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ASX Release                                                                                  3 March 2015

US$16.2M GOVERNMENT GRANT FOR TTI ILMENITE UPGRADING FACILITY

TiZir Limited ('TiZir'), jointly owned by Mineral Deposits Limited ('MDL') and ERAMET of France, has received advice that its application for funding, by its wholly owned subsidiary TiZir Titanium & Iron ('TTI'), totalling NOK122m (approximately US$16.2m) has been approved by Enova, a Norwegian government agency which promotes energy efficiency and the use of environmentally friendly energy technology.

The funds will be received upon final approval by the European Free Trade Association Surveillance Authority (ESA).

As previously announced, beginning in Q3 this year, the TTI upgrading facility will undergo a scheduled refurbishment and a capacity upgrade at a cost of US$70-80m.  These works are a key part of the strategic vision for TiZir.  After completion of the works, TiZir will have the flexibility to produce either chloride or sulphate titanium slag, providing the ability to alternate between products as dictated by supply and demand dynamics within the market.  Additionally, Grande C?te ilmenite will be the feedstock used to produce chloride titanium slag at TTI, ensuring supply of ilmenite from within the group and reducing any reliance on third party sales of ilmenite.

A vitally important component of TiZir's strategic vision is to continue efforts to enhance its reputation as a supplier of products with very strong environmental credentials.  As part of the facility upgrade, TTI will install, test and continue the development of a more environmentally friendly upgrading process that could ultimately reduce TTI's CO2 emissions by as much as 90% and reduce energy consumption by up to 40%.

Enova's support is most welcome as we strive to make our environmental footprint as low as possible and we look forward to working with Enova to progress this strategy.

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