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Presentation May 2014

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Disclaimer

Forward-Looking Information This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Sierra Rutile Limited (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and future performance and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual reports. These risks, uncertainties, assumptions and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements.

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Investment Highlights

Project Location

Process plant and tailings

Main road

Mines

Freetown

Bo

Momaligi

Gbangbatok

SIERRA LEONE

GUINEA

LIBERIA

Moyamba

Lanti Dredge

1 Leading mineral sands producer with a well-

established multi-mine operation

2

Strong existing production base and significant

installed infrastructure provide support for future

growth

3 Construction-ready projects, well-positioned to

meet pick-up in rutile demand

4

Strong operating margins and cash flow

generation supports future distributions to

shareholders

1

Strong Board and management team with an

illustrated ability to deliver on the business plan 5

>

0

40

80

120

160

Trai

ling

12

mo

nth

s p

rod

uct

ion

(ru

tile

'00

0 t

on

ne

s)

Other

Lanti Dry Mining

Lanti Dredge

Driving Value From An Established Operation

Strong Rutile Production Growth1

Lanti Dredge

Bucket line dredge and

integrated processing plant

capable of mining and treating

1,000tph

Lanti Dry Mining

Truck and shovel mining

operation feeding a central

500tph processing plant

Mineral Separation Plant

Currently capable of

processing >165ktpa of rutile,

with near-term upgrades

increasing processing capacity

to 225ktpa

A well-established operation with strong year-on-year production growth

1 Sierra Rutile 2 CAGR between 1Q11 and 1Q14 12-month trailing production 2

>

Growth Supported by Significant Installed Infrastructure

Bucket ladder Dredge designed to dig

at a rate of 1,000 tonnes per hour

Conventional earth moving equipment,

mines 500 tonnes per hour

Concentrator plant to process the dry mined

ore into a heavy mineral concentration

Wetplant to process the Dredge feed

into a heavy mineral concentrate

Mineral Separation Plant separates the heavy

mineral concentrate into its components –

capacity to produce 225,000 tonnes per annum

Silos and domes capable of storing

32,000 tonnes of product

2A – Wet Plant

1B – Dry Mining 2B – Concentrator Plant

5 – Storage

Shipping fleet comprising two push boats and 1,000–2,000

tonne barges used to transport product to deep water buoys for

loading onto international vessels

7 – Shipping

4 – MSP

Port capable of loading over

500,000 tonnes of product per year

6 – Port

Trucking operation to transport heavy

mineral concentrate to the Mineral

Separation Plant and finished product to

the Port

3 – Trucking

1A - Bucket Ladder Dredge

Existing infrastructure supports production growth to 225ktpa and is easily expandable to 275ktpa

3

> 1 Pre-feasibility study estimate 2 Feasibility study estimate

Average annual production rate (ore mined) 6.9mtpa

Average annual rutile production 93,100 tpa

Project life (Gangama deposit life) 5 years

Up-front capital expenditure $81mm

Construction period 12 months

Incremental Production Growth from Gangama

Growth Ready To Be Delivered: Gangama Dry Mine

Gangama Dry Mining1 (Gangama deposit only)

Low-risk, value enhancing project which is ready to execute

> Project overview

– Production available within 12 months

– The Gangama Dry Mining project is operationally identical to the Lanti Dry Mining project

– The 1,000tph project consists of 2x500tph units

– Power, water and road access is already in place

– +20 year life as the mining unit will mine nearby deposits once the Gangama deposit is depleted

> Strong focus on capital discipline

– Value-optimisation study reduced Gangama capital budget by 21% from US$103 million1 to US$81 million2

> Minimal risk of capital cost over-runs

– 77% of capital cost is fixed

– Only minor upgrades required to the MSP in order to reach required 225ktpa capacity

4

0

40

80

120

160

200

240

2014 Guidance Gangama Incl. Gangama

Pro

du

ctio

n (

ruti

le '0

00

to

nn

es)

+77%

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Further Production Growth: Sembehun Dredge

> Project overview

– Dredge mining operation based on a single 1,875tph bucket ladder dredge and associated floating treatment plant

– Product to be trucked 40km to existing MSP

– Product export through the existing port

– Power to be provided by existing power facility

– Full camp and maintenance facilities established in the Sembehun area

> Project status

– Pre-feasibility study complete

– Optimization study to be completed in 2015 to trade-off dredge mining against lower-capital cost, more selective dry mining techniques

– Feasibility study to commence in 2015

Deposit Mining Pond Mining Lease Boundary Proposed Dam Final Product Haul Road Existing Road HMC Hauling Road

