Lanti Dry Mining plant achieves nameplate capacity

Sierra Rutile Limited

Lanti Dry Mining plant achieves nameplate capacity

London, UK, 5 June 2013: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to report that the dry mining concentrator at Lanti ("Lanti Dry Mining") has achieved its nameplate capacity.

The concentrator recently underwent performance testing over a 168-hour period, during which it operated at an average feed rate of 522 tph, exceeding the design specifications of 500 tph. A certificate of completion has been issued to the contractor, Consulmet (Pty) Limited.

The mining operation and the concentrator plant are both currently operating in excess of their designed rate of 3.5 million tonnes per annum and have experienced minimal impacts during recent wet weather conditions. The project is forecast to contribute 30,000 - 35,000 tonnes of rutile out of Sierra Rutile's 2013 expected total rutile production of 125,000 tonnes.

The Lanti Dry Mining project, built within budget and ahead of the original timeline, was successfully designed and constructed within a 12-month period. The project consists of a truck and an excavator mining operation feeding a 500 tph primary concentrator plant. The resulting heavy mineral concentrate product is trucked to Sierra Rutile's central mineral separation plant, where it is processed into finished product rutile, ilmenite and zircon concentrate.

Commenting on the achievement of nameplate capacity, CEO John Sisay said: "The ramp-up of the Lanti Dry Mining project to its full capacity within four months of its start-up is a significant achievement for our team and contractors, and I would like to congratulate all involved. The successful implementation and ramp-up of this project gives me great confidence in our ability to successfully deliver our next expansion project, the Gangama Dry Mining Project, when market conditions justify its construction".

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About Sierra Rutile Limited

Sierra Rutile produces titanium feedstock industrial minerals (primarily rutile, with some associated ilmenite), as well as smaller quantities of zircon. Sierra Rutile's mine, located in the south west of Sierra Leone, is one of the largest natural rutile deposits in the world, with a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 800 million tonnes (as at 31 August 2012).

www.sierra-rutile.com