Arafura Resources Ltd Announces Termination Of Land Purchase Agreement In Whyalla

Arafura Resources Ltd announced the formal termination of the Contract for Sale and Purchase of Land in Whyalla, South Australia. The land purchase agreement was executed in mid-2011. The decision to terminate follows the Company’s recently announced cost savings initiatives aimed at improving the economics of the Nolans Rare Earths Project (the Project). Under the revised scope of the Project and following comprehensive investigative work by the Company, it is evident that the Whyalla site is no longer required to facilitate the needs of the Project. Furthermore, the Company believes it unlikely that any benefit could be retained by continuing with the purchase agreement. The termination of the land purchase agreement will be effective as of June 24, 2013.