1e future
Slide 24: New Ground Applications
New ground Applications ¢ Application January 2005 * regions with known uranium prospects (940ppm) * extensive anomalous basement rocks ¢ Target = redox traps in Tertiary basins A. ¢ Geophysics + shallow drill targets y ARAFUR WEEGHROLS we
Slide 25: Reynolds Range uranium and rare earth projects
EC 29871 Claes gystem | ‘Terminating creek ee Usanlei o¢ogect : yale UOy i pain (Avg) - Treen tock si N BLA .24741 Et 23671 ELA 24741 ARAFURA: RESOURCES REYNOLDS RANGE i URANIUM AND RARE EARTE PROJECTS i Energy of the future
Slide 26: Uranium Target
URANIUM TARGET | URANIUM TARGET | Rail front Calcrete : : . in sandstone style (Yeelirrie style) a : NLL Low grade Ae ‘nown uranium: mineralisation em Eas Local grace in rere +calcrele Stuart Bluff Range ’ saat uranium BRUCE S50 20060 M3 \ Lake bi \ Mill” Creek \ on ake Lewis \ Peat } wash \ " “ 7 E
Slide 27: Northern Territory Uranium
| a nanwin LON Northern Territory Uranium LAGOON CREEK UPRANL)4 Js « Nolans Bore « Lagoon Creek * Yalyirimbi {9 Bareow Greek # Titres ‘a * Lucy Creek Taina f 7 * Future activities + Kulgera Resources for the future
Slide 28: Lucy Creek — ENE of Alice Springs
|] Lucy Creek — 250 km ENE of Alice Springs New ground Applications ¢ Application May 2005 ¢ regions with known uranium anomalism (565ppm) * Detected in NTGS airborne survey in 2004 ¢ Target = unconformity contacts A. ¢ Detailed geophysics leading to drill targets hie ARAFUR WEEGHROLS we
Slide 29: Lucy Creek Tenement
Lucy Creek Tenement | Uranium Target Arthur Criek, Formation: = Sitsiones ——_ Erara Formation Dolostone' and shales ios en? ca fat Baldwin Sandstone (YJ) Pied Sandstone “ae Mopunga Group: | Jerwois Granite BRAIN TARGET URANIUM ANOMALY Sittstonas and sandstones. Granodionta Bona Sohist: | Sehiets, se
Slide 30: Uranium growth strategy
Uranium growth strategy : A natural fit with our Nolans Bore project ¢ Northern Territory ° Acquired additional properties e JV at Lagoon Creek with Laramide Resources Ltd ¢ Nolans Bore — feasibility study A RA PFU BA KESOURCES we
Slide 31: Finalise 2005 drill program at Nolans Bore
¢ Finalise 2005 drill program at Nolans Bore ¢ New 2006 drill program for Nolans Bore ¢ Priority targets from 2005 aerial survey at Lagoon Creek * Drill program at Lagoon Creek e Airborne geophysics on Yalyirimbi, Lucy Creek, Nolans regional ARAEURA HRESOORTES WE Arafura Resources for the future
Slide 32: Nolans Bore
Nolans Bore * Commence feasibility study e Long mine life of +20 years ¢ Strong economics on commodity mix (REO + U) ¢ Strong commodity market outlook (price & demand) ¢ Short production time line = < 5 years ARAFURBRA HES HUREES ME Arafura R sources for the future
Slide 33: Products for high growth markets
Products for high growth markets Products with high returns Products with environmental solutions ote &), ARAFURBRA HES HUREES ME Arafura Resources for the future
Slide 34: Products for a clean future
Products for a clean future sources for the future
Arafura Resources NL — Australian Uranium Conference 2005 on 6ix