ILUKA RESOURCES LIMITED — Capital/Financing Update 2020

Feb 17, 2020

Australian Securities Exchange Notice

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18 February 2020

ASX: ILU

ENEABBA MINERAL SANDS RECOVERY PROJECT ORE RESERVE ESTIMATE

Iluka Resources Limited (Iluka) today announces an Ore Reserve estimate for the Eneabba Mineral Separation Plant (MSP) By-Product deposit following the completion of a Definitive Feasibility Study for the Eneabba MSP By-Product Ore Reserve. This Ore Reserve forms the basis of the Eneabba mineral sands recovery project, located at Eneabba, Western Australia.

Eneabba MSP By-Product Ore Reserve

The Eneabba MSP By-Product Ore Reserve is estimated to contain a total Ore Reserve of 0.96mt (0.81mt Proved and 0.15mt Probable) at a Heavy Mineral (HM) grade of 83.5%, to contain 0.80mt of HM (0.68mt Proved and 0.12mt Probable). The total Ore Reserve mineral assemblage in HM is estimated to contain approximately 26% zircon and 20% monazite.

Further details are provided below.

Eneabba Mineral Sands Recovery Project

The Eneabba mineral sands recovery project involves the extraction, processing and sale of a historical monazite-rich tailings stockpile that is currently stored in a mining void at Eneabba.

Phase 1 of the project involves extraction and sale of zircon-monazite concentrate via a simple process. The project has received Board approval and is underpinned by an offtake agreement for 50 thousand tonnes of concentrate per annum for 2 years. Site construction and off-site fabrication activities for the project are underway with expected project capex for Phase 1 less than $10 million. The project is due for commissioning to commence in H1 2020, and first sales in Q3 2020.

Study work into a potential Phase 2 of the project, involving further processing of material, is also being progressed.

Monazite and Rare Earth Elements

Monazite is a heavy mineral containing the rare earth elements neodymium, praseodymium, cerium and lanthanum. These are used in a range of applications including in the manufacture of permanent magnets for use in electric motors (e.g. in electric vehicles) and wind turbines.

Authorised for release by the Company Secretary.

Investment market enquiries:

Media enquiries:

Melissa Roberts Luke Woodgate General Manager, Investor Relations Manager, Corporate Affairs and Commercial Mineral Sands Operations Phone: + 61 (0) 8 9360 4785 Mobile: + 61 (0) 450 398 431 Mobile: +61 (0) 477 749 942 Email: investor.relations@iluka.com Email: luke.woodgate@iluka.com

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Iluka Resources Limited • ABN 34 008 675 018 • Level 17 240 St Georges Terrace Perth WA 6000 GPO Box U1988 Perth WA 6845 • T +61 8 9360 4700 • F +61 8 9360 4777 • www.iluka.com

MSP By-Product Ore Reserve Estimate – Overview

The Eneabba mineral sands recovery project (Phase 1) involves the extraction, processing and sale of a historical monazite rich MSP By-Product stockpile that is currently stored in a mining void at Eneabba, Western Australia. The successful completion of a Definitive Feasibility Study and Board approval in 2019 has the project on track for commissioning to commence in H1 2020, with first sales in Q3 2020.

The MSP By-Product Mineral Resource was reported in an ASX announcement released on 24 July 2019, titled “Eneabba Mineral Sands Recovery Project Updated Mineral Resource Estimate”. The resulting Eneabba MSP By-Product Ore Reserve estimate is summarised in Table 1.

Ore Reserve Category	Reserve Tonnes1 In situ HM Tonnes HM Slimes	Mineral Assemblage in HM2
		Zircon Monazite Xenotime Ilmenite
	(Mt)3 (Mt) (%) (%)	(%) (%) (%) (%)
Proved	0.81 0.68 84.4 3.0	26 20 1.2 33
Probable	0.15 0.12 78.3 3.7	28 15 1.2 37
Total4	0.96 0.80 83.5 3.1	26 20 1.2 33

Table 1: Ore Reserve estimate summary of the MSP By-Product Ore Reserve estimate, reported in accordance with the guidelines of the JORC Code (2012 Edition).

Notes:

1. Ore Reserves are a sub-set of Mineral Resources.

2. Mineral assemblage is reported as a percentage of HM.

3. In situ (dry) metric tonnage is reported.

4. Rounding may generate differences in the last decimal place.

By-product material from the Narngulu MSP, located east of Geraldton, has been stockpiled at Eneabba since the early 1990’s. At the time, demand for the by-product declined and Iluka (and predecessor companies) resolved to store mineral sands concentrate with high monazite credits in anticipation of a potential resurgence in demand and ability to commercialise the material. The monazite contains valuable Rare Earth Elements (REE) which are now in demand for a range of modern technology applications.

Being a stockpile there is no geological structure. The stockpile physically presents as a body of fine grained sand, approximately300m in length, 150m wide, varying from 1 to 15m thickness. The fine grained, dark brown to black material is easily distinguishable from the underlying yellow clayey sand. A half to one meter cap of orange brown, gravelly, clayey sand covers the resource. A mixed zone of the by-product and capping immediately below the capping with high HM grade in combination with elevated slimes and oversize is recognised, being defined in the resource estimation and reporting.

While there is considerable variation in the HM assemblage, large areas of the by-product have a consistent character which is interpreted to reflect the campaign processing of material from mine sites through the Narngulu MSP.

The MSP By-Product Ore Reserve is located approximately 8km south-south-east of the Eneabba town site within the historically mined South Tails area. The location of the MSP By-Product Ore Reserve is shown on Figure 1.

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Figure 1: Eneabba summary plan showing the MSP By-Product Ore Reserve in relation to current infrastructure and HM Mineral Resources.

MSP By-Product Ore Reserve - Summary of Reporting Criteria

As per ASX Listing Rule 5.9 and the 2012 JORC reporting guidelines, information material to the MSP ByProduct Ore Reserve estimate is summarised below. For more detail, please refer to the JORC Code Table 1, Section 4 in Appendix 1.

Material assumptions and outcomes from the Definitive Feasibility Study

Iluka completed a Definitive Feasibility Study (DFS) in 2019 that enables the Mineral Resources to be converted to Ore Reserves. The DFS showed that the project is technically low risk and displays attractive financial characteristics on the key metrics that Iluka uses to assess project development decisions, including IRR, NPV and payback.

