SRL Presentation RUIDOW16 FINAL-submitted 16 May 2016 · Bme in the Company's interim and annual reports. These risks, uncertainBes, assumpBons and other factors could adversely aﬀect

1761360

RUIDOW CONFERENCE

MAY 2016

May2016

1761360 DISCLAIMER

Forward-Looking InformaBon

This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Sierra RuBle Limited (the “Company”) does not intend, and does not assume any obligaBon, to update these forward-looking statements, whether as a result of new informaBon, future events or otherwise, except as required under applicable securiBes legislaBon.

Forward-looking statements relate to future events or future performance and reflect the Company management’s expectaBons or beliefs regarding future events and future performance and include, but are not limited to, statements with respect to the esBmaBon of mineral reserves and resources, the realizaBon of mineral reserve esBmates, the Bming and amount of esBmated future producBon, costs of producBon, capital expenditures, success of mining operaBons, environmental risks, unanBcipated reclamaBon expenses, Btle disputes or claims and limitaBons on insurance coverage. In certain cases, forward-looking statements can be idenBfied by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “esBmates”, “forecasts”, “intends”, “anBcipates” or “does not anBcipate”, or “believes”, or variaBons of such words and phrases or statements that certain acBons, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negaBve of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainBes, assumpBons and other 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 exploraBon acBviBes; changes in project parameters as plans conBnue to be refined; future prices of mineral resources; possible variaBons 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 compleBon of development or construcBon acBviBes; as well as those factors detailed from Bme to Bme in the Company's interim and annual reports. These risks, uncertainBes, assumpBons and other factors could adversely affect the outcome and financial effects of the plans and events described herein.

Although the Company has aèmpted to idenBfy important factors that could cause actual acBons, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause acBons, events or results not to be as anBcipated, esBmated 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 anBcipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.

Other than as set out in this document, the informaBon in this presentaBon has been provided by the Company or obtained from publicly available sources. In providing this presentaBon, the Company does not undertake any obligaBon to provide the recipient with access to any addiBonal informaBon or to update this presentaBon or any addiBonal informaBon or to correct any inaccuracies in any such informaBon which may become apparent.

No reliance may be placed for any purposes whatsoever on the informaBon contained in this document or any other material discussed verbally or on its completeness, accuracy or fairness.

The mineral resource informaBon in this document has been reviewed and approved for release by Mr Mark Buòn, NHDip, MMRM, Pr.Sci.Nat. who has 25 years’ experience in mineral commodiBes, of which 15 years is specific to mineral resource esBmaBon, and is currently an independent contractor providing consulBng services to Sierra RuBle Limited. Mr Buòn has sufficient experience in relaBon to the style of mineralisaBon and type of deposit under consideraBon to qualify as a Competent Person as defined in the 2012 EdiBon of the “Australasian Code for ReporBng of ExploraBon Results, Mineral Resources and Ore Reserves”. Mr Buòn has consented to inclusion of this mineral resource informaBon in the form and context in which it appears. A ‘Mineral Resource’ is a concentraBon or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quanBty that there are reasonable prospects for eventual economic extracBon. The locaBon, quanBty, grade (or quality), conBnuity and other geological characterisBcs of a Mineral Resource are known, esBmated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

Note: All figures unless noted are in U.S. dollars.

May2016 PresentedatRuidow,Nanjing

1761360 CONTENTS

SIERRA RUTILE – THE LEADING GLOBAL RUTILE PRODUCER

ENTERING A NEW ERA

MARKET DRIVEN GROWTH POTENTIAL

CONCLUSION


1761360 THE SIERRA RUTILE STORY

May2016

Historical ProducBon

PresentedatRuidow,Nanjing1Segmenta;onof2015revenuebyregionshipped.2Produc;onCashCostcalculatedastotaldirectcostsofsaleslessdeprecia;on,amor;sa;on,inventorywrite-offs,freightcostsandchangeinvalueoffinishedgoodsinventorydividedbytonnesofru;leproduced.Historicproduc;oncashcostshavebeenrestatedfromprioryears,principallytoreflecttheircalcula;ongrossofby-productcredits,consistentwiththepeergroup(seeslide38).

