Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — Investor Presentation (March 2006)
41 slides from Arafura Rare Earths's investor presentation, Mar 3, 2006
Slide 1: Uranium and Rare Earths
URANIUM and RARE EARTHS MARCH 2006 Presented by ALI S TAIR S TE PHENS ARAFURA Managing Director ee
Slide 2: AR A
AR A U RA SESOWRCES me The information contained in this presentation has been prepared using the information available to Arafura Resources NL (Arafura) at the time of preparation of the presentation For further information about Arafura, you can obtain a copy of all recent ASX announcements made b
Slide 3: Arafura Overview
ARAFURA... Overview NORTHERN TERRITORY... The Opportunity URANIUM... Energy of the future RARE EARTHS... Powering Technology WHY ARAFURA... Resources for the Future ARAFURBA SESOWRCES me
Slide 4: Arafura... Overview
ARAFURA... Overview A SESOWRCES me
Slide 5: Resources for the future
Resources for the future URANIUM High growth sustainable market RARE EARTHS Instrumental in electronic technology (hybrid cars) Creating Value GOLD New gold district with major potential DIVESTMENT Additional opportunity ROYALTIES Iron Ore ARAFURBA SESOWRCES me
Slide 6: Shares on issue
Shares on issue ASX:ARU Options on issue ASX:ARUO Market capitalisation (A$0.35) Cash at Bank (31 December 2005) 58m 26M (expiry June 2008) USD$15m USD$1.8m Volume 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 4,500,000 4,000,000 500,000 ° ARAEUBA SESOWRCES me ARU Share Price Price 15
Slide 7: Board of Directors
PETER WALKER Chairman ssc, FAusiMM, FAICD MD/CEO of Dominion Gold from 1985 to 1994 Founding Chairman of Anvil Mining from 1997 to 2000 MICK MUIR Director Ba (Econ) MD/CEO of Mt Martin Goldmines from 1982 to 1993 MD/CEO of Arafura Resources NL from 1998 to 2004 IAN KOWALICK Director ssc (Hons), BEc
Slide 8: Management team
ALISTAIR STEPHENS Managing Director Bsc (Hons) MBA AAICD 20 years experience in resources in geology, mineral processing, commercial Experience with Newmont, KCGM, WMC and Orica GEORGE BAUK Marketing Manager seus FCPA MBA GAICD 15 years experience in resources in finance, logistics and marketing Exp
Slide 9: Rare Earths Uranium Gold Holdings
Rare Earths Uranium Gold Holdings ‘4 ~\ (- > a ( > 18.6MT Lagoon Creek JV Kurinelli Territory tron Resources Royalties \ J X J \ X / ‘a >) a ~ (~ (~ > 577kt REO Sold 8.7m Ib U,O Lucy Creek Pine Creek . aus Coronet Hill 2.6mt P,O, XN y, \ J \ X / ‘4 ~\ ( ~ _ spate we Joint Ventures : : Feasibility St
Slide 10: Northern Territory... The Opportunity
NORTHERN TERRITORY... THE OPPORTUNITY ARAPURBRA WES MMREEE WE
Slide 11: The Northern Territory
The Northern Territory Why explore for uranium in the Northern Territory? 1. It is the only region in Australia that will approve new uranium mines 2. The region is extensively under-explored 3. It contains large high grade reserves and resources of uranium 4. Infrastructure has opened up extensive
Slide 12: Northern Territory Geological Setting
RAFURA RESOURCES NL inca} ARAFURA NORTHERN TERRITORY Ys SEA GEOLOGICAL SETTING ; NARBARLEK i : RANGER | JUNGLE | KOONGARRA af JOSEPH = ee > BONAPARTE Gi ats GULF : Sy. ~ Ail 8 G N Pe, : a K 275,000 tonnes of U,0, ae jyndham | in re resources Ld : 20,000 tonnes of U,0, in resources & Uranium gold occ
Slide 13: Uranium... Energy of the future
URANIUM... ENERGY OF THE FUTURE ARAFURA RESOURCES WE
Slide 14: Market Outlook - Uranium
Market Outlook - Uranium 225 $45 {2 World Production S| 200 } —— Requirements $40 — Current $ Price Ta 175 > - A nt i) a we iS) Ww U3 Million pounds U308 S —J acd Y So SSA ~ wn 1 we Ww wv — 1 we i=) 47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95 98 OL 04 07 10 13 16 19 ARAFURA RESOURCES WE
