• US EXIM provides non-binding Letter of Interest for up to US$300 million in financing
• Financing support is in addition to Arafura's existing project financing package
• Nolans Project is a candidate for funding under US EXIM's Supply Chain Resiliency Initiative

Arafura Rare Earths Limited (ASX: ARU) has announced that the Export-Import Bank of the United States (US EXIM) has provided a non-binding Letter of Interest (LOI) in support for Arafura's Nolans Project in the Northern Territory. Based on preliminary discussions, US EXIM is considering up to US$300 million of financing support. This is in addition to Arafura's existing project financing package and conditional on cooperation with Export Finance Australia (EFA) under the EXIM-EFA Single Point of Entry, a unique co-funding arrangement. Importantly, based on the advent of US EXIM's Supply Chain Resiliency Initiative (SCRI), the Nolans Project is a candidate for funding predicated upon the potential sale of rare earth products to U.S. buyers. US EXIM's support is subject to customary terms and conditions including completion of due diligence. The support extended by US EXIM, in collaboration with the Australian Government, demonstrates a proactive approach to the development of a diversified rare earth supply chain and downstream manufacturing capability. Arafura's integrated ore-to-oxide strategy will deliver critical rare earth oxides directly to the US supply chain, supporting their onshore manufacturing objectives. The additional funding, on top of the Company's existing US$1.05 billion debt package, allows the company to evaluate the acceleration of increased capacity to accommodate additional third-party ore processing infrastructure, Heavy Rare Earths (HRE) feedstock and potential HRE separation.

The US$300 million in financing support from US EXIM is in addition to Arafura's existing US$1.05 billion debt package for the Nolans Project.

The support from US EXIM demonstrates a proactive approach to the development of a diversified rare earth supply chain and downstream manufacturing capability, which will allow Arafura to evaluate the acceleration of increased capacity to accommodate additional third-party ore processing infrastructure, Heavy Rare Earths (HRE) feedstock and potential HRE separation.