• First cornerstone investment of A$200 million from National Reconstruction Fund
• Binding offtake agreement for up to 300tpa of NdPr oxide signed with Traxys Europe
• Non-binding letter of intent for long-term natural gas supply from Tamboran Resources

Arafura Rare Earths Limited (ASX: ARU) reports that during the first quarter of 2025, the company reached a significant milestone in its equity funding strategy for the Nolans Project, which remains its single point of focus. Key highlights include: - The company received a first cornerstone investment commitment of A$200 million from the National Reconstruction Fund Corporation in support of the Nolans Project.- Arafura signed a binding offtake agreement with Traxys Europe SA for up to 300tpa of NdPr oxide, securing 66% of its binding offtake target.- The company signed a non-binding letter of intent with Tamboran Resources Ltd for the long-term supply of natural gas to the Nolans Project.- Escalating trade tensions continue to highlight the unique position of Nolans as one of the most advanced, near-term solutions for global rare earth supply diversification.- The NdPr oxide price increased 12% over the quarter, with recent geopolitical developments providing a potential near-term price catalyst.- Arafura completed an operational expenditure review to rationalise development resources and overheads, extending its financial runway to the first quarter of 2026.The company continues to make significant progress in executing its equity funding strategy, which is the final piece to put in place before making a final investment decision on the Nolans Project.

Arafura's Managing Director Darryl Cuzzubbo stated: 'The importance of developing diversified rare earths and permanent magnet supply chains has been thrown into sharp focus by recent geopolitical events. Arafura's Nolans Project remains the only significant, construction-ready, ore-to-oxide rare earths project in the world offering the potential to bypass the dominant Chinese supply chain. We continue to make significant progress executing our equity funding strategy, which is the final piece to put in place before making a final investment decision. Following the initial cornerstone investment from the National Reconstruction Fund Corporation, we have confidence in securing our cornerstone investment target. Nolans is the right project at the right time.'