Arafura Resources NL (ARAFF)

[Pro-Life]

NOLANS PROJECT – CONTRACT AWARDED TO PROGRESS MINE AND BENEFICIATION PLANT FEASIBILITY STUDIES

ABN 22 080 933 455
ASX RELEASE
15 June 2010

http://clients.weblink.com.au/clients/Arafura/article.asp?asx=ARU&view=6494199

Australian rare earths company Arafura Resources Limited (ASX: ARU) (“Arafura” or “the Company”) is pleased to advise that it has entered into a contractual arrangement with Lycopodium Minerals Pty Ltd (“Lycopodium”), a subsidiary of Lycopodium Limited (ASX: LYL), for the Nolans Project Bankable Feasibility Study.

This contract tasks Lycopodium with undertaking comprehensive design and engineering studies of the Nolans mine and beneficiation plant, and is expected to be completed by the end of 2010.

Dr Steve Ward, Arafura’s Managing Director and CEO, commented, “Our successful capital raising earlier this year has enabled us to drive forward with our work programs to complete the Nolans Project. The Lycopodium contract is a key component of the work relating to the Nolans mine and beneficiation plant. This follows and builds on the mine optimisation and EIS-related work streams announced in March, and is further demonstration of our determination to bring Nolans into production in 2013.”

For further information contact:
Dr Steve Ward
Managing Director & CEO
Arafura Resources Limited
T: [phone]