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COMPANY PRESENTATION

September 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.

> Sierra Rutile is a leading mineral sands producer

> Sierra Rutile is a leading mineral sands company, operating the largest primary rutile mine in the world – JORC Mineral Resource in excess of 840 million tonnes at 1% rutile

– Lanti: 63 Mt at 1.42% rutile – Gangama: 48 Mt at 1.44% rutile – Gbeni: 63 Mt at 1.20% rutile – Sembehun: 274 Mt at 1.34% rutile

– 2013 forecast rutile production of 125,000 tonnes of rutile with additional ilmenite and zircon by-products – Resources to support a mine life of over 65 years at current production rates > The company has a long and successful history in Sierra Leone – The company has a positive and long-standing relationship with the Government of Sierra Leone – The mine has been in operation since the early 1970s – Sierra Rutile supports local community projects such as schools, wells, bridges, clinics and directly supports the community through:

• A medical facility, treating over 22,000 people a year
• Sponsorship of a local technical college, providing

education to over 300 students

Child being treated at the Sierra Rutile clinic

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The Lanti Dredge mining the expansive Lanti deposit

> Driving Value From An Established Operation

> An integrated multi-mine operation – Lanti Dredge: bucket line dredge and integrated processing plant capable of mining and treating over 1,000 tonnes per hour – Lanti Dry Mining: truck and shovel mining operation feeding a central 500 tonne per hour processing plant > Significant installed infrastructure – Mineral separation plant, currently capable of operating at a rate of 165,000 tonnes of rutile per annum, and easily expandable to >200,000 tonnes of rutile per annum – A modern MFO (Marine Fuel Oil) power plant capable of producing 23MW of power (current utilisation is under 11MW) – Established export port and shipping fleet with capacity to ship >500,000 tonnes of product per annum – Over 80km of established haulage roads

Demonstrated ability to drive efficiency improvements

40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 Trailing 12 months production (rutile tonnes)

Strong Rutile Production Growth

Source: Sierra Rutile

1 Since February 2011

2

Process Recovery Improvements

90% 100% 110% 120% 130% 140% Indexed Process Recovery (3-month average; Feb 2011 = 100%)

Source: Sierra Rutile

>

52% 23% 14% 11%

Process Plant (LSTK) Mobile Equipment Earthworks & Infrastructure Other

Future Growth: Ready To Be Delivered

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Gangama Dry Mine provides strong leverage to increasing rutile prices

> The Gangama Dry Mining project – The Gangama Dry Mining project is operationally identical to the Lanti Dry Mining project – The project will be constructed over a 12 month period and will deliver annual production of 93,100 tonnes of rutile1 – High capital efficiency: – Power, water and roads are already in place – Existing port facility able to handle increased production volumes – Only minor upgrades required to MSP to reach required 200,000 tonne capacity > Ganagama Dry Mining project status – Engineering Complete: Detailed engineering of the plant and infrastructure has been successfully completed with Consulmet (Pty) Limited. – Capital costs reduced: Value-optimization exercise has reduced capital costs by 17% from US$103 million2 to US$85

• million. Further cost savings are expected.

1 Feasibility study estimate 2 Pre-feasibility study estimate

75% of capital costs are fixed – very little risk of cost inflation

Gangama Dry Mining Capital Costs

>

$0 $20 $40 $60 $80 $100 $120 0% 5% 10% 15% 20% 25% 30% 2014E 2015E 2016E Cash Flow From Operations (US$m) Cash Flow Yield (Operating CFPS / share price)

Cash Flow Yield Cash Flow From Operations

Cash Generation Supports Future Distributions

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Source: Capital IQ, broker consensus Note: Cash flow yield calculated as operating cash flow per share divided by current share price

Sierra Rutile’s operating cash flow could support considerable returns to shareholders

> Stated dividend policy – Sierra Rutile has an approved policy to distribute at least 50% of free cash flows after capital expenditures, committed future expenditures and repayment of any borrowings > Growing operating cash flow per share – Sierra Rutile is forecast to generate

• perating cash flow sufficient to pay a

dividend yield of up to 25% base on current share price – Near-term cost reduction and efficiency gains to further improve operating margins > Debt facilities provide flexibility and

• ptionality

– Ability to optimize capital structure provides further potential for returns to shareholders

Strong Operating Cash Flow Yield

> Maintaining Cost Discipline

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> Capital Costs: Focusing on efficient capital allocation – Lanti Dry Mining: The Lanti Dry Mining project was completed on budget and ahead of schedule – Gangama Dry Mining: Identified capital cost savings for the Gangama Dry mining project has reduced total capex by 17% ,from US$103 million to US$85 million1 – Gbeni Deposit: $23 million in savings to be realized through the decision to dry mine the Gbeni deposit

– Cost savings realized by eliminating preparation work and village relocation associated with the dredge move – Delayed the move of the Lanti Dry Mining processing plant by seven years – Pending retirement of Lanti Dredge further reduces the near-term stay-in-business capital requirement

> Operating Costs: Currently undergoing a comprehensive bottom-up review to reaffirm a culture of cost-efficiency – Continued focus on cost control across the

• rganization

– Re-examining all operations in order to identify areas for cost reduction, including:

– Power and fuel: Potential improvements in power plant optimization and vehicle utilization – Human resources: Localization plan is being implemented to drive down overall expatriate headcount

Sierra Rutile continues to generate shareholder returns by focusing on cost efficiency

