ILUKA RESOURCES LIMITED — Investor Presentation 2021

May 18, 2021

Iluka Resources

Bank of America Global Metals, Mining & Steel Conference

Tom O’Leary, Managing Director 18-20 May 2021

Capel, Western Australia

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2

Disclaimer and Compliance Statements

This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing this presentation you acknowledge that you have read and understood the following statement.

This document provides an indicative outlook for the Iluka business in the 2021 financial year. The information is provided to assist sophisticated investors with the modelling of the company, but should not be relied upon as a predictor of future performance. The current outlook parameters supersede all previous key physical and financial parameters.

This information is based on Iluka forecasts and as such is subject to variation related to, but not restricted to, economic, market demand/supply and competitive factors. It is Iluka’s approach to modify its production settings based on market demand, and this can have a significant effect on operational parameters and associated physical and financial characteristics of the company.

Forward Looking Statements

This presentation contains certain statements which constitute “forward-looking statements”. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “plan”, “believes”, “estimate”, “anticipate”, “outlook” and “guidance”, or similar expressions, and may include, without limitation, statements regarding plans; strategies and objectives of management; anticipated production and production potential; estimates of future capital expenditure or construction commencement dates; expected costs or production outputs; 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 known and unknown risks, uncertainties, assumption and other important factors that could cause the actual results, performances or achievements of Iluka to differ materially from future results, performances or achievements expressed, projected or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. 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; increased costs and demand for production inputs; and environmental or social factors which may affect a licence to operate, including political risk.

Capital estimates include contingency and risk allowances commensurate with international estimating classification systems.

To the extent permitted by law, Iluka, its officers, employees and advisors 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 a person as a consequence of any information in this presentation or any error or omission therefrom. Iluka does not undertake 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.

No independent third party has reviewed the reasonableness of the forward looking statements or any underlying assumptions.

Iluka cautions against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by COVID-19.

Non-IFRS Financial Information

This document contains non-IFRS financial measures including cash production costs, non production costs, Mineral Sands EBITDA, Underlying Group EBITDA, EBIT, free cash flow, and net debt amongst others. Iluka management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Iluka’s annual results materials and/or Annual report. Non-IFRS measures have not been subject to audit or review.

All figures are expressed in Australian dollars unless stated otherwise.

Mineral Resources and Ore Reserves Estimates

As an Australian company with securities listed on the Australian Securities Exchange (ASX), Iluka is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and that the Ore Reserve and Mineral Resource estimates underpinning the production targets in this presentation have been prepared by a Competent Person in accordance with the JORC Code 2012.

Information that relates to Mineral Resources estimates has been announced to ASX on 25 February 2021 in the 2020 Annual Report , 21 February 2019 in 2018 Annual Report , on 24 July 2019 in Eneabba Mineral Sands Recovery Project Updated Mineral Resource Estimate, and on 20 February 2017 in Updated Mineral Resource and Ore Reserve Statement, all available at www.iluka.com/investors-media/asx-disclosures. 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 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.

Production outlook

Production outlook and the basis thereof are noted within the relevant disclosure. The outlook included in this presentation is indicative only and should not be construed as guidance. The information is subject to changes in market and operating conditions; political risk; and any significant unplanned operational issues.

3

Delivering Sustainable Value

Disciplined Performance in 2020

• Prioritised safety of people and communities

• • Operational settings flexed to market conditions

• Measures implemented to maintain cashflow

• Preservation of margins

Well Placed for 2021

Promising Future

• Net cash position and significant funding headroom

• Emerging position in rare earths

• Positive indicators in mineral sands markets

• Encouraging trial of new technology at Balranald

• Operations returned to full production

• Progressing processing solution for Wimmera

• • Attractive long term industry dynamics

• Maturing project pipeline

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Cataby, Western Australia
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Sustainable Development

4

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Key Pillars of Iluka’s
Sustainability Approach
Health and Safety
Our People
Our Communities
Environmental Stewardship
Governance and Integrity
Value Creation
Cataby, Western Australia
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TCFD alignment

2020 TRIFR 2.8

(2019: 2.9)

Year 2 of 3

584

28%

hectares rehabilitated in 2020

Indigenous Employment at Jacinth-Ambrosia

Female 20% representation Reduction in Serious Potential Incidents 33% 43% (2020: 61, 2019: 76) Exec. Mgt. Board

