Ilukas December Quarter Production Report is attached.

Key features include:

·         Sales revenue for 12 months - $1536.7 million (up 75.7%); December quarter sales revenue $434.0 million

·         Full year revenue per tonne of zircon/rutile/synthetic rutile $1,480 (up 83%) versus unit cash cost of production of $537/tonne

Production and Sales Summary

The report contains more detailed information, including Market Conditions and Market Outlook Commentary.

An extract below relates to the following points which may not be fully appreciated:

·         the zircon/titanium dioxide volume split in the portfolio is now more evenly weighted (there has been in some respects a pre-occupation with Iluka as a zircon play by some, that is now not strictly the case);

·         pricing for rutile and zircon is now similar (synthetic rutile not materially lower than rutile pricing); and

·         all prices into the first half of 2012 are materially higher than 2011 average levels or those in 2010.

Hence the following point:

While lower production and sales levels may occur for zircon for a period in 2012, revenue impacts will be mitigated by contracted volumes of high grade titanium dioxide which, in the first half of 2012, will be at a weighted average price of between 110 per cent to 145 per cent above 2011 weighted average pricing.

Further mitigation is provided by zircon prices which will end the 2011 year over 30 per cent higher than weighted average price for the year as a whole, and over 270 per cent higher than the weighted average zircon price for 2010.

Please contact me if you have any queries.

Regards

Rob

Robert Porter | General Manager Investor Relations
Iluka Resources Limited | Suite 1-2, Level 9, 118 Queen Street | Melbourne VIC 3000
Phone +61 3 96000807 | Mobile +61 (0) 407 391 829
Perth Corporate + 61 8 9360 4700