Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (June 2007)
17 slides from Arafura Rare Earths's investor presentation, Jun 12, 2007
Slide 1: Arafura Resources Limited
Arafura Resources Limited AR A sesovRces Lanta Alistair Stephens Managing Director June 2007 The information contained in this presentation has been prepared using the information availabie to Arafura Resources at the time of the preparation of the presentation. For further information about Arafura
Slide 2: Board and Senior Management
¥2#% Board and Senior Management ARAPU RA esovRced LiunteD Non-Executive Chairman Managing Director Mick Muir Alistair Stephens Non-Executive Directors GM — Project Development lan Kowalick Steve Mackowski Terry Jackson GM - Strategy & Exploration Richard Brescianini Company Secretary & CFO Marketin
Slide 3: ASX Codes ARU : ARUO
hd ASX Codes ARU : ARUO Shares on Issue 121.3m Listed Options 14.2 m @ 13c, June 08 Share Price (11 June 2007) A$1.55 Market Capitalisation (fully diluted) ~A$215 m Cash on hand A$5.0 m Australian Government Grant for feasibility A$3.3 m fu ra Resources for the future
Slide 4: Develop long life projects with high returns
Develop long life projects with high returns Expanding our Northern Territory Focused Exploration The NT is substantially under explored with excellent infrastructure Some areas are unexplored and are the most prospective in the world The NT hosts world class mining operations (U, Zn, Pb, Al, Mn, an
Slide 5: 10% NuPower Uranium
10% NuPower Uranium
Slide 6: AR AF U BA
a AR AF U BA eauUNgEE Lpwieee LMM NN NNN NNN NNT fli. | TN a AAT MMMM MMA AN MINIT Tennant Creek Project jervois Nolans Project Project Ne Alice Springs TTT ll 1) in i i i i i i | a i
Slide 7: Nolans Rare Earths Project
. \ Nolans Rare Earths Project Multi commodity deposit with +US$400Mpa revenue Co-products Rare Earths and Phosphoric Acid By-Products Uranium and Calcium Chloride High probability to increase the resource base Open along strike and at depth Indicated & Inferred Resources — 18.6 Mt Rare Earths Phosp
Slide 8: Rare earths applications
ARAPFURA asuevwces vamites | exhaust catalysts _ Petroleum catalysts Automotive Rechargeable batteries. Powerful permanent magnets | Phosphors UH id) Chemical grade ee Le ie i He en ney 2 AMNION A si el
Slide 9: Rare earths - outcomes
ya Rare earths - outcomes ARAFUBA aSaGuacee (eltED
Slide 10: Rare Earths - Supply & Demand
Rare Earths - Supply & Demand Demand “Driven by electronics and environmental products” Growing on average by 10% per annum Forecasted shortfall of +50,000 t by 2010 Hybrid cars and electronics are the main driver Supply “China’s raw materials are for China’s Development” Mining quotas restrict supp
Slide 11: Rare Earths - Prices
Rare Earths - Prices Prices increasing strongly Price increases in last 12 months Lanthanum +15% Neodymium & Praseodymium +150% Dysprosium +50% Europium +10% Terbium +25% Prices are responding to strong demand in electronics & hybrid vehicles Also responding to current supply constraints and a stres
Slide 12: Rare Earths - uses
Rare Earths - uses | Product o%grde) | US$/tonne | Dominant Use . Cerium $1,400 Automotive exhaust catalysis PGWM's (limited) Polishing for electronics None NiMH batteries Lithium lon Lanth: 1,850 . F antnanum $ Fluid cracking catalyst None Neodymium $35,000 Powerful permanent magnets None Praseodym
Slide 13: Other Products
Other Products Phosphoric Acid’ Calcium Chloride” ARU production targets 150,000 tpa 500,000 tpa World demand (2006) 34 Mtpa 2.7 Mtpa Typical Price: $/tonne US$400 (FOB) US$250 (CIF) World Production utilisation: 80% 93% Australia imports +300,000 tpa 50,000 tpa Growth in Demand 2-4% pa 4-5% pa Valu
Slide 14: Projected revenue of US$410M pa
_ Projected revenue of US$410M pa ARAPFURA asuevwces vamites Multiple revenue streams significantly reduces commercial risk Ce-La, US$20M Other, US$10M~ ey Usgo5m Assumptions Prices (FOB) : Rare earths at an average US$12,000 per tonne, Phosphoric acid at US$400 per tonne, Calcium Chioride at US$100
Slide 15: Engineering & Marketing Plan
ineering & Marketing Plan 2007 Finalise Flowsheet Q2 Finalise rare earth circuit flowsheet design Phosphoric acid flowsheet is completed Q3 Configure rare earth pilot plant Q4 Operate phosphoric acid pilot plant 2008 Project Design & Finance Qi Operate rare earths plant Q2 Product sample assessment
Slide 16: Development Plans — Nolans
Development Plans — Nolans 2007 Pre-feasibility study (July) and Pilot plant (starts October) 2008 Full feasibility - Detailed engineering design 2009 Construction 2010 Commissioning & Production Exploration Plans - 2007 Increase Nolans resources (to align with increased production rates) Follow-up
Slide 17: Resources
~——— Resources ——_, Long life Specialty Products Chemical Products Rare Earths Uranium Phosphoric Acid Calcium Chloride Technology Environment The style in lifestyle u ra Resources for the future
Arafura Resources — Investor Presentation (June 2007) on 6ix