Capital and operating costs have been accounted for in the projects financial modelling. The operating cost estimate has been derived from a combination budget quotations, estimates, factored or built-up rates, historical data and provisional or lump sum allowances where the use of the aforementioned methods are not possible. Capital costs have been derived by internally using project drawings, specifications, models, P&ID’s, equipment lists and associated schedules and prepared by the contractors and suppliers.

Reserve Classification

The stated Proved and Probable Ore Reserves correspond with the Measured and Indicated Mineral Resources for the MSP By-Product Stockpile as reported in an ASX announcement released on 24 July 2019, titled “Eneabba Mineral Sands Recovery Project Updated Mineral Resource Estimate”. The category distribution is shown in Figure 2.

There are no Inferred Resources included in the stated Ore Reserve numbers.

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Figure 2: MSP By-Product Ore Reserve JORC category distribution.

Mining and recovery factors

The mining will be campaigned and require a Front End Loader (FEL) to move the by-product from the stockpile and feed into a mobile screening plant. A bulldozer will be required for short periods of time to push the top of the by-product stockpile down to enable safe access by the FEL. Once dry screened, the material will be loaded into dump trucks and dumped near the Wet Screening Plant (WSP) for processing.

Mining of the thin layer of waste capping material covering the stockpile will be conducted using a truck and shovel fleet.

Grade control will occur during the mining process, with daily sampling to analyse materials for blending. Blending and grade control will occur during the mobile screening process within the pit. The heavy mineral sand is easily distinguishable from the underlying yellow clayey sand and as such minimal dilution or ore loss is expected.

Modifying factors

Modifying factors such as processing recoveries have been applied from historical performance and results from work programs. The operating cost estimates have been derived from a combination of budget quotations, estimates, factored or built-up rates and historical data sourced from other Iluka mine sites.

The project is located with the mining tenements M267SA and M70/821.

Marketing arrangements are commercially sensitive, but the price assumptions are based on fixed price and volume contracted sales agreements. The price and volume details of those contracts are commercially sensitive, as they are the result of confidential commercial negotiations.

The project has a positive NPV sufficient to meet Iluka’s internally generated investment criteria.

All regulatory approvals (including Works Approval, Mineral Export Permit and Project Management Plan (Department of Mines, Industry Regulation and Safety) have been secured.

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Infrastructure requirements for the project include: administration buildings; workforce accommodation; power supply; communications; workshops and stores including maintenance facilities; site access roads; weighbridge; light vehicle fleet; contract mining fleet; screening plants and WSP.

The finished Mineral Sands Concentrate will be stored on site, followed by transport by road to Iluka’s Mineral Separation Plant at Narngulu and then, once until sufficient Mineral Sands Concentrate has been stockpiled at Narngulu, transport by road to the Port of Geraldton for export by ship.

Processing

Material stockpiled is fed into the WSP by an FEL. The WSP completes primary separation of any remaining oversize material and from any fine clay/slimes. The WSP uses a wet vibrating screen to remove any material above 1mm in particle size.

Desliming cyclones are then used to remove fine clay particles, leaving a clean product. The process involves the use of water, screening equipment and de-sliming cyclones to recover the saleable mineral sands concentrate.

This process utilises known technology where the performance and recovery of the mineral products has been well established by Iluka in current and past operations.

Cut-off grades

The cut-off grade has been calculated using optimization software and an individual cut-off grade applied to each block within the model. The calculations consider overall HM grade and individual assemblage product values, operating costs, recoveries and modifying factors. An economic optimisation is performed to determine if a block is viable to mine, and therefore be included in the Ore Reserve.

Estimation methodology

Pit optimisations were conducted using IMS Minemap mine planning software. This is industry standard software and utilises the Lerch-Grossman algorithm. The optimisation parameters used consisted of costs, revenues and recoveries and other modifying factors.

The results of the pit optimisations and designs were used for production scheduling and economic evaluation.

Competent Person statement

The information in this report that relates to Ore Reserve estimates is based on, and fairly represents, information and supporting documentation prepared by Mr Andrew Walkenhorst, a permanent employee of Iluka.

Mr Walkenhorst is a member of the Australasian Institute for Mining and Metallurgy (MAusIMM) and he has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity which is being undertaken to be considered a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, the JORC Code 2012 Edition. Mr Walkenhorst consents to the inclusion in this report of the matters based on the information, in the form and context in which they appear.

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Appendix 1 - JORC Code, 2012 Edition – Table 1 Commentary

Section 1 Sampling Techniques and Data (MSP By-Product Mineral Resource)

(Criteria in this section apply to all succeeding sections.)

CRITERIA	COMMENTARY
Sampling	The MSP By-Product Mineral Resource was sampled using BQ (49 holes) and NQ (305 holes) diameter Reverse Circulation Air Core (RC-
techniques	AC) drill holes. A total of 4432.7m has been drilled utilising 1m length sampling from a rotary splitter chute. All holes were drilled vertically,
	which is essentially perpendicular to the mineralisation.
	Material is presented to a rotary splitter that rotates at a regular speed to take a representative split. For 2010 drilling, a 25% split was taken
	for geological logging and sample analysis with the remaining 75% retained for metallurgical test work. For 2018 drilling, about 15% of the
	sample was collected for geological logging and analysis. Duplicate samples were taken from a second split at a rate of one in every 34
	primary samples assayed.
	All exploration utilised the same drilling methodology and assay analysis techniques. RC-AC drilling was used to obtain a 1m sample from
	which approximately 1 kg was collected using a rotary splitter. All samples were submitted for assay. The samples were dried, de-slimed
	(material <53μm removed) and had oversize (material +2mm) removed. 100g of the sample was subjected to float/sink separation using
	Lithium-Sodium-Tungsten (SG=2.85). The sinks were dried and weighed giving the HM content.
	HM sinks were then analysed by XRF at internal Iluka laboratories or by a combination of XRF and laser ablation at Bureau Veritas in
	Canning Vale, Perth.
	The XRF data was used to calculate a mineral assemblage based on stoichiometric formulae and incorporated into the drill hole file prior to
	interpolation. Mineral species content was determined by the following formula:
	• Zircon = 1.488 * ZrO2%
	• Monazite = 3.174 * CeO2%
	• Xenotime = 2.041 * Y2O3%
	• Staurolite = 1.818 * Al2O3%
	• Ilmenite = TiO2 + Fe2O3% +Mn3O4% – (Staurolite * 0.094)
	• Others = 100 – (Zircon +Monazite + Xenotime + Ilmenite + Staurolite)
Drilling	All sampling was based on vertical RC-AC drilling utilising BQ or NQ rods to bore a 52mm or 76mm diameter hole respectively.
techniques
Drill sample	Sample quality was recorded during field logging. Any factors that affect sample recovery were recorded in the logging comments. Sample
recovery	weights were reasonably consistent although poor sample recovery is evident in the interval between stockpiled material and the underlying
	in situ sands.
	RC-AC samples were visually checked for recovery, moisture and contamination and a consistent rate of penetration was maintained during
	drilling.

