ILUKA RESOURCES LIMITED — Earnings Release 2003

Feb 27, 2003

Notice to the Australian Stock Exchange

Friday 28 February 2003 8.00hrs (EST)

ILUKA EXCEEDS 2002 FULL YEAR PROFIT TARGET OF A\$104 to A\$105 MILLION

Iluka Resources Limited achieved an after tax consolidated operating profit of A\$109.0 million in 2002 which is inclusive of a contribution of A\$9.9 million from previously un-booked tax losses being brought to account and a writeoff A\$6.6 million of assets associated with a project to develop iron oxide residue conversion technology.

This represents an increase of A\$45.3 million (71%) compared with a consolidated operating profit of A\$63.7 million in 2001 after allowing for a A\$44.1 million loss associated with discontinued business in that period. For comparison purposes the Company's profit from continuing operations was A\$109.5 million in 2002 and A\$107.8 million in 2001.

Iluka's 2002 results reflect a sound level of performance despite difficult and uncertain trading conditions as a result of international events. Both mineral sands and coal production were in line with expectations. Mineral sands sales exceeded both volume and revenue expectations mainly as a result of record synthetic rutile sales and increased zircon sales compared with 2001. Sales in 2002 also benefited from relatively high opening inventory levels which were progressively drawn down during the year. Coal sales were in line with contractual requirements.

Iluka's 2002 total revenues (including proceeds from the sale of Koba Tin) increased by A\$5.0 million (0.54%) to A\$930.2 compared with 2001. Actual sales revenues were A\$894.5 million and consisted of A\$805.1 million from titanium minerals and zircon sales (an increase of A\$67.3 million), coal sales of A\$31.7 million (a decrease of A\$3.2 million) and tin sales of A\$57.7 million (a decrease of A\$67.5 million).

On a regional basis, minerals sands sales revenues from the Western Australian operations increased by A\$98.4 million to A\$611.5 million which was offset by US sales revenues decreasing by A\$28.9 million to A\$105.5 million. Consolidated Rutile Limited's sales revenues (100% level) decreased by A\$3.8 million (2.2%) to A\$88.1 million during the period.

Debt increased by A\$80.5 million to A\$469.5 million at the end of the year. This debt primarily consists of syndicated bank debt of A\$151.4 million and unsecured private placement notes of US\$150 million (A\$264.6 million). Gearing was 33.8% at the end of 2002 compared with 32.3% at the end of 2001.

A final unfranked dividend of 12 cents per share will be paid on 28 April 2003 to all shareholders registered at 9 April 2003. Together with the interim dividend of 10 cents per share this makes a 2002 total dividend of 22 cents per share (franked to 2 cents) which is unchanged compared with the 2001 total dividend of 22 cents.

In addition to its financial performance in 2002, Iluka's successful exploration efforts in the Murray and Atlantic Basins together with the Reserves and Resources associated with the acquisition of Basin Minerals Limited enabled the Company to increase its estimates of Heavy Mineral Reserves and Resources after taking into account a 6% increase in the rate of depletion in 2002. At year end Iluka's estimated Ore Reserves increased by 14% or 5.3 million tonnes of heavy mineral (net of production) and similarly estimated Ore Resources increased by 15% or 33 million tonnes of heavy mineral.

Investment Community & Media contact:

Geoff Wedawood +61 8 9223 4751 Phone: Mobile: 0409 997 256