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Iluka Resources Limited Bank of America Merrill Lynch Global Metals, Mining and Steel Conference

David Robb – Managing Director and CEO16 May 2012F

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Disclaimer

Forward-looking Statements

This presentation contains information that is based on projected and/or estimated expectations, assumptions and outcomes.

These forward-looking statements are subject to a range of risk factors associated, but not exclusive, with potential changes in:

• exchange rate assumptions• product pricing assumptions• mine plans and/or resources • equipment life or capability• current or new technical challenges• market conditions• management decisions

While Iluka has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved which could cause results to differ from projections. Iluka shall not be liable for the correctness and/or accuracy of the information, nor any differences between the information provided and actual outcomes, and furthermore reserves the right to change its projections from time to time.

All currency referred to is Australian denominated unless otherwise indicated.

Non-IFRS Financial Information

This presentation uses non-IFRS financial information including mineral sands EBITDA, mineral sands EBIT, Group EBITDA and Group EBIT which are used to measure both group and operational performance. Non-IFRS measures have not been subject to audit or review.

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2011 – Key Features

• Group EBITDA ~$1.0bn, NPAT and FCF > $0.5bn, ROE > 40%

• Balance sheet = net cash

• 55 cents final dividend (fully franked); 75 cents for full year- pay out 53% of FCF vs target minimum of 40%

• Excellent production performance within cash cost guidance- integrated and flexible production base

• Transformational marketing outcomes- step change in zircon and high-grade titanium dioxide prices- change passed through next layer in value chain

• Net increase in Ore Reserves and Mineral Resources

• Production enhancement options within portfolio evaluated

• Product and technical development advances

• Higher commitment of funds and resources to global exploration effort

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Zirconia & zirconium-based chemicals refractories | pigments | abrasiveselectronics | catalysts | fibre optics

Zircon: Attributes and Applications

Opacity (whiteness)high refractive index (zircon refracts/reflects white light well)

Resistantwater, chemical & abrasion resistance of glazes due to hardness of zircon

Temperature stablelow thermal expansion coefficient, high thermal conductivity, high melting point

Non-wetabilityagainst molten metals

Opacifier in ceramics floor & wall tiles | sanitary ware table ware

Refractory and foundrysteel / glass production casting of jet turbine engines

Low thermal neutron absorptionincreases nuclear reactor efficiency

Inertcorrosion resistant

Zirconium and metal nuclear reactor cores / rods heat exchangers

Unique propertiescompound derivatives of zircon suitable for diverse industrial and chemical applications

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Nano materialsdye-sensitised solar cellsArsenic removal in water treatment cancer treatments | noise absorption

Titanium Dioxide: Attributes and Applications

Opaque, white and brighthigh refractive index (refracts & reflects white light)

UV protectionabsorbs UV light energy (transfers to heat) – prevents fading, peeling,

Non toxicsafe for use in foods, cosmetics and pharmaceuticals

Pigment paints & coatings plastics | paper

High strength-to-weight ratiostrong as steel but 45% lighter, twice the strength of aluminium important fuel efficiency benefit in aerospace applicationsCorrosion resistantforms an inert protective oxide coating self repairs when mechanically damaged

Titanium metal aircraft engines & airframes military | chemical processing &desalination plants |medical sporting equipment

Slag formationimportant constituent of welding to shape, hold and protect the weld pool from atmospheric conditions

Welding flux agent ship building | fabrication

Nanoparticlessignificant research into nanotechnology shows promising new applications for titanium dioxide

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Balanced Product Revenue Mix

• Based on received 2010 and 2011 prices, 2012 sales guidance• Assumes 2012 beginning prices for full year 2012• Excludes revenue from ilmenite, by-products and Mining Area C

2010 2012 Guidance2011

36%

64%

36%

64%

Zircon High-grade TiO2

~55%~45%

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MAC Iron Ore Royalty

Background• Mining Area C (MAC) covers part of

BHP BIlliton’s iron ore mining operations in WA’s Pilbara region, operated by BHP (85%) under a JV with Itochu and Mistui

• In perpetuity royalty stream• $88.5 million EBIT contribution in 2011

Outlook• BHP has stated intentions to increase total iron ore

output from its WA Iron Ore Pilbara system to 450mtpa

• MAC is expected to be a significant proportion of this total increase

BHP and Rio Tinto Pilbara Iron Ore Operations

Source: BHP Billiton (May 2011) BHP forecasts demand for seaborne iron ore to rise to over 1200mt by 2015 and over 1800mt by 2025

