Given stronger production volumes and expected higher sales volumes for 2011, Iluka has updated its Guidance, as provided to the market in February 2011.

Details on the first half production, sales, revenues and cash cost can be found in Ilukas June Quarter Production report also issued today.

The document is attached, but the main points include the following:

·          Zircon production now estimated at ~550kt for the year (compared with 500kt) - Iluka would expect sales volumes may be ~5% lower than this level.

·          Rutile production volumes now estimated at ~275kt (from 250kt), with 2011 sales volumes 10-15% lower than production as Iluka expects to hold over volumes due to the mine move, and attendant interruption to production in 2012, in the Murray Basin.

·          Synthetic rutile production is estimated at 260kt (from 220kt) associated with longer operation of the synthetic rutile kiln 3 in Western Australia.

Sales volumes likely to be ~5% lower than production.

·          Given higher production (over 110kt for the high value products), total cash costs now estimated at $620 million, although unit cash costs for zircon/rutile and synthetic rutile still estimated to be in line with original guidance of $560/tonne.

Some component of the higher cash costs relate to running the SR kiln longer, higher HMC production throughput as well as other initiatives designed to increase production.

·          Capital expenditure for the year is estimated at $170 million (from $100 million) with additional expenditure associated with existing operations (see examples in the attachment) as well as a number of work in progress initiatives to increase production.  Further details are expected to be provided at the time of the half year results.

Iluka considers the ability to generate higher production at similar unit cash cost of production, a favourable outcome for shareholders and reflects it efforts to increase production in a supply-constrained market for zircon and high grade titanium dioxide products.

Please note, if you have any follow up calls - I am available only on my mobile number - +61 (0) 407391829. Alternatively, email me queries and I can respond.

Regards

Rob