Slide 1

Speaker: Keith Yates

World Class Zircon Developmentsin the Eucla basin

Slide 2

Zircon MarketZircon Market

Slide 3

Zircon MarketZircon Market

Indicative MarketShare - Zircon

Indicative MarketShare - Zircon

Bemax2%

Ticor10%

DuPont6% Namakwa

11%

BHPB10%

Rio Tinto10%

Iluka 37%

Others14%

Source: Iluka

Slide 4

• World’s foremost zircon source

• 10Mt of HM, ~5Mt zircon in 3 world class deposits – J/A + Tripitaka

• More discoveries likely

• World’s foremost zircon source

• 10Mt of HM, ~5Mt zircon in 3 world class deposits – J/A + Tripitaka

• More discoveries likely

Eucla Basin – HM ProjectsEucla Basin – HM Projects

Discovery HistoryDiscovery History

• Jacinth – Nov 04

• Ambrosia – Dec 04

• Tripitaka – Nov 05

• Gullivers – June 06

• Cyclone – July 07

• Typhoon – July 07

• Jacinth – Nov 04

• Ambrosia – Dec 04

• Tripitaka – Nov 05

• Gullivers – June 06

• Cyclone – July 07

• Typhoon – July 07

Slide 5

Iluka discoveriesIluka discoveriesTripitaka

Adelaide/IlukaTripitaka

Adelaide/Iluka

SAWA

Ceduna

Eucla Basin - Potentially world’s premier zircon sourceEucla Basin - Potentially world’s premier zircon source

Slide 6

Regional DTM ImageRegional DTM Image

JacinthAmbrosiaTyphoon

JacinthAmbrosiaTyphoon

TripitakaTripitaka

CedunaCeduna60 KM60 KM

Slide 7

Trans Australia Railway

Port Lincoln Adelaide

Eyre HighwayCeduna

300 Kilometres

EUCLA BASIN

Application date

No. oftenements Size km2 Total Area km2

2003 8 10691 18814

2001 1 1892 56592002 1 2464 8123

2004 28 25120 45420

2001 2 3767 3767

2003 1 1486 20300

Iluka TenementsIluka Tenements

Adelaide ResourcesTenements subject toColona JV with Iluka

Adelaide ResourcesTenements subject toColona JV with Iluka(5250 sq. km.)(5250 sq. km.)

Iluka Discoveries

2005 4 3070 484902006 1 288 48778

Tripitaka

Tenement HistoryTenement History

Slide 8

Eucla Basin HM – OverviewEucla Basin HM – Overview

• Discoveries to date

• Jacinth-Ambrosia (100% ILU)

• Tripitaka (~70% ILU/~30ADN)

• Gullivers (100% ILU)

• Typhoon (100% ILU)

• 10.1 million tonnes of Heavy Mineral booked as resource to date

• Zircon assemblages: 47% - 68%

• ~5 million tonnes of in-ground zircon

• Jacinth-Ambrosia DFS well advanced

• Tripitaka in PFS

• Strong prospects of further discoveries

• Discoveries to date

• Jacinth-Ambrosia (100% ILU)

• Tripitaka (~70% ILU/~30ADN)

• Gullivers (100% ILU)

• Typhoon (100% ILU)

• 10.1 million tonnes of Heavy Mineral booked as resource to date

• Zircon assemblages: 47% - 68%

• ~5 million tonnes of in-ground zircon

• Jacinth-Ambrosia DFS well advanced

• Tripitaka in PFS

• Strong prospects of further discoveries

Source: Iluka

Slide 9

Province Company MT %HM HM Mt % Zircon

% Rutile

% Ilmenite(7)

A$/t HM conc(8)

A$/t in ground

Stradbroke Is (1) Iluka 808 0.9% 7.0 11% 14% 45% 239 2.20

Murray Basin (1) Iluka 387 11.5% 44.4 10% 13% 48% 226

Murray Basin (2) Bemax 2321 2.9% 67.5 10% 17% 53% 255 7.40

Murray Basin (3) Aust. Zircon 172 3.2% 5.6 19% 11% 66% 318 10.20

WA mid-west (1) Iluka 851 5.2% 44.0 11% 6% 52% 198 10.30

WA south-west (1) Iluka 529 8.2% 43.4 8% 1% 79% 167 13.70

WA south-west (2) Bemax 142 9.6% 13.9 9% 82% 171 16.40

Tiwi Islands(4) Matilda Min. 7 4.4% 0.3 36% 32% 506 22.30

Eucla Basin Iluka 219 4.3% 9.2 48% 5% 28% 538 23.10

Eucla Basin (5) TRIPITAKA 42 2.4% 1.0 65% 5% 9% 689 16.50

Data Sources and Notes(1) - Iluka Resources Limited Concise Annual Report 2005(2) - Bemax Resources NL 2005 Annual Report(3) - Australian Zircon NL 2006 Annual Report (4) – Matilda Minerals 2006 Annual Report(5) – ADN/Iluka ASX announcement 27 Sept 06(6) - Iluka Resources Limited ASX announcement 17 Aug 2006(7) - Includes various Ti minerals including leucoxene and HiTi Illmenite which may sell for higher prices(8) - Based on prices from Bemax Sept06 QR

Commodity A$/tonneZircon $1000Rutile $600

Ilmenite $100

26.00

(1&6)

19%

Comparison of Australian HM Resources (Feb07)Comparison of Australian HM Resources (Feb07)

