Arafura Resources : Mines & Money New York- Presentation

Arafura Resources Limited (ASX: ARU)

Mines and Money New York May 2017

Important Notice

This presentation has been prepared by Arafura Resources Limited (Arafura Resources). It is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with and full review made of Arafura Resources' disclosures and releases lodged with the Australian Securities Exchange (ASX) and available at www.asx.com.au.

This presentation contains certain statements which may constitute "forward-looking statements." Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this presentation. No representation or warranty, express or implied is made by Arafura Resources that any forward-looking statement contained in this presentation will occur, be achieved or prove to be correct. You are cautioned against relying upon any forward-looking statement. Except for statutory liability which cannot be excluded, each of Arafura Resources and its related body corporates and their officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error in it or omission from it. Arafura Resources accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person, nor any obligation to furnish the person with any further information.

This presentation does not constitute an offer of any securities in Arafura Resources, in any jurisdiction, nor an invitation to apply for such securities, in any jurisdiction. This presentation does not provide investment advice or financial product advice. You should obtain professional advice and carry out your own independent investigations and assessment of the information in this presentation (including any assumptions) before acting.

Information in this presentation which is attributed to a third-party source has not been checked or verified by Arafura Resources.

The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Kelvin Hussey BSc (Hons). Mr Hussey is a Member of the Australian Institute of Geoscientists and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code)". Mr Hussey consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Mr Hussey is a full-time employee of Arafura Resources.

Arafura Resources Limited (ASX: ARU) 2

ASX listed company developing the Nolans Rare Earths Project in Australia Nolans 100% owned, no debt, uncomplicated ownership and capital structure Afforded major project status by Northern Territory and Australian governments Project approvals well advanced with no major risks identified

Currently finalising project feasibility study - ore to oxides

Focus on strong growth, high-value magnet-feed rare earths (REs)

Nolans will be one of the world's largest suppliers into this market

Arafura Resources Limited (ASX: ARU) 3

Australia 48.5%

Shareholder Spread

China (ECE) 20.1%

Other Asia 1.5%

*Excludes 6.3m employee options @ 10.5c expiry September 2018

North America 3.9%

Europe 26.0%

East China Exploration & Development Bureau - a SOE based in Nanjing

Europe - JPM Nominees 23% mainly German private investors

Approximately 7,000 retail investors Board & Management

Arafura Resources Limited (ASX: ARU) 4