Ann: Quarterly Activities Report and Appendix 5B, page-53

Have probed AI as to whether there is anything in the transcript or quarterly report that would suggest ARU are using stalling tactics to delay FID. Answer below.

Yes, there are clear signals in Arafura’s 30 April 2025 quarterly report suggesting that the exploration of additional funding options—particularly the potential joint venture (JV)—is contributing to the delay in Final Investment Decision (FID). However, the tone of the commentary frames this not as a stalling tactic, but as a strategic pause to pursue what may be a more value-accretive funding solution.

Extracts That Suggest the JV is Causing FID Delay

From the "FID AND PROJECT SCHEDULE" section:

"Arafura is assessing a potential joint venture (JV) structure which could significantly reduce the equity required to fund Arafura’s remaining project interest..."

"Given the need to evaluate the merits of a potential JV in parallel with the Company’s existing funding strategy, FID for Nolans has the potential to extend beyond the previously advised window of first half 2025."

"...more definitive guidance on FID timing will be provided" as funding solutions are progressed.

This clearly implies:

• The JV is a newly introduced option not originally in the timeline.

• Evaluating it requires time, thus pushing out the decision window.

Interpretation: Tactical Delay vs Strategic Planning

	Perspective	Evidence	Implication
1	Strategic Planning	JV may reduce ARU’s equity burden	Supports long-term shareholder value; prudent financial management
2	Tactical Delay	FID now depends on comparison of funding models	Could be seen as “buying time” while market conditions or offtake deals improve
3	Not Desperate	Extended cash runway to Q1 2026 and secured $200M cornerstone	Shows they’re not delaying out of necessity or cash constraints

Conclusion

Yes—the JV option is being used as a reason to delay FID, but not in a way that signals lack of confidence or desperation. Instead, it is presented as a way to maximise value and reduce dilution. Management’s commentary suggests they are deliberately slowing the process to potentially secure a more favourable funding outcome, not because of setbacks or funding gaps. This framing maintains market confidence, but it’s reasonable for investors to keep watch on how long this evaluation phase extends.