Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — Shareholder Meeting (November 2006)
31 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 23, 2006
Slide 1: Annual General Meeting 23 November 2006
A Arafura Resources NL Peter Walker Chairman Alistair Stephens Managing Director Mick Muir Non-exec Director lan Kowalick Non-exec Director Gavin Lockyer Chief Financial Officer Steve Mackowski Project Manager John Goulevitch Consulting Geologist Annual General Meeting 23 November 2006 Arafura Resou
Slide 2: A team of quality professionals
A Arafura Resources NL A team of quality professionals with extensive experience in exploration, mining, processing and marketing. Focused on creating wealth for shareholders Arafura Resources for the future
Slide 3: The year in review & plan ahead
BX The year in review & plan ahead ¢« Financials « Exploration Gold, Nickel, lron/Vanadium * Nolans project Rare Earths, Uranium, Phosphate (CaCl.) « Arafura’s future — a new direction * Uranium & Demerger Process (Dennis O’Neill) Arafura Resources for the future
Slide 4: Key Financial Data Forecast
These costs exclude the Ausindustry Commercial ready Grant Key Financial Data Forecast Jun4 JunO5 JunJ6 SepO6 Jun? ‘Shares & Options (m) 69.8 76.4 101.4 101.9 1352.44 No. Security holders 1,107 1,188 2,295 2,408 - iMkt Cap. (m) $10.12 $12.22 $356.51 ba? 70 - Cash Flow Summary ($000) ‘Capital Raised
Slide 5: Corporate costs increasing due to marketing & commercialisation of Nolans
Corporate costs increasing due to marketing & commercialisation of Nolans Feasibility study support staff to increase The global access to technology will cost more in travel & consultancy Industry drilling, assaying and contractor costs are increasing (services are difficult to secure) Nolans feasi
Slide 6: Million of shares in top holdings
7, 2005 Million of shares in top 10 , Million of shares in top 1 As at Nov 2006 Total = 23.35m Total = 21.15m Arafura _ Resources for the future
Slide 7: Kurinelli Gold Project exploration activity and geology
° Drill targets identified from soils ° 57 hole drill program = 3,597m ¢ Mineralisation grading 0.5 — 6.8g/t ° Intervals of 2m widths * Follow-up soils & drilling Doienite Sis / Dykes Exclusion Zones ARAFURA RESOURCES NL planned in 2007 Kurinali Sendstone HC Application - Other KURINELLI GOLD PROJEC
Slide 8: Mount Porter project geology and proposed mine layout
f AKAEURA ese comers we « Contained resource of 34,200 ounces « Union Reefs mill is now operational ° Mill to be modified for refractory ore late 2007 « Mt Porter recoveries will benefit ‘Alamper Spings Granite ARINL 100% ARAFURA RESOURCES NL Metasediments /Dolerta Prevesourve Mineratisation MOUNT P
Slide 9: Mining programs
yn programs Drilling has increased resources (ASX release 23 Nov) Further potential for more resources Approvals process well advanced Mining proposed to March - April 2007 Shipments August 2007 ARU royalties to recommence in early 2008 Arafura ources for the future
Slide 10: Hammer Hill joint venture with Mithril
Hammer Hill joint venture with Mithril « 100% Arafura e Farm-in arrangement - 51% equity for $2m over 4 years - 70% equity for $5m over 6 years e Valuable growth opportunity Nickel is currently selling for +US$31,000 per tonne Arafura ources for the future
Slide 11: Nickel anomaly
al anomaly ° Defined a large nickel chrome anomaly * Peak values to 0.51% nickel « Anomaly is 6.5km x ae, Sem 1.5km |EL97z5. ° Follow up geophysical Pe Neoproterozoic - Cambrian survey planned Mant Sample Areas 2006 = Rock Apo province [J Are 10% MRL Farin, RLU farts Re Group -tingina Proving Paiasp
Slide 12: Project drilling completed
e Project has just completed 937 metres of drilling in 15 holes e Many intersections of massive magnetite - several up to 40 metres wide down hole e Assays expected in Dec/Jan ¢ Considerable project upside Vanadium is currently selling for US$16,000 per tonne for V,0, Arafura Resources for the futur
Slide 13: Jervois/Unca Vanadium project
oe Jervois/Unca Vanadium project Down hole total intercepts of massive & disseminated magnetite Samples in transit to laboratory for testing. Drill holes overlain on magnetic image PAPERS WOCCHRIG 15% [Lt «Than
Slide 14: Drilling results released Nov 2006
d 2006 illing, results released 23 Nov 2006 ing M dr dr
Slide 15: Nolans - resources
y Beseomere we A _Nolans - resources Status Tonnes REO PO, U,0, (million) % % Ib/T Total Indicated 10.5 3.1 13.8 0.50 Total Inferred 8.1 3.0 14.3 0.43 Total Resources 18.6 3.1 14.0 0.47
