Shane Tilka

Mine Manager – Jacinth Ambrosia

March 2013

AJM 13th Annual Mineral Sands Conference Operational Flexibility in a Changing Global Marketplace

2

Structure

1. Company Overview

2. Products and Industry

3. Operations and Assets

4. Jacinth-Ambrosia

3

Company Overview

• Principal objective: create and deliver value for shareholders

• Market capitalisation: ~$4 billion

• Approximately 1,000 employees

• 10 years reserve life; resources ~3 times reserves

• Strong balance sheet, net cash, $800m in undrawn facilities

• Operations in Australia and United States

• Royalty from tenements of BHP Billiton's Mining Area C (MAC) province, Western Australia

4

Iluka's Position in Mineral Sands

• #1 global producer of zircon

• #2 global producer of titanium dioxide

• Significant market share position in high value titanium dioxide products

− rutile and synthetic rutile

Major Zircon and Titanium Dioxide Feedstock Producers

Source: Iluka, TZMI

Note: Rio Tinto includes 100% of Richards Bay Minerals

5

Operations and Assets

• Mining and processing operations in Australia and USA

• Distribution warehouses located within major markets

• Zircon and titanium dioxide products supplied to more than 35 countries

• Major supplier in emerging and developing markets

− China, India, Middle East and South America

6

Australian Operations

7

Australian Operations Integration

J-A HMC

J-A HMC

J-A

Tutunup South

Eneabba

WRP

Non magnetics

from Tutunup South

Virginia Ilmenite

Mine WHIMS Ilmenite

Hamilton Ilmenite

8

Scope of Jacinth Operation

• Commissioned in November 2009

• Jacinth deposit

– 900m wide by 5 km long

– minimal overburden - strip ratio 0.5:1

– ore at average thickness of 20m

• Mining unit plant in pit:1300tph

• Wet concentrator:1000tph

• HMC production:120tph

• Fly-in-fly-out from Ceduna / Adelaide

• Village accommodates160 persons

• Water transported bore field to site 32kms

• Diesel power station (6.8 - 9.4 MW)

• HMC transported 270kms by road to Port

Thevenard storage facility

J-A Camp and Air Field

9

Jacinth-Ambrosia Physical Characteristics

1. Reported in accordance the JORC Code 2004, see Iluka Resources Limited, Iluka Review 2011, page 43-45

2. Refer Iluka ASX release, Ore Reserves and Mineral Resources Increases, 23 February 2012

• HM mineral resources1: 8.19 million tonnes

• HM ore reserves2: 6.38 million tonnes

• Average ore reserve HM grade: 4.5%

• Average HM ore assemblage: 50% zircon / 28% ilmenite / 5% rutile

• Development capex: $390 million

Production (kt) 2012 2011

Zircon 158 314

Rutile 50 56

Ilmenite saleable 87 172

Ilmenite upgradeable 204 3

10

2012 Safety Performance: Jacinth-Ambrosia

• Company wide improvement in safety performance in 2012, with year-on-year

– TRIFR rate declining by 30%

– LTIFR rate declining by 32%

• J-A operation currently has the best safety performance with a TRIFR of 4.56

• Underpinned by Safe Production Leadership Program

• Site is currently LTI free from project through to present day operations

11

Human Resources

Iluka Resources

• 70 Employees

• Local – (51%)

Exact Mining Services

• 50 employees

• Local – (36%)

Kalari Transport

• 39 Employees

• Local – (46%)

• Families relocated – 8

• Singles relocated - 10

12

Native Title Agreement

Far West Coast (FWC) Native Title Claimants - key objectives

• 20% FWC employment target for Iluka

– major contractors (EMS, Kalari, ACS)

– 20% target surpassed November 2012 with successful employment of our first

trainee operator

• Develop and implement an education and training program for the FWC:

– pre-employment plan completed – 18 participants this year on an 18 week course

– 5 scholarships providing full board/education through MOU with The Smith Family