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CRITERIA	COMMENTARY
	Samples were not affected by the presence of rock or induration and no sample bias is evident.
Logging	Samples were logged by qualified geologists and the geological information recorded is adequate to support the Mineral Resource estimate,
	classification and subsequent mining studies. Detailed sample analysis also supports metallurgical interpretation.
	Logging of 2010 RC-AC samples recorded estimated slimes, colour, lithology, dominant grainsize, coarsest grainsize, sorting, induration
	type, hardness, estimated rock and estimated HM. Logging of 2018 RC-AC samples recorded colour, lithology, dominant grainsize and
	sorting.
	All samples representing 100% of the intersections for the MSP By-Product Mineral Resource were logged. Lithology was recorded for all
	samples drilled in the MSP By-Product Mineral Resource.
Sub-sampling	Samples are collected beneath a rotary splitter fed from a cyclone. A 1kg representative sample was collected for geological logging and
techniques and sample	analysis. All samples are above the water table however water injection was used for dust suppression during drilling.
preparation	Sample preparation is consistent with industry standard practice and is deemed appropriated for Heavy Mineral determination. Samples
	were dried and weighed, then soaked in water with 5ml of TSPP for at least 12 hours, followed by mild attritioning for 5 minutes. The slurry
	was then wet sieved to determine the portion of sand, oversize and slimes.
	Duplicate samples were collected from the rotary splitter at the drill rig at the same time as the primary sample. These field duplicates were
	collected at a rate of one sample every for 34 samples submitted for assay. Laboratory duplicate samples were riffle split at the laboratory at
	a rate of one sample every 25 samples submitted for assay.
	Duplicate assay data demonstrates good correlation (r2= 0.97). A minor of number of outliers are present which again are associated with
	variability at the domain margins.
	The sampling methodology is considered consistent with industry standard practice and appropriate for the material comprising the MSP By-
	Product Mineral Resource.
	The sample size is appropriate for the material under consideration and is supported by Gy’s Theory on sampling.
Quality of assay	The assay technique utilised is appropriate for the mineralisation of the MSP By-Product Mineral Resource, considered total and is
data and laboratory tests	supported by decades of reconciliation of mining of other deposits delineated using the same or very similar techniques. The mineralogical evaluation processes (i.e. XRF followed by calculating mineralogy) is considered appropriate for the current level of study.
	This data does not contain any results generated by geophysical methods.
	Standards were inserted in the field at a rate of one sample every 39 samples submitted for assay. Laboratory standards were also inserted
	at a rate of one sample every 294 samples submitted for assay. The results show no bias for HM and a very minor high bias for slimes. This
	bias will not have an impact on the resource estimate.
	Duplicate samples were collected in the field at a rate of one sample every 34 samples submitted for assay and in the laboratory at a rate of
	one sample every 25 samples assayed. Duplicate assay data demonstrates good correlation however some outliers are present.
Verification of	No verification of the significant results has been undertaken externally however all results have been visually checked for validity by several
sampling and assaying	Competent Persons employed by Iluka.
	Twin holes were completed at a rate of one twin for every 29 holes drilled. Comparisons between primary and twin hole assay data shows

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CRITERIA	COMMENTARY
	the material present at the MSP By-Product Mineral Resource is quite variable on a short-range basis however globally there is little
	variation. Most of the outliers are coincident with the transition from cap material to high grade mineral sands by-product or conversely from
	high grade mineral sands by-product to low grade basement.
	Logging of RC-AC samples was input directly into a laptop computer using either Micromine software or acQuire logging software both with
	data verification routines enabled. Data was then transferred into Iluka's SQL database which incorporated further verification routines.
	No bias or errors were identified in the assay data and no adjustments were made to the raw data. The mineral assemblage was calculated
	from XRF analysis of the HM sinks fraction.
Location of data	The survey was completed using a 3D Terrestrial scanner in conjunction with an RTK_DGPS unit which affords an accuracy to within
points	±0.02m horizontally and ±0.05m vertically. Collar positions were projected to this topographic surface prior to modelling processes.
	Any hole moved from the pegged collar position was re-surveyed after drilling. Topographic control is considered of high quality and
	adequate for the purpose.
	The modelling was done in the same grid reference as the Eneabba Mine (Eneabba Mine Grid – EMG). The data is stored in the geological
	database with a UTM reference (WGS84 – GDA94, Zone 50). Collar survey data was re-calculated	to the EMG using acQuire Software
	coordinate transformation based on a 2-point transformation.
	Dataset Local N Local E MGA N MGA E
	ENEABBA 107706.98 99829.8 6696150 334138.91
	ENEABBA 99553.16 103508.1 6688150 338138.91
Data spacing and	Drilling was conducted on a 10m x 10m drill grid which is considered appropriate for the style of mineralisation being tested.
distribution
	The drilling is spaced sufficiently to conclusively demonstrate continuity of mineralisation and is appropriate for the style of mineralisation
	and the Mineral Resource classification applied.
	No compositing was used for assay data.
Orientation of data	The MSP By-Product Mineral Resource is not considered geologically continuous due to the nature of the mineralisation present (i.e.
in relation to geological structure	mineralisation is associated with mineral sands by-product from Iluka’s Mineral Separation Plant). Drilling has been conducted on a regular grid to provide a representative dataset of the material under consideration and to effectively identify grade and mineralogical variation.
	No sampling bias has been identified.
Sample security	Samples were dispatched with soft copy registers of the samples being freighted. These were then verified by Iluka staff upon arrival at the
	laboratory. Samples were stored in secure Iluka compounds when not in transport.
Audits or reviews	No audits were conducted of sampling technique during the drilling of the MSP By-Product Mineral Resource however the sampling techniques
	used have since been audited for Iluka elsewhere. The same sampling and assay processes also supported Iluka's historic mining operations
	in Eneabba including mining of other pits.

