> Disclaimer Forward-Looking Information This document may - - PowerPoint PPT Presentation

>

COMPANY PRESENTATION

February 2013

> Disclaimer

Forward-Looking Information This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Sierra Rutile Limited (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining

• perations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain

cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and

• ther factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results,

performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual reports. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or

• intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements.

Working for a better Sierra Leone

>

Investment Highlights

> Investment Highlights

> One of the largest primary rutile mines, which has achieved transformational operating improvements

– World’s largest primary rutile asset with a JORC-compliant resource in excess of 600 million tonnes at 1.3% rutile – Capital investment initiated in 2010 continues to yield significant operating improvements – H2 2012 rutile production run-rate of over 103,000 tonnes per year, up from 54,000 tonnes in H1 2011

> Lanti Dry Mining project in the final stages of commissioning, providing a step-change in production

– Delivered on budget and ahead of schedule – Forecast production of 30,000-35,000 tonnes per annum at a highly-competitive operating cost

> Gangama Dry Mining project will deliver continued production growth and unprecedented financial returns

– Gangama Dry Mining project, which will treat 1,000tph of ore, is a scaled-up (2x) version of the Lanti Dry Mining project – Scheduled to start production in 2014 – Targets high-grade resources, resulting in production of over 83,000 tonnes of rutile per annum – Pre-tax IRR of 228% and NPV10 of US$507 million

> Substantial cash flow being generated

– Significant revenue growth resulting from a substantial production increase – Declining per tonne operating costs resulting from realized economies of scale and a continual focus on cost efficiency

> Strong project pipeline provides additional long-term value

– Both the Sembehun Dredge project and Mogbwemo Tailings project provide low-cost, long-life development opportunities

Working for a better Sierra Leone 1

>

Established Operation, Exceptional Growth

>

Gunson Resources 0.74mt White Mountain Titanium 3.46mt Sierra Rutile 7.80mt Kenmare Resource 5.16mt Mineral Deposits 0.44mt Base Resources Ltd 0.95mt Iluka Resources 9.14mt World Titanium Resources 1.35mt Astron Limited 3.60mt 5 10 15 20 25 30 35 20 40 60 80 100 120 140

Rutile Production Growth 2013-2015 (kt) Bubble Size: In-Situ Rutile Resources

A Unique World-Class Deposit

Working for a better Sierra Leone

> The largest primary rutile asset in the world – JORC Mineral Resource in excess of 600 million tonnes rutile at 1.3% rutile > Exceptional, high value assemblage – 76% of payable heavy mineral1 is rutile – 22% of payable heavy mineral1 is zircon

Source: Company announcements, IBMA, Credit Suisse, Sierra Rutile estimates

• 1. Pricing assumptions based on broker LT prices: Zircon 1,515 US$/t, Ilmenite: 180 US$/t, Rutile 1,200 US$/t

Construction stage Existing Producer

Well positioned to take advantage of the positive market fundamentals for rutile

Assemblage Value1 (US$/t)

Planning stage

3

> Established Infrastructure and Skilled Workforce

Working for a better Sierra Leone

> Significant infrastructure already in place – Mineral separation plant expandable to >200,000 tonnes of rutile per annum – Established export port and shipping fleet with capacity to ship >200,000 tonnes per annum of rutile – A modern MFO (Marine Fuel Oil) power plant capable of producing 23MW of power (current utilisation under 9MW) – Over 80km of established haulage roads – Modern engineering and camp facilities in place > Skilled and experienced workforce – Experienced management team – +30 years of experience operating in Sierra Leone and with these deposits – >95% of workforce are Sierra Leonean nationals – Highly educated employees – Significant recruitment from premier universities of Sierra Leone, Fourah and Njala

Nitti Port Lanti Dredge operations

Substantial infrastructure and experienced workforce provide a strong foundation for growth

4

>

40,000 50,000 60,000 70,000 80,000 90,000 100,000 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Trailing 12 months production (rutile tonnes)

Significant Improvement in Existing Operations

Working for a better Sierra Leone

> Lanti Dredge and process plants upgraded – Following a capital investment programme initiated in October 2010, operational improvements have driven significant production increases – Record six-month production of 51,833 tonnes of rutile in H2 2012 – 91% growth in run-rate production relative to H1 2011 – Substantial improvements in process recoveries have contributed to increased production and enhanced