Well-defined project that delivers strong financial returns for over 22 years

1 Snowden Mining Industry Consultants study 2 Sierra Rutile estimate – based on revised capital cost using existing MSP and power supply

Sembehun Dredge Study1: Key Project Highlights

Average production rate (ore mined) 13.0mtpa

Average annual rutile production

(first 5 years / LOM)

135,000 tpa /

113,000 tpa

Project life 22 years

Up-front capital expenditure2 $192 million

5

>

$881

$683

$557

200

300

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500

600

700

800

900

60

70

80

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100

110

120

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140

'12 '13 '14

Op

era

tin

g C

ost

/ t

on

ne

ruti

len

et o

f b

y-p

rod

uct

s

Tota

l Ru

tile

Pro

du

ctio

n (

kt)

Total Rutile Production Operating Cost / Tonne

Ongoing Cost Reduction Drives Increasing Cash Flow

> Tightly managed operating costs

– Implementing cost-cutting initiatives following a bottom-up review

– Reduction of 22% in operating cash costs in 2013, further reduction of 18% expected in 2014

– Continually reinforcing a culture of cost efficiency

> Efficient capital allocation

– Lanti Dry Mining project was completed on budget and ahead of schedule

– Gangama Dry Mining project capex reduction by over 21%

– Additional $23 million capital savings to be realized through dry mining, rather than dredging, the Gbeni deposit

Sierra Rutile continues to generate shareholder returns by focusing on cost efficiency

Gangama Dry Mining Project Capital Cost2

Decline in Operating Costs1

1 Sierra Rutile 2013 financial results; Operating cost per tonne is defined as total cash cost less by-product revenue divided by tonnes of rutile produced 2 Sierra Rutile

6

$103

$85$81

$40

$50

$60

$70

$80

$90

$100

$110

$120

Original Cost Estimate Value-Optimized Cost Further Cost Reduction

Cap

ital

Co

st (

US$

mill

ion

s)

21% cost reduction

Q1 2014 operating cost: US$539/tonne

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Top Performer In The Sector In 2013

Significant improvement in cost efficiency is a key to financial outperformance

Gross Profit Margin (2013A)1

1 Company filings

Net Profit Margin (2013A)1

24.5%

17.5%

8.5%

5%

10%

15%

20%

25%

SRX KMR ILU

Gro

ss P

rofi

t M

argi

n (

%)

8.0%

2.2%

(32.0%)

(35%)

(30%)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

SRX ILU KMRN

PAT

Mar

gin

(%

)

7

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Cash Generation Supports Future Distributions

Sierra Rutile’s operating cash flow is able to support considerable returns to shareholders

> Stated dividend policy

– Sierra Rutile has an approved policy to distribute at least 50% of free cash flows

> Growing operating cash flow per share

– Cash flow yield of up to 25% based on current share price

– Cost reduction to further improve operating margins

> Debt facilities provide flexibility and optionality

– Ability to relever the business and optimize the capital structure provides further potential for returns to shareholders

Strong Operating Cash Flow Yield1

1 Capital IQ, broker consensus; SRL’s share price as at 2nd of May 2014 (61 pence per share converted to US$ at 1.686 GBP/US$ exchange rate) 8

$0

$20

$40

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$80

$100

$120

$140

$160

0%

5%

10%

15%

20%

25%

30%

35%

40%

2014E 2015E 2016E

Cash

Flow

From

Op

eratio

ns (U

S$m

)

Cas

h F

low

Yie

ld (

Op

era

tin

g C

FPS

/ sh

are

pri

ce)

Cash Flow Yield

Cash Flow From Operations

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A Stable Mining Jurisdiction

> Investment friendly jurisdiction

– Stable and investor-friendly country within a sector which is exposed to many higher-risk jurisdictions

– Pro-mining investment climate attracting African Minerals’ US$2.4bn iron ore project and London Mining’s US$1.0bn iron ore project

– Sierra Leone has a stable government, well-documented laws and property rights, and a responsible fiscal regime

> Long and successful history with Sierra Leone

– Mine has been in operation since the early 1970s

– The Company has a positive and long-standing relationship with the Government

– Strong support from local communities

Over 40 years, Sierra Rutile has forged strong relationships with Sierra Leone

Process plant and tailings

Main road

Mines

Freetown

Bo

Momaligi

Gbangbatok

SIERRA LEONE

GUINEA

LIBERIA

Moyamba

9

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A Responsible Steward

> A driver for positive change in Sierra Leone

– Supports local community projects such as schools, wells, bridges, clinics , street lights and other infrastructure

