#1Sierra Rutile Investor Presentation 2023 Half Year Results August 2023 ASX: SRX Sierra Rutile#2Important Notices and Disclaimer Sierra Rutile Forward looking statements Certain statements in or in connection with this announcement contain or comprise forward looking statements. Such statements may include, but are not limited to, statements with regard to future production and grades, capital cost, capacity, sales projections and financial performance and may be (but are not necessarily) identified by the use of phrases such as "will", "expect", "anticipate", "believe" and "envisage". By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Sierra Rutile's control. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in product prices and exchange rates and business and operational risk management. Subject to any continuing obligations under applicable law or relevant securities exchange listing rules, Sierra Rutile undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. Mineral Resources, Ore Reserves Estimates and Production Guidance This announcement contains production guidance based on estimates of Sierra Rutile's ore reserves and mineral resources. The estimates in this announcement that relate to the ore reserves and mineral resources of Sierra Rutile have been extracted from the ASX release by Sierra Rutile entitled "Sierra Rutile Annual Statement of Resources and Reserves" dated 23 March 2023 (Announcement). For the purposes of ASX Listing Rule 5.19, Sierra Rutile confirms that it is not aware of any new information or data that materially affects the information regarding Sierra Rutile's ore reserves and mineral resources included in the Announcement and that all material assumptions and technical parameters underpinning the estimates in the Announcement continue to apply and have not materially changed. Sierra Rutile confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the Announcement. Non-IFRS financial information This announcement includes certain information and data, such as Operating Costs, Net Operating Cash Costs and Unit Operating Cash Costs, that are not recognised under Australian Accounting Standards and are classified as 'non-IFRS financial information' under ASIC Regulatory Guide 230 (Disclosing non-IFRS financial information). Sierra Rutile uses these non-IFRS financial information metrics to assess business performance and provide additional insights into the underlying performance of its operations. The non-IFRS financial information metrics in this announcement do not have standardised meaning under the Australian Accounting Standards and, as a result, may not be comparable to the corresponding metrics reported by other entities. Non-IFRS financial information should be considered in addition to, and not as a substitute for, financial information prepared in accordance with Australian Accounting Standards. Readers are cautioned not to place undue reliance on non-IFRS financial information cited in this announcement. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX 2#32023 First Half Financial Highlights Delivered continued profitability and cashflow to support future growth projects Highlights Revenue Gross Profit Sierra Rutile $108.3 million (HY22: $122.9 million) Underlying NPAT $28.2 million (HY22: $30.0 million) Net Cash from operating activities $7.0 million (HY22: $35.4 million) $30.5 million (HY22: $33.0 million) NPAT ($0.6m) million (HY22: $53.5 million) Net Cash at 30 June $32.7 million (HY22: $37.7 million) • • Solid financial performance despite weakening demand in pigment market, and power disruption in Q2 impacting production. Revenue down ~12% but gross profit down only 8%, reflecting focus on cost management. Underlying NPAT (excluding impairments/reversals) broadly in line with previous corresponding period. Cash generation from operations remained positive despite power disruption and inventory increases in Q2. Retained strong cash position to support Mogbwemo project once fiscal position clarified. • Decrease in cash was primarily due to $14.5 million capex (including $5.7 million on Sembehun DFS and ESHIA), versus $2.2 million capex in prior corresponding period. Note: All figures are in US$ unless otherwise noted Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX 3#42023 First Half Operational Highlights Delivered continued profitability and cashflow to support growth projects Highlights Sales Production ESG Sierra Rutile Volume 58 kt (HY22: 68 kt) • Rutile Price $1,457/t (HY22: $1,461/t) • Solid financial performance notwithstanding weaker demand seen in the pigment market • Increased customer diversification including sales into China. Volumes of rutile produced and sold fell by 20% and 15% respectively whilst the average price of rutile received remained stable. • Production 57 kt (HY22: 71 kt) • • Net Costs $1,111/t (HY22: $781/t) Production losses experienced in June due to power supply disruptions. Ongoing cost reduction efforts. Investment in inventories of intermediate products over the period (detail on following slide). . One of the largest private employers in Sierra Leone, training and employing over 2,200 local staff. Founded one of the best-equipped health clinics in the country. Rehabilitated ~809 hectares since 2016. On track to rehabilitate 280Ha for 2023. LTI frequency rate of 0.58 at 30 June. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX#5Inventories Significant asset able to be converted to cash as demand normalises GNN 55 US $m FINISHED GOODS 30 5 ווי Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 ORE STOCKPILES US $m 30 25 20 15 10 5322515 US $m HMC STOCKPILES 30 20 10 5 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Finished goods levels managed to meet sales demand. Deliberate building of ore stockpiles ahead of wet season to prevent inefficiencies encountered in 2022. Short term increase in heavy mineral concentrate (HMC) inventory as a result of power issues experienced at Mineral Separation Plant. Levels normalising during Q3 2023. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX Sierra Rutile 5#6Area 1 operation continuing to generate positive returns Funding mine life extensions and improved efficiency to support transition to Sembehun Sierra Rutile Ore mining increased year-on-year by 35% to prepare stockpiles for Q3 wet season with the Lanti mining area now also a load and haul operation. Pleasingly, the volume of ore feed increased by 9%, offsetting gradually declining rutile grades at Area 1 as it nears end of life. 2023 commenced in line with expectations but production was subsequently lost due to power supply issues in June when Heavy Mineral Concentrate (HMC) was stockpiled ahead of the MSP. Local Sierra Leone contractor, Mano Mining, was awarded the DM1/4 mining contract and commenced at site. Government of Sierra Leone is seeking to renegotiate the terms of the Area 1 fiscal regime set out in the Third Amendment Agreement. A A Third Amendment Agreement was central to ability of Sierra Rutile to continue operations at Area 1 prior to any development of Sembehun. Any changes to fiscal arrangements require Sierra Rutile's agreement, and dialogue commenced in Q3. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX DM4 WCP, Sierra Leone#7Area 1 growth opportunities Internal Mogbwemo Feasibility Study conducted Sierra Rutile has investigated the development of the Mogbwemo Tailings Project to reclaim waste tailings. A Project involves draining the Mogbwemo pond and mining 12.7Mt of tailings at 1.32% rutile. Work to date included spiral test work (3rd party and on-site plant scale), drilling and geological modelling, a tender for the design and supply of the plant, preliminary process engineering and flowsheet development and lowering of the Mogbwemo pond level. Mogbwemo offers the potential to reduce operating costs and increase mine life at Area 1. Capex of $20m to generate >40% incremental IRR. Timing of investment contingent on improved market conditions and satisfactory resolution regarding Third Amendment Agreement. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX Sierra Rutile Koppa Dam Embankment 7#8Outlook for Fundamentally Undersupplied Rutile Market Global rutile deficit supports Sembehun development Sierra Rutile A A Price falls have been seen since 30 June with western pigment producers experiencing TiO2 sales down nearly 30% YoY and operating production facilities at reduced rates. Sierra Rutile has reduced its 2023 production guidance to 124- 126kt rutile accordingly. Longer term global supply deficit anticipated as growing demand outstrips depleting global resources. Demand for Sierra Rutile's natural rutile supported by its high grade and low impurity characteristics. Chloride feedstock consumption for pigment anticipated to grow at CAGR of 4.4% from 2022 to 2025, compared to a -2.8% CAGR for sulphate feedstocks over the same period. Sierra Rutile will seek to leverage market presence and long and established relationships with all primary chloride-based titanium pigment manufacturers, and the world's largest producers of high-specification aircraft-quality (aerospace) titanium sponge. '000 Ti02 units Natural Rutile Supply Outlook¹ Global Rutile Supply 800 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022f 2023f 2024f 2025f 2026f Note: (1) Source = TZMI/SRL estimates Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX#9Unlocking Value With Sembehun Development Sierra Rutile Attractive development pathway, home to one of the largest and highest grade natural rutile deposits in the world Sembehun Location & Size A Aimed at extending Sierra Rutile's mine life by at least 13 years AND materially reducing operating costs. Increased throughput and by-product streams whilst leveraging existing Area 1 processing and export infrastructure, only 30 km away. In the period $5.7 million spent advancing the DFS, targeted to complete at the end of 2023. Customer sample testing validates product quality. 2022 PFS demonstrated 24% IRR (real post tax) based on $337m capex. Market testing for debt facility commenced. Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX 950000 000006 850000 700000 FREETOWN 750000 800000 ML2134 Sembehun Area Deposits ML2134 ML2134 Mine Area 1 Deposits HM Resources SR Mining Lease ML 2134 244453v02 850000 FREE TOWN MAR EXTENT FREETOWN AFRICA ML2134 N 0 20 1km WGS 1984 UTM Zone 28N 6#10Sembehun DFS Well Advanced On site activities complete Project Execution Financing Assessment PFS Complete 2022 2023 2024 2025 2026 Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX DFS Market Testing Term Sheets/DD Final Investment Decision Detail Engineering & Procurement Construction Commissioning Steady state production 2027+ Sembehun Timetable 10 Sierra Rutile#11Outlook The world's largest natural rutile producer positioned to deliver sustainable growth Sierra Rutile Short Term ▲ Reduced high-grade feedstock demand as European pigment producers continue to experience reduced demand. ▲ Sales plans moderated in response to lower pigment production. ▲ Production plans moderated to contain absolute costs. ▲ Negotiations with Government of Sierra Leone regarding Third Amendment Agreement. ▲ Potential to proceed with Mogbwemo tails project. ▲ Finalising Sembehun DFS workstreams by end of 2023. Medium Term ▲ Tight supply of natural rutile globally. ▲ Elevated energy costs supporting prices of competing products. ▲ Sembehun Financing/FID. ▲ Long term opportunity with Sembehun, expected to significantly extend mine life, while leveraging existing processing and logistics infrastructure. ▲ FY2023 Full Year Guidance: ▲ Production: 124kt-126kt of rutile ▲ Net Unit Cost: $990-1,055/t Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX Gabbon Wall and DM1 Conveyor Slab 11#12For more information contact Martin Alciaturi Finance Director [email protected] SIERRA RUTILE LIMITED Sierra Rutile 2023 Half Year Results Presentation | ASX: SRX Sierra Rutile 12