SRL Appoints Strategic Review Consultants

Sierra Rutile Limited Appoints Strategic Review Consultants

11 May 2011: Sierra Rutile Limited (AIM:SRX) ("Sierra Rutile) is pleased to announce the appointment today of a consortium of experienced consultants headed by the Snowden Group, and including CPG Resources - Mineral Technologies and Titan Salvage, to conduct an extensive study of options to optimize and expand the operations of Sierra Rutile.

Building on the progress of the first phase of the ongoing strategic review, the focus of the study will be on the expansion of Sierra Rutile's production of rutile, ilmenite and zircon concentrate and the introduction of new products. The studies are expected to be finalized in Q4 2011. Options that will be studied include:

·; The rehabilitation of capsized Dredge 2;

·; Completion of the partially-built Dredge 3 or construction of a new dredge;

·; The potential to supplement production through the dry mining of small, high-grade pockets of the deposit;

·; The mining of historic tailings that, due to inefficiencies in processing techniques, still contain relatively high grades of rutile;

·; On-stream processing of zircon to a finished or semi-finished product compared to the current batch-produced concentrate;

·; Separation and recovery of rare earth oxides contained in rutile and ilmenite tailings; and

·; Upgrade to the mineral separation plant to match increased production volumes.

The studies will provide a focus for prioritisation, development and engineering to the specific areas of the study. The Company has identified a number of areas within the study scope that it believes have the potential to provide near-term value and could be fast-tracked within the overall scope of the project.

John Sisay, Chief Executive Officer, commented:

"We continue to progress our strategic review and expect that the technical studies announced today will provide us with a clear and comprehensive plan for the redevelopment of Sierra Rutile. Whilst the significant potential for Sierra Rutile to become a leading minerals producer is apparent, we are adopting a methodical approach focused on sound planning and risk management to ensure we deliver long-term value to all our stakeholders. I look forward to reporting on the progress of these studies later in the year."

ENDS

For further information:

Sierra Rutile Limited

John Sisay, Chief Executive Officer

Telephone: +44 (0) 20 7321 0000

Arbuthnot Securities

Nominated Advisor & Broker

Hugh Field / Richard Johnson

Telephone: +44 (0) 20 7012 2000

Mirabaud Securities LLP

Joint Broker

Peter Krens

Telephone: +44 (0) 20 7321 2508

Aura Financial

Andy Mills / Harry Cameron

Telephone: +44 (0) 20 7321 0000

Sierra Rutile Limited

Sierra Rutile Limited is a mining company with operations in the Republic of Sierra Leone. The Group is one of the country's largest private sector employers and produces rutile, zircon and ilmenite for use in industrial applications. The Group's operations have historically accounted for over 65 per cent of the exports of Sierra Leone. The Company changed its name to Sierra Rutile Limited on 24 February 2011.

About Snowden Group

Snowden is a premium provider of consulting services, technology solutions and technical training to the Mining and related sectors. During the last 24 years, it has built a proven track record in providing its clients with the information and solutions to optimise their investment in the resources sector. With a continued focus on delivering innovation and quality outcomes to clients worldwide, Snowden is placed at the forefront of the mining consulting industry.

www.snowdengroup.com

CPG Resources - Mineral Technologies

Mineral Technologies is a recognised leader in mineral processing solutions worldwide.

Throughout its 70-year history it has fulfilled its commitment to turn knowledge into value by delivering a comprehensive range of integrated equipment and services that cost-effectively transform ore bodies into high grade mineral products for customers.

Today, its commitment continues with the ongoing release of an expanding range of minerals testing, plant design and mineral separation equipment solutions across the mineral sands, iron ore, coal, industrial minerals, and metals market sectors.

www.mineraltechnologies.com.au 

About Titan Salvage

TITAN, a wholly owned Crowley subsidiary, is a worldwide marine salvage and wreck removal company based in Pompano Beach, Fla., that has performed over 350 salvage and wreck removal projects since 1980, including some of the most technically demanding projects ever undertaken. The company also has offices and equipment depots in Newhaven, UK, Singapore, and Australia. TITAN responds to vessel emergencies around the world and is able to mobilize a worldwide network of expert salvage professionals and specialized, portable equipment within hours of activation.

www.titansalvage.com.