– Provides a medical facility, treating over 22,000 people a year

– Preparing Sierra Leoneans to be managers of the future through a variety of training and educational programs

> Environmental management

– Land rehabilitation program continues

– Since 2009, over 340 hectares of land has been restored

– Aquaculture project successfully stocking fish in retired dredge ponds

– Strong, collaborative relationships with the Sierra Leone Environmental Protection Agency and Ministries of Fisheries and Agriculture

10

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Board of Directors

Working for a better Sierra Leone

Jan Castro Non-Executive Chairman

> Chief Executive Officer of Pala Investments, an investment company focused on the mining sector, and SRL’s majority shareholder

> Significant strategic advisory, management and investment experience

> Chairman of Asian Mineral Resources [TSX-V: ASN] and Nevada Copper [TSX: NCU], also serves on the board of Alacer Gold [TSX: ASR / ASX: AQG]

John Bonoh Sisay Chief Executive Officer

> Considerable experience in African mining sector, having worked in 10 African countries

> Formerly with De Beers and America Mineral Fields (now First Quantum)

> Sierra Leone national

Michael Brown Non-Executive

> Former Chief Operating Officer of De Beers; led restructuring of De Beers during GFC

> Managing Director at Pala Investments

> Serves on the board of Asian Mineral Resources [TSX-V: ASN] and Nevada Copper [TSX: NCU]

Martyn Buttenshaw Non-Executive

> Vice President at Pala Investments

> Former Business Development Manager at Anglo American and Senior Mining Engineer with Rio Tinto

> Serves on the board of Melior Resources [TSX-V: MLR]

Charles Entrekin Non-Executive

> 35 years of experience in the mining sector

> Former President of Titanium Metals Corporation [NYSE: TIE] and brings significant TiO2 sector experience

> Chairman and CEO of Melior Resources [TSX-V: MLR]

Alex Kamara Non-Executive

> Head of Engineering at Sierra Rutile from 1982-1995

> Director of Cemmats Group, a construction and engineering group operating in Sierra Leone

> Sierra Leone national

Richard Lister Non-Executive

> 40 years of experience in the industrial minerals and mining sectors with significant commodity marketing experience

> Former Chief Executive of Zemex Corporation, Vice-Chairman of Dundee Bancorp and Chief Executive of Campbell Resources

> Currently acts as a consultant to a variety of mining companies

Working for a better Sierra Leone

Board of Directors

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John Bonoh Sisay Chief Executive Officer

> Considerable experience in African mining sector, having worked in 10 African countries

> Formerly with De Beers and America Mineral Fields (now First Quantum)

> President of the Chamber of Mines, Sierra Leone

> Sierra Leone national

Yves Ilunga Chief Financial Officer

> Previously, VP – Transformation for AngloGold Ashanti Ghana

> Held various financial management roles across Africa for AngloGold Ashanti and DeBeers

Andrew Taylor Head of Operations

> 20 years of mining and processing expertise

> Significant experience of operating in Africa with De Beers and Anglo American

> Managed the construction and commissioning of the Voorspoed Mine in South Africa from 2005 to 2010

Derek Folmer

Chief Marketing Officer

> Previously, General Manager – Rutile & Zircon, for Rio Tinto, responsible for global sales of rutile and zircon

> Strong track record of developing and implementing global marketing strategies in North America, Europe and Asia, particularly in China

Best-in-Class Management

Executive Management

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2013 Results

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Strong Operating Results

> Operational highlights:

– 27% increase in rutile production to 120,349 tonnes

– Gangama Dry Mining project is ready to be built at a reduced capital cost of US$81 million, a decrease of over 21% from original estimates

– Strong results delivered from company-wide focus on cost-cutting and improved operating efficiency

– 70,000 tonnes rutile supply agreement signed with a leading pigment producer

– MoU signed to become a cornerstone purchaser of hydro power, supporting future power cost savings

– Agriculture project advanced to include plantings of over 150 hectares of oil palm trees, 37 hectares of rubber trees, 3 hectares of cacao trees and 13 hectares of pineapples

Rutile Production Growth1

Strong operating result delivered on all key performance indicators

1 Sierra Rutile 2 Trailing twelve months production to Q114 14

60

80

100

120

140

2012 2013 Trailing LTM 2014 Guidance

Ru

tile

Pro

du

ctio

n (

kt)

2

>

$300

$400

$500

$600

$700

$800

$900

$1,000

2012 2013 2014 Guidance

Ru

tile

Pro

du

ctio

n (

kt)

