ILUKA RESOURCES LIMITED — Earnings Release 2005

Oct 19, 2005

Notice to the Australian Stock Exchange

20 October 2005

Ouarter 3 2005 Exploration Results and Highlights

Perth Basin

Exploration activities were mainly focused on resource delineation for the Waroona, Tutunup South and Cataby deposits. A significant Resource Extension at Eneabba (southern-portion of the Adamson deposit) was announced at the beginning of the quarter (for more details on the mineral resource estimate see Iluka's ASX release dated 21 July 2005). The evaluation of the northern portion of the Adamson deposit is continuing.

Murray Basin

• Exploration activities were focused on the Wambera tenement (EL 5951) located in NSW, to the north of the Euston project area. The two drilling rigs were stood down for the last eight weeks of the quarter to enable a review of the work completed in the first half of the year.

Eucla Basin

Exploration activities continued to concentrate on resource drilling of the Jacinth and Ambrosia deposits. Both deposits have been drilled on a 400 metre by 50 metre grid spacing. Drilling to close this to a 200 metre by 50 metre grid spacing was 50% complete at the end of the quarter. Regional exploration drilling also commenced on the Colona Joint Venture tenements during the quarter.

USA

• Exploration activities were focussed on drilling on and around existing operations for the purpose of both mine planning and resource extensions.

Drilling Activity

• Perth Basin 17,210 metres $\bullet$
• Murray Basin 10,716 metres
• Eucla Basin 26.015 metres
• USA 10,105 metres

Tenement Applications

• WA M70/1243, M701244
• SA ELA 469/2005, ELA 470/2005, ELA471/2005, ELA 472/2005.
• NSW ELA 2567, ELA 2576

Tenements Granted

• WA - E04/1478, E04/1479. E04/1480

Tenement Relinquishments

WA - E69/1986, E69/1987, E69/1988, E69/1997. E70/2770, E70/2770 E28/1391

Mike Folwell Managing Director and CEO