Arafura Rare Earths Limited has announced that its Board of Directors has made a Final Investment Decision for the Nolans Rare Earths Project .

The decision to proceed with development follows a number of key recent developments under the Company’s comprehensive, multi-year financing and offtake strategy, which has drawn binding commitments from sovereign backed institutions across four nations and resulted in the Company securing binding offtake with leading manufacturers across the globe. The Company now turns its focus to construction of the Nolans Project, targeting commencement from September 2026.

HIGHLIGHTS

• Arafura announces a Final Investment Decision to develop the Nolans Rare Earths Project in the Northern Territory, which will be Australia’s first fully integrated ore-to-oxide rare earths operation.
• Export Finance Australia has issued a non-binding Letter of Support regarding potential support under the Critical Minerals Strategic Reserve for up to 500 tonnes per annum of NdPr Oxide from the Project.
• The Final Investment Decision follows recent announcements including execution of Traxys offtake binding term sheet and execution of binding cornerstone subscription agreements with Export Finance Australia, the National Reconstruction Fund Corporation and the German Raw Materials Fund.
• Early engagement of Hatch as Engineering, Procurement and Construction Management (EPCM) contractor coupled with FID, enables the efficient ramp up of site-based construction activity, including early contractor engagement, with the Company now targeting commencement of construction from September 2026.
  

Arafura’s Chair, Mark Southey said: “The Board’s decision today marks the delivery of a long-awaited milestone for Arafura and its stakeholders. It is the culmination of a deliberate and patient strategy. We have always believed that the right partners would define the quality and durability of the Nolans supply chain. Together with our customers, investment partners and financiers across Europe, Korea, Canada, the United States and Australia, we are now ready to deliver our transformational Project.”

Chief Executive Officer and Managing Director, Darryl Cuzzubbo, said “The achievement of FID reflects years of disciplined execution and partnership building. The offtake relationships we have established with Hyundai, Kia, Siemens Gamesa, Traxys and the various types of economic support provided by the Australian Government are
not transactional arrangements. They reflect a shared recognition that the diversification of global rare earth supply chains is an imperative, not merely an opportunity

The Australian Government has taken a decisive and proactive approach, developing an economic toolkit that supports the rare earths sector in the near term that will deliver independent and functional markets into the future. On behalf of the Board, I extend my thanks to all our stakeholders for your continued support and for entrusting us to build a company that will play a defining role in the world’s technology and energy transition for decades to come.”

GLOBAL SUPPLY CHAIN DIVERSIFICATION – NOLANS STRATEGIC VALUE
The Nolans Project reaches FID at a moment of profound structural realignment in global critical minerals markets. Like minded Governments – including Australia, the United States, Germany, Canada and South Korea – have accelerated initiatives to reduce single-source supply dependency which can be impacted by global events. The
United States-Australian Critical Minerals Framework (Framework) (October 2025), and the Minerals Security Partnership successor Forum on Resource Geostrategic Engagement (FORGE – February 2025), collectively commit to building diversified, and resilient supply chains.
There is a clear need for targeted, short-term government intervention to address these market failures and catalyse investment. However, it is critical these measures are transitional in nature. The objective of intervention should not be to permanently replace market forces, but to enable the emergence of a competitive, transparent and self-sustaining rare earths sector. Short term intervention can play a decisive role in accelerating supply chain diversification, while preserving the long-term integrity and efficiency of the global rare earths market where investor confidence is founded on the best and most economically viable projects globally without long-term government intervention.

Nolans – as Australia’s first fully integrated ore-to-oxide rare earth operation – sits at the centre of this strategy and is an example of demonstrable outcomes being achieved through the landmark Framework signed by Prime Minister Albanese and United States President Trump in October 2025. Its single-site processing model eliminates dependency on concentrated processing infrastructure, a differentiating approach that saw the Nolans Project being highlighted under the Framework.

EXPORT FINANCE AUSTRALIA (EFA) LETTER OF SUPPORT UNDER THE CRITICAL
MINERALS STRATEGIC RESERVE

Aligned to global initiatives including the Australian Government’s Critical Minerals Strategy and Future Made in Australia initiatives, Arafura is pleased to be an early recipient of a non-binding Letter of Support regarding potential Critical Minerals Strategic Reserve (CMSR) support for up to 500tpa NdPr Oxide from the Nolans Project. Arafura is working closely with the Australian Government to ensure offtake is available to our global trading partners where
manufacturing is a key component of their national economic security. Any potential support remains subject to ongoing discussions between the Company and EFA, the completion of satisfactory due-diligence and all requisite approvals from the Australian Government and the Company’s shareholders.

The CMSR secures supply of select critical minerals for Australia and key international partners. The CMSR works by securing rights to an initial subset of critical minerals produced in Australia and on-selling those rights to meet demand. Support for projects depends on the needs and conditions of specific mineral markets. This allows Australia to respond to fast-moving market dynamics and the unique circumstances of different minerals. Arafura is pleased that the Nolans Project was considered eligible for participation in the CMSR.