ILUKA RESOURCES LIMITED

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2015 Full Year Results David Robb, Managing Director Doug Warden, Chief Financial Officer and Head of Strategy and Planning Matthew Blackwell, Head of Marketing, Minerals Sands 19 February 2016

Disclaimer – Forward Looking Statements

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Forward Looking Statements

This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production potential; estimates of future capital expenditure and cash costs; estimates of future product supply, demand and consumption; statements regarding future product prices; and statements regarding the expectation of future Mineral Resources and Ore Reserves.

Where Iluka expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Iluka that the matters stated in this presentation will in fact be achieved or prove to be correct.

Forward-looking statements are only predictions and are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks and factors include, but are not limited to:

changes in exchange rate assumptions;
changes in product pricing assumptions;
major changes in mine plans and/or resources;
changes in equipment life or capability;
emergence of previously underestimated technical challenges; and
environmental or social factors which may affect a licence to operate.

Except for statutory liability which cannot be excluded, Iluka, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.

Iluka does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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. A reconciliation of non-IFRS financial information to profit before tax is included in the supplementary slides. Non-IFRS measures have not been subject to audit or review.

Mineral Resources Estimates

The information in this presentation that relates to Mineral Resources estimates on the Tapira and Puttalam Projects has been previously announced to ASX (see relevant slides for details). Iluka confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in those announcements continue to apply and have not materially changed. Iluka confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Industry Dynamics

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Subdued market demand
Growth exists, but not in all segments/geographies
Industry cash flow and balance sheet pressures
some distressed selling
debt/equity restructuring
New project underperformance
Significant capacity and production reductions
Industry sustaining capex requirement large (~$1.6bn) and imminent
Current industry profitability insufficient to support that investment
Medium term demand growth will challenge supply, particularly for zircon

Iluka Position

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Strong balance sheet (zero debt)
Business running efficiently, safely, sustainably
Year on year production and sales volume growth
Margins stable and healthy, positive cash flow
Costs reducing
Maintaining a balance in use of cash flow between
investing to secure options for the future
distributing funds to shareholders

Key Features – Capital Management

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Iluka’s approach:
maintain a strong balance sheet
Iluka’s distribution framework:
pay a minimum 40% of FCF not required for investing or balance sheet activity
distribute maximum practicable level of available franking credits
Balance sheet 2015 year end:
zero net debt
facilities available $1,010 million
average tenor 4 years
Distributions (incl 2015 final dividend of 19 cents)
2010 – 2015 cumulative FCF returned to shareholders $715 million
franking account balance available for future years $103m (equal to FF divs of 57 cps)

Key Features - 2015

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Production up 29%
Zircon/rutile/synthetic rutile (Z/R/SR) sales volumes up 6%
High grade titanium feedstock sales volumes up 15%
Mineral sands revenue up 13%
Unit revenue per tonne of Z/R/SR sold up 10%
Unit cash cost of production for Z/R/SR, excluding by-products, down 16%
Unit cost of goods sold (cash and non cash) down 10%
Group EBITDA $275 million, NPAT $54 million
Mineral sands EBITDA margin of 33%
Capex reduced, but future options preserved
Free cash flow generation of $155 million
Already strong balance sheet enhanced

Balanced Apportionment of Cash Flow

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2015 Operating Cash Flow Usage ($m)

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Innovation
&
Technology
$28.0
Debt Reduction
Exploration
$75.5
$27.7
Tapira
Free Cash Flow $2.7 Investment
$125m
$155m
Capex
$62.3
Fully Franked
Dividends
$79.5
Metalysis
$4.1
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Net cash inflow from operating activities in the 2015 Financial Statements of $229.5m includes expenditure for innovation & technology ($28.0m), exploration ($27.7m) and Tapira ($2.7m). Free cash flow includes a net outflow of $8.1m comprised of purchase of Treasury Shares ($9.0m) and asset sales income ($0.9m).

Net debt decreased $65.0m compared to the previous corresponding period due to free cash flow for the year of $155.0m, payments of $79.5m in respect of the 13c 2014 final dividend in March 2015 and the 6c 2015 interim dividend in October 2015, currency translation impacts of $8.1m on the USD component of net debt and amortisation of deferred borrowing costs of $2.4m.

