ILUKA RESOURCES LIMITED — Annual Report 2003

Feb 27, 2003

ILUKA RESOURCES LIMITED

A IN ASSESSMENT ROLL 2002 ETIBYCS BLCSTER

ESDIFIT 2003

T. OVERVIEW $\overline{2}$ Financial Performance $\overline{\phantom{a}}$ Operational Performance and Outlook $\overline{4}$ Market Outlook $\overline{\phantom{a}}$ Progress Against Strategic Objectives $6$ Concluding Comments $\overline{\mathbf{z}}$ Appendices

Performance Overview - 2002 Full Year

Net Profit (Continuing Business)

BITTER

Sales Revenue (Continuing Business)

2002 Highlights

• S Basin Minsri Sardufsition completed funded third on TSSUE OTEGODISY (ASSASTI) ETTE GESTI (ASSARIT)
• STORITGKORZ STEINSION DIOKRACINDISKSI
• MZIRON INSHIRED ENSKOMPLEREGE DOG HEKORYENG INTENAS ROBERTOIS
• Except Stest Gods Found tonnes
• D RESENCE (RED UD DY 56 MB (1497) ON BEVY MIDLE G
• DERGEOURGESTID BY CENTRALE (1597) OF REEVARDING CIS
• A SREAMCER RON ISSUE (350) YEAR OF MRIDER

	Kabupatèn Bandaran Suma Bandaran Indonesia di Indonesia di Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran Bandaran a shekarar 2007 ta 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a 1999 a
	a sa sa sa san sa sa sa sa sa sa sa sa sa sa sa sa sa Overview
2	Financial Performance
3	Operational Performance and Outlook
$\overline{4}$	Market Outlook
$\boldsymbol{\Theta}$	Progress Against Strategic Objectives
6	Concluding Comments
7	Appendices

Kabupatèn Manakat Manakat Sina Manakat Manakat Manakat Indonésia

2002 Group Profit After Tax v 2001

SA ITO PRESENTATIVA ITO VII SE PROVINCI I SE PROGRAMA DA SE PROVINCI A CIA O PROVINCI I SE PROVINCI I SOCIALI

Financials

Continuus orașuluis	PAN PA	PITITER
Sales Revenue (ASIn)	RETAR	7000
CESTION.
OLENIC CENTRAL CENTR	DA	ik/A)
GEShilownershare (AS)	II	OKST
LALO HET LA
HELLICSON	77. PI	74 y Ar
ETTI DIVETES (20)	7. A.)	F 5 P. I
EDITION	PART	EK STA
NENT CELD	EQUAL	SITA:
EXPACTMENTS	ING STAR	$\blacksquare$
KOE (YA)	PA	19

Financials cont'd

Group Consolichter	y († 192	PINTIN
Cearing and interest cover
CELLUS CON	K K 1	kvan
THE CONSTRUCTION	M.	74)
DIVICE IO
THE KINGGILL (COLLS)	. 9	, ,
HOLET RETVES STRUCKET INST	V M M	Y W X
COLLEGION (77)	7. (* 14	7 i 71

Currency Position

	pan pa	PINE	SANTA DE SE	y XII I NA	PINT
	MANA	MARITAL	e pas	1999	E (fi
T. VIII o'i ji kiti	ACKSZOS SZORTA CATALOG A PARTA SZAMA CATALOG				OSTALI
HELMETHART THE THE TOPA		nang Kabupatèn	Ľ	r

Net Profit Sensitivity 2003

	Qimpanan Laqi RATIC	Allen State State Companies and Companies and State Of State Of State Of State Of State Of State Of State Of S STI 19 ITELLIT S	MARTIN EXPLANATION Lillician
	511	ESTITE	ETTI
HOVA DEDICATION SYNSS	(a je a 18	.	(- 14)

Debt Maturity

NG MANGARAT TELEVISION NG KABUPATEN KA
	PATIET	PATITES	PATITA	PATITIE	yn i i i
SERIOR TORES	pang	TELET	The Common	II. S	ILCS OF
LOS TRATAS CASTILLAS ARADA A LEALER	ganang Daonad	gang. Inserts	II SAIN	ganang Gunud
TEGS DE L'EGITS	87.30			JI