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Section 2 Reporting of Exploration Results (MSP By-Product Mineral Resource)

(Criteria listed in the preceding section also apply to this section.)

CRITERIA	COMMENTARY
Mineral tenement	The MSP By-Product Mineral Resource forms part of the previously mined South Tails area at Eneabba some 250km north of Perth in
and land tenure status	Western Australia. The MSP By-Product Mineral Resource is located within mining lease M267SA which is held by Iluka Midwest Limited, a wholly owned subsidiary of Iluka Resources.
	The resource is located within Crown Reserve 31030 (South Eneabba Natural Reserve). Mining occurred on Crown Reserve after the status
	of reserve was awarded. No other licences for the operation of a mine have been awarded over the MSP By-Product Mineral Resource,
	however it is envisaged that suitable environmental management plans will be produced prior to any mining commencing which will address
	any environmental considerations.
Exploration done	All drilling at the MSP By-Product Mineral Resource has been completed by Iluka. No information from any other party has been used or
by other parties	known to exist.
Geology	The MSP By-Product Mineral Resource is located within the Perth Basin however the material is made up of mineral sands by-product from
	Iluka’s Narngulu MSP. Being a minerals sands stockpile there is no geological structure. The stockpile physically presents as a fine grained
	sand and is approximately 300m in length, 150 wide and varies from 1 to 15m in thickness. The fine grained, dark brown to black material is
	easily distinguishable from the yellow clayey sand it resides on.
Drill hole	A total of 354 drill holes have been used in resource estimation, comprising a total of 4,120 sample points of which 4,115 were assayed. 225
Information	assay values which represented a mix of mineral sands by-product and basement material from sampling through domain boundaries were
	set to absent for the grade interpolation to minimise any effect that these mixed grade samples would impart.
	It is impractical to list all the mineralised intercepts and this information is deemed to be largely superseded by the Mineral Resource
	estimates provided which considers all the exploration data.
	Representative cross sections showing model Zone, HM grade, in situ zircon and in situ monazite grades are given in Figures 2, 3 and 4 of
	this public report.
Data aggregation	No weighting has been applied in the reporting of exploration results for the MSP By-Product Mineral Resource and is not considered
methods	appropriate for reporting in mineral sands. No lower HM cut-off grade was applied as the material has an extremely high HM grade.
	It is impractical to list all the mineralised intercepts and this information is deemed to be largely superseded by the Mineral Resource estimates
	provided which considers all the exploration data.
	Representative cross sections showing model Zone, HM grade, in situ zircon and in situ monazite grades are given in Figures 2, 3 and 4 of
	this public report.
Relationship	The drilling has been conducted over the by-product stockpiles which have no geological structure or particular mineral orientation. As a result
between mineralisation	the drilling is considered to be essentially perpendicular to the mineralisation so all intercepts are deemed to represent true widths.
widths and
intercept lengths
Diagrams	Plans and representative cross sections through the MSP By-Product Mineral Resource are given in Figures 2, 3 and 4 of this public report.

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CRITERIA	COMMENTARY
Balanced	The results of the exploration are not reproduced here due to the large number of drill holes and it is considered the resource estimation
reporting	effectively represents all the dataset.
Other substantive	XRF analysis has also been completed on all samples which has been used to calculate the mineral assemblage present. This provides a
exploration data	comprehensive data set to support the Mineral Resource estimate, mineral assemblage and inherent variability.
	The density used in the Mineral Resource estimate is based on the standard Iluka bulk density formula derived from the study of several
	deposits and material types, including HM concentrate, mined in Western Australia. The average density of the mineral sands by-product is
	2.4t/m3which is in-line with the expectations for material containing such a high content of HM.
	No potentially deleterious or contaminating substances have been identified in the MSP By-Product Mineral Resource that would affect product
	saleability. It is envisaged that material from the MSP By-Product Mineral Resource will be sold as a concentrate with minimal processing.
Further work	No further work is anticipated though further drilling may be warranted if further by-product material is added to the stockpile.
	The current drilling and survey data have effectively defined the extent of the by-product material and no further extensions exist.

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Section 3 Estimation and Reporting of Mineral Resources (MSP By-Product Mineral Resource)

(Criteria listed in section 1, and section 2, also apply to this section.)

CRITERIA	COMMENTARY
Database integrity	Logging of RC-AC samples was captured on a laptop computer using either Micromine software with data verification routines enabled or
	MS Excel spreadsheet. Data was then transferred into Iluka's acQuire hosted GIM database which incorporates additional validation
	routines.
	Drill data was reviewed statistically and visually; to ensure all results were within acceptable ranges and all drill holes were correctly spatially
	located.
Site visits	No site visits were undertaken during this estimation process, however several Competent Persons employed by Iluka have visited or worked
	at Iluka’s Eneabba Mine Site. No issues were raised as a result of these visits.
Geological	By-product material from Ilukas’ Narngulu MSP, which is located east of Geraldton, has been stockpiled at the current location since the
interpretation	early 1990’s. Being a stockpile there is no geological structure.
	Stratigraphically, the stockpile comprises a half to one metre cap of orange brown, gravelly, clayey sand which covers the Mineral
	Resource. A mixed zone of mineral sands by-product and capping is immediately below the capping which is characterised by high HM
	grades in combination with elevated slimes and oversize. The degree of mixing is likely overstated due to contact of the clean mineral sands
	by-product and cap material being obscured by the 1m drill sample length. Beneath this mixed zone is the mineralised unit which presents
	as a dark brown to black, well sorted fine grained sand. The mineralised unit is characteristically very high in HM and low in slimes and
	oversize. The mineralised unit is easily distinguishable from the underlying in-situ yellow clayey sand.
	All relevant information has been sourced from the drill samples. Some mineralisation is contained in the underlying clayey sand but this
	material has been excluded from the Mineral Resource estimate for the MSP By-Product Mineral Resource.
	No alternative interpretations have been considered at this time with the material being treated as a single stockpile. Granularity is provided
	by the close spaced drilling and XRF analysis being done on every sample.
	Appropriate domaining and corresponding flagging of drill data has been used to control the estimation of grade during interpolation.
	The MSP By-Product Mineral Resource, representing a stockpile, does not have geological continuity. While there is considerable variation
	in the HM assemblage, large areas of the mineral sands by-product have a consistent character which is interpreted to reflect the campaigning
	of mineral from mine sites feeding the Narngulu MSP.
Dimensions	The stockpile physically presents as a fine grained sand and is approximately 300m in length, 150m wide and varies from 1 to 15m in thickness.
Estimation and	The grade interpolation was carried out using the Estima Superprocess within Datamine Studio software. Grade and XRF data estimation
modelling techniques	was completed using Inverse Distance Cubed (ID3), and is considered appropriate for this style of mineralisation. No HM top-cut has been used nor deemed necessary.
	Drill hole sample data was flagged with domain codes corresponding to the “stratigraphy” of the stockpile and the domains imprinted on the
	model from 3-dimensional surfaces generated from the stratigraphic interpretations. A primary search dimension of 15152m (XYZ) was
	used for all data. Successive search volume factors of 2 and 3 were used to interpolate grade in areas of lower data density not assigned a
	grade in the primary search.

