Sierra Rutile Limited Appoints Strategic Review Consultants

Sierra Rutile Limited is pleased to announce the appointment today of a consortium of experienced consultants headed by the Snowden Group, and including CPG Resources – Mineral Technologies and Titan Salvage, to conduct an extensive study of options to optimize and expand the operations of Sierra Rutile.

Building on the progress of the first phase of the ongoing strategic review, the focus of the study will be on the expansion of Sierra Rutile’s production of rutile, ilmenite and zircon concentrate and the introduction of new products. The studies are expected to be finalized in Q4 2011. Options that will be studied include:

• The rehabilitation of capsized Dredge 2;

• Completion of the partially-built Dredge 3 or construction of a new dredge;

• The potential to supplement production through the dry mining of small, high-grade pockets of the deposit;

• The mining of historic tailings that, due to inefficiencies in processing techniques, still contain relatively high grades of rutile;

• On-stream processing of zircon to a finished or semi-finished product compared to the current batch-produced concentrate;

• Separation and recovery of rare earth oxides contained in rutile and ilmenite tailings; and

• Upgrade to the mineral separation plant to match increased production volumes.

The studies will provide a focus for prioritisation, development and engineering to the specific areas of the study. The Company has identified a number of areas within the study scope that it believes have the potential to provide near-term value and could be fast-tracked within the overall scope of the project.

John Sisay, Chief Executive Officer, commented:

“We continue to progress our strategic review and expect that the technical studies announced today will provide us with a clear and comprehensive plan for the redevelopment of Sierra Rutile. Whilst the significant potential for Sierra Rutile to become a leading minerals producer is apparent, we are adopting a methodical approach focused on sound planning and risk management to ensure we deliver long-term value to all our stakeholders. I look forward to reporting on the progress of these studies later in the year.”

[mappress]

Source: sierra-rutile, May 11, 2011;