ILUKA RESOURCES LIMITED — Capital/Financing Update 2011

Jul 4, 2011

5 July 2011

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The Manager Company Announcements Office ASX Limited 4[th] Floor, 20 Bridge Street SYDNEY NSW 2000

Dear Sir,

RE: Watpac Civil and Mining continues strong growth trend.

In accordance with Listing Rule 3.1, find attached a release regarding Watpac Civil and Mining continuing a strong growth trend.

Yours sincerely,

WATPAC LIMITED

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Doug McAlpine COMPANY SECRETARY

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5 July 2011

Watpac Civil and Mining Continues Strong Growth Trend

Watpac Limited’s (ASX: WTP) Civil and Mining division continues to expand its national portfolio of mining services contracts securing two new contracts in the last month and being listed as preferred contractor on another.

Iluka Resources Limited's WRP project is a 3.5 year mineral sand mining contract located in Victoria's Murray Basin near Mildura. The scope of works requires Watpac to remove topsoil/subsoil, strip overburden, selectively mine mineralised sand and feed the hopper from discrete stockpiles. The rehabilitation of mining areas is done concurrently with the mining operation. The ore body stretches 14 kilometres along its strike crossing a major highway in the process.

Watpac has also executed an agreement with Yarrabee Coal Company for the overburden removal works at their coal mine, located approximately 40 km North-East of Blackwater in Central Queensland’s Bowen Basin. This is a 6 month contract with options for further extensions.

The company has also been advised by Ramelius Resources Limited that we are their preferred contractor on their Mt Magnet Gold Mine in Western Australia. This contract involves overburden and ore removal using conventional drill and blast techniques over a duration of 5 years.

Watpac Managing Director, Mr Greg Kempton said, these latest contracts will increase the Group’s total contracting in the national Civil and Mining division to approximately $750 million.

“Watpac continues to demonstrate its competency in the mining services space and the company now has a $740M portfolio of long term mining services contracts across a range of commodities, including Iron Ore, Gold, Mineral Sands and Coal”. Mr Kempton said. “The WRP project is the third contract we have secured with Iluka Resources Limited, whilst the Yarrabee contract with Yancoal and Ramelius Resources are new clients.”

“Our approach to being a collaborative contractor working closely with the mine owners has seen us rapidly build momentum in this competitive market segment resulting in ongoing work with new and existing clients.”

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Watpac has a diversified book of mining services contracts across a variety of commodities in Queensland, Victoria and Western Australia. Mr Kempton advised that “These contracts will deliver a level of longer term earnings diversification which complements Watpac’s traditional building profits.”

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For further information, please contact: Greg Kempton Managing Director 07 3251 6300

Note to editors:

Watpac is an ASX-listed company specialising in construction, civil engineering and mining services, specialty services (including refurbishments), and property development. We have offices in Brisbane, Townsville, Sydney, Melbourne, Adelaide, and Perth. More information can be found at www.watpac.com.au.

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