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CRITERIA	COMMENTARY
	A comparison estimate was undertaken using the Nearest Neighbour grade interpolation method. This correlated well with the ID3
	interpolation and gave a very similar global estimate of grade and tonnage.
	Metallurgical test work is ongoing to optimise the recovery of valuable HM from the MSP By-Product Mineral Resource. Beneficiation may
	be able to produce higher value products, concentrated with specific minerals to suite market demand.
	No deleterious elements have been identified or included in the resource estimation. At time of resource estimation it has been assumed
	that the stockpiled HM would be sold as a mineral concentrate with minimal processing.
	A parent cell size of 551m with 1110 (XYZ) cell splitting has been adopted which is considered appropriate given the approximate drill
	spacing of 10m10m1m (XYZ). A search radius of 15152 has been used in conjunction with 221 (XYZ) cell discretisation to estimate
	the grade into model cells.
	No selective mining units were assumed in this estimate.
	No correlation between variables has been considered.
	Appropriate domaining and corresponding flagging of drill data and model cells has been used to control mineralisation estimation during
	resource estimation. The resource estimate for the stockpile has been restricted to reporting from domains representing mineral sands by-
	product material.
	A top cut was not deemed necessary for the HM assays. The MSP By-Product Mineral Resource has a low coefficient of variation negating
	any requirement for grade cutting.
	Validation of the model was done by comparing model statistics to drill data statistics, visual comparison of drill and model grades and
	completing a comparison of the Inverse Distance interpolation against a Nearest Neighbour interpolation. The validation process confirmed
	the grade interpolation. No reconciliation data is available.
Moisture	The tonnages are estimated on a dry basis using an Iluka developed density formula. The formula is considered appropriate and has been
	used in other historically mined mineral sands deposits.
Cut-off parameters	No cut-off grade has been applied to the MSP By-Product Mineral Resource as the high HM grade means all the material will effectively be
	economic providing sales contracts can be secured. Rather the reported Mineral Resource was restricted to material interpreted as bona fide
	mineral sands by-product.
Mining factors or	The material is unconsolidated and can easily be excavated by standard earth-moving equipment such as front end loader or truck and shovel.
assumptions	Large portions of the MSP By-Product Mineral Resource are represented by clean HM and direct shipping may be possible. Feasibility studies
	are currently in progress which will determine the economic viability and address the approvals required to facilitate extraction.
Metallurgical	The MSP By-Product Mineral Resource is characterised by fine, even grained sand and effectively represents a high value Heavy Mineral
factors or assumptions	Concentrate (HMC). As the material has historically been recovered by conventional mineral sand recovery technology, it is expected that any processing to enhance the concentrate will result in very high recoveries. Only a simplistic treatment process is envisaged to remove a minor
	amount of contaminating slime and sand, mostly associated with the capping material.
Environmental	All native title agreements are in place for M267SA. Native vegetation is present in the surrounding area however the MSP By-Product
factors or assumptions	Mineral Resource is located within a previous mine void and no native vegetation is impinging on the deposit.

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CRITERIA	COMMENTARY
	Environmental Management Plans are currently being prepared and will need the relevant statutory approval prior to any mining
	commencing which will address any environmental considerations.
	Above background radioactivity levels are present in the stockpile material due to the presence of monazite. Feasibility studies are currently
	in progress and an approved Radiation Management Plan (RMP) will be developed and implemented prior to any mining commencing.
Bulk density	Iluka’s standard bulk density formula, developed internally from the studies of various materials mined and HM concentrates, was used. A
	relatively high density averaging 2.4t/m3is estimated by the formula which is in line with the expectations for material containing such a high
	content of minerals with a high S.G.
	The Iluka Standard Bulk Density formula used accounts for void space and variable material composition. It is the same formula used at
	historical Iluka mine sites, which mined similar material. It accounts for variability in HM, slimes and sand content. The formula was
	determined from results of extensive Nuclear Densometer testing at various Iluka mine sites.
	It is assumed that the material in the MSP By-Product Mineral Resource has the same density relationship that is seen in Iluka deposits that
	are currently being mined or have been mined historically.
Classification	The resource category applied is based on:
	• drill hole spacing and sample density;
	• density and confidence in the analytical data supporting the assemblage determination;
	• the data supporting the resource estimate has been acquired using industry standard methods or better;
	• established grade continuity; and
	• an understanding of the material stored at the MSP By-Product Mineral Resource which represents specific by-products from
	the Narngulu MSP.
	Because the material under consideration comprises a Narngulu MSP By-Product Mineral, an intensive exploration program was adopted to
	ensure a high confidence in the volume and mineral assemblage. The drilling was conducted on a close 10m by 10m spacing. In addition
	every sample was subjected to float/sink analysis and the HM sinks for every mineral sands by-product sample was analysed by XRF (when
	done internally) or XRF in combination with laser ablation at an external laboratory. Effectively there is an assay per 250 tonnes of resource.
	It is the view of the Competent Person that the frequency and integrity of data, and the resource estimation methodology are appropriate for
	this style of mineralisation and support the Mineral Resource classification applied.
Audits or reviews	Optiro Mining Consultants (Optiro) reviewed the Mineral Resource estimate and Classification assigned to the MSP By-Product Mineral
	Resource. Optiro has endorsed the resource estimate and classification for the MSP By-Product Mineral Resource.
Discussion of	It is the view of the Competent Person(s) that the frequency and accuracy of the data and the process in which the Mineral Resources were
relative accuracy/ confidence	estimated and reported are appropriate for the style of mineralisation under consideration. The relative accuracy of the estimates is reflected in the reporting of the Mineral Resources and the Resource Category assigned as per the guidelines set out in the JORC Code (2012 ed.).
	The statement refers to global estimates of tonnage and grade.
	No production data is available as the deposit is not in production.