Robust Financial Results Despite Sector Challenges

> Financial highlights:

– Revenue of US$123.4 million

– Gross margin of $30.3 million, making Sierra Rutile, on a margin basis, the top performer amongst its mineral sands peers1

– EBITDA of US$35.0 million

– Significant reduction in operating cost despite reduced impact from by-product sales:

• 23% reduction in rutile cash production costs to US$588/tonne

• 22% reduction in operating cash cost to US$683/tonne

• 27% reduction in all-in cash cost to US$763/tonne

– Profit for the year of US$9.9 million

– Cash and cash equivalents of US$20.6 million and total current assets of US$89.9 million as at 31 December 2013

Operating Cash Cost Reduction2

Declining operating costs to support significant cash flow generation as the market strengthens

1 Peer group refers to listed titanium feedstock producers Iluka Resources Limited and Kenmare Resources plc 2 Sierra Rutile; 2014 guidance of cash operating cost of production is $490/t (excl. administration costs). Total operating cash cost for 2014 is guided at $557/t 15

Q1 2014 operating cost: US$539/tonne

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EBITDA Reconciliation

$108

$35

($24 ) ($110 )

$61

$0

$20

$40

$60

$80

$100

$120

$140

$160

EBITDA 2012 Operating CostVariance

ProductionVolumeVariance

CommodityPrice Variance

EBITDA 2013

EBIT

DA

(U

S$m

)

> Operating cost variance

– Increase in total operating costs primarily due to the introduction of dry mining operations

– Reduced by-product revenue resulting from lower product prices

> Production volume variance

– Driven by a 27% increase in rutile production

> Commodity price variance

– Weak TiO2 feedstock markets was the primary driver of lower EBITDA year-over-year

EBITDA Reconciliation1

1 Sierra Rutile 16

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Consolidated Financial Statements

Income Statement1 Cash Flow Statement1

1 Sierra Rutile

YE 31 December

2013

YE 31 December

2012

US$’000 US$’000

Revenue 123,369 179,094

Cost of sa les (93,087) (78,274)

Gross profit 30,282 100,820

Adminis trative and marketing expenses (14,645) (13,525)

Exceptional i tems (396) 248

Other income 355 261

Net finance costs (5,079) (3,407)

Profit before taxation 10,517 84,397

Income tax expense (618) (895)

Profit for the year 9,899 83,502

Total profit attributable to:

Owners of the parent 9,899 83,502

Earnings per share (US$)

-bas ic 0.019 0.164

-di luted 0.019 0.159

YE 31 December

2013

YE 31 December

2012

US$’000 US$’000

Operating activities

Cash inflow from operations 44,514 68,812

Interest received - 2

Interest pa id (2,722) (2,452)

Income taxes paid (1,050) (816)

Net cash inflow from operating activities 40,742 65,546

Investing activities

Purchase of property, plant and equipment (37,367) (57,510)

Purchase of biologica l assets (2,200) -

Purchase of intangible assets (333) (2,812)

Net cash used in investing activities (39,900) (60,322)

Financing activities

Net proceeds from borrowings 18,463 -

Repayment of borrowings (2,920) -

Net proceeds from exercise of share options 1,089 1,404

Acquis i tion of non-control l ing interests - (12,396)

Net cash from /(used in) financing activities 16,632 (10,992)

Increase/(decrease) in cash & cash equivalents 17,474 (5,768)

Cash & cash equiva lents at beginning of year 5,091 10,658

Effect of foreign exchange rate change 63 201

Cash & cash equivalents at end of the year 22,628 5,091

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Consolidated Financial Statements (Cont’d)

Balance Sheet1 Balance Sheet1

1 Sierra Rutile

31 December 2013 31 December 2012

US$’000 US$’000

ASSETS

Non-current assets

Intangible assets 11,641 11,827

Property, plant and equipment 162,734 142,212

Biologica l assets 2,123 -

Current assets

Biologica l assets 77 -

Inventories 61,149 42,921

Trade and other receivables 5,853 43,508

Current tax assets 241 -

Cash and cash equiva lents 22,628 5,783

Total assets 266,446 246,251

31 December 2013 31 December 2012

US$’000 US$’000

LIABILITIES

Current liabilities

Trade and other payables (15,086) (24,664)

Current tax l iabi l i ties - (191)

Short-term borrowings (31,262) (5,911)

Provis ions for l iabi l i ties and charges (295) (380)

Non-current liabilities

Medium and long-term borrowings (17,842) (26,300)

Retirement benefi t obl igations (2,612) (1,678)

Provis ions for l iabi l i ties and charges (2,137) (2,063)

