Arafura Resources : Sustainability Report FY21

ASX ANNOUNCEMENT

ARAFURA LAUNCHES UPDATED SUSTAINABILITY REPORT

29 November 2021

only	• Updated Sustainability Report launched with initiatives and targets set in line with ESG
commitment and goal of achieving net zero carbon emissions by 2050
	• Arafura continues to elevate sustainability practices and reporting in line with expectations
	from customers, government and stakeholders
use	Arafura Resources Limited (ASX:ARU) ("Arafura" or the "Company") is pleased to announce the launch of
a new Nolans Project Sustainability Report (the "Report"). The Report aligns with Arafura's ESG Commitment
	to "be a trusted global leader and supplier of choice for sustainably mined rare earth products, helping our
	customers deliver clean and efficient technologies. We are committed to delivering positive intergenerational
	economic, environmental and social benefits to our stakeholders".
	Arafura has recognised the strategic importance of implementing and maintaining a culture of sustainability
	right across the business from the boardroom to the mine site, which is central to its plans to mine and process
personal	ore to oxide at a single site.
The Arafura Board of Directors, its employees (including the wider owner's team) are pleased to continue to
	protect the international credibility of the Nolans Project by setting its goals and targets to demonstrate how
	it aligns with ESG expectations.
	Over the coming year, Arafura will focus on a range of sustainability initiatives including:

 Developing a clear decarbonisation pathway;

 Investigating opportunities for water savings in processing across the life of the mine;

 Maximising project participation opportunities for the indigenous people of central Australia and the broader Northern Territory economy; and

 Establishing a Board Sustainability Committee to review and recommend to the Board the long term targets and aspirations and monitor progress toward these goals.

	Arafura's Chairman Mark Southey stated:
For	"2022 is going to be a year of delivery for Arafura. With ESG at the forefront of what we do since the
beginning, we have great confidence in our strategy and our team to make a Final Investment
Decision in H2 2022. Getting these supporting strategies and cultural settings right now will make for
a better business in the long run."
The 2021 FY Sustainability Report can be found at www.arultd.com/commitments/sustainability.

Arafura Resources Limited | ABN: 22 080 933 455

Level 6, 432 Murray St, Perth WA 6000

PO Box 5773, St Georges Terrace, Perth WA 6831

T: [phone] | W: www.arultd.com | E: [e-mail]

29 November 2021 | ASX Announcement

ARAFURA LAUNCHES UPDATED SUSTAINABILITY REPORT

For personal use only

For further information contact:

Gavin Lockyer - Managing Director [phone]

Authorised by:

The Board of Directors

Arafura Resources Limited

Media inquiries:

Brent Fleeton - Clarity Communications [phone]

www.arultd.com

Page 2 of 2

For personal use only

REPORT

2021 FINANCIAL

For personal use only

REPORT INFORMATION

This sustainability report covers the period from 1 July 2020 to 30 June 2021 (FY21).

The report forms part of Arafura's annual corporate reporting suite. It offers an account of our contributions to sustainable development and complements Arafura's FY21 Annual Report.

The report covers our 100%-owned Nolans Project and exploration activities in Australia.

The report has been prepared in line with guidance from the World Economic Forum (WEF) Standards. The report also complies with disclosure requirements for the WEF 'Stakeholder Capitalism' framework which can be found at the end of the report.

For further information about our sustainability approach, or to provide feedback about this report please email [e-mail] or call us on [phone].

Unless otherwise stated, the currency used throughout this report is Australian Dollars.

SUSTAINABILITY REPORT

CONTENT

02	08	13
MESSAGE FROM	SUSTAINBILITY	SOCIAL
THE CHAIRMAN	AT ARAFURA	RESPONSIBILITY
& MD
04	12	17
ARAFURA	GOVERNANCE	CARING FOR THE
OVERVIEW	AT ARAFURA	ENVIRONMENT
06	12	22
NOLANS	SUPPLY CHAIN	WORLD
PROJECT		ECONOMIC
		FORUM |
		STAKEHOLDER
		CAPITALISM
		INDEX

Sustainability Report FY21

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MESSAGE

FROM THE CHAIRMAN & MANAGING DIRECTOR

Arafura Resources - A focus on Sustainability

MESSAGE FROM THE CHAIRMAN & MD

Looking to the future, Arafura has committed to achieving net

For personal use

Welcome to Arafura's updated Sustainability Report. This dedicated annual overview will cement sustainability at the heart of all we do to become a trusted global leader and supplier of choice of rare earth products.

In preparing the Nolans Project for this next critical phase, we are primed for a period of rapid transformation as we move from engineering, construction, and finally into a consistent state of production. Each of these phases will impact sustainability risks and opportunities and require strategic planning and consideration. Now is the right time to release our sustainability report to set a baseline for performance, outline our roadmap and make commitments for the future.

FY21 was a year of significant progress for the Nolans Project with several milestones achieved in the development of our first operation in the inland central region of Australia's Northern Territory. A Native Title Agreement (NTA) was executed in June 2020 with the site's Native Title Holders representing Kwaty Aboriginal Corporation RNTBC, Irretyepwenty Ywentent Pwert Aboriginal Corporation RNTBC and Alherramp Ilewerr Mamp Arrangkey Tywerl Aboriginal Corporation RNTBC. The NTA provides for the ongoing protection of the Native Title Holders' rights as well as allowing them to share in the long-term benefits of the Nolans Project.

Following the NTA, in July 2020 the main project mineral leases covering the Nolans mine, processing plant, waste storage facilities and accommodation village were granted. The grant of these leases provided Arafura with security over the whole asset and secured our regulatory pathway to development.

In August 2021, $45.5M was raised which enabled us to commence Front End Engineering and Design works (FEED). This will take an estimated 12 months allowing a Final Investment Decision to be made in H2 2022.

THE RARE EARTHS SECTOR WILL PLAY A MAJOR ROLE IN DELIVERING ON A LOW-CARBON FUTURE AND ARAFURA IS IN

A STRONG POSITION TO MAKE A REAL DIFFERENCE.

Over 2021, we have prepared both the Mining Management Plan and associated Environmental Management Plans which will be submitted to the Northern Territory Government for final mining approval.

Finally, in 2021 Arafura became a signatory to the United Nations Global Compact. This is an important strategic move for us as we remain committed to best-practice operations in the protection of our environment, genuine engagement with local indigenous owners, and ensuring strict anti-corruption measures are in place across the business.

zero carbon emissions by 2050. We are not underestimating the gravity of the commitment and have already begun work on defining our pathway to net zero, which we look forward to sharing soon.

Arafura's progress over the past twelve months in these important areas have put us in the strongest possible position to deliver for shareholders in the coming year.

None of this would be possible without the team we have in place at Arafura and we would like to thank all staff, contractors, partners and shareholders for their ongoing support.

Mark Southey	Gavin Lockyer
CHAIRMAN	MANAGING DIRECTOR

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