rights issue shortfall

Announcement just out.


SHORTFALL IN NON-RENOUNCEABLE RIGHTS ISSUE
In accordance with ASX Listing Rules Appendix 7A timetable, Arafura Resources NL advises the
following in relation to its non-renounceable 2 for 5 rights issue:

Number of shares underwritten under rights issue: 30,535,745

Number of shares taken up: 23,419,751

Shortfall taken up by underwriter: 7,115,994

Number of rights taken up
as a result of options exercised prior to the record date: 3,174,981

In total, the issue has raised $12,135,861 for the Company, before costs.

It is expected the shares will be
issued and allotted on the 22nd December 2006.

ends..

So underwriter has over 7 mill to dump.

Lets wait and see what he does with them. I'll take some!!

Cheers TCG