Annual Report for year ending 7 December 2012 EL 23237 Mount Porter West

Abstract

The Mount Porter gold resource represents the flagship asset of Arafura's Mount Porter-Frances Creek Project. This Project currently comprises a number of exploration and mining titles, covering an area of approximately 67 km2. Three of these licences, including EL 23237, are owned outright by Arafura. The mineral rights on the remaining licences are shared with Territory Resources Limited, or with its wholly owned subsidiary, Frances Creek Pty Ltd. To date, Arafura's activities in the Mount Porter region have been directed at preparing for the commercial exploitation of the Mount Porter gold resource. More recently, the Company's strategy 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, and exploration of the adjacent land package. All activity on EL 23237 during the reporting period was in support of Arafura's strategy to divest its interest in Mount Porter-Frances Creek via a commercial transaction with private company Global Mineral Resources Limited.