Overview

$\blacksquare$

$\overline{\mathbf{2}}$

Financial Performance

Cardinal Operational Performance and Outlook

$\overline{\phantom{a}}$ Market Outlook

$\overline{\phantom{a}}$ Progress Against Strategic Objectives

$6$ Concluding Comments

$\overline{\mathbf{z}}$ Appendices

Australian Operations

BAVGEGARATER

• a de la construcción de la construcción de la construcción de la construcción de la construcción de la construcc ALENDARY PRODUCT
• DEP ceromence dryen by grades and nigher availability IEVEISCHTEIN OUCHDURTOM FICHTUES EILBOHISTES, THE THE EXIMPLE
• A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 A 100 COMPETIC NATITIER OF

ACCITED TO FIRE RELETED

• DI DIGITIGIO I CI PIELE SI GEI GODE A VOLOVE CONDENIE NVII D 2001 due to lower grades at Yarraman and problems with Colling Standing
• DAY ENTENDED DIGNIS DENIY OFFSEID Y INDROVE HIDS performance and higher grades from trial dry mining in H2

2003 Production Outlook - WA

SERVITY

• Macyalophian Cranewinnies in Franco Thing Hall Andre THE
• MEDEDILE CONTESTINO ANNO INSTRUMENTS
• Service Contract on Service
• Deen eaching professoring ered by enclose 2005 exist EPATOLOGO INTERESTATE NEEDS
• Demining a by og hnu picket og eigher men to skar in early OS
• DE nice 28 ST WEEKS NIE OWNS OF SREIN OZAEN OS
• XIVA OREGIONS
• DIRECTOR TRACTICE 45000000000000000000000000000000000000 and SW270KtomeS
• A Indicased Alicon Dioduction due to South Falls (2096 ZI KOLL HELGED
• Minere See il mentre profiteiton iron SV70 per ilons

2003 Production Outlook - CRL

TANA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MARKA MA

• Deupertstofficialitie druikcompleted in late 2002
• Definition de les and site nuvanener recovertes experient
• Antone a protinction tended or served.
• The Contract of Contract of Contract of Contract of Contract of Contract of Contract of Contract o
• DI DI TENTEN DA LEGISTRO I SANCA NE LO JOVE REI GEOS, 4 NAS ARSIDER PRODUCTION OF A COMPANY OF A STRAIGHT OF A CONTRACT OF A CONTRACT OF A LICE OF A FINC NOVEMBER THE CHILDREN
• MOVER I ZODSTITUE SZIRODI DROTHER DISCOVERING C STONIYA OWEN
• X DESTOURCEDINTRELISCRECCE and Inite State ure the kid To inine the Enterpreseducible schedust for completion CHOL
• Die appeared in entend on the CEVAS20 million

Murray Basin Update

• Maria De la Cartella de la Cartella de la Cartella de la Cartella de la Cartella de la Cartella de la Cartell
• Denvironment lepprovellos 2002
• ARSE DIESTRESS ITINGS AND LESS FISIOL PLATE
• EXISTED DRAMATELY COUNCILING OF ZOOS
• MELALAM PRODUCTION AND LEADER THE CREEK OF WALLET
• DAVEQUITEIN INTERNE
• DI ON EGGK fora final Investment commitment in OS 2008
• Definition of the formulation of POOP
• 2 full sealer profiterion early 2005
• ET LA
• 2 final estimate for the nine, ninerals separation plantand E STAR DE LA CONSTITUTION DE LA CONSTITUTION DE LA CONSTITUTION DE LA CONSTITUTION DE LA CONSTITUTION DE LA CO and optimisation plans

Murray Basin Update cont'd

																					Sont Hanelin i esoti keskebud balikton

	LEGIN	IIIC
City of California	16	21. J
AFIRACIO	24 W I	14
LONG HELENO	ik W	. .
The Constitution of the Constitution of the Constitution of the Constitution of the Constitution of the Const	18	ZA
ZATA SILIKA	15 Ma	LA:
Huthit av	40	-W)
II METHICI	Salat Company	HAIT AND
VALLA CONTES	STAND	SSAUD

