at $8.10 - announcement to asx 7/4/06

Notice to the Australian Stock Exchange
7 April 2006
Mining at Adamson Deposit,
Mid West, Western Australia Commences

Iluka Resources Limited advises that the mining and processing of ore from the Adamson zircon-rich deposit has recently commenced, with overburden removal from Adamson having commenced in November 2005. The Adamson deposit forms part of the resource base of the Eneabba mining precinct, located approximately 260 km north of Perth, Western Australia.

The evaluation of Stage 1 of the Adamson deposit has enabled Iluka to bring forward zircon production in the Mid West, to take advantage of the strong market demand and robust pricing. Heavy mineral concentrate from Adamson is processed at the Narngulu processing facilities at Geraldton.

Mining of Adamson Stage 1 is expected to be followed by mining of the remainder of the Adamson deposit. The Adamson deposit contains a Probable reserve of 16.7 million tonnes of ore @ 5.0% HM for 831,000 tonnes of contained HM, as at 31 December 2005. The HM assemblage is 20.4% zircon, 6.8% rutile and 46.4% ilmenite.

Mining from Adamson Stage 1 is expected to produce approximately 23,000 tonnes of zircon between April and November 2006. The mining of the Adamson deposit will entail the movement of a mining unit plant, from its current location at the Depot Hill deposit at Eneabba. Total capital cost for the establishment of mining operations at Adamson is less than A$4 million.

The Ore Reserves contained herein have been compiled by Iluka staff and reviewed by Mr Greg Jones, a Member of the AusIMM, a full time employee of Iluka Resources Limited and a Competent Person as defined by Clause 10 of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code - 2004 Edition)”.