• perating margins

Rutile Production Performance

Lanti Dredge operations

Source: Sierra Rutile

5

Process Recovery Improvements

80% 90% 100% 110% 120% 130% 140% Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Indexed Process Recovery (Feb 2011 = 100%)

> Lanti Dry Mining: A Step Change in Production

Working for a better Sierra Leone

The Lanti Dry Mining project has been delivered on budget and ahead of time

Project Commissioning

Dry mining operation

> The Project – Targets high-grade resources, inaccessible to dredge mining, totalling 28.1 million tonnes at 1.5% rutile – Adds production of 30,000 to 35,000 tonnes per annum of rutile as well as ilmenite and zircon by-products > Project Update – Ore processing plant is in the final stages of commissioning,

• n budget and ahead of time

– Supervisors and operators are onsite and fully trained – Heavy mineral concentrate is currently being produced

6

The Minister of Mines and Mineral Resources, opening the Lanti Dry Mining project, January 2013 Lanti Dry Mining process plant in operation

>

Gangama Dry Mining PFS: Key Project Highlights Average annual production rate (ore mined)

7.0 million tpa

Average annual production rate (rutile produced)

83,400 tpa

Project life

6 years

Up-front capital expenditure

$103 million

Construction period

12 months

Pre-tax NPV10

$507 million

Pre-tax IRR

228%

Gangama Dry Mining: Adds Unparalleled Value

Working for a better Sierra Leone

Gangama Dry Mine provides unparalleled value by accessing a high-grade resource while minimising development time and capital cost

> The Project – The Gangama Dry Mining project is operationally identical to the Lanti Dry Mining project – The 1,000tph project consisting of 2x500 tonne per hour units – Power, water and road access is already in place – Internal pre-feasibility study has been completed, incorporating known costs, timelines and project learnings from the Lanti Dry Mining project

Source: Sierra Rutile

Gangama deposit with resource outline

Process water Pond Dams Existing roads Deposit outline

7

> Gangama Dry Mining: Near-Term Milestones

Working for a better Sierra Leone

Detailed engineering and site preparation work has commenced

> Project Update – Detailed engineering work has commenced with Consulmet – Pre-construction activities have begun, including: – Dam construction for process water storage – Draining of the Gangama dredge pond – Upgrading of access roads

Gangama Dry Mining site – after draining Draining the Gangama dredge pond Gangama Dry Mining site – before draining

8

>

50 100 150 200 250 2011 2012 2013F 2014F 2015F Rutile Production ('000 tonnes) Lanti Dredge Lanti Dry Mining Gangama Dry Mining Other

Strong Production Growth

Working for a better Sierra Leone

Significant near-term production growth with further production upside

> Significant production growth – 33% CAGR in rutile production between 2011 and 2015 – Significant installed infrastructure minimises project implementation risk and contributes to a low capital intensity > Low-cost production growth – Every incremental tonne produced decreases cash cost per tonne by leveraging fixed cost base > Significant growth optionality beyond 200,000 tonnes – Substantial growth optionality remains – Sembehun Dredge project – Mogbwemo Tailings project – Additional dry mining targets

Source: Sierra Rutile

9

> Sembehun Dredge: Long-Term Upside Value

Working for a better Sierra Leone

> The Project – An independent scoping study, completed by Snowden Mining Industry Consultants, has identified significant value in an independent dredge mining operation at Sembehun – 274 million tonnes at 1.34% rutile in Sembehun provides the

• pportunity to develop a new project that delivers long-

term returns – Baseline pre-tax NPV of US$347 million with opportunity for further value enhancements > Project Update – An exploration programme was commenced in October 2012 to support detailed mine planning

Deposit Mining Pond Mining Lease Boundary Proposed Dam Final Product Haul Road Existing Road HMC Hauling Road

Source: Snowden Mining Industry Consultants study

Sembehun Dredge study: Key Project Highlights Baseline Pre-tax NPV10 $347 million Baseline Pre-tax IRR 34% Average production rate (ore mined) 13 million tpa Average rutile production rate first 5 years / LOM 135,000 tpa / 113,000 tpa Up-front capital expenditure $305 million Operating cost $322/t HM produced Construction period 24 months Project life 22 years 10

Well-defined project that delivers strong financial returns for over 22 years

>

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2009 2010 2011 2012E 2013E 2014E 2015E $0 $50 $100 $150 $200 $250 $300 $350 $400 Cash Costs (US$ / Tonne) (Including By-Product Credit) Revenue (US$ Millions) Revenue Cash Cost Per Tonne

