COMPANY PRESENTATION June 2013 >

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1 COMPANY PRESENTATION June 2013

2 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, 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 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 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. 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.

3 Highlights

4 Highlights One of the largest primary rutile mines, which has achieved transformational operating improvements World s largest primary rutile asset with a JORC-compliant resource in excess of 840 million tonnes at 1.0% rutile Capital investment initiated in 2010 continues to yield significant operating improvements H rutile production run-rate of over 103,000 tonnes per year, up from 54,000 tonnes in H target production of 125,000 tonnes of rutile Lanti Dry Mining project has been commissioned, providing a step-change in production Delivered on budget and ahead of schedule, the operation is currently operating above name-plate capacity Forecast production of 30,000-35,000 tonnes per annum at a highly-competitive operating cost Gangama Dry Mining project will deliver continued production growth and unprecedented financial returns Gangama Dry Mining project, which will treat 1,000tph of ore, is a scaled-up (2x) version of the Lanti Dry Mining project Scheduled to start production in 2014 Targets high-grade resources, resulting in production of over 83,000 tonnes of rutile per annum Pre-tax IRR of 228% and NPV 10 of US$507 million Substantial cash flow being generated Significant revenue growth resulting from a substantial production increase Declining per tonne operating costs resulting from realized economies of scale and a continual focus on cost efficiency Strong project pipeline provides additional long-term value Both the Sembehun Dredge project and Mogbwemo Tailings project provide low-cost, long-life development opportunities 1

5 Established Operation, Exceptional Growth

6 Assemblage Value 1 (US$/t) A Unique World-Class Deposit The largest primary rutile asset in the world JORC Mineral Resource in excess of 840 million tonnes at 1.0% rutile Lanti: 63 Mt at 1.42% rutile Gangama: 48 Mt at 1.44% rutile Gbeni: 63 Mt at 1.20% rutile Sembehun: 274 Mt at 1.34% rutile World Titanium Resources 1.35mt Iluka Resources 8.6mt (2013 rutile guidance: 200kt 2 ) Astron Limited 3.60mt White Mountain Titanium 3.46mt Sierra Rutile 8.4mt (2013 rutile guidance: 125kt) Exceptional, high value assemblage 76% of payable heavy mineral 1 is rutile 22% of payable heavy mineral 1 is zircon Gunson Resources 0.74mt Base Resources Ltd 0.95mt Kenmare Resources 4.5mt (Rutile production not reported) Mineral Deposits 0.44mt Bubble Size: In-Situ Rutile Resources Rutile Production Growth (kt) Existing Producer Construction stage Planning stage Well positioned to take advantage of the positive market fundamentals for rutile Source: Company announcements, IBMA, Credit Suisse, Sierra Rutile estimates 1. Pricing assumptions based on broker LT prices: Zircon 1,515 US$/t, Ilmenite: 180 US$/t, Rutile 1,200 US$/t 2. Source: Iluka; Includes both natural rutile and synthetic rutile 3

7 The Natural Rutile Advantage Waste Index 17-times less waste than ilmenite Chloride Consumption 13-times less chloride consumption than ilmenite 8 6 Natural rutile is more efficient than other feedstocks in manufacturing TiCl Ore Consumption Coke Consumption Ilmenite Slag Synthetic Rutile Natural Rutile Natural rutile is far more efficient than all other feedstocks in manufacturing TiCl4, superior performance yields premium prices Source: TZMI, Sierra Rutile Data based on performance of a typical chlorination plant, indexed to performance of natural rutile 4

8 TiO2 Units of Rutile ('000 Tonnes) Limited Ability for a Supply Response Limited supply response Greenfield supply response is muted by long project development times and financing requirements Limited near-term expansion potential Sierra Rutile is one of few producing assets capable of significant, near-term expansion Significant challenges facing other projects Various development constraints are being experienced by mineral sands companies globally Likely to further prolong strong supply side fundamentals Global Rutile Supply/Demand Forecast 1,200 1, Assumes all projects announced are developed on plan e 2014f 2016f 2018f 2020f Existing producers Potential new projects Underlying demand Source: TZMI, Company Estimates Natural Rutile Supply Additions Project Company Country Existing Production ktpa Expansion Production ktpa Potential Production ktpa Total Production ktpa Earliest Possible Production Sierra Rutile Sierra Rutile Sierra Leone Construction Kenmare Resources Moma expansion Mozambique Construction Mineral Deposits Grande Côte Senegal Construction Base Resources Ltd* Kwale Kenya Construction Gunson Resources Coburn Zircon WA Feasibility Trimex* Trimex Group India Feasibility Tronox Fairbreeze S.Africa Construction White Mountain Cerro Blanco Chile Feasibility Astron* Astron Ltd Australia Feasibility Diatreme & Image Resources Cyclone Australia Investigation Total Potential Production Source: Sierra Rutile, * IBMA, Credit Suisse 5 Status

