Annual report for year ending 3 March 2010 EL 26812 Bonya

Abstract

No on-ground exploration activity occurred during the last reporting period. During the last term of grant, Arafura attempted to expedite exploration activities on its Jervois project area tenements via a JV agreement. Under a $8 million Letter of Intent executed on 17 April 2009, Arafura Resources and Jiangsu East China Exploration (ECE) entered into negotiations for JV covering Arafura's Jervois tenements. Unfortunately ECE did not meet its obligations and on 22 February 2010, Arafura advised the ASX that both parties had agreed to discontinue discussions on the proposed Jervois JV. To date, Arafura's exploration activities in the Jervois area have primarily focused on exploration and assessment of Fe-V resources at the Unca prospect in the adjacent EL 10215. A small exploration drilling program also investigated the uranium potential of the Lucy Creek prospect in EL 10215 and EL 24716.