| Arafura Resources Limited |

The price of rare earth products has increased significantly over the past 3 years due to the constraints placed on mining, processing and export by the Chinese authorities. This is a trend that is likely to be exacerbated in the coming years as supply continues to tighten. The impact of these developments is shown in the table below.

		2007¹	2008¹	YTD JUL 2009¹
RE Carbonate (45% REO)	US$/kg	5.25	10.25	8.00
Cerium oxide 99%	US$/kg	2.50	4.35	4.50
Lanthanum oxide 99%	US$/kg	3.10	7.75	6.25
Praseodymium oxide 99%	US$/kg	28.00	27.00	14.00
Neodymium oxide 99%	US$/kg	29.00	27.00	14.00
Dysprosium oxide 99%	US$/kg	85.00	110.00	100.00
Europium oxide 99%	US$/kg	300.00	475.00	450.00
Terbium oxide 99%	US$/kg	555.00	650.00	350.00

Source:
1 Metal Pages

Note: Prices are for a nominal 99% REO product. Prices have been rounded.