ASX: ARU ASX ANNOUNCEMENT 26 March 2010 Arafura raises further funds to step-up development activities for Nolans Rare Earth-Phosphate-Uranium Project Key points - Arafura Placement and Renounceable Rights Issue raised A$19.5 million (before costs). - Funds to be used to step-up development activities at Nolans Rare Earth- Phosphate- Uranium Project in NT. - Board to consider options for Placement of Rights Issue Shortfall Shares. Australian rare earths company Arafura Resources Limited (ASX: ARU) today announced its recent Placement and Renounceable Rights Issue had raised a total of A$19.5 million (before costs) in additional funds to be used to step-up development activities for its Nolans Rare Earth-Phosphate-Uranium Project in the Northern Territory. The 1 for 10 Renounceable Rights Issue offered to Arafura shareholders closed on 23 March 2010 and raised A$2.0 million.

In February, the Company announced it had completed a A$17.5 million Placement. Arafura Managing Director & CEO, Dr Steve Ward said the Company had structured its capital raising program to allow eligible Arafura shareholders to participate on the same terms and conditions offered to institutional shareholders and sophisticated investors in the Placement. "We considered it was important to recognise the loyalty shown by our long-term shareholders and, yet again, a number demonstrated their support and commitment to the Company.

Allotment of New Shares and holding statements for the Rights Issue and Shortfall Offer will be dispatched to shareholders on Monday 29 March 2010," said Dr Ward.
To download the presentation click here: http://esp.gewru.com/download/files/12414/1122951/Arafura%20raises%20further%20funds%20to%20step-up%20development%20activities.pdf For more information contact: Steve Ward Managing Director and CEO Arafura Resources Limited T: +61 (8) 6210 7666 Felicity Nuttall Professional Public Relations T: +61 (8) 9388 0944 M: +61 (0)430 184 599 E:
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