9 Established Infrastructure and Skilled Workforce Significant infrastructure already in place Mineral separation plant, currently capable of operating at a rate of 165,000 tonnes of rutile per annum is easily expandable to 200,000 tonnes of rutile per annum Established export port and shipping fleet with capacity to ship 500,000 tonnes of product per annum A modern MFO (Marine Fuel Oil) power plant capable of producing 23MW of power (current utilisation under 9MW) Over 80km of established haulage roads Modern engineering and camp facilities in place Skilled and experienced workforce Experienced management team +40 years of experience operating in Sierra Leone and with these deposits 95% of workforce are Sierra Leonean nationals Highly educated employees Significant recruitment from premier universities of Sierra Leone, Fourah and Njala Nitti Port Centralised mineral separation plant Substantial infrastructure and experienced workforce provide a strong foundation for growth 6

10 Indexed Process Recovery (Feb 2011 = 100%) Trailing 12 months production (rutile tonnes) Significant Improvement in Existing Operations Lanti Dredge and process plants upgraded Following a capital investment programme initiated in October 2010, operational improvements have driven significant production increases Lanti Dredge operations 2012 production of 94,493 tonnes of rutile, a 39% increase on 2011 production Record six-month production of 51,833 tonnes of rutile in H % growth in run-rate production relative to H production target of 125,000 tonnes of rutile Substantial improvements in process recoveries have contributed to increased production and enhanced operating margins Process Recovery Improvements Rutile Production Performance 150% 130, % 130% 120, , , % 90, % 80, % 90% 70,000 60,000 50,000 80% 40,000 Source: Sierra Rutile Source: Sierra Rutile 7

11 Lanti Dry Mining: A Step Change in Production The Operation Targets high-grade resources, inaccessible to dredge mining, totalling 28.1 million tonnes at 1.5% rutile Adds production of 30,000 to 35,000 tonnes per annum of rutile as well as ilmenite and zircon by-products Implementation Ore processing plant has been commissioned, on budget and ahead of time The mining operation and concentrator plant are operating above design capacity Lanti Operations Dry mining operation The Minister of Mines and Mineral Resources, opening the Lanti Dry Mining project, January 2013 Lanti Dry Mining process plant in operation The Lanti Dry Mining project has been delivered on budget and ahead of time 8

12 Gangama Dry Mining: Adds Unparalleled Value The Project The Gangama Dry Mining project is operationally identical to the Lanti Dry Mining project Annual production of 83,400 tonnes of rutile The 1,000 tph project consisting of 2x500 tonne per hour units Power, water and road access is already in place Internal pre-feasibility study has been completed, incorporating known costs, timelines and project learnings from the Lanti Dry Mining project Gangama deposit with resource outline Gangama Dry Mining PFS: Key Project Highlights Average annual production rate (ore mined) Average annual production rate (rutile produced) Project life Up-front capital expenditure Operating cost (LOM) Construction period Pre-tax NPV million tpa 83,400 tpa 6 years $103 million $307/t 12 months $507 million Deposit outline Process water pond Dams Existing roads Pre-tax IRR 228% Gangama Dry Mine provides unparalleled value by accessing a high-grade resource while minimising development time and capital cost Source: Sierra Rutile 9

13 Gangama Dry Mining: Near-Term Milestones Project Update Gangama Dry Mining site before draining Detailed engineering of the plant and infrastructure has been finalised with Consulmet (Pty) Limited Capital costs, prior to value engineering studies, are in line with pre-feasibility results Pre-construction activities have begun, including: Dam construction for process water storage Draining of the Gangama dredge pond Upgrading of access roads Gangama project design concept Gangama Dry Mining site after draining Detailed engineering has been finalized and site preparation work has commenced 10

14 Rutile Production ('000 tonnes) Strong Production Growth Lanti Dredge Lanti Dry Mining Gangama Dry Mining Other Significant production growth 33% CAGR in rutile production between 2011 and 2015 Significant installed infrastructure minimises project implementation risk and contributes to a low capital intensity 100 Low-cost production growth Every incremental tonne produced decreases cash cost per tonne by leveraging fixed cost base 50 0 Source: Sierra Rutile F 2014F 2015F Significant growth optionality beyond 200,000 tonnes Substantial growth optionality remains Sembehun Dredge project Mogbwemo Tailings project Additional dry mining targets Significant near-term production growth with further production upside 11

