Iluka Resources Limited

Acquisition of Sierra Rutile Limited

Information for Iluka Shareholders 1 August 2016

To be read in association with AIM Joint Announcement and Iluka ASX Announcement "Recommended offer for Sierra Rutile Limited by Iluka Resources Limited"

(available on Iluka's website www.iluka.com)

IMPORTANT NOTICES

This presentation contains information regarding Sierra Rutile Limited (SRL) and its business, assets and operations (SRL Information) which SRL has provided to Iluka. Whilst steps have been taken to review that information, no warranty, expressed or implied, is made as to its fairness, accuracy, correctness, completeness or adequacy. This presentation should be read in conjunction with the joint announcement made by Iluka and SRL in relation to the proposed acquisition of SRL by Iluka dated 1 August 2016.

This presentation is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to the Announcement or otherwise. The distribution of the Announcement in jurisdictions outside Australia may be restricted by law and therefore persons into whose possession the Announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

In proceeding with this transaction, Iluka will assume a number of risks to which it is not currently subject. This includes the fact that this is a material investment in Africa (with associated political and other risks). Whilst Iluka has under taken due diligence on on the assets and associated risks and has taken and will continue to take steps which it considers appropriate to manage and mitigate such risks, they cannot be eliminated entirely.

A copy of the announcement is available on the Iluka website www.iluka.com

Limitation on information in relation to SRL

The SRL Information in this presentation - including in relation to SRL's production, resources and reserves, costs, financial information and life of mine plans - has been sourced from information supplied by SRL and its subsidiaries. Whilst steps have been taken to review that information, no representation or warranty, expressed or implied, is made as to its fairness, accuracy, correctness, completeness or adequacy. The information in relation to mining resources for SRL includes Measured, Indicated and Inferred Mineral Resources, and has been stated by SRL to have been prepared in accordance with the Australasian Joint Ore Reserves Committee Code for Reporting of Ore Reserves and Mineral Resources, 2012 edition (the JORC Code). The Competent Person's statement for the SRL Information is set out on slide 31 of this presentation.

Reserves and resources reporting of Iluka and SRL

It should be noted that it is a requirement of the Australian Securities Exchange listing rules that the reporting of Ore Reserves and Mineral Resources in Australia comply with the JORC Code While Iluka's Ore Reserve and Mineral Resource estimates comply with the JORC Code, SRL is listed on AIM and as a result the public reporting requirements for SRL are different to those of an ASX listed company which reports in accordance with the JORC Code. If the proposed acquisition is completed, further evaluation work and appropriate studies will be undertaken by Iluka to report the SRL Mineral Resources in in accordance with the ASX Listing Rules. It should not be assumed that the quantities reported as "resources" will be converted to reserves under the JORC Code or any other reporting regime or that Iluka will be able to legally and economically extract them.