Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — FINSIA Melbourne August 2006
20 slides from Arafura Rare Earths's conference presentation, Aug 24, 2006
Slide 1: Managing Director Presentation to FINSIA
Alistair J Stephens Managing Director Arafura Resources NL Mick Muir Chairman elect for NuPower Resources Dennis O'Neill CEO for NuPower Resources FINSIA Melbourne - August 2006 Arafura Resources for the future
Slide 2: Company Directory
a Company Directory fe Peter Walker Shares 75.8m Chairman Options 25.6m Alistair Stephens 0.20 Jun 08 Managing Director Cap $28m @0.38 Cash @Jun 06 $6.3 Mick Muir Director Projects REO+P lan Kowalick Uranium Director Fe royalties Gold Gavin Lockyer Ni JV Company Secretary/CFO Arafura Resources for t
Slide 3: Uranium — Why is it so popular?
Uranium — Why is it do popular? Arafura Resources NL ° Nolans Bore feasibility ° Royalties, gold projects, JV’s NuPower Resources Demerger . Uranium Projects Arafura Resources for the future
Slide 4: Uranium electricity generation
_ URANII ARAPD RA Electricity Generation 3365 TWh 4232 TW! 5906 TWh 7383 TWh 9310 TWh 11842 TWh 7 D) ) r - i Ge 100% 4 7 n === 90% = 80% + 70% L 1 60% L 50% 40% 1 30% + L 20% 1 10% 0% . 1990 1995 2000 2005 2010F 2015F 2020F Data supplied by David Johnson, China ” S$ Korea @ Taiwan Rest of Asia/Pacif
Slide 5: Terawatt hours demand by region
14000 5 Terawatt hrs Data supplied by 2005 2010F 2015F 2020F David Johnson, . | i. Patersons Securities HN America @ Europe Asia/Pacific @ Rest of World Resources for the future
Slide 6: Demand Gap Supply is defined
Demand Gap Supply is defined 160,000 5 16000 440,000 SH supply Stocks — demand / 14000 120,000 12000 Deficit “>_< [7] 0000 co £8000 wn 3 6000 Qo Global Reserves and Reources w Uranium stocks Arafura _ Resources for the future
Slide 7: Uranium price US$/lb
— Uranium $US/Ib 10 ———_— 5 0 XK Ss Ss Hs PP PMP PP LY Ra yr © Ry es ¢ we Arafura _ Resources for the future
Slide 8: Supply and demand are well understood
1. Supply and demand are well understood 2. That Australia is the key to supply Largest resources with huge exploration potential Sovereign risk is low, reputation is high 3. Asian demand has to be satisfied 4. Contract market 5. Price can be negotiated Asian development will drive demand and must b
Slide 9: Arafura Resources NL
Arafura Resources NL Nolans Bore feasibility Royalties, gold projects, JV’s Arafura Resources for the future
Slide 10: Arafura Resources
_ Arafura Resources Feasibility Nolans Wap resource _ | +20 yrs mine life. Met testwork success Joint Venture _Mtt Porter resource 94,200 oz -Kurinelli SO _ tron Royalties _$1.5mpa from H2 2007 Nickel JV. «Mithril Resou ces. _ Arafura Resources for the. future
Slide 11: Nolans Bore Feasibility
__ARAFURA | RESOURCESNL __ _Nolans Bore Feasibility |. ae poet Nolans Bore currently has a JORC —_= — Resource of 18.6 mt containing; Pilot plantin 2007 2.6mt of Phosphate - P,O; rs 577kt of Rare Earths - REO 8.7 million lbs of Uranium oxide - U,0, 2010 target to start Arafura _ Resources for the fu
Slide 12: Rare Earths (10 ktpa) and Phosphors
ee NL "Rare Earths (10 ktpa) _Phosphors > Arafura’ _ Resources for the. future
Slide 13: NuPower Resources Demerger
NuPower Resources Demerger . Uranium Projects Arafura Resources for the future
Slide 14: New company's primary projects
New company’s primary projects “RESOURCES NL _ ArafuraResources Energy of the f
Slide 15: The de-merger process
PX The de-merger process Compliance listing of uranium company * Technical valuation in progress * Record date for eligibility (yet to be set) + Non-renounceable rights issue to shareholders General Meeting for shareholder approval — October 06 * — |In-specie distribution to eligible shareholders Av
Slide 16: Northern Territory focused uranium explorer
Northern Territory focused uranium explorer Location « Able to mine and develop uranium in the Northern Territory Project diversity * +10,000 km? of Unconformity, Surface and Rollfront targets People * Experienced management team in place Planned exploration ¢ Budgeted expenditure and exploration is
Slide 17: Lagoon Creek - Unconformity targets
Lagoon Creek - Unconformity targets Lagoon Creek (Laramide Resources Ltd farm-in) * 25 kilometres along strike from the Westmoreland deposit ¢ Unconformity uranium mineralisation ¢ Similar to Westmoreland / Ranger mineralisation * Uranium grades from 0.07% to 2.4% U0, ¢ Drilling to commence Septembe
Slide 18: Lucy Creek - Surface targets
Lucy Creek - Surface targets Lucy Creek - 100% Arafura * Auranium only radiometric anomaly * 6.5km long and 300 — 1200m wide * Grade from 0.5 to 1.25Ib/t uranium oxide * Surface target overlies unconformity and structural controls * Drilling expected Q4 2006
Slide 19: Aileron Basins — Redox targets
Aileron Basins — Redox targets Aileron Basins - 100% Arafura 8,000km2 of land holdings in five tenements Stretches +150km by +100 km Substantial area for roll-front uranium targets Ideal for in-situ leach technology Significant lead indicators from source rock +50,000 tonne targets Energy of the f
Slide 20: Arafura Resources NL
Arafura Resources NL ° Feasibility, royalties, gold assets, joint venture Demerging uranium assets fo.... NuPower Resources ° NT based projects, Lagoon Creek, Lucy Creek, Aileron Basin Arafura _ Resources for the future