CRIS TFlL- <>.....JPublic announcement

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26 May 2008 - All cash offer for Bemax Resources Limited

The National Titanium Dioxide Co. Ltd (Cristal) today announced that Cristal Australia pty Ltd(a wholly owned subsidiary of Cristal) has made an all cash off-market takeover offer for all ofthe shares in Bemax Resources Limited (Bemax) that it does not already hold, at a price ofA$0.32 per share (Offer).

Cristal believes that its Offer represents a substantial premium for Bemax shareholders. Inparticular, it represents:

• A 45% premium to the closing share price on Friday 23 May 2008, being the dateprior to the announcement of the Offer;

• A 36% premium to the volume weighted average share price during the one monthperiod prior to the close of trade on Friday 23 May 2008;

• A 37% premium to the volume weighted average share price during the three monthperiod prior to the close of trade on Friday 23 May 2008; and

A 30% premium to the volume weighted average share price during the 12 monthperiod prior to the close of trade on Friday 23 May 2008.

The Offer values Bemax's ordinary equity at approximately A$301.5 million and providesBemax shareholders with the opportunity to realise an attractive value for their Bemax shares.Bemax shareholders will not incur any brokerage charges by accepting the Offer.

Cristal currently has a relevant interest in 325,397,725 ordinary shares in Bemax representingapproximately 34.5% of the total issued share capital of Bemax.

Dr Steve Ward, Cristal's Senior Vice President Strategy and Supply Chain, said 'Cristal's offeris compelling for Bemax shareholders who will receive a substantial premium for their shares incash'.

Cristal's Offer is a fully-funded 100% cash offer which provides certainty of value. The fundingfor the all cash Offer will be provided to Cristal by its shareholders from their existing assets.

Cristal is the second largest producer and supplier of titanium dioxide in the world.

It is a private company incorporated in the Kingdom of Saudi Arabia and has three shareholders- TASNEE, a listed Saudi company (66%), the Gulf Investment Corporation, an independentregional financial institution owned by the governments of Saudi Arabia, Kuwait, Qatar, UnitedArab Emirates, Oman and Bahrain (33%) and Dr Talal Ali AI-Shair (Chairman and ChiefExecutive Officer) (1%).

In 2007, Cristal acquired the global Millennium Inorganic Chemicals titanium dioxide pigmentbusiness for approximately US$1.3 billion. The Millennium business has worldwide operationsincluding Western Australia where it has approximately 400 employees.

Cristal intends to use Bemax increasingly to supply feedstock to its existing Millenniumoperations in Western Australia. This will enable value adding of minerals in Australia beforeexport to overseas customers.

THE NATIONAL TITANIUM DIOXIDE CO LTD

Headquarters: PO.Box 13586. Jeddah 21414, Kingdom of Saudi ArabiaTEL: +966 (2) 652 9966 - FAX: (02) 652 9933

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117159074 \ 0444824 \ EYF01www.cristalarabia.com

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The proposed acquisition of Bemax is a strategic investment and will provide key support to thedevelopment of the existing Australian operations of the Millennium business.

If its Offer is successful, Cristal intends to continue Bemax's current operations as it has nomineral sands expertise of its own in Australia. Following a review of Bemax's business, it willlook to combine the Millennium and Bemax businesses activities where appropriate.

The Offer is subject to a number of conditions which are set out in the attachment to thisannouncement, including a 90% minimum acceptance condition. The Foreign InvestmentReview Board has advised Cristal that it has no objections to the proposed acquisition.

A Bidder's Statement has been lodged with the Australian Securities & InvestmentsCommission (ASIC) and will be sent to Bemax shareholders shortly. The Offer period isexpected to commence on 3 June 2008 and close, unless extended, on 4 July 2008. A copy ofthe Bidder's Statement will be made available on the company's websitewww.CristaIGlobal.com.

DLA Phillips Fox is acting as legal advisor to Crista!.

For more information contact:

Within Australia:

Dr Steve WardDirectorCristal Australia pty Ltd0407 985 553

General International Inquiries

Amy DrusanoHunt Valley Maryland USA+ 1 4102298062

THE NATIONAL TITANIUM DIOXIDE CO LTD

Headquarters: PO.Box 13586. Jeddah 21414. Kingdom of Saudi ArabiaTEL: +966 (2) 652 9966 - FAX: (02) 652 9933

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(02) 6529933 :..,..5~- +966 (2) 6529966 :~

limited liability Co. Fullv Paid Caoital SR 862 500 000 - C.R. 4030062296 4030062296 ,,~I 1--J1•••.- <, •••• '~J862.500,OOO1.~~, ••....J1'WI .;, .•, •.•.••.•4.,1,;-..:.1,<5...:.

117159074 \ 0444824 \ EYF01 www.cristalarabia.com 2

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