KSYDSYSIODINGNIKÖN TIGES

• DE POSITISTICO VERTEVIENTOS PAUPAROURCHER CONTOINT IN WORK TESOTIVES, DROTTGE CLEIDY, Chorando po dos Sand ganda alah tahun 1989.
• DISCRETIGENTS (19 FICCOMMODELLE FICHIONEL teamte hwyr
• DEACHROTERSEY and tailings Infinite sincipling iki de under F. S. D. S. M. S. M. S. S. T. C. ALC. CERZECZCETTIEVS GEVATRES membre ement den

Murray Basin Update cont'd

• M Good progress nest been made with the day management
• DEAL BACHEVE RESIDE DROPEIN LES DEEL COUDERC
• V Modeling of day composition, variability within or Body and de valeding diakters sides well at Vanced
• WINCKSNERGESIGN (SYNSGNGS) ZEING OPHINISE KOMEER Through put requirements and planned mining schedule
• M Tallingshiehed Sinentstrategies heing developed and EVALUATE CHINER
• A SENTABY CORDISCEL QUIDTS
• A afternative technologies

USA Operations

• DE PROTIGEORIA CHE CREER COVE SOFIECE O EFFECTION IN FLORIC WES OVERINZIOZICH GIJEN GOTCHOOS DI OPAING NAVIS I NAJRA PROGRAMA DO NAJRADO DE LA CARACTERA DE LA CARACTERA DE LA PARTICIPA DE LA CARACTERA DE LA CARACT CONTROLS TROSY OF
• RACIO DE LOS COLAS AL QUE LOS COLAS EN EL COLAS EL COLAS EL COLAS EL COLAS EL COLAS EL COLAS EL COLAS EL COLA Commissioning of excension protects fire Islac (esto) COMMISSIONING WESCERVED WWELESHOPEGES CONTRACTED THE WORSK FOUGHT CONTROLS TO KOO YEARS
• MOITING ON DICIED COMMISSIONED DY ENTREPTED included a new minesite, mining unit, concentrator, zhoon Thishing phile in the filling and the BSS charge requests?
• DE LOWER OVEREIT DROPTGEOREN ENGINEE WERE THE INFIDURES ONSTOP The US organic Resolutive Resolution

2003 Production Outlook - USA

ET LES

• MCKSEN COVE STRINGS CKELCH CE COMMISSIONING INO WIENE OZ
• Vappevalstorexpansionintoreenglagegia and pace
• A construction fare of to enclose commissioning in O4 Wilh Verich das trigeistor completion
• Dioidelia RVES Presis de na maio NEU E VEI in 2002
• SOCIETA COST
• V expanded infinite operations fully commissioned
• Adiyamil ruming a gelezo of name plate cipatry recipited GIEINGESCHIGENZE ZIERREGIEREN EIER EIDERUNZEIGE
• 2 producion of linenite and zircon experient folie GDDIO KINGIBIYASOWA > TIGITIZOOLA GWEIS

Titanium Minerals Outlook

• BESTBREET DIROGEST CONTINUES CLOPEN SCONOMIC CROWTING OUHOOK TORUE INIUM MINERIS RANEINS CENERALY BOSH VE
• M Picment market demandshong, price moreases being Solidare
• DATIR INITI ITALIENS GEMENGEN GEGEGEGE KONGINETING DIKULE KORIG. SERCOMIC CODE FITTE TO COST
• DAVEGING ELECTRO ES A CENTENCAVIL VE NY DYTECTON
• A NOW profects (committed of fiker) will cause oversupply of SONG DICITAS and ICITICA DICES OF SECRIT CITIES
• DE LUIG IS MAURE SE IES VIII DE MAUER (CE LA) ADIO MOREVATE DIH V 6S EXSTILE DICTURION IS MILYSON