Slide 16: Nolans - community
Fa Nolans - community e We employ the local community when possible and are strengthening our relationships with the local stakeholders. Richard
Slide 17: Nolans - testwork achievements
A _Nolans — testwork achievements Beseomere we What has been achieved? e Optimisation of an acid pre-leach process « The effective separation of REO streams from phosphate e Uranium recovery process identified e Identification of other saleable products such as calcium chloride ° All existing techno
Slide 18: Nolans - metallurgy
A _Nolans - metallurgy Beseomere we Rare earths and uranium e ANSTO testwork on time « REO testwork due to be complete early 2007 e Uranium recovery early-mid 2007 ¢ Report due in mid 2007 e Implement scoping study Earths ing Technology
Slide 19: Nolans - metallurgy: Phosphate
A -Nolans — metallurgy Beseomere we Phosphate e Phosphoric acid product - Fertiliser or chemical grade product e Samples sent to Bateman Litwin (Israel) « Testwork to commence December 2006 Earths ring Technology
Slide 20: Nolans - metallurgy: other saleable products
A -Nolans - metallurgy Beseomere we Other saleable products e Calcium chloride is a potential by-product (de- icing agent and dust suppressant) « Discussing options with Russian technologists ¢ Test work to follow on from RE+Phosphate testwork ring Technology
Slide 21: Nolans - project timeline
aX Nolans — project timeline Qi Q2 A A447; Qi Q2 Q3 24; QI Q2 Q3 4 Safety _ fostotnonneffoems au cca Environment 00 Fenmemmeeceng Test work 1&l arth recovery Metatlurgy ti losphate recovery Metailurgy IV fenentnenenamenaoenen Pilot plant | om | Demo plant i ppc Commercial esunnntenunenenensneninenen
Slide 22: Nolans - specialist technology input
BX Nolans — specialist technology input 77 ering Technology
Slide 23: Nolans - markets
a Nolans — markets a I il ering Technology
Slide 24: Rare earths market in 2006
A Rare earths market in 2006 « Volume: 108,000 tonnes REO pa Value: US$625 - 675 million pa Overall growth 8-12% pa Neodymium demand growing at 20-25% pa « Super magnets for motors and electronics China restricting supply by limiting issue of mining licences and export licences ering Technology
Slide 25: China - flexing its monopolistic muscles
A & China — flexing its monopolistic muscles « “The Middle East has oil; China has rare earths” %er xiao Peng « Mining licences in 2006 restricted to 86,500t compared with supply/demand in 2005 of 118,700t. * Export licences in 2006 restricted to 45,000t compared with exports of ~50,000t in 2005 ¢«
Slide 26: Rare Earth Prices
A Rae Earth Prices Rare earth prices . are growing strongly Selected REO Prices US$/tonne in some markets and moderately in others Arafura has the 20,000 i ; ; highest grade on Neodymium, Neodymium in any 8 15,000 WA deposit > 40,000 — ~» RE Carbonate 0 — —_—— Cerium & Lanthanum 2004 2005 Jan-06 Nov
Slide 27: Why Arafura for Rare Earths?
GX Why Arafura for Rare Earths? Potential alternative supplier in a rapidly growing market Rare earth, phosphoric acid, calcium chloride & uranium products reduces market cycle risk High neodymium content Nolans has avg of 21% of total REO versus avg 16% in other deposits Currently in discussions wi
Slide 28: Nolans - Commonwealth Grant
A , Nolans — Commonwealth Grant ¢ AuslIndustry have offered Arafura a grant of $3.3 million for Nolans feasibility * Strongest recognition of the projects importance, uniqueness and strategic significance * Strong endorsement of Board and Management capability * Recognises the ability for the projec
Slide 29: Exploration and development plans
¢ Kurinelli gold soil sampling & drilling ¢ Jervois Vanadium follow-up drilling ° Mt Porter (development) ¢ Joint Venture activities in iron & nickel ¢ Will pursue other opportunities Arafura ources for the future
Slide 30: Nolans - 2007
fa Nolans — 2007 e Mineral lease application ¢ Community liaison & Native Title agreement ¢ Environmental Impact Statement e Government regulatory approval ° Mining/Metallurgical/Scoping studies e Pilot plant....demonstration plant ¢ Marketing and commercialisation ng Technology
Slide 31: Arafura's future - a new direction
A \ Arafura’s future — a new direction e Specialty metal products - Rare earths, Uranium Chemical commodities - Phosphoric acid, Calcium chloride Exploration growth potential - Gold, Iron, Vanadium Joint Venture opportunities - Nickel e s 6 END Earths ‘ing Technology
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