13

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, section 2 and section 3 also apply to this section.)

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
Mineral		Description of the Mineral Resource estimate		The Ore Reserve estimate is based on a Mineral Resource model that has been
Resource		used as a basis for the conversion to an Ore		reviewed and approved by an Iluka Resources Limited (Iluka) Competent
estimate for		Reserve.		Person (CP). The resource model was created for the Mineral Separation Plant
conversion to Ore Reserves		Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.		(MSP) By-Product Stockpile located at Eneabba to estimate the tonnage and grade, and characterize the style of mineralisation. The JORC code (2012 Ed.) classification of Measured and Indicated has been applied based on data density, quality of the supporting data and consistency of grade.
				Ore Reserves comprise the material reported as a sub-set of the Mineral
				Resource.
Site visits		Comment on any site visits undertaken by the		A number of site visits have been completed by various CPs during various
		Competent Person and the outcome of those		drilling, sampling, test-work and study phases. On each occasion the CP was
		visits.		satisfied with the quality of the work being conducted and no matters were
		If no site visits have been undertaken indicate		observed that would impact the estimation of the Ore Reserves.
		why this is the case.
Study status		The type and level of study undertaken to		In 2015 Iluka Resources initiated a Pre-Feasibility Study (PFS) to evaluate the
		enable Mineral Resources to be converted to		viability of a processing operation to re-treat the contents of the MSP By-Product
		Ore Reserves.		Stockpile.
		The Code requires that a study to at least		The PFS led to the approval and completion of a Definitive Feasibility Study
		Pre-Feasibility Study level has been		(DFS) for the Eneabba Mineral Sands Recovery Project in Q3 2019.
		undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and		The DFS contains a technically achievable mine plan, which also displays attractive financial characteristics on the key metrics that Iluka uses to assess project development decisions, including IRR, NPV and payback.
		economically viable, and that material		Operational factors have been assessed, material modifying factors were
		Modifying Factors have been considered.		considered and a detailed financial analysis completed.
				An offtake agreement has been executed as part of the DFS, allowing the
				project to proceed into the execute phase. The processing methodology has
				been agreed and costed.
Cut-off		The basis of the cut-off grade(s) or quality		The cut-off grade has been calculated using optimisation software and an
parameters		parameters applied.		individual cut-off grade applied to each block within the model. The calculations
				consider overall HM grade and individual assemblage product values, operating
				costs, recoveries and modifying factors. An economic optimisation is performed
				to determine if a block is viable to mine, and therefore be included in the Ore

14

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
				Reserves.
Mining factors		The method and assumptions used as		A pit optimisation was conducted by Iluka personnel using IMS Minemap mine
or assumptions		reported in the Pre-Feasibility or Feasibility		planning software. Volume report outputs, pit shells, optimised models and
		Study to convert the Mineral Resource to an		grade tonnage curve data were generated during the optimisation process to
		Ore Reserve (i.e. either by application of		determine an accurate reserve.
		appropriate factors by optimisation or by preliminary or detailed design).		The mining process will consist of:
		The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.		o mining material using an FEL to a mobile screening unit located adjacent to the MSP By-Product Stockpile; o dry screening of material to remove +6mm particles in the pit; o loading of material from the screened stockpile using a FEL into dump trucks;
		The assumptions made regarding		o hauling of material (-6mm) from the dry screening unit to the feed stockpile
		geotechnical parameters (eg pit slopes, stope		at the processing plant using dump trucks; and
		sizes, etc), grade control and pre-production		o an FEL will feed the material into the WSP processing plant.
		drilling. The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).		The WSP completes the removal of any remaining oversize material and any fine clay/slimes. The WSP uses a wet vibrating screen to remove any material above 1mm in particle size.
		The mining dilution factors used.		Desliming cyclones are then used to remove fine clay particles, leaving a clean Mineral Sand Concentrate (MSC) product. The mineral separation process
		The mining recovery factors used.		involves the use of water, screening equipment and de-sliming cyclones. The
		Any minimum mining widths used.		process will consist of:
		The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.		o feeding material into a feed hopper and conveyor; o processing material through a wet vibrating screen to remove +1mm oversize; o processing through two de-sliming cyclones to remove clay fines (slimes); and
		The infrastructure requirements of the		o stockpiling of final product in a bunker prior to loading into Rotabox
		selected mining methods.		containers.
				Overall pit design slopes 45º were assumed (dependent on localized conditions
				during mining).
				Grade control will occur during the mining process, with a mobile XRF unit being
				utilised to analyse materials for blending. Blending and grade control will occur
				during the mobile screening process within the pit.

15

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
				No mining dilution factors were used and reflect Iluka experience.
				Recovery factors were applied to all stages of processing. These are based on
				detailed metallurgical test work and Iluka’s operational experience.
				An 80m average mining radius from the in-pit screening unit has been assumed
				for pit operating purposes.
				No Inferred Mineral Resources are included in the MSP By-Product Ore
				Reserve.
				Infrastructure requirements for the project include: administration buildings;
				workforce accommodation; power supply; communications; workshops and
				stores including maintenance facilities; site access roads; weighbridge; light
				vehicle fleet; contract mining fleet; screening plants and WSP.
Metallurgical		The metallurgical process proposed and the		The metallurgical separation process utilizes known technology where the
factors or		appropriateness of that process to the style of		performance and recovery of the MSC was established by Iluka. The
assumptions		mineralisation.		metallurgical process is well-tested and commonly used in other sands
		Whether the metallurgical process is well-		operations worldwide.
		tested technology or novel in nature.		Iluka has a history of producing a range of mineral sand products. In the 1970s
		The nature, amount and representativeness of metallurgical test work undertaken, the		and 80s Iluka’s predecessors Renison Goldfields Consolidated Ltd (RGC) and Westralian Sands Limited (WSL) produced similar concentrates.
		nature of the metallurgical domaining applied		During drilling, foreign materials were intersected in a small number of instances
		and the corresponding metallurgical recovery		(plastics, rubbish, wood and metal) in various locations. Commentary from
		factors applied.		various sources indicates a variety of rubbish was dumped in the stockpile over
		Any assumptions or allowances made for deleterious elements.		the past 25 years of accumulation. This is not likely to have a significant impact on the reserve estimate.
		The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.		Mineralisation is not well tested where drilling access was restricted by proximity to the edge of the tails. These areas are relatively minor in comparison to the total volume of the stockpile and have been assigned a suitable Resource / Reserve Classification (Indicated / Probable) to reflect the lower confidence in the mineralisation.
		For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?		There is a small amount of waste material present that has been placed on the stockpile as capping material. All the material will be screened, with the undersize taken to the processing plant while the oversize material will be disposed at the bottom of the pit.
				The recoveries for the project are based on various metallurgical test work
				programs from 1990 to 2013. The test work programs were conducted by Iluka