Slide 15: Northern Territory Projects
Northern Territory Projects ARWIN i rrti‘_O_O_O__.LCiCtiw#t#O#OCONO(Owi#CO h ssira FRANCES CREE. | . a Uranium *Meteranka “2 * 8.7 m lbs of UO, at Nolans in resource « >7,500 Km? of land holdings * Grades to 2.8% U,O, * Significantly under explored ¥ Kedgera 4,000 km
Slide 16: Northern Territory uranium projects map
@ DARWIN sJabire a” RANGES CREEK ROK LGN SHAS AWODDEDRDE RIVER, ORARIUIE y LUCY CREEK UBANIUM GERVOIS: BASE MEIALS NOLANS BORE Maa #) Kulgers Northern Territory 4,000 km Uranium ¢e Nolans Bore « Lagoon Creek 2 Lucy Creek e Yalyirimbi
Slide 17: Lagoon Creek
Lagoon Creek ] TOB8O) y J 437°40 137°60 - [ eg ARAFURA RESOURCES NL Northen | CieSirieed WESTMORELAND & LAGOON CREEK - URANIUM OCCURRENCES McDerrnott Formation Vo) | ‘PROJECT | AREA cL ~~ i EL 235748 Uy / . | 17°30 ®@ Uranium gold occurrences |] taedermott Formation [2 seigal vetcenies a 17°40 L Wes
Slide 18: Lagoon Creek - Project Radiometrics
Lagoon Creek - Project Radiometrics __ ] 137°45E" — 17°30" CPS (e280 cps EE3 55-60 cps («0-20 cps | ARAFURA RESOURCES NL EL23573 LAGOON CREEK 2005 AIRBORNE SURVEY - URANIUM AR APU RA BES@UREES HE
Slide 19: Northern Territory uranium projects map
@ DARWIN sJabire a” RANGES CREEK ROK y LGN nie WOBDFORDE RIVER, URANIUM LUCY CREEK UBANIUM dGERVOIS BARE NIEIALS NOLANS BORE Maa #) Kulgers 4,000 km Northern Territory Uranium e Nolans Bore agoon Creek e Lucy Creek e Yalyirimbi
Slide 20: Lucy Creek
Lucy Creek T NT 196°30 a= -~ 22°90 ‘. — \ Arthur Creek Formation || —Sitstones \ WAN TARGET Fara Format ‘olostone and shales URANIUM ANOMALY Mk Baldwin Sandstone Ted Sandstone Basernent metasediments Sitstones and sandstones Basement granites Granites Najor faut / structure 22°40 Uraniven anomaly EL
Slide 21: Lucy Creek Uranium Prospect
7 — Gi J en ee « oe PI 8 SS. e ie A oe ae ae MG ae ee ies ie y TG ee es i ie Co Tae ee oe te Dvd Lemme pe a | ie a. ey ots ee Diy a : y . ie ae " ARAFURA RESOURCES NL p LUCY CREEK URANIUM PROSPECT Te _ 7 Ge Tey Py . i; yy By i; yy iy We ye By) Wy Z se Ve oh ea "I Ws oe nergy. Ly Se oe, bo. Ga
Slide 22: Northern Territory uranium projects map
a” RANGES CREEK ROK Northern Territory Uranium Ss Nolans Bore agoon Creek LGN SHAS AWODDEDRDE RIVER, ORARIUIE y e Lucy Creek LUCY CREEK UBANIUM GERVOIS: BASE MEIALS NOLANS BORE Maa e Yalyirimbi #) Kulgers 4,000 km
Slide 23: Yalyirimbi Uranium Project
i) ARAFURBRA RESOURCES WE 182°30 133°00 Nappatty gneiss ciel gneiss 2 | eusneon: QQ wavemen, Mt Eelpee sanisione: for sysem fee Taminaing creek @ Veriungrosgest Nah ‘Appin java} 940 fercciomoe Asean B Soros be Je 236711 ® woteas fore, i ‘EL 23671 \ zo ARAFURA RESOURCES NL YALYIRIMBI \. URANIUM PROJE
Slide 24: Yalyirimbi — Conceptual Targets
Yalyirimbi — Conceptual Targets URANIUM TARGET | ] URANIUM TARGET Roll front : Cailcrete in sandstone style a (Yeelirrie style) Low grade") Local grades of uranium source “| 590-B00ppm UsOg ‘ in rock samples Known uranium. mineralisation in seciments:+ calcrete Stuart Bluff Range \ Lake Lewis \ Cong
Slide 25: Rare Earths... Powering Technology
BRareeaths 2 RARE EARTHS... POWERING TECHNOLOGY
Slide 26: Northern Territory Projects - Rare Earths
Northern Territory Projects @ DARWIN, SS r™r—er— er Rare Earths «World largest deposit of its type « A phosphate vein hosting rare earths and uranium wo ELLA " ees. « 18.6 mt of resource with extensive : LUCY CREEK . URANIUM upside SERVOS BABE MELAS: MOLANS SORE « Feasibility underway ¥ Kedgera 1,00
Slide 27: Hybrid cars rare earth uses
aaa HYBR BRID CH CARS "“—D Batteries agnets Cerium / Lanthanum Neodymium Phosphors / Electronics Europium / Yttrium ARAPFURA BESAUHEES me ab €? a
Slide 28: Environment, Energy, Technology uses
