Company Overview
Presentation by

TRG
● Produces three commodities
● rutile
● ilmenite and
● bauxite
● At its two mines in Sierra Leone

Location
Sierra Leone
Africa

Sierra Leone
Sierra Rutile Mine
Nitti Port
Sierra Leone
Freetown
SML Bauxite
Sherbro Island

Sierra Rutile
● Projected mine life of 19 years with
mineable reserves of 3,825,000
tonnes rutile
● Current production capacity of
100,000 tpa rutile
● Production capacity expected to
more than double to 240,000tpa
rutile by 2008
● Production fully sold until 2008
● Self contained mine site with
refurbished infrastructure
● Excellent potential to expand reserve
base through low risk near mine
exploration
● Current production capacity of
18,000 tpa ilmenite

SML Bauxite
● 10 year mine life with mineable
reserves of 12.4 million tonnes
grading 53.1% alumina
● Current production of
approximately 1.2mtpa premium
grade metallurgical bauxite
● Long term off take agreements
in place with Alcoa and Glencore
● Shares infrastructure with
Sierra Rutile
● Operated under contract
by PW Mining

Overview
● Listed on AIM in August 2005
raising £41m ($74m)
● Placing in October 2005 raising
£10m ($17.5m)
● Experienced management team
● Market cap of $247m (£127m) at 20
March 2007
● Mines in full production
● Significant exploration upside for
bauxite and rutile
● Stable political and economic
environment
● 2,000 employees

Summary financials, yr ended 31.12.06
● Sales of $51.3m (05 $337,000)
● Gross profit of $21.5m (05
$239,000)
● Attributable loss before tax of
$1.47m (05 $17.5m)
● Profit after tax of $34m
● $9.7m net cash generated from
operations
● $39m in investment activities
● Cash and cash equivalents of
$52m

Investment case
● Demand for titanium minerals
and bauxite increasing
● TRG produces premium
product
● natural rutile grades 95.5%
● bauxite used as a sweetener
● All production fully sold
● Rutile production will more
than double by 2008 giving TRG
30% market share
● Significant low risk near mine
exploration upside exists

The rutile market

TiO2
● Rutile and ilmenite are titanium-
bearing minerals
● Used in production of
● titanium dioxide pigments
● titanium metal and
● welding rods
● Titanium mineral industry
revenues of approx. $2bn per
annum
● 2006 TiO2 pigment consumption
approx. 4.8m tonnes – 2015
forecast demand of 7.3m tonnes
● 2006 TiO2 pigment revenue
approx. $10.5bn
● Consumption of TiO2 pigment
has grown on average by 3% per
annum over the past thirty
years*
* TZMI estimate

TRG’s share of natural rutile market (2006)
● Numbers are estimated and based on the company’s own figures
Others 5.1%
Bemax 6.1% TRG 13.6%
Volnogorsk 12.3%
Exxaro (inc TiWest) 13.8%
Iluka (inc CRL) 31.9%
RBIT 16.5%

TRG’s share of natural rutile market (2008 expected)
● Numbers are estimated and based on the company’s own figures
Others 7.7%
BeMax 7.3%
TRG 29.8%
Volnogorsk 8.1%
Exxaro (inc TiWest) 9.9%
RBIT 11.1%
Iluka (inc CRL) 26.1%

TRG’s customers by market sector
● Expressed as a percentage of TiO2 units
Welding rods 4%
Ti metal 9%
TiO2 pigments 87%

Natural rutile vs other mineral sands
$ per tonne
500
450
400
350
300 Cl2 Ilmenite
Cl2 Slag
250
SR
200 Rutile
150
100
50
0
2004 2005 2006

Strategy

Strategy
● Expand production at existing
mines
● rutile: dredges D2 & D3
● bauxite: 300,000 tpa expansion
● Increase reserve and resource
base through exploration on
existing licences
● Wallace Drilling on contract
● in house banka drills
● Acquire additional mineral
properties
● criteria
● Turners’ Peninsular