16

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
				and external parties.
Environmental		The status of studies of potential		The Eneabba area has been extensively cleared for agriculture, with designated
		environmental impacts of the mining and		areas of nature reserve and Vacant Crown Land (VCL). Rare flora and fauna
		processing operation. Details of waste rock		have been identified in the area, and a survey has identified several key species
		characterisation and the consideration of		to be reported under the Environment Conservation and Biodiversity Protection
		potential sites, status of design options		Act (1999) including the endangered Carnaby’s Black Cockatoo.
		considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.		The project proposal utilizes historically cleared mining areas with no further vegetation clearing being required.
				Key Approvals including: Works Approval, Mineral Export Permit and Project
				Management Plan (Mines), Midwest Port Authority Environmental Approvals and
				Radiation Management Plan have all been approved. Environmental
				Management Plans have been provided as evidence of management
				commitment under Works Approvals, Mining Approvals, and licenses to abstract
				water and mine/transport materials, and have been endorsed by the regulators.
Infrastructure		The existence of appropriate infrastructure:		The mining project area is close to existing infrastructure and similar operations
		availability of land for plant development,		have previously been in production in the project area.
		power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can		The Eneabba site is located approximately 300 km north of Perth in West Australia. The Eneabba site is located on the State Agreement Act Tenement
		be provided, or accessed.		MLSA 267 and mining tenement M70/821. Several other tenements have also
				been granted adjacent to the mining operation.
				The MSP By-Products stockpile is located on vacant Crown Land on the State
				Agreement Tenement MLSA 267. The area is adjacent to Iluka owned land and
				the Eneabba South Nature Reserve. Other areas of the mine site are located on
				private land under a lease agreement between the landholder and Iluka.
				Generators will be utilised to supply power to the processing plant. This consists
				of two 500 kVA Caterpillar C15 engines and associated fuel tanks. Iluka
				proposes to install one of these generating sets, with the second one acting as
				standby. At this stage no high voltage installations are anticipated. An existing
				switch room and switchboard already located at site will be utilized for the
				project.
				A new process water dam and pumping infrastructure will be required. Existing
				bores at Eneabba will supply clean water for processing.
				Following processing through the WSP, the MSC will be pumped to a
				designated product storage bunker. This material will remain wet (~4 to 8%

17

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
				moisture) and once a truck arrives the product will be loaded directly into
				Rotaboxes on the truck. The Rotaboxes will be transported by road to existing
				Iluka Mineral Separation Plant at Narngulu where it will be stored (within the
				Rotaboxes) until enough have been processed to fill a shipment. Export will be
				through the Geraldton Port.
				Tailings produced through this process will consist of oversize rocks (lateritic
				gravel) from the in pit screen and clay from the desliming process. The oversize
				rock waste (+6mm) has been tested as being at or close to background radiation
				levels and will remain in the pit for disposal.
				An existing mining camp accommodating Iluka employees from the adjacent
				Eneabba rehabilitation site is located within the town of Eneabba.
				Accommodation during construction and operations will be provided by the
				existing camp.
Costs		The derivation of, or assumptions made,		Capital costs have been derived by the following methods: derived internally
		regarding projected capital costs in the study.		using project drawings, specifications, models, P&ID’s, equipment lists and
		The methodology used to estimate operating		associated schedules and prepared by the contractors and suppliers. Quantity
		costs.		growth has been applied to the individual line items within the estimate based on
		Allowances made for the content of deleterious elements.		the level of design, scope of works and specification completeness and the risk of these items exceeding those quantities.
		The source of exchange rates used in the		Pricing for the contractors direct and indirect works has been derived from a
		study.		combination of the following sources: tendered quotations procured from
		Derivation of transportation charges.		suppliers and contractors, purchase quotation from suppliers and contractors, budget quotations procured from suppliers and contractors and historical data
		The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.		sourced from previously tendered or estimated projects of a similar nature and location. Where necessary items have been factored to allow for different size/capacity, estimated, factored or built-up rates and provisional or lump sum
		The allowances made for royalties payable,		allowances where the use of the afore mentioned methods are not possible.
		both Government and private.		Pricing growth has been applied to the individual items, based on the source
				and accuracy of the prices used for the estimate.
				The contingency allowance has been calculated in accordance with the Iluka
				Project Management System Guideline. The determination of the value for
				contingency is based on a confidence level of the total modeled estimate.
				The estimate is expressed in Australian dollars based onprices and market

18

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
				conditions as at Q4 2019.
				Import duties have been included where applicable and the Goods and Services
				Tax (GST) has been excluded.
				Theoperating cost estimate has been derived from a combination of the
				following sources: budget quotations procured from suppliers and contractors,
				estimated, factored or built-up rates, historical data sourced from other Iluka
				mine sites and provisional or lump sum allowances where the use of the
				aforementioned methods are not possible.
				Cost and recovery penalties have been applied to deleterious elements.
				Iluka monitors a range of recognised external forecasters of foreign exchange
				rates but ultimately the exchange rates applied are an Iluka assessment.
				Transportation charges have been procured from contractors.
				Allowances have been made for royalties payable to Government and private
				stakeholders. Due to commercial sensitivities payments to private stakeholders
				are not detailed.
Revenue factors		The derivation of, or assumptions made		The price assumptions are based on contracted sales agreements, the detail of
		regarding revenue factors including head		which is commercially sensitive and is not disclosed.
		grade, metal or commodity price(s) exchange
		rates, transportation and treatment charges,
		penalties, net smelter returns, etc.
		The derivation of assumptions made of metal
		or commodity price(s), for the principal
		metals, minerals and co-products.
Market		The demand, supply and stock situation for		Global demand for rare earth metals and oxides continues to grow year-on-year
assessment		the particular commodity, consumption trends		fueled by strong growth in permanent magnet and electric motor applications.
		and factors likely to affect supply and demand into the future.		Neodymium and praseodymium make the world’s strongest permanent magnets, which are utilized in electric motors to produce greater power and
		A customer and competitor analysis along		torque, and owing to the power of the magnets, less material is required such
		with the identification of likely market windows for the product.		that engines can be considerably smaller and lighter in weight. Electric motors that utilize Rare Earth Elements (REE) are a key component of hybrid vehicles,
		Price and volume forecasts and the basis for		which will become increasingly abundant on roads throughout the world in years
		these forecasts.		to come. The powerful REE magnets also permit the miniaturisation of hard disk

