Arafura Resources : Director Appointment - Mark Southey

ASX Announcement

Arafura Board Changes - Appointment of Director

30 January 2018

Arafura Resources Limited (ASX: ARU) (Arafura or The Company) is pleased to advise that Mr Mark Southey has been appointed to the Arafura Board as Non‐Executive Director.

As the Nolans Neodymium‐Praseodymium (NdPr) Project rapidly advances towards a Final Investment Decision, the Board have deemed it necessary that it be augmented by people with skills that are appropriate to transition the Company from development through to production. Mr Southey brings a wealth of mining, project realisation and technical experience to Arafura's Board to help guide this transition.

Mr Southey holds BSc (Hons) in Engineering with Business Studies from the University of Portsmouth, has an MBA from the University of Sydney Business School, and is a Member of the Australian Institute of Company Directors. He has extensive global experience in the industrial and natural resources sectors covering all aspects of asset management, maintenance, design and engineering, and major capital project development and execution. He is well versed in public company board and institutional investor engagement and has a background in both senior operational and financial roles.

Mr Southey has previously held senior executive positions with Honeywell and ABB both in Australia and internationally, and more recently was part of the global executive leadership team within WorleyParsons, a leader in the engineering, procurement and construction of projects in the energy and resources sector where he held the position of Group Managing Director for the Minerals, Metals and Chemicals Sector.

In welcoming Mr Southey's appointment, Non‐Executive Chairman Ian Kowalick said, "On behalf of the Board, I'm delighted that Mark has accepted our offer to join Arafura at this exciting time. He will add substantial value through his experience and strategic oversight as the Nolans NdPr Project builds further momentum towards a Final Investment Decision."

Mr Southey will stand for election at the 2018 Annual General Meeting.

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For and on behalf of Arafura Resources Limited:

Peter Sherrington

CFO/Company Secretary T: [phone]

Arafura Resources Limited ABN: 22 080 933 455

Level 3, 263 Adelaide Terrace, Perth WA 6000 PO Box 5773, St Georges Terrace, Perth WA 6831

T: [phone] W:www.arultd.com E:[e-mail]