Paul Maney

Innovation Manager

28th February 2019

Innovation through the CycleShaping the future – one grain of sand at a time

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Disclaimer – Forward Looking Statements

Forward Looking Statements

This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production

potential; estimates of future capital expenditure and cash costs; 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 risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed,

projected or implied by such forward-looking statements. 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; and

• environmental or social factors which may affect a licence to operate.

Except for statutory liability which cannot be excluded, Iluka, its officers, employees and advisers 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 any person as a consequence of any

information in this presentation or any error or omission there from.

Iluka does not undertake any obligation 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.

Non-IFRS Financial Information

This presentation uses non-IFRS financial information including mineral sands EBITDA, mineral sands EBIT, Group EBITDA and Group EBIT which are used to measure both group and

operational performance. A reconciliation of non-IFRS financial information to profit before tax is included in the supplementary slides. Non-IFRS measures have not been subject to audit

or review.

Mineral Resources Estimates

The information in this presentation that relates to Mineral Resources estimates previously announced to ASX. 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 in those

announcements 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.

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Operations and Assets

SOURCE: Iluka, Smithers Boston Conference 2018

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Zircon

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Titanium Dioxide

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Stages of the Mineral Sands Process

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Process Overview – Mining Units and

Concentrator

SOURCE: Iluka Jacinth-Ambrosia Site Visit 2018Feed Hopper

Grizzly Screen

Drum Scrubber

TrommelConstant Density Tanks

Hydro

cyclonesThickener Spirals

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Process Overview Mineral Separation

SOURCE: Iluka Jacinth-Ambrosia Site Visit 2018

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Synthetic Rutile Process Flow

SOURCE: Iluka South West Site Visit 2017

Reduction Separation Aeration Hydrocycloning Leaching Drying

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Innovation @ Iluka

Implementation of compelling new ideas that create and deliver value for

customers, shareholders and employees

_______________________

Innovation at Iluka Resources

““

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Iluka Innovation Framework

Horizons

Pipeline

Behaviours

Lenses

Concentrator, Jacinth Ambrosia

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Innovation Horizons and Portfolio Balance

Geology in Mining Pit, Jacinth Ambrosia

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Innovation Behaviours

Collaborating employees

lead to new innovation ideas

and the improvement of

innovation ideas.

Testing assumptions early in

the process enables Iluka

employees to learn and

adapt and if failure is to

occur to fail as early as

possible in the process.

Learning from failures

enable Iluka employees to

improve ideas.

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Lenses of Innovation

Challenge the status quo

where employees

question deeply held

beliefs inside Iluka and

inside industries about

what drives success.

Identify ways to leverage

our competencies and

strategic assets and

identify customers’

unarticulated needs.

Harness discontinuities

by spotting unnoticed

patterns or trends that

could substantially change

the rules of the game.

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Innovation is at Our Core

Our Innovation Community and Outcomes

Innovation Manager

Innovation Leads

Innovation Champions

1

3

29

Dedicated role

Additional to nominal

role 10-15%

Additional to nominal

role 10-15%

1368

Members

758

Ideas

1618

Votes

9 Active

Challenges

19 Closed

Challenges

25 referred

to Iluka IDT

Product

Development

Complex Ore

RefiningMining Methods Rehabilitation

2 of Iluka’s

26 Patents

Material

Expected

Returns

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Innovation Process

• Hackathons

• Standing

Challenges

• Timebound

Challenges

• Workshops

Unsuccessful ideas to have feedback as to

reason for not going ahead

IPMS

Idea Generation

& Team Review

Innovation

Development

Team

Innovation

Leadership

Team

MEP /

Execution

Iluka IDT

Pipeline

• Development

• Feasibility

• Presentation

• Assessment

• Prioritisation

• Support for

Execution

Grow &

Transform

Improve

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Challenge framework

Iluka IDT

MW Improve

SRL Improve

SW Improve

Perth Improve

Ideas Anytime

MB Improve

Cataby Improve

Time Bound

Challenge

Grow

Transform

• Aligned to business units and

subsequently geographical

location

• Standing challenges allow

ease of idea submission and

evaluation through the

IdeaScale Innovation Portal

either via desk top or mobile

application

• As needed time bound

challenges are run and

archived

• Ideas Anytime is a catch all

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Innovation Challenge Funnel

New Ideas

IDT Review

Functional Review

ILT Review

Execution

Implemented

Unsuccessful

Parked

Concentrator, Jacinth Ambrosia

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An example of ideas being captured

Reducing our environmental footprint and our cost

base by utilizing an emerging solution known as a

BiobiN that reduces compostable volumes by 50%

and enables these to be converted to compost and

biofuel rather than going to landfill in Ceduna.

Idea Opportunity

Idea Domain Improve

Iluka Plan Excel in Our Core

Replicable Yes

Funnel Status JAIDT Review

Idea Owner

Challenge JA Improve

Idea Number 762

Idea Status

Idea Update

Quotes sourced from the vendor and currently working through the detailed financial analysis for the

JAILT review. There is a dependency associated with the change of tubs and cutlery to biodegradable

varieties or moving to reuseable packs (Idea 811).

Idea Link

https://iluka.ideascale.com.au/a/dtd/Waste-Management-Sealed-Compost-Bins-Culture-Change/1526-10#idea-tab-comments

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Opportunities moving forward

Amplifying the innovation narrative

Strengthening the drive to value

• Development of Value Driver Trees

• Financial Evaluation

Maximising our IdeaScale Investment

• Leveraging internal functionality and API’s

• Proof of Concept and Execution Project Management

• Benefits tracking

• Iluka IDT Pitch Funnel and Idea Evaluation

Continued challenge focus

• Aligning challenges to the Innovation Strategy

1

2

3

4

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Focused innovation across the value chainKey challenges looking to be unlocked in Grow and Transform

Sustainable Value

Chain

Automated and Digital

Value Chain

Alternate Excavation

Precision Extraction

Digital Resources

Our priority is ensuring our people are safe and we continue to maintain our

social license to operate. Focus on driving ways to improve our environmental

and social footprint, and to ensure our people are safe through innovation

Exploiting automation, digital and remote operations to optimize the processes of

exploration, mining, processing, rehabilitation and functions to leverage our

existing assets and maximize the return on future investments

With marginal deeper resources and increased material movements associated

with rehabilitation, new more cost effective ways of excavation are required to

leverage our resource base and drive productivity

Our ore orebodies are more complex with declining grades, increased impurities

and challenging physical properties. Recovery and processability are key, as is

defining new products to continue to transform our customers experience and

value-in-use

Leveraging smarter and faster targeting technologies to identify and evaluate

opportunities. Materially increase the number of targets and resources added,

reduce in-country expenses, and reduce the time from sample to resource

Innovation Theme Innovation Imperative

Synthetic Rutile Polished Section

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Iluka Resources Limitedwww.iluka.com

For more information, contact:

Paul Maney

Innovation Manager

Paul.Maney@Iluka.com