Arafura Rare Earths Limited (ASX: ARU) ('Arafura' or the 'Company') is pleased to announce the German Government inter- ministerial committee (IMC) has issued conditional approval for up to US$115 million in Untied Loan Guarantees from Euler Hermes Aktiengesellschaft (Euler Hermes) over a 10-year tenor.

Euler Hermes, the German export credit agency (ECA) has previously provided in-principle eligibility for untied loan guarantees (UFK) 1 for the Nolans Project (Refer ASX Announcement dated 29 March 2023). Since then, the Company has been working closely with KfW IPEX-Bank (KfW) in its capacity as mandated lead arranger and ECA structuring bank for the completion of the due diligence process that included legal, technical and environmental and social aspects of the process to meet the eligibility criteria for untied loan guarantee debt support.

Loan documentation including the Common Terms Deed is being advanced with all lenders in conjunction with the commercial lenders' credit approval work programs. All debt facilities are subject to the execution of formal documentation and other Conditions Precedent to financial close that are customary for arrangements of this nature. Approval from Euler Hermes is the latest milestone in the Company's debt-led strategy and is the final ECA approval required to complete the senior debt structure.

Contact:

Tel: +61 8 6370 2800

Email: arafura@arultd.com

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