SRL Signs a $30 million senior loan facility

Sierra Rutile Limited

Signs a $30 million senior loan facility with Nedbank

London, UK, 16 December 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$30 million senior loan facility.

The senior loan facility has a tenor of four years from financial close, carries an interest rate of LIBOR plus 5.25%, and is secured against the assets of Sierra Rutile. Closing and drawdown of this facility is subject to satisfaction of a limited number of outstanding conditions customary for a financing of this type. Sierra Rutile has up until the 31 December 2014 to reach financial close and a further 18 months to draw down the funds.

Commenting on this facility, John Sisay, CEO of Sierra Rutile stated: "We are pleased to continue our partnership with Nedbank on this facility. These funds will be used to support the development of the Gangama Dry Mining project, which will commence when the Board has visibility that the current market recovery is fully embedded."

Cutfield Freeman & Co Ltd acted as advisor to Sierra Rutile for the working capital and senior loan facilities.

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