Iluka Resources : Investor Day Presentation 10 Nov 2017

2017 Investor Day

10 November 2017

This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing/attending this presentation you acknowledge that you have read and understood the following statement.

Forward Looking Statements

This presentation contains certain statements which constitute "forward-looking statements". Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "plan", "believes", "estimate", "anticipate", "outlook" and "guidance", or similar expressions, and may include, without limitation, statements regarding plans; strategies and objectives of management; anticipated production and production potential; estimates of future capital expenditure or construction commencement dates; expected costs or production outputs; estimates of future product supply, demand and consumption; statements regarding future product prices; and statements regarding the expectation of future Mineral Resources and Ore Reserves.

Where Iluka expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Iluka that the matters stated in this presentation will in fact be achieved or prove to be correct.

Forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumption and other important factors that could cause the actual results, performances or achievements of Iluka to differ materially from future results, performances or achievements expressed, projected or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Such risks and factors include, but are not limited to: changes in exchange rate assumptions; changes in product pricing assumptions; major changes in mine plans and/or resources; changes in equipment life or capability; emergence of previously underestimated technical challenges; increased costs and demand for production inputs; and environmental or social factors which may affect a licence to operate, including political risk.

Capital estimates include contingency and risk allowances commensurate with international estimating classification systems.

To the extent permitted by law, Iluka, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by a person as a consequence of any information in this presentation or any error or omission therefrom. Iluka does not undertake to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

No independent third party has reviewed the reasonableness of the forward looking statements or any underlying assumptions.

Non-IFRS Financial Information

This document contains non-IFRS financial measures including cash production costs, non production costs, Mineral Sands EBITDA, Group EBITDA, EBIT, free cash flow, and net debt amongst others. Iluka management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Iluka's annual results materials and/or Annual report. Non-IFRS measures have not been subject to audit or review.

All figures are expressed in Australian dollars unless stated otherwise.

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Mineral Resources and Ore Reserves Estimates

As an Australian company with securities listed on the Australian Securities Exchange (ASX), Iluka is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") and that the Ore Reserve and Mineral Resource estimates underpinning the production targets in this presentation have been prepared by a Competent Person in accordance with the JORC Code 2012.

Information that relates to Mineral Resources estimates has been previously announced to ASX on 21 February 2017 in a release titled "Updated Mineral Resource and Ore Reserve Statement" and is available at www.iluka.com/investors-media/asx-disclosures. Iluka confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. Iluka confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

Production targets

Production targets and the basis thereof are noted within the relevant disclosure.

The outlook included in this presentation is indicative only and should not be construed as guidance. The information is subject to further study, investment approval from the Board and is subject to changes in market and operating conditions; political risk; and any significant unplanned operational issues.

Revenue Factors

Commodity price assumptions are established internally based on monitoring supply and demand on an ongoing basis. Price assumptions are benchmarked against commercially available price forecasts by industry observers. Revenue factors are used to establish mine sensitivities and to test for robustness of the Ore Reserve. Detailed price assumptions are deemed to be commercially sensitive and are not disclosed.

Costs

Cataby

Capital assumptions are based on budget pricing for the majority of the work packages, other than site buildings and camp construction and demolition for which a design and construct tender was received. Pricing for the contractors direct and indirect works has been derived from a combination of the following sources: tendered quotations procured from suppliers and contractors; purchase quotation from suppliers and contractors; budget quotations procured from suppliers and contractors; historical data sourced from previously tendered or estimated projects of a similar nature and location. Where necessary items have been factored to allow for different size/capacity, etc; estimated, factored or built-up rates; and provisional or lump sum allowances where the use of the aforementioned methods are not possible.

Pricing for the operating cost estimate has been derived from a combination of the following sources: budget quotations procured from suppliers and contractors; estimated, factored or built-up rates; historical data sourced from other Iluka mine sites; and provisional or lump sum allowances where the use of the aforementioned methods are not possible. Cost and recovery penalties have been applied to deleterious elements.

Transportation charges have been procured from contractors. Processing costs are based on actual Iluka operational costs, including overheads. Actual operating costs are used to benchmark the operating cost estimates.

Allowances have been made for royalties payable to Government and private stakeholders.

Sierra Rutile

Capital assumptions for the Sembehun development were determined during the PFS, which is yet to be completed. Existing infrastructure will be utilised for mineral separation. Other costs were based on previous recent experience of SRL mine developments and industry estimates. Operating costs are based on historical performance and updated for current economic conditions. Cost and recovery penalties have been applied to deleterious elements in the optimisation and subsequent cost estimate.

All costs are calculated in $US.

Transportation charges are based on recent rates procured from SRL. Treatment costs are based on actual operational costs including deleterious elements. Actual operating costs are used to benchmark the operating cost estimates. Appropriate allowance has been made for Sierra Leone Government and other private stakeholder royalties.

Environment

Studies and approvals for the Sembehun project are currently in progress and there is a reasonable expectation that these will be in place before the project is executed. 3

Time	Topic	Presenter
8.30am	Session 1 - Industry and Markets
Introduction and Company Approach		Tom O'Leary
Industry Settings		Doug Warden
Zircon and Titanium Markets		Matt Blackwell
Questions and Answers		Panel discussion
10.15am	Break
10.30am	Session 2 - Operations and Projects
Jacinth-Ambrosia Operations		Hamish Little
Sierra Rutile Operations		Rob Hattingh
Cataby and Balranald Projects		Simon Hay
Mining Area C and Financials		Doug Warden
Outlook and Closing		Tom O'Leary
Questions and Answers		Panel discussion

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