Pre-investing cash flows of $279.8 million used to fund $124.8m of future growth opportunities
• Remaining $155.0 million of free cash flow used to
pay down debt ($75.5 million)
pay dividends ($79.5 million)

Sustainable Development

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Land Rehabilitation Jacinth-Ambrosia
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Increase in TRIFR – higher occurrence of minor injuries/first aid – redoubled focus
Strong safety culture/performance evidenced by safe synthetic rutile kiln restart
Excellent land rehabilitation progress – 3[rd] consecutive year of net closure

Main Features of Full Year Results

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Mineral Sands Sales Volumes		Z/R/SR sales up 5.6%, higher SR sales offset by lower rutile and zircon sales
Mineral Sands Revenue		13.1% - increased A$ revenue per tonne reflecting the lower AUD:USD exchange rate
Cash Costs of Production		2.8% to $392.5m – reactivation of Tutunup Sth and SR2, partially offset by cessation of WRP
Cost of Goods Sold		$780/tonne of Z/R/SR vs $862/tonne
Unit Cash Costs of Production		$569/tonne (Z/R/SR) compared to $714/tonne – reflecting 29.0% higher Z/R/SR production
Unit Cash Costs (excl. by products)		$558/tonne (Z/R/SR) compared to $668/tonne
Revenue per Tonne		10.3% to $1,136/tonne (Z/R/SR) – lower AUD:USD exchange rate
Mining Area C EBIT		$61.2 million vs $66.4million – one-off receipt, higher capacity payments, offset by lower iron ore prices
Mineral Sands EBITDA		13.4% to $270.6 million
Group EBITDA Margin	‒	31.2% vs 32.5%
Group EBITDA		$275.4 million vs $257.0 million
Reported Earnings (NPAT)		$53.5 million vs $(62.5) million
Return on Capital		6.8% vs (2.0)%
Return on Equity		3.8% vs (4.1)%
Capital Expenditure	‒	$66.4 million vs $66.9 million (Metalysis investment: 2014 included $18.6m; 2015 included $4.1m)
Free Cash Flow		$155.0 million vs $196.4 million; 37.0 cents per share vs 46.9 cents per share
Net Cash/(Debt)		$6.0 million vs $(59.0) million
Gearing (net debt/net debt + equity)		-0.4% vs 4.0%
Earnings per Share		12.8 cents vs (15.0) cents
Full Year Dividend		25 cents (fully franked) vs 19 cents (fully franked)

Efficient Capital Management

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Efficient capital management approach evident since 2007 continued
Balance sheet strength enhanced in 2015 – additional facilities, longer tenor
Cash returned to shareholders
Significant funding headroom – ability to act counter-cyclically

Iluka Dividend Payments

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19 cents final dividend fully franked payable 1 April 2016
Equals 68 per cent of 2015 FY free cash flow
Cumulative 68 per cent of free cash flow since recommencement of dividends at end 2010
Cumulative 171 cents per share returned to shareholders

Distribution Metrics
Full year free cash flow pay out ratio (%)	68
2010 – 2015 cumulative dividend payout ratio (%)	68
2010 – 2015 cumulative free cash flow returned to shareholders ($m)	715
2010 – 2015 cumulative retained free cash flow ($m)	340

Dividend payment consistent with Iluka’s stated framework:
pay a minimum 40 per cent of FCF not required for investing or balance sheet activity
distribute maximum practicable available franking credits
Franking credits available for future years is $103 million – sufficient for FF dividend of 57 cps

Free Cash Flow and Dividend Trend

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Net Debt and Gearing Trend

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2010 – 2015 debt reduced to nil whilst paying $715 million of dividends
Debt facilities increased from $950 million to $1,010 million during 2015

Balance Sheet

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Net Debt, Gearing and Funding Headroom
$m Gearing %
1,200 60
1,000 50
800 40
600 30
400 20
200 10
0 0
-200 -10
1H 10 2H 10 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15 2H 15
Total facilities Net debt (cash) Gearing
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Balance sheet strength at 31 December 2015
net cash of $6 million (debt of $55 million less borrowing costs $6 million, cash of $55 million)
undrawn facilities of $955 million with total facilities of $1,010 million
Adjusting net debt for 19 cps final dividend increases gearing from -0.4% to ~5.2%

Net Debt Movement 2015

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$m
2015 free cash inflow $155.0 million
250
64
225
200
(28)
175 (10)
222
(19)
150
125
1
100
(62)
(4)
(9)
75
50
25
6
(59) (80)
0
(10)
(25)
(50)
(75)
Opening net Operating MAC royalty Exploration Interest Tax Capex Purchase of Asset sales Other share Dividends FX and Closing net
debt cash flow Metalysis purchases amortised cash
31 Dec 2014 shares borrowing 31 Dec 2015
costs
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Summary Group Results