• Develop and implement business development outcomes

– D10 dozer hire in partnership with Exact Mining Services

– excavator, dewatering pumps & lighting tower hire in partnership with Iluka

13

Red loam

White strand

• Ore pushed by dozer into mobile mining unit plant (dozer trap)

• 200m x 100m ore blocks

• Mining unit capacity up to 1400 tph

• Slurry (-10 mm) pumped to wet concentrator

• Secondary screening at concentrator (0.6 mm)

Project Overview

14

Ore Block Cross Section

100m

Southern

end of block

25-40% HM 10-15% HM

3-4.5% HM

3-4.5% HM 8-10% HM

HM%

0-5% Clay

10-15% Clay

15-20% Clay

100 metres

Challenge to supply a stable feed grade

15

Ore Block Blending Process

Ore Block Theory in practice

Floor

Grey mix

White

Slice - 3

Slice - 2 Slice - 1

Slice - 4

Red

White

Red

Grey

Slice - 5

Blending

(2 red: 3 white:1 grey)

Dozer-1 : push 2 red and 1 white (2 red from slice 4 or 5 and 1 white from slice 3)

Dozer-2 : push 2 white and 1 grey (2white from slice 3 and 1 grey from slice 2)

Prediction: 60tph HMC and 110tph clay

17

Flexibility of Mine Path Production response to market conditions

Option Indicative

HMC* (ktpa)

1 800

Base 620

3 550

5 500

8 440

11 350

* Mining schedules as at July 2012

` approx 3 years mining at this rate from starting in high grade area

18

Zircon - Production Optionality

Demand met from inventory

Increase J-A feed to MSP’s (immediate)

Max J-A feed to MSP’s and revise J-A mine plan (4-6 weeks)

2012 Matching Demand

• Low grade J-A

• Reduced MSP feed

• Expand HMC stockpile capacity Demand

MSP feed reduced J-A HMC stockpiled

Idle MSP for short periods (no employee impact)

Reduce feed to mining unit

Extend J-A low grade,

maximise stockpile

Time

19

Sustainability Major Projects Executed 2012

Sealed airstrip & haul road

• $10m invested into sealing 90km haul road & air strip

• Justified on financial return from reduced logistics expense

• Significant benefits for Kalari & community at large

• Demonstrates long term commitment to Eucla Basin

20

Jacinth-Ambrosia Brownfields Recent exploration results

1. Refer Iluka ASX release - Additional Eucla Basin Brownfield Resource, 28 January 2011

2. 2. Refer Iluka ASX release - Discovery of new Eucla Basin Brownfield Resource , 17 April 2012

• Two target styles (within 15km of J-A)

– Jacinth style (zircon-rich strands)

– Typhoon style (ilmenite dominated strands)

• Discovery of Atacama 20111

• Discovery of Sonoran ~9km south east of J-A2

• Atacama Resource increased by 4.3 mt of HM

• J-A + tie in deposits put current mine life at 2027

• Adelaide based projects team assessing

Sonoran, Typhoon and Atacama to provide

optionality

21

Mineral Sands Market Conditions - 2012

• Macro economic, country-specific and inventory destocking factors influenced demand

• Coincident cyclical weakness in both zircon and high grade titanium dioxide markets

• Demand conditions worse than in 2009 – height of GFC

• Weak high grade titanium dioxide demand in second half

– pigment plant capacity utilisation at historically low levels

• Multi-tiered pricing arrangement for titanium dioxide products

– Iluka sales impacted by continued availability of legacy contract tonnes

• Structural/cyclical reduction in zircon use in ceramics in China (~20% of global demand)

• Iluka zircon sales impacted by sharp price declines led by others

22

2012 Financial Characteristics

Sound financial characteristics despite challenging market conditions

• Mineral Sands revenue of $1,068 million

• Minerals Sands EBITDA/revenue of 67.9%

• NPAT of $363.2 million

• Operating cash flow of $368.7 million; free cash flow of $81.2 million

• Return on capital of 27.3%

• Return on equity 23.2%

• Debt facilities of $800 million with remaining 4 year tenor

23

Zircon – 2013 Outlook

• Signs of improved demand in China and US, significantly reduced production announced