(2)

Leading ruBle producer(1)

•  Leadingglobalproducer

•  Ru;lefocus

•  Premiumproductforpigment,sponge,andwelding

•  FiQyyearanniversary,

•  FiQyyearminelife

•  Demonstratedabilitytodeliver

•  Financiallywellmanaged

560580600620640660680700720740

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2011 2012 2013 2014 2015

Produc;onCashCost($/tru;le)

Annu

alRu;

lePordu

c;on

(ton

nes)

AnnualRu;leProduc;on Produc;onCashCost

1761360

100

200

300

400

500

600

700

800

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2011 2012 2013 2014 2015 2016

Produc-onCashCost($/tonneru-le)Annu

alRu-

leProdu

c-on

(ton

nes)

Exis;ngProjects(tonnes) 2016EGuidance(tonnes) GangamaatCapacity(tonnes) Produc;onCashCost($/tru;le)

GOING FROM STRENGTH TO STRENGTH

May2016

GangamaDryMineproduc2onraisescapacityinH22016

PresentedatRuidow,Nanjing

CAGR=13%inru-le

produced

CAGR=-3%inunitcashcost

(1)

1Produc;onCashCostcalculatedastotaldirectcostsofsaleslessdeprecia;on,amor;sa;on,inventorywrite-offs,freightcostsandchangeinvalueoffinishedgoodsinventorydividedbytonnesofru;leproduced.Historicproduc;oncashcostshavebeenrestatedfromprioryears,principallytoreflecttheircalcula;ongrossofby-productcredits,consistentwiththepeergroup(seeslide38).Assumingtheimplementa;onoffurthercostsavingini;a;ves,produc;oncashcostisexpectedtobebetween$540/tand$590/t.

1761360 WORKING FOR SIERRA LEONE


Significantcontribu2onmadein2015tothelocalcommunity

2015Highlights>  Constructedaprimaryschoolforthelocalcommunity

>  SignificantongoingsupporttowardsSierraLeone’seffortspreandpostEbola

>  Localtechnicalcollege,sponsoredbySierraRu;le,provideseduca;ontoover300students

>  SierraRu;le’smedicalfacilitytreatedover1,700people

–  Significantdona;onsofequipmenttolocalresearchandeduca;oncentres

2016Trends>  Communityfocuscon;nuesinto2016

>  AfricanLionagriculturepartnershipbetweenSierraRu;leandCarmanortoacceleratethedevelopmentofpalmoil,rubberandcacaoplanta;ons

1761360 SIERRA RUTILE MANAGED SUPPLY CHAIN - POWER PLANT TO PORT

May2016

Wet Mining Unit

Sembehun Dry Mine Project

Gangama Dry Mine

LanB Dry Mine

LanB Dredge

Contract Mining

Landplants

Earthmovingequipment

BucketladderDredge

Wetplant

MineralSepara;onPlant

Dedicatedport

Single Plant

SRL Managed Port

Mining and IniBal Processing

Dry Mining Units


1761360


ENTERING A NEW ERA MARKET DRIVEN GROWTH POTENTIAL

CONCLUSION


1761360 STEADY PROGRESSION WITH DEFINITE MILESTONES


flexibilitytomeetcustomerru;lerequirementsforthenext50+years

Lan-drymineconstructedon-meand

onbudget

MineralSepara-onPlantcapacityincreasedto

200ktpa

GangamaDryMinefinancedand

construc-onstarted

Recordannualproduc-onandcash

costsachieved

GangamaDryMinephaseoneproduc-on

2016

SembehunDryMine2018*

*Marketdrivendecisions

DryMiningexpansions2017*

Achieved

TheFuture

1761360 BENEFITS OF MOVING FROM FOUR TO SIX MINING SOURCES

May2016

Bolt-ondryminingexpansionsprovidethroughputflexibilityandallowsforstagedcapital


Lan;Dredge Lan;DM ContractMining Gangama Sembehun

500tph

500tph500tph

250tph

500tph

250tph

Lan;drymining(ExistsToday)

GangamaPhaseOnedrymining(Commissioning)