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Exceptional Zircon AssemblageExceptional Zircon Assemblage

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• Brownfield development

• Processing using existing MSP facilities at Narngulu, Western Australia

• Estimated capex ~A$400 million

• Production potential

• ~300,000 tonnes per annum zircon in initial years

• estimated total project production ~3 million tonnes of zircon

• ~120,000 tonnes per annum ilmenite

• ~30,000 tonnes per annum of rutile in initial years

• Estimated 15+ year life of mine (dependent on production profile)

• DFS completion mid-2008

• First production expected mid 2010

• Brownfield development

• Processing using existing MSP facilities at Narngulu, Western Australia

• Estimated capex ~A$400 million

• Production potential

• ~300,000 tonnes per annum zircon in initial years

• estimated total project production ~3 million tonnes of zircon

• ~120,000 tonnes per annum ilmenite

• ~30,000 tonnes per annum of rutile in initial years

• Estimated 15+ year life of mine (dependent on production profile)

• DFS completion mid-2008

• First production expected mid 2010

Jacinth-Ambrosia ProjectJacinth-Ambrosia Project

Source: Iluka

Slide 12

Mining Method• conventional dry mining in large open pit• overburden removal by scraper• dozer trap mining

Wet Concentration• MC2 concentrator relocated from Georgia

Infrastructure• hyper saline water source• small RO plant for fresh water• 100 person permanent village• Ooldea Road upgraded and sealed

Mineral Separation Plant• Narngulu, Geraldton WA• Other group capacity

Port Facilities• HMC shipped from Port of Ceduna, South Australia (~200kms from mine site)• Final product shipped from Geraldton, Western Australia

Mining Method• conventional dry mining in large open pit• overburden removal by scraper• dozer trap mining

Wet Concentration• MC2 concentrator relocated from Georgia

Infrastructure• hyper saline water source• small RO plant for fresh water• 100 person permanent village• Ooldea Road upgraded and sealed

Mineral Separation Plant• Narngulu, Geraldton WA• Other group capacity

Port Facilities• HMC shipped from Port of Ceduna, South Australia (~200kms from mine site)• Final product shipped from Geraldton, Western Australia

Development Concept for J/ADevelopment Concept for J/A

Source: Iluka

Slide 13

• Strategic holding in basin heartland

• Tripitaka – world class1Mt of HM, 0.65Mt of zircon

• Adres share ~30%

• PFS completion Q1 2008

• Discovery potential high

• Strategic holding in basin heartland

• Tripitaka – world class1Mt of HM, 0.65Mt of zircon

• Adres share ~30%

• PFS completion Q1 2008

• Discovery potential high

Tripitaka Zircon ProjectTripitaka Zircon Project

Slide 14

ILUKA 100% (400,000t HM)

COLONA JV

– ILUKA 51% (306,000t HM)– AdRes 49% (294,000t HM)

400,000t HM

600,000t HM

1,000,000t HM

(650,000t zircon)TRIPITAKA

Ownership Total

Tripitaka Inferred ResourcesTripitaka Inferred Resources

Adelaide Resources share ~0.3 million tonnes of HM

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Tripitaka Resource DrillingTripitaka Resource Drilling

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Tripitaka Resource DrillingTripitaka Resource Drilling

Slide 17

90km from Ceduna toTripitaka turn-off

Ambrosia

Jacinth

Tripitaka

Tripitaka has a favourable locationTripitaka has a favourable location

Slide 18

• Elements of PFS• Elements of PFS

- Mine planning- Resource upgrade

- Water supply

- Metallurgy

- Environment- Permitting

- Native Title

- Mine planning- Resource upgrade

- Water supply

- Metallurgy

- Environment- Permitting

- Native Title

Tripitaka Prefeasibility Study (PFS)Tripitaka Prefeasibility Study (PFS)

Slide 19

Water Exploration

Resource Drilling

Tripitaka PFS Work ModulesTripitaka PFS Work Modules

Section5085SESection5085SE

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1000m

21m @ 5.6%HMincl 3 @ 15.4%HM

Colona Joint Venture

IlukaResources

21m @ 4.1%HM

Tripitaka - Section 5085SE (looking North)Tripitaka - Section 5085SE (looking North)

Slide 21

• PFS scheduled for completion in firstquarter of calendar 2008

• PFS report will include the scope, cost andschedule for a definitive feasibility study (DFS)

• Colona Joint Venture to then decide on DFS

• PFS scheduled for completion in firstquarter of calendar 2008

• PFS report will include the scope, cost andschedule for a definitive feasibility study (DFS)

• Colona Joint Venture to then decide on DFS

Tripitaka PFSTripitaka PFS

Slide 22

Zircon Exploration - Typhoon Discovery Follow-upZircon Exploration - Typhoon Discovery Follow-up

Jacinth

Typhoon Results 21m @ 4.7%HM from 1.5m17% zircon in assemblage

Slide 23

Quasar Joint VentureQuasar Joint Venture

• JV with Quasar Resources –discoverer of the Four Miledeposit

• Major drilling programunderway

• Drilling to target the Narlaby and Yaninee palaeochannels

• Utilisation of PFN instruments

• JV with Quasar Resources –discoverer of the Four Miledeposit

• Major drilling programunderway

• Drilling to target the Narlaby and Yaninee palaeochannels

• Utilisation of PFN instruments

Slide 24

Providing shareholders with discovery opportunities!Providing shareholders with discovery opportunities!