Annual report for year ending 1 February 2010 ML 23839 Mount Porter

Abstract

No on-ground exploration activity occurred during the last reporting period. ML 23839, which hosts a modest gold resource at Mount Porter, was granted to Arafura Resources on 2 February 2005 for a period of twenty-five years. ML 26318 is part of Arafura's Mount Porter-Frances Creek gold project, which currently comprises six licences. Two of these licences, including ML 23839, are owned outright by Arafura. The mineral rights on the remaining four licences are shared with Territory Resources Limited. To date, Arafura's activities in the Mount Porter region have been directed at preparing for the commercial exploitation of the Mount Porter gold deposit. More recently, the Company's aspirations to be a major participant in the rare earths industry has necessitated a shift in focus and resources away from the development of Mount Porter. Consequently, Arafura has been active in its efforts to divest its interest in the Mount Porter-Frances Creek Project.