Arafura Resources

Published : May 23rd, 2016

Nolans Environmental Approvals Update

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Keywords :   Evaluation | Georgia | Rare Earth | Standard | Water |

Nolans Environmental Approvals Update

Microsoft Word - 16 05 23 EIS submission Final.docx

ASX RELEASE

23 May 2016 ASX: ARU

AN EMERGING RARE EARTHS PRODUCER FOR USERS WORLDWIDE

ENVIRONMENTAL IMPACT STATEMENT SUBMITTED FOR NOLANS PROJECT

Environmental approvals process advances to next key stage

Arafura Resources Limited (ASX: ARU, "Arafura" or the "Company") is pleased to advise that the Environmental Impact Statement ("EIS") for the Nolans Rare Earths Project has today been submitted to the Northern Territory Environment Protection Authority ("NTEPA").

The lodgement represents a significant milestone in the Nolans Project's environmental approvals process, and for the broader development and operation of the Project. It is the culmination of a detailed body of work that commenced at the Nolans site in 2006.

Arafura plans to mine, concentrate and chemically process rare earths at the Nolans site, located 135 kilometres north‐northwest of the Central Australian regional centre of Alice Springs. Intermediate rare earth products produced at Nolans will be exported overseas either for direct sale or for final processing into high‐value separated rare earth products (Figure 1), including a neodymium‐praseodymium, or NdPr, oxide product that is a critical raw material input in the manufacture of ultra‐strong permanent magnets used in Asian, European and North American industries.

The EIS has also been lodged with the Commonwealth Department of the Environment and is being assessed under a bilateral arrangement between the Northern Territory and Australian governments.

The EIS includes a comprehensive risk assessment and studies covering ground and surface water, biodiversity, Aboriginal and cultural heritage, socioeconomic impacts, transport, radiation, air quality, noise, rehabilitation and cumulative impacts.

Among the key findings of the EIS are:

  • modelling of the groundwater aquifers discovered by Arafura in 2012 suggests negligible long‐term impacts from the Nolans operation on the quality or availability of groundwater for pastoral or domestic use;

  • radiation doses received by Arafura's workers, or people living closest to the operation, from naturally occurring radioactive elements in the deposit is predicted to be negligible; and

  • biodiversity studies found no evidence that the Project will result in a significant impact on the identified vulnerable animals in the region.

The Company is confident that all identified Project impacts and risks can be mitigated through careful management.

The EIS was prepared by GHD, one of the world's leading environment and resources consulting groups. A number of specialist consultants were engaged to assist GHD in

ARAFURA RESOURCES LIMITED

[email protected] 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

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

relation to cultural heritage, social impact evaluation, economic analysis, and radiation assessment and management.

The EIS will be available for public comment for a period of eight weeks, as mandated by the NTEPA in the EIS Terms of Reference (ASX: ARU 10/06/15). The assessment and approvals process will continue over the next few months (Figure 2), with regulatory approval for the Project targeted for the second half of CY2016.

Arafura's Managing Director Gavin Lockyer said lodging the EIS marked another important milestone in delivering the Nolans Project.

"We have engaged some of the industry's best people in the preparation of the EIS, and together with the team at Arafura, everyone has worked tirelessly to compile a comprehensive document.

"Arafura places great importance in gaining and maintaining its Social Licence to Operate and is committed to effectively managing the Nolans Project in a socially acceptable and environmentally responsible manner.

"The EIS has been prepared to a very high standard and addresses the full range of environmental, economic and social issues relating to our mining and processing operation.

"We look forward to completing the approvals process for the environmental component of the project, and continuing the approvals process for Native Title and groundwater extraction, both of which we expect to see finalised later this year."

The EIS can be accessed via the NTEPA and Arafura websites from early next week. A fourteen‐page summary of the EIS is currently available on Arafura's website.