ENVIRONMENT Catalytic Converters ENERGY Hybrid Cars Cerium / Lanthanum Neodymium TECHNOLOGY Phosphors for CRT / PDP screens Europium / Yttrium ARARURBRA BESAUHEES me
Slide 29: Market Outlook—Rare Earths
Market Outlook—Rare Earths 250,000 3 + 25 200,000 + oF + 2 150,000 + ; al % Price _,..*" 2 c Sia = n £ > 100,000 + t t + + + 0 ARAFURBA 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 RESOUR EER WE Source: Roskill (2004) & Arafura Research
Slide 30: Resource Table Rare Earths
7 Resource Table Rare Earths © The total indicated and inferred resources as at November 2005 are: MT REO% | REO (kt) | P,O,% U,O,lbi/t High grade 3.9 44 174 18.3 0.70 Medium grade 6.6 2.4 156 11.4 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
Slide 31: Nolans Bore new discovery plan
318 600mE 7504 600mN /., NEW DISCOVERY ZONES Possible. new vein extension 7501 400mN y; 4 New outcrop ff Y N ie) 200m bebe 319 000mE 319 400mE NEW EXTENSION to Western Zone EAST ZONE Alluvium aa Sprtace projection main apatite zone “~s. Drainage @ — 2004 and 2004 drilling © — Current drilling - July
Slide 32: Nolans Bore cross section
Nolans Bore 218 One 318 SOME WEST EAST NBRCO3S NBRDO21 NBRCOZO NBRCO34 NBRDO3B. Low Strip Ratio <1:1 No overburden No waste in first 3 yrs GH Bain, Low cost mining ¢ 18,000 tonne per vertical section Enveloge of Apatite Zone “& _Drilhcte with hfnecalised Intercept ARAFURA RESOURCES NL. REQ - Rare Ea
Slide 33: Process Flow Sheet
Process Flow Sheet _ ARAPURBRA BESOURCES WE Apatite and Cheralite feed rock Dilute acid digestion Solid phase with 35% of the rock mass Contains 65% of REO Liquid phase with 65% of the rock mass Contains 90% of Phosphate Next Phase of test work Caustic v Acid Bake for REO recovery Next Phase of test
Slide 34: Mass Balance - example
AR A BESOURCES WE Mass Balance - example _ Apatite and Cheralite feed 1 tonne in feed contains 260 kg of P,O, 60 kg of REO 1 Ib UO, Solid phase — 350 Kg 7% PO, grade 11.4% REO grade 1.8lb/t of U,0, Liquid phase — 650 Kg 36% P.O, grade 3.1% REO grade 0.6 Ib/t of U,0, Owering Technology
Slide 35: Competitive Advantage
Competitive Advantage e« Resource 20+ Year Life Significant Upside in grade and tonnes ¢ Low Cost Mining No Overburden Low Strip Ratio ¢ Rich in High Value Rare Earths Neodymium (us$10,000/) Europium (us$250,000/) ¢ Multiple Revenue Streams Rare Earths ARAFURA Uranium Phosphate BESAUHEES me
Slide 36: Northern Territory Projects - Gold Kurinelli
Northern Territory Projects Gold - Kurinelli Kurinelli soil anomaly LAGOON CREEK UAMILA Extends 4km x 1 km > 10ppb * Soils to 5.0 g/t Au WOODPORDE RIVER ae Unexplored region — legal restriction LUCY. rere _ j LUPAN UME ;j . removed in 1998 JEAVO . ish JETES _ ROLANS BORE BARE FAR? HS: « No outcrop »
Slide 37: Kurinelli Project gold assays in soil
0.64 ght A ARAFURA RESOURCES NL ”s KURINELLE PROJECT. ACTA ARAFURA RECAUROES WE GOLD ASSAYS IN SOIL !
Slide 38: Rare Earths, Uranium, Gold work programs
RARE EARTHS Feasibility study Metallurgical test work Resource modelling Environmental baseline URANIUM Lagoon Creek — drill test targets Lucy Creek — drill test targets Regional Exploration GOLD ARAEURA resources we Kurinelli — drill test targets
Slide 39: Why Arafura...
WHY ARAFURA... It has the Place Projects Products People ARAEURA wusounces we Plan
Slide 40: A company achieving growth
A company achieving growth a Feasibility Resources Drill targets a ee a Gold Uranium Rare Earths Funding Plan in Place Joint Ventures ui Capable Management Experienced Board ARAEUBA SESOWRCES me
Slide 41: Arafura... Resources for the Future
ARAFURA... RESOURCES FOR THE FUTURE A RAEN RA www.arafuraresources.com.au
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