Total liabilities (69,234) (61,187)

EQUITY AND LIABILITIES

Capital and reserves

Share capita l 275,102 274,013

Share option reserve 6,439 5,661

Retained loss (84,329) (94,610)

Total equity 197,212 185,064

Total liabilities and equity 266,446 246,251

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TiO2 Overview

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TiO2 Overview

> Titanium dioxide (TiO2) pigment is a fine white powder used in paints, plastics and paper products - which imparts whiteness, brightness and opacity on the products

> Titanium dioxide pigments are produced from titanium feedstocks. The principle feedstocks are:

– High-grade:

• Natural rutile (95-96% TiO2)

• Synthetic rutile (90-93% TiO2)

• Titanium slag (75-85% TiO2)

– Low-grade:

• Ilmenite (30-63% TiO2)

• Leucoxene (<90% TiO2)

> Titanium pigments are produced using the chloride process (55%) or the sulphate process (45%)

> The chloride process requires higher-grade feedstocks (>90% TiO2) and is favoured for its more efficient, cleaner and lower-cost process

90%

4% 6% Pigments (paint)

Titanium sponge

Other (welding)

Overall TiO2 market: 6.8 million tonnes

Overall TiO2 End Markets2

Effects of the Refractive Index on Opacity1

1 DuPont 2 Credit Suisse 20

>

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 10,000 20,000 30,000 40,000 50,000P

igm

en

t A

pp

are

nt

Co

nsu

mp

tio

n (

kg)

GDP Per Capita (PPP Basis 2005$)

China (annual) Japan

(Average)

South Korea (Average)

Western Europe (Average)

USA (Average)

Indicative S-Curve

Late-Cycle Demand Driven by China and Urbanisation

Demand growth anticipated from economic recovery and changing demographic trends

> TiO2 demand grows exponentially, late in the economic cycle

– Demand growth anticipated to increase significantly as the global economy strengthens

> China will require significantly more TiO2

– Population forecasted to peak at 1.4 billion in 2025 with middle-class growing to 70% by 2020

Pigment Consumption vs. GDP per Capita1

Late-Cycle Demand Growth1

Satu

rati

on

Lev

el (

%)

Note: Saturation level is the point at which consumption per capita does not increase with income levels

1 Rio Tinto 21

>

Sierra Rutile Produces a Premium Product

> Sierra Rutile’s core rutile product is a key input in the production of titanium dioxide

– Rutile is the only source of high-grade titanium dioxide feedstock that does not require upgrading prior to use in the chloride process

– The lower level of impurities found in rutile has significant operating cost benefits to pigment producers over other types of TiO2 feedstock

> Industry trend towards use of high-grade feedstock, such as rutile, in TiO2 production

– Chloride processing route increasingly used in the creation of TiO2 due to its cost and environmental benefits

– Chloride processing benefits from high-grade TiO2 such as natural rutile

TiO2 Feedstock Demand Growth2

Feedstock Performance in Manufacturing of TiCl4 1

0

2

4

6

8

10

12

14

16

18

Waste Index

17 times less waste than ilmenite

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Ore Consumption

38% less ore required

Synthetic Rutile Ilmenite Slag Natural Rutile

High Grade - China

High Grade - China

High Grade - RoW

High Grade - RoW

Low Grade - China Low Grade - China

Low Grade - Row

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 - 2010 2010 - 2020CAGR = 3.3% CAGR = 4.1%

1 TZMI, Company Estimates; TiCl4 production is key stage in the production of pigment (chloride process) and Titanium metal 2 Rio Tinto 22

>

Sierra Rutile’s Premium Rutile Product

Characteristic Benefit

High TiO2 levels Increased recovery

Low alkali content Avoids build up of Ca and Mg in fluidized bed

Low silica and alumina Avoids precipitation of chlorides in reactor

Low uranium and thorium Reduces radionuclide content of waste streams

Low tin levels Important for effective TiO2 and Ti metal production

Good particle shape Important for stability in fluidized bed

High bulk density Reduces elutriation losses during the chlorination process

High packing density Important for flux core wire welding application

Increasing demand for Sierra Rutile’s natural rutile owing to its favorable physical and chemical characteristics over other natural rutile suppliers’ products

Sierra Rutile’s natural rutile is a premium product within the natural rutile market

23

Contact Details

John Sisay

Chief Executive Officer

Email: jsisay@sierra-rutile.com

Sierra Rutile Limited 30 Siaka Stevens Street 2nd Floor, Access Bank Building Freetown Sierra Leone www.sierra-rutile.com