Iluka concludes $95m entitlement offer

Iluka Resources Ltd has completed the retail component of its 4 for 7 pro-rata accelerated renounceable entitlement offer to shareholders, with the retail offer raising approximately A$95 million.

Together with approximately A$258 million raised through the institutional offer completed last month, Iluka has raised a total of approximately A$353 million in new equity funds which, combined with the A$500 million in debt facilities Iluka entered into on 12 March 2008, is expected to give the company the financial capacity to proceed with the development of the Jacinth-Ambrosia mineral sands project in the Eucla Basin, South Australia.

Approximately 15.1 million new shares were available in the retail offer and were sold to institutional investors under a Retail Bookbuild process that closed today, achieving a clearing price of A$4.00 per new share, which is A$1.45 above the offer price of A$2.55.

Shareholders whose shares were sold in the Retail Bookbuild will therefore receive A$1.45 per new share not taken up.

This payment is expected to be sent to these shareholders by Wednesday, 23 April 2008.

The shares sold in the Retail Bookbuild were acquired by a range of domestic and international institutions including several institutions that are not currently Iluka shareholders.

Settlement of the new shares from the retail offer and the Retail Bookbuild is expected to occur on Monday, 21 April 2008.

The new shares from the retail offer and the Retail Bookbuild are expected to be issued and commence trading on the ASX on Tuesday, 22 April 2008.

The Offer is fully underwritten by ABN AMRO Equity Capital Markets Australia Ltd and Citigroup Global Markets Australia Pty Ltd.

As advised to the ASX previously, development approval for the Jacinth-Ambrosia mineral sands project is expected to be sought from the Iluka Board in May 2008, subject to satisfactory completion of the definitive feasibility study.

On 20 March 2008 the company announced Board approval for initial expenditure of up to A$8 million to order and procure certain long lead capital equipment integral to the proposed development of the project and its first production schedule of mid 2010.

The total capital expenditure for the Jacinth-Ambrosia project is estimated at A$450 million.