Significant Free Cash Flow Generation

Working for a better Sierra Leone

Source: Sierra Rutile and broker consensus Note: 2012E cash cost is H1 2012 cash cost; 2012E to 2015E revenue estimates based on broker consensus price forecast

Strong free cash flow generation due to growth in production and declining operating costs

> Dramatic growth in free cash flow generation in the near-term – Revenue growth driven by successful execution of development projects – Declining operating costs driven by: –A continual focus on cost efficiency –Realisation of economies of scale through the leveraging of a fixed- cost base across increasing production volumes

11

>

Partnership with Sierra Leone

> Sierra Leone – An Investment Friendly Destination

Working for a better Sierra Leone “We know that countries are more likely to prosper when they encourage entrepreneurship; when they invest in their infrastructure; and when they expand trade and welcome investment. So we will partner with countries like Sierra Leone to create business environments that attract investment, not scare it away.”

US President Barack Obama, Speech to the United Nations General Assembly, September 2010

Over 40 years, Sierra Rutile has forged strong relationships with the people and Government of Sierra Leone

> Investment friendly jurisdiction – Sierra Leone is a stable and investor-friendly country – Sierra Leone has a pro-mining investment climate attracting African Minerals’ US$1.8 billion iron ore project and London Mining’s +US$1.0 billion iron ore project – Sierra Leone is a key part of Tony Blair’s African Governance Initiative which is working to develop the capacity of the Government to set and deliver on its priorities > Strong relationship with Sierra Leone – The Company has a positive and long-standing relationship with the Government – Mining leases date back to the 1970s and are valid through 2038 with the option to extend for a further 15 years – In March 2011, a special repayment of US$18.3m was made on the loan to Government of Sierra Leone. The monies repaid on this loan are used to fund local development projects such as roads and

• infrastructure. US$29.6m (€23.75m) is outstanding on the loan, which

will be repaid in accordance with its terms over the next 4 years – In April 2012, Sierra Rutile purchased the Governments 7.1% effective interest in the local subsidiary and pre-paid two years of PAYE tax for US$17m

13

> Sierra Rutile and the Community

Working for a better Sierra Leone

Aquaculture Sustenance Programme

Sierra Rutile is a powerful force for development in the local community

20 40 60 80 100 120 140 160 2008 2009 2010 2011 2012 Fish introduced ('000s)

Ruby Rose Centre

Source: Sierra Rutile

> Considerable contribution to national and local economy – Sierra Rutile makes up a significant proportion of Sierra Leonean GDP and exports – The company is one of the largest private sector employers in Sierra Leone – Where possible, the company is committed to local procurement, spending over US$30m annually on in-country procurement and wages – Long standing and positive relations with local Mine Workers Union > Contributions to the local community – Over US$1m invested annually in the local community – The Company’s medical facility treats over 20,000 people a year with free HIV testing, education and mosquito nets for malaria prevention – Local technical college, sponsored by Sierra Rutile, provides education to over 300 students – Through the Sierra Rutile Foundation, the Company funds local projects such as schools, wells, grain stores, latrines, courts, bridges, clinics, a local radio station and more – Fish farms located in old mining ponds provide local villagers with work and a reliable source of food

14

> A Responsible Steward

Working for a better Sierra Leone

>Ongoing Land Rehabilitation Programme

Tree Planting

> Environmental management – Sierra Rutile is committed to rectifying the legacy disturbance of historical owners and to the continual rehabilitation of mined-out areas – In 2011, a full survey of disturbed land was conducted and a plan has been developed and is being implemented to rehabilitate all legacy disturbed areas over six years – Strong, positive relationships with the Sierra Leone Environmental Protection Agency and Ministries of Fisheries and Agriculture – Agricultural project, initiated in 2010, aims to provide significant sustainable employment for the local people

15

>

Corporate

> Senior Management

Working for a better Sierra Leone

John Bonoh Sisay Chief Executive Officer

> Considerable experience in African mining sector, having worked in 10 African countries > Formerly with De Beers and America Mineral Fields (now First Quantum) > President of Chamber of Mines, Sierra Leone > Sierra Leone national

Yves Ilunga Chief Financial Officer

> Previously, VP – Transformation for AngloGold Ashanti Ghana > Held various financial management roles across Africa for AngloGold Ashanti and DeBeers