− ENDS ‐

For further information contact:

Investor enquiries: Media enquiries:

Gavin Lockyer Rebecca Lawson

Managing Director Media and Capital Partners

T: +61 8 6210 7666 M: +61 433 216 269

Page 2 of 4

Figure 1: Nolans Project Configuration

Northern Territory (Mine, Concentrator, RE Intermediate Plant) and offshore (RE Separation Plant)

Page 3 of 4

Figure 2: Northern Territory Environmental Impact Assessment Flowchart (figure courtesy of the Northern Territory EPA)

Page 4 of 4

Read the rest of the article at www.publicnow.com
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Arafura Resources

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CODE : ARU.AX
ISIN : AU000000ARU5
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Arafura Res. is a gold and nickel exploration company based in Australia.

Arafura Res. develops gold, nickel, rare earth and uranium in Australia, and holds various exploration projects in Australia.

Its main asset in development is NOLANS BORE in Australia and its main exploration properties are AILERON / REYNOLDS RANGE, JERVOIS, KURINELLI, MT PORTER / FRANCES CREEK and HAMMER HILL in Australia.

Arafura Res. is listed in Australia and in Germany. Its market capitalisation is AU$ 210.6 millions as of today (US$ 152.0 millions, € 133.1 millions).

Its stock quote reached its highest recent level on April 20, 2007 at AU$ 2.16, and its lowest recent point on December 19, 2014 at AU$ 0.04.

Arafura Res. has 546 900 032 shares outstanding.

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Corporate Presentations of Arafura Resources
5/20/2008The Nolans Project
Nominations of Arafura Resources
12/8/2008today - Appointment of Chairman - Mr. Ian Laurance
Project news of Arafura Resources
12/1/2010(Nolans Bore)Presentation of the Nolans Project
11/18/2008(Nolans Bore)NOLANS RARE EARTHS PROJECT, NORTHERN TERRITORY
11/12/2008(Nolans Bore)Nolans Resource Upgrade
8/5/2008(Nolans Bore)New Mineralization at Nolans returns outstanding assays.
7/11/2008(Nolans Bore)NOLANS PROJECT RARE EARTHS MARKET UPDATE
7/4/2008(Hammer Hill)Hammer Hill update 040708
5/20/2008(Hammer Hill)Sulphine mineralisation intersected in early drilling
Corporate news of Arafura Resources
7/14/2016Response to ASX Price Query
6/28/2016BRR Webcast - Nolans Review and Major Improvements
6/20/2016AHK: Progress Report
5/25/2016Webcast Nolans OPEX and EIS Update
5/23/2016Nolans Environmental Approvals Update
1/8/2016RE Separation MOU Executed with OCI
12/23/2015$3.0 Million R&D Tax Refund Received
11/25/2015RXL: Drilling to Commence at Bonya
11/19/2015Chairman's Address 2015 AGM
11/19/2015AGM 2015 Presentation
10/29/2015Increase Nolans Project Mineral Resources
10/27/2015Quarterly Activities & Cashflow Report
10/9/2015Notice of Annual General Meeting/Proxy Form
10/6/20152015 Annual Financial Report
9/22/2015FWL: Deed of Cancellation
9/17/2015Annual Report to shareholders
9/17/2015Appendix 4G - Corporate Governance
7/27/2015AHK: Frances Creek MMP Approved
7/27/2015Quarterly Activities & Cashflow Report
3/3/2015Initial Director's Interest Notice
2/18/2015Half Year Accounts
2/16/2015Change of Share Registry Notification
11/5/2014Letter to Shareholders
10/30/2014Quarterly Activities and Cashflow Report
10/30/2014FWL: 51% of Arafura Iron Pty Ltd Secured
10/23/2014NT Major Projects Presentation
10/20/2014RXL: Exceptional Copper Assays From Bonya Mine Drilling
11/25/2013BRR Webcast- Arafura AGM
11/8/2013Mulga Drilling Results
7/31/2009Quarterly Report
6/15/2009Settlement of Chinese Share Subscription List
5/29/2009FIRB Approval for Nolans Project
2/19/2009Strategic Investment in Arafura Resources Ltd
8/26/2008Incitec Heads of Agreement
5/16/2008Phosphate Project Recoveries
4/28/2008Releases Flotation Demonstration Results
7/9/2007Releases Outstanding REO and Uranium Results
3/19/2007Nu Power lists at 300% Premium
3/14/2007releases Nolans Phosphate Test Work
3/1/2007releases Lagoon Creek Results for March 2007.
2/16/2007Results of General Meeting
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