– pre-conditions exist for period of price stability

• More favourable demand conditions expected to emerge progressively in 2013

– price stabilisation important to customer confidence and ordering patterns

• Current price levels expected to encourage re-introduction of zircon in some applications

• Current price levels expected to make investment for future production more challenging

24

High Grade TiO2 – 2013 Outlook

• Pigment plant utilisation continues at historically low rates – 65% to 75%

• Indications pigment inventory draw down is now advanced

• Pigment industry commentary suggests return to more normal outputs from 2H13

• US and European painting season a key influence

• Iluka high grade sales likely to remain sluggish in 1H relative to potential 2H recovery

• Feedstock pricing in 2013 influenced by end of legacy contracts

• Recent industry production curtailments an expected positive for market dynamics

• Iluka production cut backs also announced

25

Mineral Sands Cycle Characteristics

• Recent volatility highlights business cycle impacts on volumes

• Iluka 2012 Z/R/SR sales of 489 kt, ~half level of “high” cycle levels (>1mt), 1/3rd <2009

• 2012 - coincident low demand for both zircon and high grade titanium dioxide feedstocks

• Medium term fundamentals remain positive – medium term new supply challenged?

“High” cycle point

• Above trend GDP growth

• Strong end use demand

• Scarcity fears

“Low” cycle

• Below trend GDP growth

• Low end use demand

• De-stocking downstream

“Mid” cycle

• Trend GDP growth

• Average end use demand

• Re-stocking downstream

• Ore bodies high-graded

• Assets fully utilised

• Prices peak

• Zombie projects return

• “Normal” mining & processing

• Some spare capacity

• Prices trend up

• Growth capex

• Assets idled

• Excess producer capacity & inventory

• Prices seeking floor

• Investment stalls

26

Production Response/Cost Reduction Approach

• Iluka has been prepared to reduce production in light of market demand

• In combination with other major industry participant actions, production curtailments

significant:

- ~35% reduction in global zircon production (vs 2011 levels)

- ~20% reduction in high grade titanium dioxide production

• Iluka intent to optimise cash flow, maintain conservative gearing during 2013

• Significant activities announced designed to:

– reduce largest cost element = cash production costs

– maintain lowest practicable unit cost

– target finished product inventory draw down

– reduce overheads and capital expenditure

– maintain flexibility to respond to market recovery

– protect growth initiatives

27

Iluka Production Cuts and Cost Reductions

• Eneabba mine (Western Australia) to be idled from April 2013

• SR kiln 3 to remain idled until demand recovers, key staff retained

• SR kiln 2 to be idled from May until market demand warrants re-start, key staff retained

– high grade SR product demand met via rutile swaps

• Tutunup South mine (Western Australia) to be idled from May

• Narngulu mineral separation plant operating on reduced utilisation basis

28

Iluka Production Cuts and Cost Reductions

• Hamilton mineral separation plant operating at 50% utilisation

• Woornack, Rownack and Pirro mine output lower

• Jacinth-Ambrosia return to standard full face mining

– following approvals for increased HMC storage on site

– reduces unit cash costs of HMC produced

– idling planned for and an option dependent on zircon demand recovery profile

• ~30% reduction in Australian operations workforce (~200 positions)

• Virginia operations idled for 30 days over Christmas; reduced roster

• Reduction in corporate and overhead costs in train

29

Summary

• Iluka focus on optimising performance of operations based on market conditions

• Rapid production response capability as market demand returns

• Commitment to exploration and product development

• Enhancement to global marketing presence

• Pipeline of internal development opportunities (lower risk and lower capital intensity)

• Integrated and flexible production base

• Established market position as major and reliable supplier

• Sound balance sheet characteristics

30

Iluka Resources Limited www.iluka.com

For more information, contact:

Robert Porter, General Manager Investor Relations & Corporate Affairs

robert.porter@iluka.com

+61 3 9225 5008 / +61 (0) 407 391 829