You wrote that remuneration is a non-issue. Executive/Management...

You wrote that remuneration is a non-issue. Executive/Management remuneration is actually a big issue. I use this this as a part of my of my DD when buying into a company, or holding stock.

How executive are paid/remunerated is either cash, shares, or a blend.

In our casehere at ARU, remembering for how public and significant ARU are in the public domain pay low salary. In ARU’s words:

This truly is a transformational step forward for Arafura as we move to finalise the remaining debt and equity funding requirements for Nolans to support main construction. Nolans is the first rare earth ore to oxide project to be funded by the Commonwealth and several years of detailed due diligence and commercial negotiations went into securing this funding package. The SLF is also the first of its kind approved by the Commonwealth reflecting the strategic importance of Nolans to the Australian Government and the nuanced risks associated with rare earth projects.

Now, with this in mind:

Our executive are considered poorly paid, maybe not in your or my eyes -but by industry standards. The bulk of ARU executives remuneration is paid in shares - this is where they have to work their backsides off.

Why this is so positive for us:

1.The shares are paid in tranches when they meet milestones, these milestones noted above, all bring us shareholders value.

2.The shares are paid 20% at a time over 2-3 years. For the 'other retention plan', its 3 years.

3.The shares will attract capital gains tax, meaning they need to hold for more than12 months to use the CGT concession rate.

4.In that time, when they own the shares (could be 3-4 years), they need to increase the SP to keep their worth, and keep dilution low.

Point 4 above is whereby this is critical for us and has been established as aligned with us.

As Darryl the CEO once mentioned, he hasn’t seen a remuneration more aligned with shareholders. I agree.