• Arafura launches ~A$475 million two-tranche institutional Placement at A$0.28 per New Share
• Arafura's largest shareholder, Hancock, has committed to subscribe for A$125 million in the Placement
• Combined with conditionally approved debt and proposed cornerstone equity commitments, Arafura will have de-risked the total funding required for the development of the Nolans Project

Arafura Rare Earths Limited (ASX: ARU) has announced the launch of a ~A$475 million (before costs) two-tranche institutional placement (Placement). Under the Placement, the Company expects to issue approximately 1,696.4 million new fully paid ordinary shares at an offer price of A$0.28 per New Share. Arafura's largest shareholder, Hancock Prospecting Pty Ltd, has committed to subscribe for A$125 million (~446.4 million New Shares) in the Placement, which will result in Hancock holding an interest in the Company of ~15.7% upon completion. With the exception of the Hancock Commitment, the Placement is fully underwritten. In addition to the Placement, the Company is also undertaking a share purchase plan (SPP) targeting to raise approximately A$50 million. The proceeds from the Placement and SPP will be used for the Nolans Project capital costs, financing costs, cash component of the cost overrun facilities, and corporate, working capital and transaction costs. The Placement and SPP, if fully subscribed, will raise total gross proceeds of approximately A$525 million (before costs). The Company is confident that the remaining equity funding package can be finalized in a timely and attractive manner, with the convergence of support from Australian and United States government agencies and the strategic importance of the Nolans Project.

Arafura is targeting FID for the Nolans Project in Q1 2026.