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$m
2015
2014
2014 vs 2015
% change
Mineral sands revenue
819.8
724.9
13.1
Mineral sands EBITDA
270.6
238.6
13.4
Mining Area C royalty
61.2
66.4
(7.8)
Group EBITDA
275.4
257.0
7.2
Group EBITDA margin %
31.2
32.5
(1.3)
Depreciation and amortisation
(132.0)
(191.3)
31.0
Impairment expense
-
(82.0)
n/a
Group EBIT
143.0
(16.7)
n/a
Net interest and financing costs
(11.0)
(13.9)
20.9
Profit (loss) before tax
86.6
(48.5)
n/a
Tax (expense) benefit
(33.1)
(14.0)
(136.4)
Profit (loss) after tax
53.5
(62.5)
n/a
EPS (cents per share)
12.8
(15.0)
n/a
Free cash inflow (outflow)
155.0
196.4
(21.1)
Free cash inflow (outflow) (cents per share)
37.0
46.9
(21.1)
Dividends – fully franked (cents per share)
25.0
19.0
31.6
Net cash (debt)
6.0
(59.0)
n/a
Gearing (net debt /net debt + equity) %
n/a
3.9
n/a
Return on capital % (annualised)
6.8
(2.0)
n/a
Return on equity % (annualised)
3.8
(4.1)
n/a
Average A$/US$ exchange rate
75.2
90.3
16.7

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Mining Area C Royalty 2015 versus 2014

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				2015
				2014
		2015	2014	% change
Sales volumes	mdmt	53.5	53.4	0.2
Implied price	A$/t	71.6	98.7	(27.4)
Net Royalty income	$m	48.2	65.8	(26.7)
Annual capacity payments1	$m	3.0	1.0	200.0
Agreement modification one-off receipt1	$m	10.4	-	n/a
Iluka EBIT	$m	61.2	66.4	(7.8)

(mdmt = million dry metric tonnes)

Royalty EBIT to 31 December decreased 7.8 per cent to $61.2 million
higher capacity payments of $3.0 million (2014: $1.0 million)
one-off payment of US$8.0 million (A$10.4 million) as part of revised royalty arrangements
largely offset by reduction in iron ore prices

1 Revenue recognised in 1H 2015, cash payment received 2H 2015.

Net Profit after Tax 2015 versus 2014

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EBITDA increased $18.4 million to $275.4 million Group EBITDA margin 31.2 per cent

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$m
125
3
100 82
75
(27)
2
38
50
(19)
54
25
8 (30)
122 (5) (4)
0
(25)
(63)
(50)
(75)
(100) 12
(56) (10)
(125)
2014 Price Volume Mix FX Ilm & Unit Restruct Min Sand MAC Corp Impairment Interest Unwind Tax 2015
Oth COGS & idle Other & other
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2015 Results Relative to Guidance

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	Feb 2015 Guidance Dec 2015 Update 2015 FY Actual Commentary
Z/R/SR production kt Z/R/SR sales > 2015 production kt > 2014 total Z/R/SR sales Kt Total cash production costs (including ilmenite and by product costs) $m Other cash costs $m Restructure idle capacity, rehab $m Total cash costs $m Depreciation and amortisation $m Rehab provision discount $m Capital expenditure $m	680 no change 690 Higher SR production than budgeted - ~645 651 - 651 vs 616 2015 sales > 2014 sales by 6% ~430 ~390 392 Production efficiencies Lower by-product costs ~160 no change 164 In line ~ 40 no change 41 In line

	~630 597
	~130 no change 132 In line ~ 20 +25 45 Additional $25m advised 16 Dec 2015, related to long term bond rate ~120 ~75 66 Reduction and deferral of some capex, incl rescheduling of Metalysis investment

Accounting Aspects Impacting 2015 Profit

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NPAT included $17.7 million post tax non-cash accounting charge for increased rehabilitation provision for closed sites in Australia due to reduced discount rate, as noted in ASX release on 16 December 2015.
Effective 2015 tax rate of 38.2 per cent due to minimal tax benefits recognised for the US losses of $35.5 million incurred during the year combined with an increase in nondeductible expenses, specifically in relation to overseas exploration and costs associated with the potential Kenmare transaction.