5 Mineral Sands and Rare Earths – Critical Minerals, Part of Everyday Life

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Disciplined Performance in 2020

Group EBITDA

Reported NPAT

Includes profit of Deterra Royalties demerger

Underlying NPAT

Mineral sands business has consistently delivered solid margins

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Mineral sands
EBITDA margin (%)
50%
40%
30%
20%
10%
0%
2016 2017 2018 2019 2020
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Net Cash

As at 31 December 2020

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7

Zircon Market Update

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Quick return of Chinese tile manufacturers shortly after Chinese New Year and recovery in other markets contributed to a strong start to 2021

• Iluka’s Q1 zircon sales strong in seasonally weaker quarter

• China domestic tile demand solid with increased construction activity

• European tile exports growth servicing increased demand in many markets fuelled by renovation activity and supply-side gaps created by Chinese trade restrictions

• Other end use markets remain robust

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Iluka Annual Zircon Production
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Iluka’s zircon production broadly stable ~300ktpa. Production managed in 2020 in line with market conditions.

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Zircon (kt)
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400
300
200
100
0
2013 2014 2015 2016 2017 2018 2019 2020 2021
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Average 314kt
2021
production
outlook 285kt
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Global Zircon Production

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2019 2020
Iluka Iluka
26% 15%
1.2mt [1] 1.0mt [1]
Iluka reduced
production in 2020
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1. Source: TZMI Feb 2021

Supply Fundamentals

Limited new supply due to declining grade of existing major operations, few new projects with meaningful supply and technical and geopolitical challenges for new projects.

Iluka Zircon (premium and standard) net realised FOB price

US$/t

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US$70/t price
increase announced
from April 2021
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1600
1200
800
Q1 2018 Q1 2019 Q1 2020 Q1 2021
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8

Global Zircon Use

INDIA

EUROPE

REST OF ASIA

CHINA

AMERICAS

PACIFIC

US has diversified end Italy and Spain are major Small but rapidly growing Highly diverse market - uses in industrial ceramic producers ceramics market major tile producer, machinery and Spain also global hub for Foundry and refractory industrial uses of Malaysia large tile advanced ceramic frits, pigment and end use in car refractories and foundries producers manufacturing including for steel and glazes manufacturing and glass production, diverse Japan demand from Brazil and Mexico are industrial applications Refractory demand from specialty applications industrial applications major tile manufacturing and industrial manufacturers sectors in Germany and France 99kt 191kt 70kt 530kt 88kt Ceramics Refractory Foundry Zirconia & Zr Chemicals Other

Vietnam, Indonesia and Malaysia large tile producers

Japan demand from industrial applications

GLOBAL DEMAND FUNDAMENTALS

• Urbanisation and growing middle class in Asian economies with preference for tiled flooring

• Increasing array of advanced technological applications

• Ceramics innovation expanding applications and zircon loading

• Growth linked to GDP per capita

Chart data: 2020 zircon demand (kt), source TZMI Feb 2021

9

High Grade Titanium Feedstock Market Update

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Titanium pigment accounts for around 90% of end use demand and, commencing H2 2020, this market has rebounded strongly

• DIY market has remained strong throughout H2 2020 and in early 2021; traditional peak northern hemisphere painting period still ahead Q2 to Q3

• Pigment producers have announced price increases

• Pigment plant utilisation rates have returned to prepandemic levels and inventory levels are below seasonal norms

• Iluka supplies natural rutile to the welding market where very strong demand is outstripping supply

• High grade feedstock supply is tight with limited new projects in the short to medium term

Iluka Quarterly High Grade Titanium Sales

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kt
150
100
50
0
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21
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Global High Grade Feedstock Production

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2020
Iluka
13%
2.7mt [1]
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1. Source: TZMI Feb 2021: includes chloride slag, rutile, synthetic rutile, UGS

2021 High Grade Feedstock Contracts

Iluka has 295kt of high grade feedstock subject to take or pay contracts in 2021.

Pricing varies between contracts and typically lags broader market movements by approximately six months.

High Grade Feedstock Advantage

High grade feedstock increase pigment plant utilisation rates and have natural advantage over lower grade feedstocks.

