re: so much passion now lets get on with the futur Holders of...

re: so much passion now lets get on with the futur Holders of ARU and ARUO, as promised earlier today, this comment is to be taken as an opinion only, based on what Pirra96 has observed as a shareholder of Arafura Resources

a. The board and management have been slow to communicate to shareholders at times, especially when let down by others, ie ASX, ASIC, ATO and any number of associates, who have been requested to perform business activities for Arafura
b. The company has a duty to keep shareholders informed at all times
c. Some previous misgivings include the SSPP earlier this year, in fact that was a bit of a disaster for long term holders
d. The current rights issue has been on notice for some time, but am deeply disappointed that the brokers, ie Bell Potter, will receive a commission in excess of $1 million for an issue that was always going to be successful.
e. There have been many issues over the past 12 months since the last AGM where management etc have failed to keep the shareholder fully informed, on time. This is an essential fact for any business entity
f. Communication, people skills are paramount to any business success, and failure in this area could prove disastrous and irreparable to some shareholders fortunes
g. Costs involved in the running operations of the company are now over the top, I know, you have to have accessible premises etc, but it is easy for me to pick this as have been through the business shredder, trying to make a buck, and costs are as much importance as are sales, and Arafura is some time away from selling any product.
h. The current agenda of “ Norm “ the major shareholder of this company, has been openly discussed on HC, unfortunately some people have got off-side, especially on the emotional side.
i. To effectively run any business, emotion is one tool that must be avoided at all costs. Duty of care, and a caring attitude are pre-eminently far more a requisite to effectively gain the best results for ones efforts, especially where many people are involved

Now, on the AGM next Thursday 23/11/2006, and the agenda

Resolution 1. The re-election of Ian John Kowalick, who retires by rotation and has nominated for election

At the 2005 AGM we had a contingent of 5 directors. Mr. M Rose retired and was not replaced

Although was at this meeting did not meet Mr. Kowalick. My intention is to meet this gentleman prior to the meeting. Believe that Ian was responsible for the Federal grant, but do not know what other inputs he had to the business formulation of Arafura over the past 12 months. Believe he lives in Adelaide, which is a problem, as our Head Office is in Perth WA.

It has been announced that Mr. Muir will retire from the board of Arafura and will take up the position as a member of the board for the demerger to Nupower Resources entity

This will leave us with only 3 directors in Arafura, and with the enormous potential ahead there lies a problem.

Pirra96 will vote for the re-election of Ian Kowalick, only after several proviso’s are made available at the AGM. These requirements will be presented at the AGM

Resolution 2. The Remuneration Report. Believe that remunerations should be reward based. Salaries etc based on position held and backed by incentive payment, by way of issue of options, and those based on results only

The RESOURCE sector of WA is in boom times, but that is no reason why salaries should be over the top.

Resolution 3. Change of Company status. A very necessary requirement for the company to move forward to production of Rare Earths

Resolution 4. Adoption of New Constitution, this of course follows Resolution 3.

Other Business. Am quite sure that the company will have a lot of questions fro shareholders on this subject.

The following is a repeat of an earlier post by Pirra96

Quote – Post 1323726 on 23/10/2006

NOW GENTLEMEN, lets not have a bun fight here, we need to make honest and suitable suggestions, all of which can be brought up at the AGM 23/11/2006. Will repeat my post yesterday

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Norm, and other HC holders of ARU/ARUO, anybody who does an in depth study of all the ARU posts on this thread since pirra96 starting to accumulate very early in 2005 { ie bought @ 15.5 and 7.5 in those early days } would have the benefit of actually seeing what has transpired over those 18 months or so.

Although not one to have a go at any individual on this HC thread, you will all know pirra96 feelings on the matter. We do need a street-wise, modern type of director, very experienced in this type of business on the board to catch the huge momentum going for speccie companies associated with URANIUM. We have a good man at the helm, akka AJS and he needs help and the backing of all us shareholders through these difficult and trying times. { ie huge frustration with the ASX on the DEMERGER }

Our main core is RARE EARTH holdings, BUT you have to go where the $$$$$'s are and at last ARAFURA is heading in the right direction, with the URANIUM demerger to NUPWER.

IN TODAY'S FAST PACED MODERN WORLD IT IS DOG EAT DOG, the winners will be the ones who present their case well and keep their clients { in this case Shareholders } well informed, can and should outperform all the others [ ie wannabie Uranium/other producers }

Pirra96 sees the biggest threat to this company being a TAKEOVER, and believe me those who are able to muster same are out there. { ie the MTN t/o proposal } As a holder who would show in the top 10 of FPO's and top 3 of Options if combined all 4 holding entities, of course I am worried by the situation caused and promoted by Arafura over the past 18 months.

My vote will be made at the AGM on the 23/11/2006 and of course will advocate/vote according to my postings. My suggestion to Norm is to put his hand up for election, know you are busy with councillor committments etc, but you can and will find time to represent the shareholders/owners of this future great company. There is a HUGE future for REO/REE and we have them in rather HUGE quanities.

The AGM will be a cracker and strongly recommend all that can attend, be there for this meeting. Know it is hard for Eastern Staters, but those who cannot attend should think long and hard over their PROXY vote. You all have my pirra96aruo@ hotmail.com address as am prepared to discuss this matter wth fellow shareholders.

Time will tell. Always does
Unquote

Will be attending this AGM and prepared to vote according to the best deal going for all shareholders. Perhaps we should have a forum on this matter over the next couple of weeks ????????????????

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It has been suggested by some that Pirra96 should nominate for a board position with Arafura Resources. To keep the record straight, you may consider me at the meeting, but I already run a highly successful business with 19 employees, the past 10 years have been very difficult, as with any business, starting with 3 people, only 2 fulltime, me a part time consultant, the time and effort to convert a very small new enterprise into a booming profit making enterprise took its toll.

The process very nearly made me broke, when GST came in 2000 things in the construction industry got very tight, but perseverance, a personal $200k business loan to the company, a 12 hour a day, 7 day week which almost cost me my 44 year marriage, paid dividends, as now own 50% of company, have 2 junior partners, and have been training my Company Manager to take over as of the 22/12/2006. My annual income is now very substantial, hence the reference to the proverbial moneytree.

I will still remain the Company Secretary/Director and CEO on a consultancy basis only, from December on, but will have far more time to divert my interests in Arafura, maybe get a game of golf in again and go touring around Oz.

My apologies if I bore you with the above, but the message is “ Hard work, more hard work, long hours, and being frugal with cost savings is the secret to becoming wealthy in this country “

Time will tell. Always does