1. AJM 14th Annual Mineral Sands ConferenceDan McGrath Manager Eastern Operations March 2014

2. Agenda 1. Ilukas Mineral Sands Operations Overview2. Exploration Update3. Project Development4. Competitiveness and Challenges of new projects2 3. Company Overview Principal objective: create and deliver value for shareholdersMarket capitalisation: ~$4 billionStrong balance sheet with financial flexibilityRoyalty income from Mining Area C iron ore (BHPB), Western AustraliaMarket development continuing through the cycleCorporate growth, preparedness to act counter-cyclically3 4. 2013 Key Industry Features Low cycle business conditions globally uneven zircon demand pigment industry adjustments flow through to low demand for rutile / synthetic rutileSignificant year-on-year decline in mineral sand prices, particularly TiO2 productsIluka operations flexed low capacity utilisation 42% reduction in Z/R/SR production c/w 2012 initial drawdown of Z/R/SR inventories build of concentrate and ilmenite inventories4 5. 2013 Key Features Cash conservation focus lower total cash production costs (reduced 36% year-on-year) low capital expenditure while preserving project development pathwaysNon-cash adjustments of $41 million (after tax) technical success consequence old equipment now not required in mine plans increase in rehabilitation provisions, based on lower discount rateMaintained robust balance sheet (gearing of 11.6% year end; 7.8% 31 Jan 2014)2013 dividends of 9 cents, fully frankedCumulative payout = 76% of free cash flow since end 2010Broad range of indicators point to demand recovery5 6. Production Flex Zircon & High Grade TiO252% reduction67% reduction6 7. Cash Conservation Focus40% reduction63% reductionRelates to ~ $200m to ~$250m average p.a. sustaining and growth capital expenditure, which is both an historical average and expectation for the companys 2014-2018 corporate planning cycle. The $200m level shown on the chart.7 8. Iluka Operational Overview Production flexibilityApproximately 800 employees10 years reserve cover; resources 6 times reservesOperations in Australia and United States, sales offices globally distributedJORC Status (December 2013)Ore (Mt)HM In-Situ (Mt)Rutile (%)Zircon (%)Ilmenite (%)Reserves proved140.87.663937Reserved - probable336.020.551158Resources (All)2590.4178.8610598 9. Mineral Sands Regional Overview Region (Assets)Capacity (rated input)#Plants/TrainsRutile / SR (ktpa)Zircon (ktpa)Ilmenite (ktpa)Concentrating900tph RHF2Hamilton MSP700ktpa HMC12300tph42100ktpa HMC3200790ktpa Ilm3440Idle330Idle2014Murray Basin 1 Idle 23020015080% UtilPerth Basin Concentrating MSP SR Eucla Basin ConcentratingIdle 35060040% Util1000tph RHF1100% Util500tph RHF260% Util430ktpa1Altantic Seaboard Concentrating MSP4530050% UtilSignificant mining and processing asset base, low utilisation, short lead time ramp upCompliments a substantial resource base 9 10. Mineral Sands Operational Overview Market and operational flexibility created through Integration across regions10 11. Flexible Production Capability Production and product optionality through the cycle Demand Strong Re-start SR3 Eucla satellites (SR ilmenite) New rutile sourceNew projects (Eucla Eneabba)EPP Expand J-A capacity+TIO2High grade JAMaximise MB production+ZIRCONRe-start SR1 Increase MSP feed Draw inventoryTime20182017201620152014Draw inventory20132013Reduce MSP feed Reduce SR2 feed20142015201620172018TimeReduce MSP feed Stockpile J-A HMCIdle SR3 Cease JA operations-TIO2-ZIRCONCease MB operations Idle SR2 Defer BalranaldDemand Weak11 12. Continued Improvement in Safety Performance Total Recordable Injury Frequency Rate (TRIFR) 16Lost Time Injury Frequency Rate (LTIFR)15.114Frequency Rate1210.510 84.66 43.1 1.920.30 2011 2012Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-1363% reduction in TRIFR since 2011 (commencement of Safe Production Leadership) 90% reduction in LTIFR since 201112 13. Ilukas Approach Focus on shareholder returns through the cycleFlex asset operation in line with market demandContinue market development through the cyclePreserve/advance mineral sands growth opportunitiesMaintain a strong balance sheetAct counter-cyclically where appropriate 13 14. Exploration Australia14 15. Exploration a platform for Growth $22million expenditure in 201350 people66,000 km2 tenements held in AustraliaInternal drilling capabilityAustralia: >30,000m on greenfield targets in Eucla Basin 2013 Brownfield drilling around Atacama >20,000m greenfield drilling in the Murray Basin Exploration effort focused toward N/West Murray Basin, East Gippsland >10,000m Canning Basin on 2,500km2 tenement holding15 16. Mineral Sands Project Development ProjectLocationCharacteristicsDefinitive Feasibility Study West BalranaldMurray Basin, NSW High grade rutile, zircon, ilmenite Next planned mine development in Murray Basin ~ 8 year mine lifeCatabyPerth Basin, WA Chloride ilmenite with associated zircon Next planned mine development in WA ~ 6 year initial mine lifeEucla Basin Satellite DepositsEucla Basin, SA 3 chloride ilmenite with associated zircon deposits Close proximity to Jacinth-Ambrosia infrastructure Mine life extension to ~2027+Aurelian SpringsNorth Carolina, USA Chloride & sulphate ilmenite with associated zircon Utilisation of Virginia MSP ~ 11 year mine lifeScoping / Pre PFS PuttalamSri Lanka Large, long life mainly sulphate resource, re- acquired by Iluka in 2013Notes: In some cases, particularly the US, projects may be a significant component of the carrying value of the associated assets.16 17. Competitiveness of New Projects Market Segmentation Assemblage and quality Demand factorsNo recent Tier 1 resource discoveries Reserve depletion of older, formerly high quality ore bodies Positioning the new project on the cost curve Sensitivity to the cycleAustralian Factors Foreign exchange Capital cost escalation Value Add Ports and logistics 17 18. Challenges of New Projects Ramping Up throughput, quality and recovery On top of our gameHydrology Shifting technical focus for Iluka, Productivity and sustainability drivenSustainability Outcomes and our Licence to Operate New operations to meet the embedded management standards Meeting the new standards A dynamic regulatory landscape Achieving mutually beneficial outcomes with stakeholders 18 19. Summary2013 was a challenge for the heavy minerals industryFlexibility to manage the cycleExploration targets have broadenedKeeping the project pipeline fullPositioning projects on the curve19 20. Iluka Resources Limited www.iluka.comFor more information, contact: Robert Porter, General Manager Investor Relations & Corporate Affairs robert.porter@iluka.com +61 3 9225 5008 / +61 (0) 407 391 82920