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Iluka Game PlanF

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Sustainability Safety

- LTIFR reduced by ~65%

- Severity reduced by ~70%

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• 2011 EBITDA margin 65%• 2011 unit revenue of $1,537/t Z/R/SR• 2012 guidance

- revenue ~$2300/t Z/R/SR- unit cash costs $700/t Z/R/SR

Volume and Margin Trend

0

50

100

150

200

250

300

350

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

Production Kt

0

300

600

900

1,200

1,500

1,800

2,100

$/t

Zircon Rutile SR Cash cost of production $/t Z/R/SR Sales $/t Z/R/SR

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Mineral Sands and Group EBITDA

• Higher-margin Jacinth-Ambrosia and Murray Basin production

• Higher zircon and high-grade titanium dioxide prices

• Second half weighted

250.2286.7

925.9

639.2319.2

660.1

979.3

305.1

0

100

200

300

400

500

600

700

800

900

1000

1100

1H 2011 2H 2011 2011 2010

$m

Mineral Sands EBITDA Group EBITDA

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Operating Cash Flow

212.7

163.6

493.5

706.2

100

200

300

400

500

600

700

1H 2011 2H 2011 2011 2010

$m

• Strengthening cash flow trend- increase in realised prices

• $217 million increase in working capital vs Dec 2010- higher receivables due to higher prices- higher inventory levels- just-in-time supply strategy

Note: excludes MAC royalty, exploration, net interest and tax

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Net Debt to Net Cash Movement

ILUKA GROUP NET DEBT - 2011

156.7

-312.6

706.2

90.3

(21.3)

(3.3)

(12.5)

(117.0)

(23.6) (10.9)

(142.5)

3.9

(400)

(300)

(200)

(100)

0

100

200

300

400

500

600

Opening NetDebt

Operatingcash flow

MAC Royalty Exploration Interest Tax Capex Asset sales Sharepurchase

Dividends FX on Debt Closing NetCash

$m

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Mineral Sands Market Characteristics

• Favourable medium-term supply/demand characteristics for both zircon and high-grade TiO2

• Market characteristics not immune to global macro-economic factors- economic growth, consumer spending, business confidence, credit availability

• Physically small, volatile, direct supplied markets – inventory effects vs underlying demand

• Global supply flows – logistics and supply reliability/security are important

• No significant discoveries since 2004, no equivalent replacements for industry mainstays

• Few high-quality, capital-efficient, quick-response industry supply options- most projects in early feasibility phase rather than commitment stage- typically long lead times, increasing resource nationalism risks- technical risk in project execution, commissioning, ramp-up and product acceptabilityF

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Marketing and Supply Evolution

Wilmington, Delaware

Zircon Premium

Castellon, Spain

Zircon Premium

Antwerp, Belgium

Zircon - Premium

Xiamen, China

Zircon Premium

Shanghai, China

Zircon PremiumRutile

Qingdao, China

Zircon Premium

Malaysia

Warehouse/distribution hub

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Balanced Geographic Revenue Mix

2010 2011 2012 (Guidance)

China

North AmericaEurope

Asia

Other

China

North America

Europe

Asia

Other

China

North AmericaEurope

Asia

Other

Regional % 2010 2011 2012 Guidance

China 25 28 22

North America 25 21 27

Europe 20 29 27

Asia (other) 19 21 23

Other 11 1 1

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0

10

20

30

40

1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131

Number of Customers

kt

Iluka Zircon Customers - 2011

China Customers Other Customers

0

1

2

3

4

5

31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131

kt

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India and Middle East Zircon Sales

0

10,000

20,000

30,000

40,000

50,000

60,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Tonnes

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Jacinth-Ambrosia Ore Reserve Changes

Refer to Iluka Resources Limited, Iluka Review 2011, page 43-45

6.42 6.37 6.40

0

0.72 0.75

0.05

0.68 0.77

6.38

4.00

4.50

5.00

5.50

6.00

6.50

7.00

'09Ore

Reserve

'09Mining

Depletion

'09Ore

ReserveAddition

'10Ore

Reserve

'10Mining

Depletion

'10Ore

ReserveAddition

'11Ore

Reserve

'11Mining

Depletion

'11Ore

ReserveAddition

31 Dec '11Ore

Reserve

HMMt

Jacinth‐Ambrosia Ore Reserve History ‐ HM

Opening Balance Additions Depletion

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Zircon Market Conditions

• Soft demand period- evidence of demand recovery across markets - Europe remains subdued but customer sand stocks almost exhausted