Lan-Dredge

Lan-DryMine

Contract

GangamaPhaseOne

Mid2016Configura-on FutureConfigura-on*

*Newunitsdependentonmarketdrivendecisions

1761360 GANGAMA HERALDS THE NEXT PHASE

May2016

Construc2oncomplete.Commissioningunderway.Projectprogressingon2meandon-budget


1761360 GANGAMA COMMISSIONING IN PROGRESS


1761360


ENTERING A NEW ERA

MARKET DRIVEN GROWTH POTENTIAL CONCLUSION


1761360 DEBOTTLENECK MINING TO MAXIMISE CONTRIBUTION

•  Infrastructure in place

Ø  Power plant

Ø  Mineral SeparaBon Plant

Ø  Port

Ø  Mining and exploraBon

Ø  Mining friendly jurisdicBon

•  Debo`leneck mining

Ø  MulBple low capex drying mining opBons

Ø  Short lead Bmes


Mininglicense

Mainroads

Explorationlicenses

Freetown

Bo

Momaligi

Gbangbatok

SIERRALEONE

GUINEA

LIBERIA

Moyamba

LocaBon Of OperaBons

SRLcommiPedtosuppor2ngfuturecustomerru2leneeds

1761360

SierraRu;le,8.2Mt

Iluka,10.3Mt

Kenmare,4.4Mt

MDL,0.3Mt

BaseResources,0.8Mt

–

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

– 25 50 75 100 125 150

Ru-leGrade

(%)

Ru-leProduc-on(kt)(3)

50+YEARSATCURRENTPRODUCTIONRATES

1AsatSeptember2015andaspresentedintheCompany’s2015annualreport.MeasuredandIndicatedresourceof732.9Mt,atagradeof0.93%ru;le,0.24%Ilmeniteand0.08%Zircon.Inferredresourceof134.0Mtatagradeof1.01%ru;le,0.02%Ilmeniteand0.07%Zircon.22016Eru;leproduc;on,aspercompanyguidanceforSierraRu;leandIlukaandbrokerconsensusforKenmare,MineralDepositsLimited(MDL)andBaseResources.Basedonalributableproduc;onandresources.

BubbleSize:In-situContainedRu-leResource

15 PresentedatRuidow,NanjingMay2016

Well-Posi2onedToSupplyCustomers’futureNeeds

1761360 MARKET-LED FLEXIBILITY IS KEY STRATEGIC PILLAR


MarketledLong-termcustomer

partnerships.Alignmentofproduc;ontocustomerdemand.

FlexibleDevelopedflexible

Brownfieldexpansionplans.

GangamaDryMine2

replacedwithlowercost,lowerriskprojects.

DisciplinedCostcontrol.

Supplydiscipline.Sembehuntwo-phase

PFSreleased.

ValueCrea2veLower

upfrontcapexandandstaged

expansionplans.

Communityfocused.

Innova2veEvalua;ngprocess

innova;on.Conceptstudy

beingdevelopedtoincreaseplantmobilityandflexibility.

1Managementes;mates.2ExpecteddemandrangeforSierraRu;leproduct.

(2)

Market-LedPlanning

SRLStrategicPillars

-

50,000

100,000

150,000

200,000

250,000

2016 2017 2018 2019 2020Ru

-le(ton

nes)

SalesPoten;al Produc;onCapacity

1761360

-

50,000

100,000

150,000

200,000

250,000

2016 2017 2018 2019 2020

OPTIMISED LONG-TERM MINE PLAN

May2016

CAGR=9%inru-

leproduced


Lan;Dredge Lan;DM ContractMining Gangama Sembehun

CAGR=11%inru

-leproduced

Produc-onForecast(1)

1Managementes;mate.

Addi;onalDryMiningUnits•  Lan;andGangama•  Managedcapex•  Shortlead;mes

Sembehun•  PFS•  1,000tph(2x500tph)•  $99mcapex•  21yearlife•  71kptaru;le

1761360 CONCLUSION


P > Leadingglobalru-leproducercommi[edtocustomers’futureru-leneeds

P > Onlyproducerfocusedsolelyoncustomers’ru-lerequirements

P > Readytodeliveronmarketdrivengrowth

P > Posi-oned–financiallyandtechnically–todelivertodayandtomorrow

P > Neweraseesmul-pleflexibledryminingsourcesbackedbysolidinfrastructure

Documents

SRL Presentation RUIDOW16 FINAL-submitted 16 May 2016 · Bme in the Company's interim and annual reports. These risks, uncertainBes, assumpBons and other factors could adversely aﬀect