Unit Costs and Unit Revenue

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Production, Revenue per tonne Sold and Unit Cash Costs / COGS

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$1136/t
$1030/t
$862/t
$780/t
$668/t
$558/t
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Unit cash costs of production (excluding by-products) decreased 16.5% to $558/tonne
Cost of goods sold (cash and non cash cost) also trended downwards in 2015
reflects cost attributed to product sold in the year (including product in inventory)
Higher average A$ revenue per tonne sold (2015: $1,136/tonne) - mainly AUD:USD related
Mineral Sands EBITDA margin 33% (Group EBITDA margin 31%)

Inventory and Inventory Monetisation

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$m
900
800
700
600
500
400
300
200
100
0
Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15
Work in Progress Finished Goods
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 $43.3m
 $41.7m
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Total inventory at 31 December 2015 of $812 million (2014: $810 million)
Net inventory increase of $1.6 million; higher finished product (up $43.3 million); lower WIP[1] (down $41.7 million)
Of heavy mineral concentrate inventory (volume)
~30% relates to Murray Basin; 65% to Jacinth-Ambrosia
will be progressively processed before next planned mines developed with volume on “allocation.”
Jacinth-Ambrosia mining and concentrating suspension will see HMC stockpiles drawn down over 18 – 24 months

1 Heavy mineral concentrate, work in progress, ilmenite and consumables

Zircon Market Update

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Total zircon sales flat
2015: 346 thousand tonnes (2014: 352 thousand tonnes)
2015 sales 2[nd] Half weighted per usual seasonal patterns

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Americas EMEAI China / Asia 2014 vs 2015 Sales
Ceramics
Zirconium
252 kt 252 kt Chemicals
Fused
Zirconia
Refractories
69 kt
47 kt 53 kt
25 kt
Foundry
2015
2014
2014 2015 2014 2015 2014 2015
Specialty
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Americas sales lower as Iluka’s customers adjusted to idling of Virginia operations
Weakness in US offset by higher European sales in both ceramic and non-ceramic sectors
Sales into China and Asia stable year-on-year

NOTE: EMEAI – Europe, Middle East, Africa, India

Zircon Market Update

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REGION
Americas	• Lost market share to new entrants in face of idling of Virginia operations • Underlying demand down on lower industrial consumption (foundries, oil and gas)
Europe / Middle East / Africa / India	• Weaker Euro continued to benefit European based exporters • Demand up on increased domestic consumption and exports (from a low base and still below pre-GFC peak)
China / Asia	• Sentiment remains subdued on mixed messages from housing and industry • Despite increasing customer caution in 4Q, demand for zircon remained stable year on year
SEGMENT
Ceramics	• Slight softening in ceramics sector in China (most notably 4Q), elsewhere ceramics sector remains stable • Iluka launched new products targeting consumption by emerging producers
Fused Zirconia	• Moderate growth in demand – predominately destined for ceramics markets • US demand weaker as mining/oil and gas slowdowns impacted steel, refractory and heavy equipment end-markets
Chemicals	• Continued weakness in China particularly impacted Iluka’s competitors, with some re-positioning of product evident • Medium to long term outlook remains positive
Refractory and Casting	• Steel refractory based demand weak due slowdown in heavy equipment manufacture and oil and gas materials • Demand for glass refractory up on catch up of building backlog in some western markets
Specialty	• Increased demand for zircon grades targeted for specialty applications

High Grade Feedstocks Market

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Rutile / synthetic rutile sales up
2015: 305 thousand tonnes (2014: 264 thousand tonnes)
Increased sales of HGO[1] in Americas and Asia partially offsetting declines in EMEAI

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Americas EMEAI Asia/China [1 ] 2014 vs 2015 Sector Sales
155 kt Pigment
142 kt
121 kt
81 kt Welding 2015
2014
42 kt
29 kt Ti Sponge
/ Other
2014 2015 2014 2015 2014 2015
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Note: HGO (high grade ore) refers to titanium feedstocks with greater than 80 per cent TiO2 content. Iluka’s HGO products include rutile, HyTi and synthetic rutile and are sold for use in chloride pigment process. EMEAI – Europe, Middle East, Africa, India.

1 It should be noted that Iluka sales of HGO (rutile/synthetic rutile) to China are low (less than 10kt; most of the sales reflected here are to Asia and Australia.

