Iluka Resources : Presentation to TZMI Congress - Singapore

Addressing the Deficit

Tom O'Leary

Managing Director, Iluka Resources

13 November 2018

Disclaimer - Forward Looking Statements

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.

Key Messages

Supply-demand for high grade chloride feedstocks and zircon to remain in structural deficit	Iluka is taking action to support its customers	Iluka has a pipeline of projects - many of which are scalable

Iluka's View of the Market

Supply-Demand Fundamentals - Zircon

Global Zircon Supply

Global Zircon Demand

•	Significant inventory depletion in recent years	•
‒ 2016-18 supply = production + inventory	•
•	Existing producers' mines are mature
‒ entering decline in coming years
•	2019 market expected to remain tight
‒ Indonesia, Iluka ZIC balancing market	•
‒ minor new supply (concentrate)	•
•

Small changes in market eased Q3 tightness Q4 Chinese demand likely to be subdued

• ‒ difficult conditions in Chinese tile industry

• ‒ solid demand in sanitary and refractory

• ‒ Iluka sales not affected

Less speculation evident in opacifier pricing Iluka's customers have positive 2019 outlook ‒ customers seeking more volume

Longer term demand growth outpacing supply