Andrew Taylor Head of Operations

> 20 years of mining and processing expertise > Significant experience of operating in Africa with De Beers and Anglo American > Managed the construction and commissioning of the Voorspoed Mine in South Africa from 2005 to 2010

Derek Folmer1 Chief Marketing Officer

> Previously, General Manager – Rutile & Zircon, for Rio Tinto, responsible for global sales of rutile and zircon > Strong track record of developing and implementing global marketing strategies in North America, Europe and Asia, particularly in China

Desmond Williams Operation Manager

> Previously with SNC Lavalin and Worley Parsons in Canada > Worked at Sierra Rutile between 1988 and 1998 > Sierra Leone national

1 Starts 15 April 2013

Working for a better Sierra Leone 17

> Board of Directors

Working for a better Sierra Leone

Jan Castro Non-Executive Chairman

> Chief Executive of Pala Investments, an investment company focused on the mining sector, and SRL’s majority shareholder > Significant strategic advisory, management and investment experience > Chairman of Asian Mineral Resources [TSX-V: ASN] and serves on the boards of Alacer Gold [TSX: ASR / ASX: AQG] and Nevada Copper [TSX: NCU]

John Bonoh Sisay Chief Executive Officer

> Considerable experience in African mining sector, having worked in 10 African countries > Formerly with De Beers and America Mineral Fields (now First Quantum) > Sierra Leone national

Michael Barton Non-Executive

> Managing Director at Pala Investments > Significant strategy and transaction advisory experience > Serves on the boards of Peninsula Energy [ASX: PEN], Elemental Minerals [TSX: ELM / ASX: ELM] and WDS Ltd [ASX: WDS]

Michael Brown Non-Executive

> Former Chief Operating Officer of De Beers. Led restructuring of De Beers during GFC > Deep industry expertise in strategy, operations, construction > Senior Vice President at Pala Investments > Serves on the board of Asian Mineral Resources [TSX-V: ASN]

Charles Entrekin Non-Executive

> 35 years of experience in the mining sector > Former President of Titanium Metals Corporation [NYSE: TIE], brings significant industry specialism > Turnaround expertise > Serves on the board of Melior Resources [TSX-V: MLR]

Alex Kamara Non-Executive

> Head of Engineering at Sierra Rutile from 1982-1995 > Chairman of Standard Chartered, Sierra Leone > Sierra Leone national

Richard Lister Non-Executive

> 40 years of experience in the industrial minerals and mining sectors > Significant commodity marketing experience > Former Chief Executive of Zemex Corporation, Vice-Chairman of Dundee Bancorp and Chief Executive of Campbell Resources > Serves on the board of Labrador Iron Mines Holdings [TSX: LIM] Working for a better Sierra Leone 18

>

Other 4% Investec Asset Management Limited 5% Neon Liberty Capital 7% JPMorgan Asset Management Limited 9% M&G 20% Pala Investments 55%

Corporate Overview

Working for a better Sierra Leone

> Major Shareholders

Capital Structure > Listing: LSE AIM: SRX > Issued shares: 513.2 m > Options: 23.1 m > Share Price1: 70p > Market cap2: US$567m > Cash3: US$24.6 m > Gross Debt2: US$32.1m Analyst Coverage > Goldman Sachs > Mirabaud Securities > RBC Capital Markets > RFC Ambrian

Source: Bloomberg, Statutory Filings

1 29 January 2013 2 1.577 US$/GBP; 1.355 US$/EUR 3 9 January 2013

19

Contact Details

John Sisay Chief Executive Officer

Working for a better Sierra Leone

Email: jsisay@sierra-rutile.com

Sierra Rutile Limited 30 Siaka Stevens Street 2nd Floor, Access Bank Building Freetown Sierra Leone Website: http://www.sierra-rutile.com/

>

Appendix

Market Fundamentals

> TiO2 Overview

> Titanium dioxide (TiO2) pigment is a fine white powder used in paints, plastics and paper products - which imparts whiteness, brightness and opacity on the products > Titanium dioxide pigments are produced from titanium

• feedstocks. The principle feedstock products are:

> High-grade: – Natural rutile (95-96% TiO2) – Synthetic rutile (90-93% TiO2) – Titanium slag (75-85% TiO2) Low-grade: – Ilmenite (30-63% TiO2) – Leucoxene (<90% TiO2) > Titanium pigments are produced using the chloride process (55%) or the sulphate process (45%) > The chloride process requires higher-grade feedstocks (>90% TiO2) and is is favoured for its more efficient, cleaner and lower-cost process > The sulphate process can utilise lower grade (usually ilmenite) feedstocks > 90% of titanium feedstocks are used for the manufacture of TiO2 pigment