Titanium Feedstock Market

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REGION
Americas	• Fundamentals intact for continued growth in pigment demand • Net increase in low cost capacity expected to increase demand for feedstocks
Europe / Middle East / Africa / India	• Capacity utilisation remains high as some producers maximise fixed-cost absorption • Iluka’s sales remain solid on back on weaker local currencies enabling competitive pricing of customers’ exports
China/Asia	• Oversupply of low-grade feedstocks and excess pigment capacity continues to put downward pressure on prices • Consolidation in sector a positive for China and broader markets
SEGMENT
Pigment	• Demand for pigment likely to increase in 2016 which could increase demand for HGO • Producers taking action to address weakness in sector (pricing, capacity rationalisation, potential M&A)
Welding	• Outside of China, demand for rutile into shipbuilding and construction was solid • Signs of slowing demand in 4Q likely to continue into 1stHalf 2016
Ti Metal	• Favorable demand scenario on back of increased aircraft orders combined with low scrap sponge inventory • Partially offsetting demand slowdown in demand for industrial applications (e.g. chemical piping)

Low Grade Feedstocks

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Chloride and sulphate ilmenites

Sales down 5 per cent
2015: 300 thousand tonnes (2014: 317 thousand tonnes)

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Americas EMEAI China / Asia 2014 vs 2015 Sector Sales
Pigment
194 kt
165 kt
151 kt
Welding 2015
2014
75 kt
31 kt Ti Sponge
/ Other
2014 2015 2014 2015 2014 2015
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Sales to new customers in Western Europe offsetting weakness in China
Chinese market disrupted by domestic overcapacity and discounting by distressed producers

Note: Low grade feedstocks generally refers to feedstocks with 50 – 65 per cent TiO2 content. Iluka’s products include chloride ilmenite, sulphate ilmenite and ilmenite in concentrate which is sold for use in the chloride process, sulphate pigment process and for further processing respectively.

Marketing Initiatives

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Zircon Pricing and Payments Framework and Iluka Rewards established, benefits include:
more stable and predictable buying behaviour from customers
enhancement of customer relationships
better line of sight in terms of volumes
Zircon market share held despite new entrants and flat demand
Two new zircon products launched in 2015 targeting emerging markets
Logistics optimisation study completed
China Technical Centre progressed
3[rd] ceramic tile study completed with following key findings:
substitution/thrifting focus now minimal
zircon loadings up in China, stable in Europe, down in India from higher base
digital printing neutral to positive impact on zircon consumption

Jacinth-Ambrosia, Eucla Basin

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Mining and concentrating suspended for 18 - 24 months, from 16 April
Improves cash flow and potential positive for zircon market dynamics
Enables finished goods and HMC to be drawn down to “normal” levels
Production/sales capacity unchanged – dependent on market demand conditions
HMC to be processed via Hamilton and Narngulu mineral separation plants
Net cash cost benefits:
2016 – estimated ~$30 million, after ~$16 million restructure/rehab expenses
– 2017 – estimated ~$45 million, after ~$25 million expenses
expenses will impact EBIT negatively
SA Government royalties continue – based on HMC transported from mine

Industry Supply Considerations

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Short term factors
large inventories and surplus capacity in hands of major producers
distressed selling by small number of highly leveraged companies
Supply/demand forecasts need to allow for:
assemblage decline impacting high value components (R/Z)
project commissioning issues (multiple examples in recent years)
supply decisions by major producers – e.g. Jacinth-Ambrosia mining suspension
For medium term HGO/Z supply to be available, substantial capital required near term
requires confidence in availability of appropriate shareholder returns
prevailing prices (titanium feedstocks and zircon) unlikely to induce such supply
debt/equity market appetite low given recent producer balance sheet issues
Iluka returns to minimal inventory position in 18 - 24 months
Absent new investment there is a zircon supply challenge within 3 years

Zircon Market Supply Characteristics

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Source: Iluka

Zircon production from 2016 onwards excludes any finished goods inventory held at 31 December 2015, but includes zircon processed from concentrate stockpiles held by Iluka at the end of 2015.
Zircon from existing producers declining due to depletion and decline in grade and assemblage
Minor producers not sufficient to fill structural supply gap
Inventory largely held in the hands of major suppliers (including Iluka)
New zircon production dependent on co-product zircon from yet to be built TiO2 mines
~US$1.6b to be spent on major mineral sands projects over the next few years to sustain production (Iluka estimate)

Industry Re-investment Activity

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Source: TZMI, S&P Capital IQ, company announcements

Iluka estimates ~US$1.6b to be spent on major projects during the next few years to sustain production
this estimate excludes maintenance capital
relates to major existing producers, not potential new players