Zircon Outlook

• DE Global zhooninankeroutkook is experiente remain robust OVER II DU AVIUI SONE CONTINUITO I CIOR I GITTERED GES
• MAN NEW ALL DEAL COMPANY TO A CHARGE THE COMPANY TO A CHARGE THE COMPANY OF A CHARGE TO A CHARGE TO A CHARGE T SUDDIY TIRZIKCON CUCKOMINGKEN ASSEMBIECGS
• V Dentinditorpiemium piodetekstekto ientin shont in Wilh SUDDY TO NAMED CONFIDER TO ASEN CHOICE TO BE SEEK STOCKED RODES TOTTLY CESTS
• D Priec increases are in progress or confirmed, OTHODK remains MON ALGUND
• SALIN KESEEL EEN JALANE ASTA TERRITOORIA TAA SEEL SEEL TUURISTUURI KESEEL SEEL SEEL SEEL SEEL SEEL SEEL SE GROVALENG DIGELGHOT GEPEGIN
• De Stocksare low therefore sales theety Inker to proficito DE LE CELLE LE CELLE DE L'AUTEURE DE L'AUTEURE DE L'AUTEURE DE L'AUTEURE DE L'AUTEURE DE L'AUTEURE DE L'AUTEU

2003 Sales Outlook

• DE ONG KATIFICAL MALAMBAD NG PINASA NG KATIFICAL NG ASI TAGANG KATIFICAL NG ASA NG KATIFICAL NG KATIFICAL NG P despiteunearshi economicionaliansandina essed Companien
• XAILTO, inherishe committed to 2005 Price of tempies INDEED TO REPORT THE CAVILLE STEERING IT
• D Zhoon volume and prior neuphations are confirmed or in III LI
• V ZIKCOJ finishing plantskeg pedred to have a postive impact on DREINTUM CIRECE VOLUMES ENCLOSED (
• M Sales of Imenite and zhomare expected to increase
• MSRandard GSMILBE OVGADZUS
• a se produce de la construcción de la construcción de la construcción de la construcción de la construcción de Sales Were partally three pinned by high opening inventory TEYCH

• MINGHORS OF BRIDGING TERRIOT
• De Sales profile will inaften production
• A A CHE IN ET CATALLE DE LA CARACTER DE LA CARACTER DE L'ANGULA DE LA CARACTER DE LA CARACTER DE LA CARACTER D yearly basis, with H2 more evenly spread
• » Ceridion rorshitday is (10 and 20 days) in early and mideozhave henradag a horienteg e hverveded ue

$\blacksquare$ Overview $\overline{\mathbf{2}}$ Financial Performance $\overline{\phantom{a}}$ Operational Performance and Outlook $\overline{\phantom{a}}$ Market Outlook b. Progress Against Strategic Objectives 6 Concluding Comments $\overline{\mathbf{z}}$ Appendices

Progress Against Strategic Objectives

• De First state of the DISTRESS fund to Ventent (MITM), dide tan , 1940
• DEN NEW CONTRETCIS SERVICE IN ZODZION RIGHEREN DI CIPIER REPERTY
• Za unice za sesing terza temperang pasang pasa pennedari sa us CATAIGUM CONTRACTIVOS CARE CONTRADO SE A EXECUTIVOS E LA CARACTERA
• DE THE CERTIN RESERVES CHIEF CEOURES DESERTON EXPIDITION SUCCESS In the MURRY and Allantic BasinSand Basin Mineral ALICE CONTRACTOR
• X Continuing to consider obtains for SR & pacify explicitly
• X Penning forgrowth havong mineral sands theervey initial NACIA SE LO SI NE CONTRADO NO EN CELO DE LA CALIFATA DE LA CALIFATA DE LA CALIFATA DE LA CALIFATA SE LO SUEL a and the company of the company of the company of the company of the company of the company of the company of
  The company of the company of the company of the company of the company of the company of the company of the c

MnM Program and Cost Base

MnM Wave-1 Results

• RANTZA VERLA DI LE CELE MANDIALE DI LA CIUDITÀ PROPERTI A L'ALCARDINA DI L'ALCARDINA DI L'ALCARDINA DI L'ALCAR
• DE POISITEL IGGILITEG TO SEVILOS OF A PIOLITILION SI GIOLOGICALON Guidanen artsoikappiox AS20 million on a full year basis post Implementation
• > Savings/production enhancements will require additional CHICKOYS 2005/04
• De Saving Stand production entancements from Wayer 1> than DEMICI DIROJKEROSOME EXCIPIO VICEIMO CIENESFINI Increasing trainsport processing costs at some operations
• X KEY ODDORUTIFY FREES IN WEVER IN
• O SAVINGS IABOU DE GIGS ALANS DO CAMBIERS DURINGESS. Service contracts, energy cosis and planning improvements
• A production deposite redsing, dry mining, equipment Up gides, inproved tails management and maintenact DE mine / Intervals

