Annual Report for year ending 1 February 2013 ML 23839 Mount Porter

Abstract

Activity on ML 23839 during the reporting period included substantial work in support of Arafura's strategy to divest its interest in Mount Porter-Frances Creek via a commercial transaction with Ark Mines Limited, which reached a successful conclusion in March 2013. Arafura remains committed to a strategy of adding value to its non-core exploration assets, either through farm-out/joint venture arrangements, or through complete divestment. The Company has enjoyed recent success in attracting Ngalia Resources (and later Ferrowest Limited), Rox Resources Limited and Ark to advance non-core exploration opportunities on its Yalyirimbi (iron), Jervois (base and precious metals) and Mount Porter-Frances Creek (gold) projects, respectively. This allows Arafura to focus its efforts on developing its rare earths business which is far more likely to deliver substantial benefits to all stakeholders, including communities and business enterprises located in the Alice Springs-Aileron-Ti Tree region of Central Australia. It is recommended that Arafura continue to pursue this strategy, and closely monitor Ark's progress on developing the Mount Porter gold resource on ML 23839.