Iluka Production Settings

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	2015	2016
Jacinth-Ambrosia mining South Australia	100% utilisation	Mining and Concentrating suspended from 16 April Concentrate to be processed at Hamilton and Narngulu mineral separation plants
Murray Basin mining Victoria	WRP mine idled March at end of commercial life	Concentrate continues to be processed and rutile product allocated before next planned mine development at Balranald
Tutunup South mining Western Australia	Recommenced March after being idled in June 2013	100% utilisation
Hamilton mineral separation plant (MSP) Victoria	~ 78% utilisation	~60% utilisation Murray Basin & Jacinth-Ambrosia concentrate being processed
Narngulu MSP Western Australia	~60% utilisation	~50% utilisation Jacinth-Ambrosia concentrate
SR kiln 2	Recommenced April after being idled in June 2013	100% utilisation Ilmenite feed source from Tutunup South, Jacinth-Ambrosia, Murray Basin and an external source
3 other SR kilns	Idled in previous periods	Idle. SR1 located in the South West likely to be the next kiln recommissioned, dependent on market conditions.
US Mining (Virginia)	Iluka announced decision to idle given inability to secure appropriate commercial terms for development of new deposit/s Concord recommenced & Brink to end December	Idle. Iluka has two well evaluated mineral sands deposits in the US. Mining and processing can be re-activated dependent on appropriate commercial arrangements.
Stony Creek MSP, Virginia	~70% utilisation	Idle – able to be re-activated.
Cash Cost of Production	$393 million	~$300 million

Business Characteristics - 2016

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Iluka well placed for current global circumstances

– strong balance sheet, good margins, value realisable from inventory

Bias to act counter-cyclically and deploy capital now
2016 expectations:
Z/R/SR sales volumes higher than 2015 and higher than 2016 production
work in progress inventory drawdown
materially lower total cash costs and unit cash cost of production
low organic capital expenditure
free cash flow generation, strongly 2H weighted

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Supplementary Slides

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Reconciliation of Non-IFRS Financial Information to Profit before Tax

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Non-IFRS financial measures of Mineral sands EBITDA, Mineral sands EBIT, Group EBITDA and Group EBIT are highlighted in the table below, together with profit before tax.

$m	AUS USExploration & Other(1) Mineral Sands MAC Corp Group 770.5 49.3 819.8 819.8 (394.0) (83.8) (71.4) (549.2) (549.2) 61.6 61.6 (52.7) (52.7) (4.1) (4.1) 376.5 (34.5) (71.4) 270.6 61.6 (56.8) 275.4 (129.7) (2.3) (132.0) (0.4) (132.4) 246.8 (34.5) (73.7) 138.6 61.2 (56.8) 143.0 (11.0) (11.0) (42.0) (1.0) (43.0) (2.4) (45.4) 204.8 (35.5) (73.7) 95.6 61.2 (70.2) 86.6 204.8 (35.5) 169.3 61.2 230.5
Mineral sands revenue Mineral sands expenses Mining Area C Corporate and other costs Foreign exchange EBITDA Depreciation and amortisation EBIT Net interest expense Rehab unwind/other finance costs Profit before tax Segment result

AUS
USExploration
& Other(1)
Mineral
Sands
MAC
Corp
Group
770.5
49.3
819.8
819.8
(394.0)
(83.8)
(71.4)
(549.2)
(549.2)
61.6
61.6
(52.7)
(52.7)
(4.1)
(4.1)
376.5
(34.5)
(71.4)
270.6
61.6
(56.8)
275.4
(129.7)
(2.3)
(132.0)
(0.4)
(132.4)
246.8
(34.5)
(73.7)
138.6
61.2
(56.8)
143.0
(11.0)
(11.0)
(42.0)
(1.0)
(43.0)
(2.4)
(45.4)
204.8
(35.5)
(73.7)
95.6
61.2
(70.2)
86.6
204.8
(35.5)
169.3
61.2
230.5

Mineral sands revenue
Mineral sands expenses
Mining Area C
Corporate and other costs
Foreign exchange
EBITDA
Depreciation and amortisation
EBIT
Net interest expense
Rehab unwind/other finance costs
Profit before tax
Segment result

1 Comprises exploration and resources development costs $58.4m and marketing and selling costs $15.7m, offset by other income $2.7m

Production Volumes

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kt	2015 2014 % change 388.6 357.6 8.7 136.5 177.2 (23.0) 164.9 - n/a 690.0 534.8 29.0 466.1 365.4 27.6 1,156.1 900.2 28.4 1,137 1,305 (12.9) 1,206 968 24.6
Zircon Rutile Synthetic rutile Total Z/R/SR production Ilmenite – saleable and upgradeable Total production volume Heavy mineral concentrate produced Heavy mineral concentrate processed