Working for a better Sierra Leone

90% 4% 6% Pigments (paint) Titanium sponge Other (welding)

Overall TiO2 market: 6.8 million tonnes

Source: Credit Suisse

• 1.0

2.0 3.0 4.0 Chloride Process Sulphate Process TiO2 units (m) Rutile Synthetic Rutile Titanium Slag Ilmenite

Titanium Feedstock Consumption in Pigment Process Overall TiO2 End Markets

Source: Credit Suisse

22

> Late-Cycle Demand Driven by China and Urbanisation

Working for a better Sierra Leone 23

Demand growth anticipated from economic recovery and changing demographic trends

> TiO2 demand grows exponentially, late in the economic cycle – Demand growth anticipated to increase significantly as both developed and emerging economies strengthen > China is anticipated to require significantly more TiO2 – Population forecasted to peak at 1.4 billion in 2025 with middle-class growing to 70% by 2020 > Urbanisation in Asia, Latin America, and India will further impact TiO2 demand > US housing recovery presents near-term upside

Pigment Consumption vs. GDP Per Capita

Source: Rio Tinto

Late-Cycle Demand Growth

Saturation Level (%) Note: Saturation level is the point at which consumption per capita does not increase with income levels Source: Rio Tinto

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 10,000 20,000 30,000 40,000 50,000 Pigment Apparent Consumption (kg) GDP Per Capita (PPP Basis 2005$)

China (annual) Japan (Average) South Korea (Average) Western Europe (Average) USA (Average) Indicative S-Curve

Working for a better Sierra Leone 23

>

China Moving to High-grade Feedstocks

Working for a better Sierra Leone 24

China’s Move to Chloride Technology

> China’s 12th Five Year Plan stipulates the move to chloride-based production, which requires significantly increased rutile volumes > Some Chinese companies have now obtained the technology to produce pigment via the chloride process, increasing demand for high-grade feedstocks including rutile > China’s first chloride pigment producer will come online in 2013 with substantial growth forecast thereafter; plants are to be commissioned using 100% rutile

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2013 2014 2015 2016 2017 2018 Pigment (kt)

Source: Company Estimates

Forecast Chloride Pigment Production Ramp Up in China

High Grade - China High Grade - China High Grade - RoW High Grade - RoW Low Grade - China Low Grade - China Low Grade - Row 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2000 - 2010 2010 - 2020

CAGR = 3.3% CAGR = 4.1%

TiO2 Feedstock Demand Growth

Source: RioTinto

Working for a better Sierra Leone 24

> Limited Ability for a Supply Response

Working for a better Sierra Leone 25

> Limited supply response – Greenfield supply response is muted by long project development times and financing requirements > Limited near-term expansion potential – Sierra Rutile is one of few producing assets capable of significant, near-term expansion potential > Significant challenges facing other projects – Various development constraints are being experienced by mineral sands companies globally – Likely to further prolong strong supply side fundamentals

Natural Rutile Supply/Demand Forecast Natural Rutile Supply Additions

200 400 600 800 1,000 1,200 1999 2004 2009 2014 2019 TiO2 Units of Rutile ('000 Tonnes) Current Supply SRL Base Resources Other White Mountain Demand

Source: TZMI, Company Estimates

Project Company Country Existing Production ktpa Expansion production ktpa Potential Production ktpa Total Production ktpa Earliest Possible Production Status Sierra Rutile Sierra Rutile Sierra Leone 125 80

• 205
• Construction

Kenmare Resources Moma expansion Mozambique 6 10 10 26

• Construction

Mineral Deposits Grande Côte Senegal 10 10 2013 Construction Base Resources Ltd* Kwale Kenya 73 73 2013 Construction Gunson Resources Coburn Zircon WA 10 10 2013 Feasibility Trimex* Trimex Group India 8 8 2013 Feasibility Tronox Fairbreeze S.Africa 120 25 145 2014 Construction White Mountain Cerro Blanco Chile 95 95 2015 Feasibility Astron* Astron Ltd Australia 60 60 2015 Feasibility Diatreme & Image Resources Cyclone Australia 6 6 2015 Investigation Total Potential Production 206 246 201 653

Source: Sierra Rutile, * IBMA, Credit Suisse

Working for a better Sierra Leone 25