• Firm commitments received for ~A$80m two-tranche institutional Placement
• Non-underwritten A$5m Share Purchase Plan for existing shareholders
• Funds to be used for corporate, working capital and project development

Arafura Rare Earths Ltd has received firm commitments to raise ~A$80 million (before costs) via a two-tranche institutional placement. The placement will see the company issue approximately 421.1 million new shares at A$0.190 per share. In addition, Arafura is undertaking a A$5 million non-underwritten share purchase plan (SPP) for existing shareholders, also at A$0.190 per share. Together, the placement and SPP are expected to raise total gross proceeds of approximately A$85 million. The funds will be used for corporate, working capital and project development purposes, including accelerating main construction at final investment decision. The placement received strong support from domestic and international institutional investors, as well as from Arafura's largest shareholder, Hancock Prospecting. The transaction further strengthens Arafura's balance sheet and enhances its negotiating leverage as it looks to finalize its equity funding strategy for the Nolans Rare Earth Project, including a targeted 60% cornerstone equity stake. The company continues to make progress on its equity funding strategy, with commitments from Australia's National Reconstruction Fund Corporation, the German Raw Materials Fund, and Export Finance Australia.

Arafura remains confident it can finalize its equity funding package for the Nolans project in a timely and attractive manner, given the strong tailwinds for Western supply of rare earths.