Australia China Resources Symposium Chris Tonkin Chief Executive Officer 11 July 2012

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Important Notice This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this presentation. No representation or warranty, express or implied is made by Arafura Resources Limited (“Arafura Resources”) that any forward-looking statement contained in this presentation will occur, be achieved or prove to be correct. You are cautioned against relying upon any forward looking statement. Except for statutory liability which cannot be excluded, each of Arafura Resources and its related body corporates and their officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error in it or omission from it. Arafura Resources accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person, nor any obligation to furnish the person with any further information. This presentation does not constitute an offer of securities in Arafura Resources, nor an invitation to apply for such securities. This presentation does not provide investment advice or financial product advice. You should obtain professional advice and carry out your own independent investigations and assessment of the information in this presentation (including any assumptions) before acting. Information in this presentation which is attributed to a third party source has not been checked or verified by Arafura Resources. The information in this presentation that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Richard Brescianini BSc(Hons). Mr Brescianini is a Member of the Australian Institute of Geoscientists and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code)”. Mr Brescianini consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Mr Brescianini is a full-time employee of Arafura Resources.

Disclaimer

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Contents

Introduction to Arafura

The Nolans Project

Recent History 2011-12

Nolans Project – Resource and Processing

2012 Work Program and Next Steps

Summary

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Introduction to Arafura

As at 26 June 2012

Capital 396 million shares 11.5 million Board/Employee options

Market capitalisation @ A$0.22 = ~A$87 million

Top shareholders

JP Morgan Nominees1 24.13% ECE2 16.97% Debt - zero Cash A$21.8 million (31 May 2012)

Corporate Summary • Australian Public Company –

formed in 1997

• Listed on ASX in 2003 (code ARU)

• Nolans Flagship Project for Rare Earths

• Extensive land holdings for exploration in the NT

• Technology developed in Australia 1. Substantial German-based shareholding amongst many shareholders

2. East China Mineral Exploration & Development Bureau

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Nolans Bore Resource is world scale and strategically significant

• Minimal resource risk; • Over 94km of drilling completed at an average spacing of 40m; • Resource recently expanded by 52%; • Resource remains open at depths below 220m; • Amenable to low cost open cut mining and milling; • Standard beneficiation techniques; • Expected mine life in excess of 20 years.

Nolans Project – Resource

RESOURCES TONNES (million)

RARE EARTHS REO %

TONNES REO

PHOSPHATE P2O5 %

URANIUM U3O8 lb/t

Measured 4.3 3.3 144,000 13 0.57

Indicated 21 2.6 563,000 12 0.42

Inferred 22 2.4 511,000 10 0.37

TOTAL 47 2.6 1,217,000 11 0.41

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Nolans Project – Processing

Ore

Mineral Concentrate

Rare Earth Intermediates (Carbonate)

Rare Earth Oxides

Metals/Alloys

Components

OEMs

20,000 tpa

Business Model - Adding Value in Australia

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Processing through to final products The flowsheet has been proven at multiple scales …….

Pre leach Demonstration Plant 2011 ALS-Ammtec Perth

Water Leach Piloting 2009 ANSTO Sydney

Gypsum from HCl Regeneration Demonstration Plant 2011 ALS-Ammtec Perth

Sulphation Demonstration Plant 2012 ANSTO Sydney

REO product samples from Nolans Bore 2012 - ANSTO Sydney

Sulphation Baking 2009 ANSAC Bunbury

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Arafura Resources – Recent History 2011-12

ACHIEVEMENTS • Site acquired for Rare Earths Complex in Whyalla;

• Nolans Bore Mineral Resource recently increased by 52%;

• Flowsheet proven at various scales from mine site to separated Rare Earth Oxides;

• Management team focused on finalising key technical and planning work streams;

• Nolans Bore Rare Earth Oxides produced to customer quality specifications at 99% purity;

• Alliances formed with strategic off-take partners in Europe and Korea.

CHALLENGES

• Global capital markets are depressed and it is difficult to raise capital;

• Work programs have been deferred due to funding constraints and overheads reduced to conserve cash;

• Capital Expenditure for the Nolans Project has increased.

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2012 Work Program CURRENT BASE CASE WORK

• Draft Feasibility Study/Project Status Update; • Independent engineering review of the project; • Lanthanum Oxide production for customer assessment; • Sulphation Demonstration plant operation at ANSTO; • Securing strategic partners and offtake contracts; • Raising Capital to complete final feasibility study.

PROCESS IMPROVEMENT STUDIES • Reduction in acid consumption required for pre-leach; • Simplifying hydrochloric acid regeneration process; • Potential lower cost reagents for Rare Earth recoveries; • Reducing residence times and potentially plant size for pre-leach and Rare Earth

recoveries; • Improving energy consumption by reducing sulphation acid bake temperatures

and duration; • Improving Rare Earth carbonate purity potentially leading to a reduction in

solvent extraction plant size and reagent consumption.

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Next Steps – 2012/13

TECHNOLOGY • Integrated Pilot Plant • Further Piloting of Rare Earth Separation Processes

ENGINEERING

• Mine Planning – Final • Mine and Concentrator Engineering • Transport and Logistics • Rare Earth Complex Engineering

OTHER • Environmental Impact Study Submissions • Project Funding • Strategic Partners

FINAL FEASIBILITY STUDY

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Arafura and the Nolans Project : A Compelling Value Proposition, Despite Short-term Funding Challenges

• The Company has a well thought out plan to progress the Nolans feasibility study through to execution;

• Nolans is a well advanced Australian-based project likely to be one of very few new supply sources this decade;

- World-scale resource with long life and expansion opportunities at depth

- Minimal resource risk

- Flexible plant design, allowing scope for organic growth

- Separated Rare Earth Oxides to 99% purity produced from Nolans Bore resource; product specifications have been validated by potential customers

• LOIs with two multinationals for offtake and to provide assistance with Project development; and

• Significant government and community support.

Summary

Thank you

Chris Tonkin - Chief Executive Officer 11 July 2012