explains surge in share price

Iluka explains surge in share price
15:16, Thursday, 26 June 2008

Sydney - Thursday - June 26: (RWE Australian Business News) -
Iluka Resources Ltd (ASX:ILU) has responded to an ASX query over an rise
in its shares from $3.65 on June 19 to $4.60 today (the price later
touched $4.74), saying there were a number of possible explanations.
Iluka noted that on June 18 it issued to ASX a presentation made
to the UBS Australian Resources and Energy conference in Sydney.
"The presentation and associated release made reference to more
favourable supply/demand characteristics in relation to mineral sands
products and also conveyed Iluka's expectations of more favourable
pricing outcomes across its suite of products.
"Industry consultants have also recently issued revised, higher
product price forecasts," the company said.
Iluka said it was aware of recent public statements by BHP
Billiton Ltd (ASX:BHP) in relation to mine expansion plans for its
Pilbara iron ore assets. These assets include Mining Area C (MAC).
Iluka has a royalty and capacity payment arrangement in respect
to certain tenements within the MAC tenements.
Meanwhile, Rio Tinto Ltd (ASX:RIO) has made recent statements in
relation to iron ore prices.
"If these or similar prices are achieved by BHPB, this should
flow through to revenue payments for Iluka's MAC royalty arrangement,"
Iluka said.