Chemical Processing FacilityHeads of AgreementNolans Rare...

Chemical Processing Facility
Heads of Agreement
Nolans Rare Earth-Phosphate Project

Arafura Resources Limited “Arafura”(ASX:ARU) is pleased to announce the signing of an
agreement with Incitec Pivot Limited “Incitec Pivot” (ASX:IPL) under which Arafura and
Incitec Pivot will evaluate the feasibility of constructing integrated chemical facilities to
supply relevant chemicals to Arafura’s proposed Rare-Earth-Phosphate processing facility.
The study will incorporate a review of potential plant sites in South Australia and the
Northern Territory for both the chemical plant and the rare earth processing facility and is
expected to take approximately 6 months.

The parties will consider the feasibility of the chemical facility supplying the majority of
Arafura’s chemical needs for its Rare-Earth facility, including hydrochloric and sulphuric acid
and caustic soda.

In addition, the parties will consider the marketing opportunities for the chemical outputs of
phosphoric acid and calcium chloride from the Arafura rare earth processing facility creating
a specialist chemical supply, logistics and marketing opportunity.

About INVITEC PIVOT LIMITED
Incitec Pivot, an ASX Top 50 company, is a leading international chemicals company with
nitrogen-based manufacturing at its core.

Incitec Pivot has extensive operations throughout Australia, the United States, Canada and
Mexico, including manufacturing plants, distribution centres and well-established channels to
market, and employs approximately 4,500 staff worldwide.

Incitec Pivot is Australia’s largest manufacturer and distributor of fertiliser products and,
since its acquisition of Dyno Nobel earlier this year, is a leading supplier of explosives
products and services in Australia and North America.

It also undertakes trading through its international trading arm, Southern Cross International.

About Arafura Resources
Arafura Resources is a Perth-based specialty metals explorer and developing producer
which has operated in the Northern Territory for the past 20 years. It listed on the Australian
Stock Exchange in 2003 and has diversified its asset portfolio by targeting projects that will
deliver long-term and sustainable value and growth.

Arafura Resources Strategy
Arafura has an exploration and development program to grow its position in rare earth
projects that are consistent with additional growth beyond the Nolans Project. The Company
will focus on the identification and development of rare earth projects and specialise in rare
earths products and their markets.