Inputs required and waste produced per tonne of titanium pigment for various feedstocks

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30% less 7x less 6x less
ore than chlorine waste Ilmenite
ilmenite
Chloride Slag
Synthetic
Rutile
Natural
Rutile
Ore Feedstock Chlorine Waste
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10

Operational Flexibility

Iluka has a portfolio of operations weighted towards premium zircon and high-grade titanium products. Operational configuration is geared to: optimise production in response to market conditions; minimise costs and improve cash flow; and maintain flexibility in line with market conditions

2020 adjusted settings

Flexibility in early 2021

• Narngulu plant reduced zircon production in line with market conditions

• Mine move from Ambrosia to Jacinth at lower unit cost, improving cash flow and delaying further capital spend

• Synthetic rutile kiln idled for two months in early 2021 to reduce inventory levels

• Narngulu plant returned to full operations

• Eneabba commenced production of monazite-zircon concentrate

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Cataby / South West

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Large chloride ilmenite rich mine, commissioned in 2019. Ilmenite feeds synthetic rutile kiln with material zircon and rutile production.

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Jacinth-Ambrosia / Mid West

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Jacinth-Ambrosia is one of the world’s largest zircon mines, discovered and developed by Iluka and operating since 2009. Narngulu mineral separation plant processes Jacinth-Ambrosia and Cataby nonmagnetic products.

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Eneabba
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Processing and sale of monazite concentrate from a strategic stockpile. Operations began April 2020 and is now world’s highest grade monazite operation. Feasibility study for fully integrated rare earths refinery underway.

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Sierra Leone

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World’s largest rutile mine, operating since 1960s. Acquired by Iluka in 2016. Sembehun deposit provides potential future production option.

11

Rare Earths Diversification

Iluka is developing an emerging position in rare earth elements, based on world class assets at Eneabba, Western Australia and Wimmera, Victoria

The company has a long history of mining, processing and value addition - rare earths are a logical diversification

Highlights of Iluka’s approach

• Phased development to reduce risk and gain market understanding

• Feasibility study for a fully integrated rare earths refinery underway

• Early engagement with range of external stakeholders

• Support from Australian Government[1]

• ASX release Eneabba Rare Earths Refinery - Letter from Australian Government, 11 May 2021

12

Rare Earths Diversification

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Eneabba Phase One Eneabba Phase Two Potential further development
Operational Under construction Feasibility study
Eneabba, Western Australia
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13

Rare Earth Markets Overview

What are rare earth elements?

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Sc La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y
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Light Rare Earths

Heavy Rare Earths

• 17 elements that are critical enablers of modern technologies

• Relatively common in nature but often in low concentrations, making extraction and processing uneconomic

What are rare earth elements used for?

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Electric vehicle motors

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Consumer electronics and appliances

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Automotive parts and sensors

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Wind power generation

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Industrial electronics

By Volume

2019 Global Rare Earth Use

By Value

What are rare earth elements

worth?

Elements used in permanent magnets are the most valuable and have the strongest growth prospects from electric vehicle and renewable energy technologies

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Permanent magnets
91%
Permanent magnets
Key REO inputs
38%
Nd Pr
Catalysts
grow further
Battery Alloys
Ceramics, pigments, glazes Dy Tb
Glass
Metals, alloys Source: Adamas
Other Intelligence
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Permanent magnets
91%
Permanent magnets
Key REO inputs
38%
Nd Pr
Catalysts
grow further
Battery Alloys
Ceramics, pigments, glazes Dy Tb
Glass
Metals, alloys Source: Adamas
Other Intelligence
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By value permanent magnets over 90% of REO consumption and this forecast to grow further

Source: Adamas Intelligence

14

Eneabba Deposit Assemblage

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Eneabba Phase 1
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Eneabba is the highest grade operational rare earths deposit (stockpile) globally with high assemblage of valuable neodymium and praseodymium.

Eneabba Rare Earth Oxide Elements and Value

	Eneabba Rare Earth Oxide Elements and Value
	% of Rare Earth Oxide Assemblage1 Rare Earth Oxide Price2 (May 2021US$/kg)		Lanthanum % of Rare Earth Oxide Value
Lightrare earths metal used in permanent magnets (electric vehicle motors, wind turbines) and advanced metal alloys, glass polishing and catalyst markets.	Lanthanum 22 2 Cerium 45 2 Praseodymium 5 82 Neodymium 17 88 Samarium 3 2 Europium <1 31 Gadolinium 2 54 Terbium <1 1,351 Dysprosium <1 445 Holmium <1 n/a Erbium <1 n/a Thulium <1 n/a Ytterbium <1 n/a Lutetium <1 n/a Yttrium 4 6		Cerium
			Praseodymium
			Neodymium
Heavyrare earths and Yttrium, are also used in magnets and are critical to defence applications. Non-lanthanide
			Gadolinium
			Terbium
			Dysprosium
	Total 100