2015 Production Highlight – SR 2 Kiln Restart

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SR2 kiln reactivated March 2015 after concluding suitable commercial arrangements
11 week refurbish and commissioning campaign ~ $3.5 million
key technical resources retained to support fast track restart
recruitment of ~ 80 additional personnel
favourable gender and indigenous diversity outcomes (17.9% female and 5.2% indigenous)
kiln production exceeded budget by 13% underpinned by >98% utilisation
Tutunup South mine reactivated with name plate production reached in 12 hours
other internal ilmenites and external sources utilised
Further progress in commercialisation of main by-product – activated carbon
now sold in material tonnes to range of domestic and international customers
increasingly important co-product and offset to SR production costs

Sales Volumes

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kt	2015 2014 % change 346.2 352.2 (1.7) 133.6 182.0 (26.6) 171.2 82.0 108.8 651.0 616.2 5.6 299.8 316.6 (5.3) 950.8 932.8 1.9
Zircon Rutile Synthetic rutile Total Z/R/SR Ilmenite Total sales volumes

Historical Production and Sales

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Historical Zircon Production and Sales

Historical Rutile and Synthetic rutile Production and Sales

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2011 - 2015	2011 - 2015
Cumulative zircon production	1,976kt
Cumulative zircon sales	1,797kt
Iluka’s zircon logistics chain and nature of sales arrangements means that a 3 to 6 month inventory holding of finished goods is not atypical.

2011 - 2015	2011 - 2015
Cumulative rutile and synthetic rutile production	1,700kt
Cumulative rutile and synthetic rutile Sales	1,582kt
Iluka will typically hold finished goods inventory to maintain supply flexibility.

Mineral Sands Results

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$m	2015 2014 % change 819.8 724.9 13.1 376.5 290.7 29.5 (34.5) 1.4 n/a (71.4) (53.5) (33.5) 270.6 238.6 13.4 (132.0) (191.3) 31.0 - (82.0) n/a 138.6 (34.7) n/a
Mineral sands revenue Australia EBITDA United States EBITDA Exploration and other EBITDA Total mineral sands EBITDA Depreciation and amortisation Impairment Mineral sands EBIT

Summary Group Operations

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		2015 2014 % change 388.6 357.6 8.7 136.5 177.2 (23.0) 164.9 - n/a 690.0 534.8 29.0 466.1 365.4 27.6 1,137 1,305 (12.9) 1,206 968 24.6 569 714 20.3 739.7 634.8 16.5 80.1 90.1 (11.1) 819.8 724.9 13.1 (392.5) (381.9) (2.8) (5.7) 14.7 n/a (38.3) (40.1) 4.5 (2.7) 1.0 n/a (21.0) (10.6) (98.1) (32.0) (30.1) (6.3) 1.4 6.0 (76.7) (58.4) (45.3) (28.9) 270.6 238.6 13.4 (132.0) - (191.3) (82.0) 31.0 n/a 138.6 (34.7) n/a
	Production volumes Zircon kt Rutile kt Synthetic rutile kt Total Z/R/SR production kt Ilmenite kt Heavy mineral concentrate produced kt Heavy mineral concentrate processed kt Unit cash cost of production – Z/R/SR $/t Z/R/SR revenue $m Ilmenite and other revenue $m Mineral sands revenue $m Cash cost of production $m Inventory movements $m Restructure and idle capacity charges $m Rehabilitation and holding costs for closed sites $m Government royalties $m Marketing and selling costs $m Asset sales and other income $m Resource development $m Mineral sands EBITDA $m Mineral sands depreciation and amortisation $m Impairment of US assets $m Mineral sands EBIT $m

Unit Cash Costs and Revenue per tonne

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		2015	2014	% change
Total Z/R/SR production	kt	690.0	534.8	29.0
Ilmenite – saleable and upgradeable	kt	466.1	365.4	27.6
Total production	kt	1,156.1	900.2	28.4
Total cash costs of production, incl. by-products	$m	392.5	381.9	(2.8)
Unit cash costs per tonne of Z/R/SR produced1	$/t	569	714	20.3
Cost of goods sold per tonne of Z/R/SR sold2	$/t	780	862	9.5
Z/R/SR revenue	$m	739.7	634.8	16.5
Ilmenite and other revenue	$m	80.1	90.1	(11.1)
Revenue per tonne of Z/R/SR sold3	$/t	1,136	1,030	10.3

1 Unit cash cost per tonne of Z/R/SR produced is determined as cash costs of production divided by total Z/R/SR production volumes. 2 Cost of goods sold per tonne of Z/R/SR sold is determined as cost of goods sold divided by total Z/R/SR sales volumes.