19

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
		For industrial minerals the customer		drives used in many electrical devices.
		specification, testing and acceptance requirements prior to a supply contract.		The demand for Rare Earth Oxides (REO) stems from the strong growth in
				industrial applications such as electric vehicles and wind turbines. Since the
				1990s, China has dominated the production and supply of rare earth products,
				holding approximately 40% of REO resources and 94% of production capacity.
				The execution of an offtake agreement with a fixed price and offtake volumes
				have been negotiated with the customer.
				The REO assemblage of Iluka’s monazite, and the costs of production were
				used to evaluate the pricing and back-calculate a market price.
				Iluka personnel conducted a technical assessment on a zircon sample produced
				from the MSC sent to the customer. The zircon sales team has since completed
				a product assessment addressing quality, saleability and pricing.
				Iluka customers are provided with reports in accordance with their specifications.
Economic		The inputs to the economic analysis to		Macro-economic assumptions used in the economic analysis of the mineral
		produce the net present value (NPV) in the		sands reserves such as foreign exchange, inflation and discount rates have
		study, the source and confidence of these		been internally generated and determined through detailed analysis by Iluka and
		economic inputs including estimated inflation,		benchmarked against commercially available consensus data where applicable.
		discount rate, etc.		Sensitivity analysis is undertaken on key economic assumptions such as price
		NPV ranges and sensitivity to variations in		and exchange rates to ensure the reserves remain economic. Changes in
		the significant assumptions and inputs.		product prices have the potential to increase or decrease the total Ore Reserve.
Social		The status of agreements with key		Discussions with key stakeholders is being addressed through planned
		stakeholders and matters leading to social		stakeholder communication. To date, this has included engagement with
		license to operate.		regulatory bodies, local councils and commissions, port authorities and
				contractors. Public engagement commenced in June 2019 and will be ongoing
				for the life of the project.
				Health, environmental and community concerns regarding radiation will be
				addressed in a comprehensive radiation management plan (RMP) covering
				processing, transportation, storage and shipping operations. The RMP was
				submitted to the DMIRS in June 2019 and was approved in December 2019 by
				the Radiological Council.
Other		To the extent relevant, the impact of the		No identifiable naturally occurring risks have been identified to impact the Ore
		following on the project and/or on the		Reserves.
		estimation and classification of the Ore

20

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
		Reserves:		Marketing arrangements are commercially sensitive but the execution of an
		Any identified material naturally occurring		offtake agreement with a fixed price and offtake volumes have been negotiated.
		risks.		Iluka has received the consent / approval to sell the MSC monazite from the WA
		The status of material legal agreements and		Premier in accordance with clause 21A(3) of the State Agreement Act.
		marketing arrangements.		The project proposal was approved by the WA Premier in accordance with
		The status of governmental agreements and approvals critical to the viability of the project,		clause 21A(3) of the State Agreement Act.
		such as mineral tenement status, and		Environmental approvals have been granted.
		government and statutory approvals. There must be reasonable grounds to expect that all		The Export Permit was approved by the commonwealth government.
		necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any		The Eneabba Operation is located on the State Agreement Act Tenement MLSA 267 and mining tenement M70/821. Several other Mining Leases granted to Iluka are located adjacent to MLSA 267.
		unresolved matter that is dependent on a
		third party on which extraction of the reserve
		is contingent.
Classification		The basis for the classification of the Ore		Measured Mineral Resources are converted to Proved Ore Reserves and
		Reserves into varying confidence categories.		Indicated Mineral Resources are converted to Probable Ore Reserves. Inferred
		Whether the result appropriately reflects the		Mineral Resources are not included in the reported Ore Reserve.
		Competent Person’s view of the deposit.		The results reflect the CP’s view of the deposit.
		The proportion of Probable Ore Reserves		None of the Probable Ore Reserves have been derived from Measured Mineral
		that have been derived from Measured		Resources.
		Mineral Resources (if any).
Audits or		The results of any audits or reviews of Ore		No external audits of the MSP By-Products Ore Reserves estimates were
reviews		Reserve estimates.		undertaken. However, periodic reviews of optimisation input parameters,
				assumptions and proposed mining methods have been undertaken internally.
Discussion of		Where appropriate a statement of the relative		Iluka has considerable experience in reconciliation of its Mineral Resources and
relative accuracy/ confidence		accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical		Ore Reserves. Actual results generally indicate very good agreement with the geological models and close reconciliation with HM tonnes, ore tonnes and HM percentage head grade. The risk of not achieving good physical Ore Reserve reconciliation is considered to be low.
		procedures to quantify the relative accuracy of the reserve within stated confidence limits,		Operational metallurgical experience, relevant test work and Iluka’s experience
		or, ifsuch an approach is not deemed

21

CRITERIA	JORC	CODE EXPLANATION	COMMENTARY	COMMENTARY
		appropriate, a qualitative discussion of the		supports the view that metallurgical risk is low.
		factors which could affect the relative
		accuracy and confidence of the estimate.		The MSP By-product Ore Reserve has a considerable quantity of high grade
		The statement should specify whether it relates to global or local estimates, and, if		mineralisation within the stockpile. Sensitivity analysis was conducted on the deposit which showed the deposit remains robust to pricing and cost changes.
		local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.		The Ore Reserve determined during the DFS was based on revenue assumptions negotiated as part of an offtake agreement thus allowing the project to proceed into the execute phase. Consequently, pricing risk is considered low to moderate.
		Accuracy and confidence discussions should extend to specific discussions of any applied		Mining methods selected are not novel and have been demonstrated and are
		Modifying Factors that may have a material		considered a low risk of impacting Ore Reserves.
		impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at		All costs used in the optimisation and Ore Reserve process are supported by an
		the current study stage.		extended operational history and actual results from Iluka operations. Risk of
		It is recognised that this may not be possible or appropriate in all circumstances. These		significant underestimation and effect of that underestimation is considered to be low.
		statements of relative accuracy and
		confidence of the estimate should be
		compared with production data, where
		available.

22