Valuable neodymium and praseodymium account for ~70% of monazite value

High contribution from valuable ‘heavy’ rare earths

Source: Iluka and Argus

1. The estimated Ore Reserve for the Eneabba Rare Earth Stockpile is 0.96mt containing 17.1% monazite + xenotime (rare earth bearing minerals). The rare earth oxide assemblage is the rare earth assemblage of the monazite plus xenotime expressed as a percentage distribution of rare earth metals as oxides (REO). 2. Historical prices shown as a guide only and not an indicator of potential future prices.

15

Rare Earth Market Outlook

Support for rare earth demand and prices from electrification of transport and renewable energy technologies

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Forecast Passenger EVs Forecast Wind Power Forecast NdPr Oxide Market
Installation Balance
kt
10
Forecast additional 2030 market
million GW ~36 GW installed 5 deficit of ~16kt
40 turbines capacity, NdPr Oxide
100
requiring ~6kt NdPr
0
30
80 -5
20
-10
60
10 -15
0 40 -20
2020 2030 2020 2030 2020 2030
Source: Adamas Intelligence Source: Adamas Intelligence
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Source: Adamas Intelligence

Passenger EVs rising from 6% of sales to 40% by 2030. Additional ~30.5 million new EVs requiring ~30kt NdPr (~50% of 2020 global demand)

NdPr key inputs to permanent magnets, supporting strong demand growth leading to forecast market deficit

Strong end market demand growth including from EVs, wind turbines

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Monthly Monazite Price (60% TREO) vs Eneabba Annual Eneabba REO Price
REO Price Outlook
US$/t US$/t
7,000 April 2021 35,000
Monazite price
US$6,038/t
Monazite (60% TREO) (LHS)
6,000 30,000
Eneabba REO Basket (RHS)
Forecast
sustained price
5,000 25,000
growth in REOs
4,000 20,000
3,000 15,000
2,000 10,000
Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 2021 2025 2029
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Source: 2015-2020 Ferro Alloy Net, Argus Media; 2021-2030 average of forecasts from Adamas Intelligence, Argus Media, Bank of America

Monazite price and basket price of Eneabba material (~70% NdPr) move in tandem…recent gains in NdPr prices forecast to be sustained, supported by strong growth in demand

Eneabba Production and Financial Parameters

16

	Phase 11	Phase 21
Capex	<$10 million	~$35 million
Average annual production cash costs	~$4 million	$35-40 million
Payback period	~6 months	<1 year
Average annual production	~50ktpa 20% monazite-zircon concentrate	16-20ktpa 90% monazite concentrate 7-9ktpa zircon, ~20ktpa ilmenite, ~1ktpa HYTI90
First production	April 2020	H1 2022
Project life	2 years before transitioning to Phase 22	~10 years2
Pricing	Fixed price offtake contract for 50ktpa for 2 years Price received reflects contained monazite, less processing cost and margin for processor. Zircon component sold by Iluka	Under negotiation with customers

1. All values approximate. Production figures stated as estimated recovered mineral in the concentrate. Payback period based on externally sourced long term monazite price forecast and internal mineral sands prices

2. Based on Ore Reserve and production rates given. ASX release “Eneabba Mineral Sands Recovery Project Ore Reserve Estimate” 18 Feb 2020, available at www.iluka.com Iluka confirms that it is not aware of any new information or data that materially affects the information in the original market announcement and that all the material assumptions and technical parameters underpinning the Ore Reserve estimate have not materially changed.

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Port of Geraldton, Western Australia
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Project Pipeline

17

• The company develops and progressively gates projects towards execution subject to: i. improving confidence and satisfaction with the risk-return attributes; ii. continued strategic alignment; and iii. sequencing to take advantage of economic and market outlook.

