Ann: Quarterly Activities and Cash Flow Report , page-2

re: Ann: Quarterly Activities and Cash Flow R... Highlights

Despite the current volatile global economic conditions the Arafura Board is confident that it will secure, under acceptable arrangements in the future, the capital required to progress the Nolans Project, through to a formal investment decision by the Arafura Board.

A more detailed Nolans Project Update, which will provide current investors and potential future investors with a more comprehensive update on the Nolans Project was commenced during the quarter, and will be released to the market in the second week of August.

STRATEGY
Arafura aims to be a recognised leading producer of Rare Earths for users worldwide and has an exploration and development program to grow its position in Rare Earth projects beyond the Nolans Project. The Company will specialise in Rare Earths products and their markets.

GROWTH – DEVELOPMENT
Arafura’s primary focus is to develop its 100% owned Nolans Rare Earths Project. The deposit has a resource to sustain a mine life of over 30 years and Arafura has developed a processing flowsheet that optimises the extraction of rare earths, phosphate and uranium.