• Iluka has flexed production in line with demand and will hold inventory as needed- inventory held close to customers

• Prices holding- end 2011 prices ~US$2400/tonne- 1Q12 prices up ~US$100/tonne- 2Q12 prices rolled over- minor supplier/spot prices have moved up

• Major customers supportive of Iluka’s approach- direct customers now holding low inventory levels of opacifier- bulk order interest resuming

• Tile producers under inventory and margin pressure --> technology, thrifting

• Iluka remains confident about medium term demand fundamentals

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Zircon - Favourable Long Term Dynamics

Source: Data for charts sourced from Maddison, IMF, Ceramic World Review, Global Insight

Tile Consumption and GDP Growth Rates(Top 6 Tile Consumers)

0%

2%4%

6%

8%

10%

12%

14%

16%

18%

20%

China Brazil India Indonesia Iran Vietnam Average

Tile CAGR (2000 - 2010) Real GDP CAGR (2000 - 2010) Real GDP CAGR (2010 - 2020)

Global GDP Growth Rate (Real)(CAGR per annum)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

1900-40 1940-60 1960-80 1980-90 1990-00 2000-05 2005-10 2010-15f 2015-20f 2020-25f

World Growth Advanced economies Emerging and developing economies

Top Tile Consumers2010 Total = 9.4 billion sqm tile

58%

9%5%5%

23%

Other

Vietnam

Indonesia

India

China

North America

4%

Oceania0%

Africa6%

Other Europe5%

EU10%

Central-South America

10%

Asia65%

% Usage of Ceramics as Flooring Type vs other Flooring Types by Geography

33%

16%

27%

17%

7%11%

49%

10%

74%

52%

40%

WorldAvg

Germany WesternEurope

EasternEurope

US NorthAmerica

Central& Sth

America

Japan China AsiaPacific

AfricaMiddleEast

Developing Economies >80% of Tile Market Developing Economies Higher Usage (Intensity) of Tiles

Developing Economies Higher GDP Growth Developing Economies ↑

Proportion of Global GDP Growth

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• Number of tier 1 – 3 cities increase from 45 to 147

• 352 million people relocate to urban areas

• Equivalent to the total population of:– Australia x 16 times– UK x 6 times– US

Source: McKinsey & Company (2010), and CIA (2011)

China Urbanisation

China’s tiered City Structure: 2005 - 2025

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China Total Floor Space

Source: Global Insight (2011), BHP (2011), RBS (2012)

• By 2025, total urban residential floor space may be double that of 2010 level

• Social housing is expected to account for 32% of the total floor space completed between 2011 to 2015

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China Urban Floor Space per Capita

Source: McKinsey & Company(2010), NBS (2011), BHP (2011)

Taiwan 2008: 43sqm/urban capita

US 2010: 73sqm/urban capita

• Although total urban residential floor space may double by 2025, China urban residential floor space per capita will still be low

• By 2025, China urban residential floor space per capita will be equivalent to:

- Taiwan in 2008- 60% of US in 2010

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Short Term Cycles versus Long Term Trend

United StatesGDP and Industrial Production

-15

-10

-5

0

5

10

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Growth %

United States: Industrial Production GrowthUnited States: Real GDP Growth5 per. Mov. Avg. (United States: Industrial Production Growth)5 per. Mov. Avg. (United States: Real GDP Growth)Linear (United States: Industrial Production Growth)

ChinaGDP and Industrial Production

0

5

10

15

20

25

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Growth %

China: Industrial Production Growth China: Real GDP Growth5 per. Mov. Avg. (China: Industrial Production Growth) 5 per. Mov. Avg. (China: Real GDP Growth)Linear (China: Real GDP Growth)

EuropeGDP and Industrial Production

-15

-10

-5

0

5

10

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Growth %

Europe: Industrial Production GrowthEurope: Real GDP Growth5 per. Mov. Avg. (Europe: Industrial Production Growth)5 per. Mov. Avg. (Europe: Real GDP Growth)Linear (Europe: Real GDP Growth)

Other Zircon Consuming CountriesReal GDP Growth

(3)

(2)

(1)

-

1

2

3

4

5

6

7

8

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Growth %

OZCC Total : Real GDP Grow th5 per. Mov. Avg. (OZCC Total : Real GDP Grow th)Linear (OZCC Total : Real GDP Grow th)

Source: Global Insight

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Global Zircon Consumption

Source: TZMI, Iluka

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316327

378 384 369 387359

481

223

479515

400

?