15 Sembehun Dredge: Long-Term Upside Value The Project An independent scoping study, completed by Snowden Mining Industry Consultants, identified significant value in an independent dredge mining operation at Sembehun 274 million tonnes at 1.34% rutile in Sembehun provides the opportunity to develop a new project that delivers longterm returns Baseline pre-tax NPV of US$347 million with opportunity for further value enhancements Project Update An exploration programme was commenced in October 2012 to support detailed mine planning Sembehun Dredge study: Key Project Highlights Baseline Pre-tax NPV 10 $347 million Baseline Pre-tax IRR 34% Average production rate (ore mined) Average rutile production rate first 5 years / LOM Up-front capital expenditure Operating cost Construction period Project life 13 million tpa 135,000 tpa / 113,000 tpa $305 million $322/t HM produced 24 months 22 years 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 Source: Snowden Mining Industry Consultants study 12

16 Cash Costs (US$ / Tonne) (Including By-Product Credit) Revenue (US$ Millions) Significant Free Cash Flow Generation $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 Revenue Cash Cost Per Tonne Dramatic growth in free cash flow generation in the near-term Revenue growth driven by successful execution of development projects Declining operating costs driven by: A continual focus on cost efficiency Realisation of economies of scale through the leveraging of a fixedcost base across increasing production volumes $ $ $ E 2014E 2015E Source: Sierra Rutile internal production forecast and broker consensus (as at May 21, 2013) Note: 2013E to 2015E revenue estimates based on broker consensus price forecast (Rutile : US$1,489/t, US$1,499/t, US$1,471/t; ilmenite: US$256/t, US$251/t, US$241/t and; zircon concentrate price assumed to be US$500/t throughout ) Strong free cash flow generation due to growth in production and declining operating costs 0 13

17 Partnership with Sierra Leone

18 Sierra Leone: An Investment Friendly Destination Investment friendly jurisdiction Sierra Leone is a stable and investor-friendly country Sierra Leone has a pro-mining investment climate attracting African Minerals US$1.8 billion iron ore project and London Mining s US$1.0 billion iron ore project Sierra Leone is a key part of Tony Blair s African Governance Initiative which is working to develop the capacity of the Government to set and deliver on its priorities Strong relationship with Sierra Leone The Company has a positive and long-standing relationship with the Government Mining leases date back to the 1970s and are valid through 2038 with the option to extend for a further 15 years In March 2011, a special prepayment of US$18.3m was made on a loan to Government of Sierra Leone. The monies repaid on this loan are used to fund local development projects such as roads and infrastructure. US$30.9m ( 23.8m) is outstanding on the loan, which will be repaid in accordance with its terms over the next 4 years In April 2012, Sierra Rutile purchased the Governments 7.1% effective interest in the local subsidiary and pre-paid two years of PAYE tax for US$17m We know that countries are more likely to prosper when they encourage entrepreneurship; when they invest in their infrastructure; and when they expand trade and welcome investment. So we will partner with countries like Sierra Leone to create business environments that attract investment, not scare it away. US President Barack Obama, Speech to the United Nations General Assembly, September 2010 Over 40 years, Sierra Rutile has forged strong relationships with the people and Government of Sierra Leone 15

19 Fish introduced ('000s) Sierra Rutile and the Community Considerable contribution to national and local economy Sierra Rutile makes up a significant proportion of Sierra Leonean GDP and exports The Company is one of the largest private sector employers in Sierra Leone Where possible, the Company is committed to local procurement, spending over US$45m annually on in-country procurement and wages Long standing and positive relations with local Mine Workers Union Contributions to the local community Over US$1.5m invested annually in the local community The Company s medical facility treats over 22,000 people a year with free HIV testing, education and mosquito nets for malaria prevention Local technical college, sponsored by Sierra Rutile, provides education to over 300 students Through the Sierra Rutile Foundation, the Company funds local projects such as schools, wells, grain stores, latrines, courts, bridges, clinics, a local radio station and more Fish farms located in old mining ponds provide local villagers with work and a reliable source of food Local library Aquaculture Sustenance Programme Source: Sierra Rutile Planned Actual Sierra Rutile is a powerful force for development in the local community

20 A Responsible Steward Environmental management A survey of all legacy disturbed lands was completed in 2011, resulting in the development of a six year rehabilitation plan Rehabilitation plan is underway with hectares of land restored during hectares above target Through the aquaculture project, Sierra Rutile successfully stocked retired dredge ponds with a total of 147,247 tilapia and cat fish during 2012 Over 180,000 fish to be stocked during 2013 Sierra Rutile continues to maintain strong, positive relationships with the Sierra Leone Environmental Protection Agency and Ministries of Fisheries and Agriculture Ongoing Land Rehabilitation Programme Tree planting 17

21 Contact Details John Sisay Chief Executive Officer Sierra Rutile Limited 30 Siaka Stevens Street 2nd Floor, Access Bank Building Freetown Sierra Leone Website: