Signs a $20 million working capital facility

Sierra Rutile Limited

Signs a $20 million working capital facility with Nedbank

London, UK, 20 August 2013: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to announce that it has entered into an agreement with Nedbank Limited ("Nedbank") for the provision of a US$20 million working capital facility.

The working capital facility has a renewable tenor of one year, carries an interest rate of LIBOR plus 4%, and will be secured against the assets of Sierra Rutile. Drawdown is subject to certain conditions customary for a financing of this type. Satisfaction of these conditions is expected shortly.

Sierra Rutile has also received confirmation of formal credit approval from Nedbank for a US$30 million senior loan facility. The facility, as approved, would have a tenor of four years and carry an interest rate of LIBOR plus 5.25%. Sierra Rutile and Nedbank are in the process of finalising documentation for this facility.

Commenting on this facility, John Sisay, CEO of Sierra Rutile stated: "We are pleased to partner with Nedbank on this facility, which will provide Sierra Rutile with greater flexibility in managing its working capital requirements and allow us to better leverage our strong cashflows".

ENDS

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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