$\blacksquare$	Overview
$\begin{array}{c} \n \boxed{2} \n \end{array}$	Financial Performance
$\mathbf{3}$	Operational Performance and Outlook
$\overline{4}$	Market Outlook
5	Progress Against Strategic Objectives
O.	Concluding Comments
7	Appendices

2003 Financial Outlook

• De Tangeling famou est indicase in presenza campios Dassel on:
• Minichter Droducton and hubroved make the from continuing OLER TOTS
• DE MOCES CONTROLLO RIOM CREATIVO DOCTEN
• X NEW AVIII DE IMPEGIE BY INENEE TO DRAIGE TOTE TEX GALERS IN ZUISTORED HOMINERS W2526
• De Bangaria (Carolina) baying Australian taxan di jamked TE TATE CHE ESTIMATORES
• S ZODERVILLEI SO SEE GEDEREIDERE SEE DE DIADEIDER IN SZOO million to three phree wale phrantschylites in the Murray THE RESIDENCE OF THE CONTRACTOR OF THE CONTRACTOR OF THE CONTRACTOR OF THE CONTRACTOR OF THE CONTRACTOR OF THE

Concluding Comments

• DE DE INVERSION EXPERIENCE PAUDA DROTH RESULT
• M GOOD DIGILESS INCLEONS RECORDED FECT VESTIC SECOND IT IT IT OTZOOZA TORESTA DISINTO IN GALION TOREKOVATI
• » MnM program on track to a chieve a target of AS20 million THERE SETTINGS EXCEPTINGS BY SHE PANEL
• > internal capability enhanced through targeted TEGILING RESERVED FOR HOME DISTINGUI DICESS
• Deelerip of US operitons > 5096 complete
• Munic y Besh developmenticinaliston scripto
• DE PIEMIE CE ÎNVESTINE MESTRZOOSYOZE VIII GEIVER DIOGRAFICI GROVITI FROM USA CINE AUSTRIJEM ODER ITOMSKOVER HEALEXE LIA CHE
• X Continuing to review MEZ Copportunities which offer citier immedale growing recycloping no proprietaries

Profit Analysis

ALIA PATE M. 16.44 116 $\sqrt{2}$ (CCCPA) CARD
FOR 3 ON I PA PE (CLORE)
$\left[ 0, 7 \right]$ FA: (CR) . A
CEI CES (ZVIZD)
OTENT
Allen Sterling Construction Construction e de la pro
TANK COPAIN INSTALL INSTALL
THE STATE (CDE) CZY (ZA) en eraille 11. júní 11. september 12. september 12. september 12. september 12. september 12. september 12. se
P. Y T. 8. yma
CAD NOLLULLIMER CHILDI P Cardinal Composition
$(\sqrt{1})$ 0) 41 (EE) (ZA)
Continual 1 HI E TITA:
DEGONINET (IN-) (CES) ZK KO
N 7. V B FIDEAD $(\sqrt{2})$ 15

Group Production & Sales 2002 v 2001

FIRE RESIDENCE	PINIPI	PAULE
RUEL DE LIGION	FK 1	FVA
RTHESTER	1979	17
SRDICHTEN	L. P. WA	Z I TO
MANUSCRIPT	FT.	CPAI
Hinchite profiletion	AGO	gang ka
TI THILE STATES	Cype	GAT
ZALACITETTA CONTROLLER	E (f)	E CI S
ZARKO ZELENIKO	KI.	r – 1
Ration a printing	, 51	1999
LEO LO CONCERTA DES	LY.	r i
GETHOLOGICO	ADPA	BAIR
CAPE ESTES	FAIRPA	MAT