Expatriate headcount declining as

• perational

improvements have been completed

Source: Sierra Rutile

Expatriate Headcount

“SRX is one of the first companies we have seen to start coming out with reduced capital development cost expectations that reflect the more muted environment in which miners find themselves. We expect that others will be following…” Investec Securities - August 6, 2013

1 Pre-feasibility study estimate

10 20 30 40 50 60 70 80 90 2009 2010 2011 2012 2013 2014

>

Sierra Rutile provides value to shareholders

Sierra Rutile Is A Best-In-Class Opportunity

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Enterprise Value to EBITDA

Source: Capital IQ as at September 24, 2013; Estimates as per broker consensus

> Relative to its feedstock producing peers, Sierra Rutile trades at significantly discounted multiples – EV / EBITDA – Sierra Rutile trades at a substantial discount to both Iluka and Kenmare – Price to cash flow – Sierra Rutile’s current share price implies that the company’s 2013 cash flow is worth less than half of peers’ cash flow > Sierra Rutile trades at a discount despite having a stronger growth profile – Sierra Rutile’s production growth is forecast to be significantly more than both Iluka’s and Kenmare’s

Price to Cash Flow

0x 5x 10x 15x 20x 25x 30x EV/EBITDA 2013E Trading Multiple (x) SRL Iluka Kenmare 0x 5x 10x 15x 20x 25x 30x P/CFPS 2013E Trading Multiple (x) SRL Iluka Kenmare

>

May 2008 July 2011 September 2011 September 2013

> Continued trend toward consolidation and vertical integration of key TiO2 players – Cost and operating synergies create value within supply chain – Reduced input cost volatility – TiO2 feedstock supply concern amongst pigment producers is alleviated > Highly concentrated supply base – More that 60% of current rutile supply is supplied by four producers

Increasing Sector Consolidation & Integration

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Source: Sierra Rutile

Continued consolidation activity within the TiO2 industry

Recent Consolidation Activity

(mineral sands) (pigment units)

2013E Global Rutile Production

Iluka 20% Sierra Rutile 18% Cristal / Bemax 13% Other 16% Rio Tinto 10% Volnogorsk 8% CRL 8% Tronox 7%

>

4% 6% 10% 16% 30% Investec Neon Liberty Capital JPMorgan M&G Pala Investments

Strong & Supportive Shareholder Base

Sierra Rutile Shareholder Base Over Time

Source: Bloomberg, Statutory Filings

June 2011 Current > Supportive shareholder base that remains committed to the story – Since mid-2011, Sierra Rutile has seen existing shareholders add to their shareholding – Little willingness to sell stock amongst existing shareholders has restricted liquidity – Shareholders continue to see significant value upside

Committed shareholder base believes that significant value is yet to be realized

5% 6% 9% 20% 54%

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>

Market Fundamentals

>

TiO2 demand growth anticipated as emerging economies continue to develop

Strong Fundamentals for Growing TiO2 Demand

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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 > TiO2 is a late-cycle commodity, leveraged to the development of emerging economies in addition to already established markets – TiO2 demand growth is anticipated to increase dramatically as emerging economies develop – China alone will drive significant TiO2 demand as it’s middle- class population grows to 70% by 2020 – Continued urbanization in Asia, Latin America, and India will further add continued TiO2 demand growth

> Current Market Showing Signs of Improvement

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>TiO2 Inventory Days in Coatings

20 40 60 80 100 120 140 2008 2009 2010 2011 2012

Source: Tronox

Near-term metrics imply an expected strengthening TiO2 feedstock demand

48 49 50 51 52

>Chinese Manufacturing PMI

> Economic indicators illustrate that the Chinese economy is beginning to regain growth momentum – Year-over-year, Chinese manufacturing PMI has increased notably and continues to trend upward – Chinese industrial production has increased approximately 10% year-over-year – Both urban and industrial fixed asset investment statistics also show that the Chinese economy is strengthening > US economic recovery is well underway – Recovery of the US economy and the US housing sector presents near-term upside in TiO2 consumption growth > TiO2 inventory held by paint producers has declined materially, paving the way for increasing TiO2 feedstock demand – Downstream restocking activity had repercussions on upstream production and inventory – Inventories at pigment plants and downstream reported to be at or below normal levels

Source: Bloomberg

Significant TiO2 destocking by 2012YE

>

Appendix: TiO2 Overview

> 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 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

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

Overall TiO2 market: 6.8 million tonnes

Overall TiO2 End Markets

Source: Credit Suisse

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Source: DuPont

Effects of the Refractive Index on Opacity

> Sierra Rutile Produces a Premium Product

> Sierra Rutile’s core rutile product is a key input in the production of titanium dioxide – Rutile is the only source of high-grade titanium dioxide feedstock that does not require upgrading prior to use in the chloride process – The lower level of impurities found in rutile has significant operating cost benefits to pigment producers

• ver other types of TiO2 feedstock

> Industry trend towards use of high-grade feedstock, such as rutile, in TiO2 production – Chloride processing route increasingly used in the creation of TiO2 due to its cost and environmental benefits – Chloride processing benefits from high-grade TiO2 such as natural rutile

Feedstock Usage in TiO2 pigment production

Source: TZMI, Company Estimates; TiCl4 production is key stage in the production of pigment (chloride process) and Titanium metal

Feedstock Performance in Manufacturing of TiCl4

2 4 6 8 10 12 14 16 18

Waste Index 17 times less waste than ilmenite

0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8

Ore Consumption 38% less ore required

Synthetic Rutile Ilmenite Slag Natural Rutile

• 1.0

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

Source: Credit Suisse

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Contact Details

John Sisay Chief Executive Officer

Email: jsisay@sierra-rutile.com

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