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

kt

Zircon Sales

Source: TZMI, Iluka. Iluka sales exclude CRL.

∆-7%

∆34%

∆-54%

∆115%

∆7%

∆-22%

∆?%

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Pigment Demand Intensity - Linked to GDP Growth

Source: Goldman Sachs Research estimates

• Developing countries’ intensity of pigment use (pigment per person) is expected to grow with rising living standards (GDP/capita)

• Developed countries show an intensity of pigment use ~1.5 – 4kg per person. This level of pigment use in China would be a significant increase from current levels – less than 1kg per person

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Europe (1993-2010) China (1993-2010) USA (1993-2010)

Kgs per Capita

GDP per Capita (US$; real 1990 terms; at PPP)

China

Europe

USA

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Titanium Dioxide Market Conditions

• Evidence of sustained feedstock cost flow through- next challenge further downstream (e.g. paint manufacturers/retailers)- painting season impact in 2Q/3Q 2012

• First half prices ~US$2400/tonne for rutile, ~US$2050/tonne for synthetic rutile- spot prices above these levels in niche markets- many competitor legacy/emergent contracts below these levels still

• Chloride vs sulphate margins shifting, dependent on supply position- strong ilmenite prices- new Iluka SR products + more on way = processing + marketing flexibility- balance between contract flexibility and supply/offtake security

• 2nd synthetic rutile kiln re-activated, 3rd planned for Q4 2012 - options for 4th kiln reactivation under consideration

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Mineral Sands – Principal Product Streams

 ‐

 0.10

 0.20

 0.30

 0.40

 0.50

 0.60

 0.70

 0.80

 0.90

 1.001

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

Zircon2011 = 1.4Mt

Titanium Feedstocks2011 = 6.7Mt

Global Mineral Sands Market Demand (Mt)

Chloride Market=3.6Mt

Sulphate Market=3.1Mt

Rutile (95% TiO2 )

Synthetic Rutile (SR) (90 - 95% TiO2 )Upgraded Chloride Slag (UGS) (95% TiO2 )

Chloride Slag (80 - 90% TiO2 )

Chloride Ilmenite and Leucoxene (60 - 70% TiO2 )

Sulphate Slag and Ilmenite (50 - 80% TiO2 )

Source: TZMI

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Enhanced Production Project

• Multiple organic production enhancement options - extensive and, in aggregate, significant - predominantly brownfield opportunities - all located in Australia or United States

• Several large projects in PFS/DFS progressing well - Balranald, Cataby, Aurelian

• Scoping studies for Eucla Basin “hub” deposits - Atacama, Typhoon, Tripitaka (and now potentially Sonoran) - project to investigate the expansion of concentrator capacity for Eucla Basin

• Aurelian Springs project, near Virginia operations, in fast track PFS- chloride ilmenite project- potential economic life of ~10 yearsF

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Enhanced Production Potential

* Production potential is predominantly based on a combination of Proved and Probable Ore Reserves and Measured and Indicated Mineral Resources that have been subjected to project studies (Enhanced Production Project) using Iluka’s long-term cost and pricing estimates and an assessment of risk, including access, approval and development timing. A very small portion of the production potential is based on Inferred Mineral Resources totalling approximately zero to four percent of the production potential.

• Potential to increase production and/or extend current production levels significantly

Subject to caveats and disclaimers detailed on slide 2 and in November 2011 Mineral Sands presentation

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Murray Basin Mine Move

• Concentrate produced ahead of schedule, cost in line with budget• Rutile dominant deposit; ilmenite stream expected to be commercialised

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Exploration Expenditure

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

A$m

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Exploration Focus Areas – South Australia

2011 areas of drilling

2012 areas of drilling

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2012 Areas of Focus

• Operate safely and in a sustainable manner

• Navigate short-term market volatility - defend margins, capture opportunities

• Pursue capital-efficient, cost-competitive and disciplined supply enhancement options - in the context of favourable medium-term market dynamics

• Continue to evolve marketing and logistics approach - security, consistency, fast response- initiatives to enhance product recognition and consumer preference

• Create shareholder value from product and technical development

• Increase exploration activity in existing provinces and expand to new provinces

• Maintain prudent balance sheet

• Target both increased distributions and logical growth opportunities

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Iluka Resources Limited

For further information, please contact:Robert PorterGeneral Manager, Investor Relations robert.porter@iluka.com+61 3 9600 0807 / +61 (0) 407 391 829www.iluka.com

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