ASX RELEASE

16 May 2017 ASX: ARU

Clarification Statement

Arafura Resources Limited (ASX: ARU, "Arafura" or the "Company") advises that in relation to the Company's Mines & Money New-York Presentation (slide 12) and Quarterly Activities Statement (page 10) released to the ASX on 4 May 2017 and 28 April 2017 respectively, the following footnotes have been inadvertently omitted from the dataset titled 'Unit Operating Costs After By Product Credits':

1 Refer ASX release 28 June 2016 for additional and qualifying information on the Mineral Resource that underpins the production target and provides the material assumptions on which the production target is based.

2 The Company confirms that all material assumptions underpinning the forecast financial information derived from its 14,000t production target and the production target itself, continue to apply and have not materially changed since the 28 June 2016 release.

- ENDS -

For further information, contact:

Peter Sherrington

CFO & Company Secretary T: +61 8 6210 7666

AN EMERGING RARE EARTHS PRODUCER FOR USERS WORLDWIDE

ARAFURA RESOURCES LIMITED

arafura@arultd.com www.arafuraresources.com.au ABN 22 080 933 455

PERTH: Level 3/263 Adelaide Tce, Perth WA 6000 | PO Box 5773, St Georges Tce, Perth WA 6831 T: +618 6210 7666 F: +618 9221 7966

DARWIN: 18 Menmuir St, Winnellie NT 0820 | PO Box 37220, Winnellie NT 0821 T: +618 8947 5588 F: +618 8947 5599

Arafura Resources Ltd. published this content on 16 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 May 2017 08:42:14 UTC.

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