Region	Mineral Resource1	ASSESS Scoping Study	SELECT Preliminary Feasibility Study	DEVELOP Definitive Feasibility Study	EXECUTE Project execution	PRODUCING Operate and maximise
Eucla Basin	345Mt @ 4.8% HM for 16.6Mt In Situ HM		Atacama			Jacinth- Ambrosia
Murray Basin	195Mt @ 17.2% HM for 33.4Mt In Situ HM		Wimmera Balranald
Mid West / South West WA	986Mt @ 5.6% HM for 54.9Mt In Situ HM	South Depo	West sits Enea (Phas	SR1 Kiln Restart bba e 3)	Eneabba (Phase 2)	Eneabba (Phase 1) Cataby
Sierra Leone	715Mt @ 1.1% Rutile for 7.9Mt In Situ Rutile		Sembehun			Gangama Lanti
Stage description:		Determine what it could be	Determine what it should be	Determine what it will be	Deliver the project	Grow and improve
Estimate Accuracy Range (at end of phase):		-30% to +60%	-15% to +30%	-10% to +15%	n/a	n/a

1. Refer to the 2020 Annual Report for additional information. The Mineral Resource (MR) information on this indicative growth pipeline summary is extracted from the company’s previously published MR statements and are available at: www.iluka.com.au . Iluka confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement 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 announcement. All Mineral Resource figures are estimates. This slide should be read in conjunction with disclaimers and compliance statement on slide 2.

18

Project Pipeline

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Sembehun, Sierra Leone

Wimmera, Victoria

Eneabba, Western Australia

Balranald, New South Wales

The Eneabba project involves the extraction, processing and sale of a strategic stockpile rich in monazite (a mineral containing rare earth elements) and zircon.

Eneabba Phase 1 delivered and operating. Phase 2 in execute and due for completion H1 2022. Feasibility study for fully integrated rare earths refinery underway – key elements to be completed by late 2021.

Balranald and Nepean are two rutilerich deposits. Owing to their depth, Iluka is progressing a novel, internally developed, underground mining and backfilling technology.

Third technology trial completed and confirmed effectiveness of the underground mining method. Work has commenced to scope the Definitive Feasibility Study (DFS).

Wimmera is a large-scale deposit with the potential to produce ceramicgrade zircon and rare earth products.

Project work is focussed on finding a processing solution to remove impurities from the zircon in the deposit. Iluka is sufficiently encouraged with results of its test work and is now refining its flow sheet to focus on value and efficiency.

If this technology proves successful it is likely applicable to other types of challenging zircon beyond Wimmera / Western Victoria (including, for example, in converting Iluka’s stocks of chemical zircon to premium grade).

The Sembehun group of deposits are situated 20 to 30 km north-west of the existing Sierra Rutile operations. Sembehun is one of the largest and highest quality known rutile deposits in the world.

A hydraulic mining trial underway. The results of this will help to determine the development pathway for the deposit.

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19

Deterra Royalties Holding

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Iluka holds a 20% stake in Deterra Royalties (ASX:DRR), the largest ASX-listed resource focused royalty company. Deterra Royalties was created from the demerger of Iluka’s royalty business in October 2020.

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Mining Area C sales volumes and royalty

Highlights of Iluka’s Deterra Royalty holding

Mdmt, A$ 160 140 120 100 2020 royalty 80 payments A$95m 60 40 2020 iron ore sales from Mining Area C 20 54 mdmt 0 2020 South Flank 2023 ramp up

World class royalty:

• Deterra Royalties holds royalty over BHP’s Mining Area C iron ore mine in Western Australia

• Sales from Mining Area C were 54mdmt in 2020 with royalty revenue of A$95m (100% contribution)

Mining Area C production post South Flank ramp up ~140 mdmt

Organic growth:

• Production from Mining Area C is set to more than double with commencement of South Flank project (royalty payments will be dependent on iron ore prices)

• South Flank commissioning activity on track to commence June quarter 2021[1]

Dividend policy:

• Deterra Royalties dividend policy is ‘Intent to pay out 100% of NPAT, franked to the maximum extent possible’

Deterra Royalties cornerstone asset – Mining Area C royalty

Cash flow to Iluka:

Mining Area C is an iron ore mine operated by BHP in Western Australia. The royalty terms are:

• Iluka receives dividends based on its 20% stake, boosting free cash flow

• one-off $1 million per 1 million tonne increase in annual production

• ongoing 1.232% of revenue from MAC Royalty Area

• BHP Operational Review March 2021

For more information contact Luke Woodgate, Group Manager Investor Relations and Corporate Affairs Investor.relations@iluka.com

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