• Arafura launches a two-tranche institutional placement to raise A$350 million
• Hancock Prospecting commits to subscribe for A$85 million in the placement
• Proceeds to fund the Nolans Project development
• An SPP for eligible shareholders to raise up to A$25 million
• Placement follows Final Investment Decision and CMSR support

Arafura Rare Earths Limited has launched a two-tranche institutional placement to raise approximately A$350 million to fund the development of the Nolans Project. The placement consists of Tranche One, raising A$175.5 million, and Tranche Two, raising A$174.5 million subject to shareholder approval. Hancock Prospecting has committed to subscribe for A$85 million, increasing its stake to 17.5%. Additionally, Arafura is undertaking a share purchase plan (SPP) targeting eligible shareholders to raise up to A$25 million. The placement follows the company's Final Investment Decision for the Nolans Project and receipt of a non-binding Letter of Support from Export Finance Australia. The combined proceeds will fully fund the equity component for the project, which is Australia's first fully integrated ore-to-oxide rare earths operation.

Proceeds to fund Nolans Project, with a pro forma cash balance of A$911 million

Arafura is well positioned to commence construction of the Nolans Project around September 2026.