3 Revenue per tonne of Z/R/SR sold is determined as total Z/R/SR revenue divided by total Z/R/SR sales volumes.

Cash Flow and Net Debt

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	$m	1H 2015 2H 2015 2015 2014 2015 vs 2014 % change (59.0) (80.2) (59.0) (206.6) 71.4 92.1 130.1 222.2 254.8 (12.8) 26.7 37.3 64.0 75.2 (14.9) (11.5) (16.2) (27.7) (22.1) (25.3) (5.6) (4.9) (10.5) (12.8) 18.0 (14.3) (4.2) (18.5) (27.5) 32.7 (35.5) (26.8) (62.3) (48.3) (29.0) (4.1) - (4.1) (18.6) 78.0 0.2 0.7 0.9 0.3 200.0 (9.0) - (9.0) (4.7) (91.5) 39.0 116.0 155.0 196.3 (21.1) (54.4) (25.1) (79.5) (41.8) (90.2) (15.4) 90.9 75.5 154.5 (51.2) (4.6) (3.5) (8.1) (4.7) (68.8) (1.2) (1.2) (2.4) (2.2) (9.1) (21.2) 86.2 65.0 147.6 (56.0) (80.2) 6.0 6.0 (59.0) n/a
	Opening debt Operating cash flow MAC royalty Exploration Interest (net) Tax Capital expenditure Purchase of investment in Metalysis Asset sales Share purchases Free cash flow Dividends Net cash flow Exchange revaluation of USD net debt Amortisation of deferred borrowing costs (Decrease) / Increase in net cash Closing net (debt) cash

Capital and Exploration Expenditure (cash)

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$m	2014 2015 % change
Capital expenditure Metalysis Exploration Total	48.3 62.3 29.0 18.6 4.1 (78.0) 22.1 27.7 25.3
	89.0 94.1 5.7

Debt Facilities

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A$ m
Iluka Debt Facilities and Maturity Profile
1,200
1,000
800
600
400
200
0
Current Total 2015 2016 2017 2018 2019 2020
MOFA Total Facilities
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Significant funding headroom
undrawn facilities of A$955 million as at 31 December 2015
cash and cash equivalents of A$55 million
Total facilities of A$1,010 million with majority not maturing until 2020 – USPP facility of US$ 20 million repaid in June 2015
Bilateral arrangements with 12 banks
common terms, flexibility, “caveat light”, low cost

Australian Operations

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	2015 2014 % change
Production volumes Zircon kt Rutile kt Synthetic rutile kt Total Z/R/SR production kt Ilmenite kt Total production kt Heavy mineral concentrate produced kt Heavy mineral concentrate processed kt Unit cash cost of production – Z/R/SR $/t Mineral sands revenue $m Cash cost of production $m Inventory movements $m Restructure and holding costs for closed sites $m Rehab and holding costs for closed sites $m Government royalties $m Marketing and selling costs $m Asset sales and other income $m EBITDA $m Depreciation and amortisation $m EBIT $m*	351.3 332.5 5.7 136.5 177.2 (23.0) 164.9 - n/a
	652.7 509.7 28.1 320.9 270.6 18.6
	973.6 780.3 24.8 890 1,135 (21.6) 949 796 19.2 466 629 25.9 770.5 640.6 20.3 (304.3) (320.8) 5.1 (46.7) 32.9 n/a (29.3) (36.5) 19.7 25.0 1.0 (2,400) (21.0) (10.6) (98.1) (16.4) (16.2) (1.2) (1.3) 0.3 n/a
	376.5 290.7 29.5 (129.7) (173.4) 25.2
	246.8 117.3 110.4

Annual review identified opportunities to improve techniques applied to rehabilitation resulting in $25m decrease in provision

US Operations

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	2015 2014 % change
Production volumes Zircon kt Ilmenite kt Total production kt Heavy mineral concentrate produced kt Heavy mineral concentrate processed kt Unit cash cost of production $/t Mineral sands revenue $m Cash cost of production $m Inventory movements $m Restructure and idle capacity charges $m Rehabilitation and idle capacity costs $m EBITDA $m Depreciation & amortisation $m Impairment EBIT $m*	37.3 25.1 48.6 145.1 94.8 53.1
	182.4 119.9 52.1 247 170 45.3 258 172 50.0 484 510 5.2 49.3 84.3 (41.5) (88.2) (61.1) (44.4) 41.0 (18.2) n/a (9.0) (3.6) (150.0) (27.6) - n/a
	(34.5) 1.4 n/a - - (15.8) (82.0) n/a n/a
	(34.5) (96.4) n/a

Annual assessment of scope, timing and cost or rehabilitation work increased provision by $27.6 million