Expansion programmes - rutile
● Dredge D2
● Commission in Q4 2007
● 3,000 tonnes of structural elements imported
● Will add 100,000 tpa to production capacity
● Dredge D3
● Dredge purchased
● Being readied for shipment to SL
● Will add 40,000 tpa to production capacity
● Land plant upgrade
● Engineering phase underway
● Completed by Q4 2007

Exploration
● Targeting prospective areas
within existing tenures
● Additional bauxite deposits at Sierra Minerals
identified
● Sierra Rutile mine plan being amended as additional
rutile found
● Turners’ Peninsular acquired
in 2006
● 40km from current operations
● Mineral potential identified by Geological Survey of
Sierra Leone
● Predominantly ilmenite and zircon
● Exploration underway

Performance in 2006

Operating performance
● Sales of $51.3m
● 73,802 tonnes of rutile produced
● 13,819 tonnes of ilmenite produced
● 1,072,159 tonnes of bauxite
produced
● First shipments from Nitti port
● rutile, May 2006
● bauxite, February 2006
● New HFO power station purchased

2006 TiO2 production volumes
tonnes
25000
20000
Ilmenite
15000
Standard
rutile
Industrial
10000 rutile
5000
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2006 Bauxite production volumes
tonnes
350,000
300,000
250,000
200,000
Bauxite
150,000
100,000
50,000
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

HSEC

Health and safety
● Key determinant of operating
performance
● Long Term Injury Frequency Rate
of 0.36 in 2006
● HIV/AIDS awareness campaign
developed in partnership with
NGOs
● Developing voluntary testing,
counselling and treatment
programme for HIV/AIDS

Environment and communities
● Facilitating the Darwin
Experimental Project to develop
practical methods for successful
reclamation and conservation
programmes
● Surface rent payments to local
communities and agricultural
development fund
● Local pop. has grown from 5,000
people to 105,000 people
● Not for profit Sierra Rutile
Foundation established
● bio fuel conversion plant
● Sierra Minerals planting and
rehabilitation programmes
underway

Financial Results
Year 2005 – 2006

Profit & loss statement
2006 2005
($ ‘000) ($ ’000)
Sales 51,304 337
Cost of sales (29,764) (98)
Gross profit 21,540 239
Other income 2,812 1,721
Operating expense (58) (2,598)
Administrative and marketing expenses (16,011) (14,828)
Other expenses (5,866) (1,606)
Operating profit / (loss) 2,417 (17,072)
Exceptional item (2,200) -
Finance costs (1,694) (489)
Loss before taxation (1,477) (17,561)
Income tax 35,923 3,984
Profit / (loss) for the period 34,446 (13,577)

Balance sheet
($ ‘000) 2006 2005 ($ ‘000) 2006 2005
Non-current assets
Share capital 198,160 194,951
Property, plant and
92,665 61,279
equipment Revenue reserve (deficit) 20,869 (13,577)
Intangible assets 13,115 12,985
Equity holders’ interest 219,029 181,374
Non-current
753 1,367 Liabilities
receivables
Deferred tax assets 86,373 50,304 Borrowings 36,856 28,390
Provision for liabilities
192,906 125,935 2,150 2,150
and charges
Current assets 39,006 30,540
Inventories 15,054 7,155 Current liabilities
Trade and other Trade and other
14,275 8,777 16,464 9,625
receivables payables
Cash and cash
52,393 79,682 Current tax liabilities 85 10
equivalents
81,722 95,614 Borrowings 44 -
Total equity and
Total assets 274,628 221,549 274,628 221,549
liabilities

Conclusion
● One of the world’s largest natural rutile deposits
● High quality rutile production sold under long term off take contracts
to world class chemical companies
● Established premium-grade metallurgical bauxite reserve base and
long term off take agreements
● Well-established infrastructure and support from the Government
● Experienced and highly successful management team
● Cost mitigation projects expected to make the Sierra Rutile mine one
of the lowest cost producers of natural rutile
● On track to double rutile production rates and extend bauxite reserves
within current financial year
● Possibility of significant expansion of production and proved reserves
on existing licence areas
● Several different growth initiatives currently under evaluation