As a new resident of Sierra Leone, I have been grateful for the tremendous welcome that both my wife Staci and I have received from the people of Sierra Rutile and Sierra Leone. Equally gratifying has been the high esteem in which Sierra Rutile is held throughout the country. I only have to mention that I work for Sierra Rutile, or wear a Sierra Rutile shirt to be assured of a warm and enthusiastic welcome.

Sierra Rutile is respected nationally and internationally. The company has a great past and we have every reason to be excited about our outlook for an equally promising future. We are successfully transitioning from a strategy of dredge mining to one of dry mining, selling our products around the world, while earning the trust of our customers, the community and other stakeholders along the way. I am proud to have the opportunity to be a part of that.

This is the start of a new phase for all of us. We are emerging from the shadow of the Ebola epidemic. At the time of writing, I believe we will soon be counting down the 42 days we need to be declared o�cially Ebola free. We are working con�dently towards the launch of the �rst phase of the Gangama Dry Mine with �rst production due in June 2016 and other projects such as Sembehun are progressing as expected.

New beginnings bring with them new responsibilities. Sierra Rutile has a history of team work and corporate loyalty which I know we can count on as the Gangama project progresses. We will also need everyone’s commitment to ensure that the project progresses safely. We have a large number of new people on site. This will inevitably bring di�erent safety challenges and the personal input of us all to our own health and safety and that of our colleagues – both new and old - is critical.

We are approaching the end of the production year, and the potential to meet our annual targets safely is within sight. This is everyone’s responsibility for everyone’s bene�t. Desmond Williams and I have introduced some new initiatives, including bringing forward some of the higher grade deposit from the Gangama area. These have given a tremendous boost to production and our focus should now be on the safe achievement of our full-year rutile production guidance of 130,000 tonnes.

I am proud to have been involved in a number of mining start-ups, including the LionOre re�nery project for Tati Nickel in Botswana. I am excited to be able to share this experience with Sierra Rutile and equally honoured to learn from the experience, and commitment to quality and community of my new colleagues here. Sierra Rutile’s most important asset is the extensive knowledge, culture of professionalism and unwavering dedication of its highly-quali�ed, diverse sta�. I look forward to working with you all.

Wayne Venter

Message from Wayner Venter, HOO

SAFETY SCORE BOARD AS AT 31st July 2015

LOST TIME INJURY FREE DAYS 77

TARGET 250

PREVIOUS LOSS TIME INJURY (LTI) RECORD 433

FATAL INCIDENT FREE DAYS 420

INTERNAL NEWSVolume 4 Issue 7 2015

NEW BEGINNINGS BRING NEW RESPONSIBILITIES

In July we produced 9,939 mt of Rutile which was below budget, SGR product quality for the month was 94.3% TiO2

0Q3 Totals Jul Aug Sep

RUTI

LE, M

T

Actual Budget

25,000

20,000

5,000

10,000

15,000

30,000

2015 Q3 RUTILE PRODUCTION VERSUS BUDGET

STAY HEALTHY AND SAFE AT SIERRA RUTILE

Dos and don’ts of welding and cuttingWelding and cutting are jobs that enable us to get our work done. But these tasks also present many hazards. Among them are �re hazards, electrical hazards including the possibility of a fatal electrical shock, exposure to toxic fumes and gases, loud noises, burns to the skin, eye injuries resulting from burns or from particles that get into your eyes. It is important to always think about safety when you are welding or cutting. Failure to do so could result in serious injury or even death.

Do’s• Ensure all welding and cutting is done by thoroughly trained workmen.

• Ensure welders and helpers wear non-combustible helmets and gloves during welding operations.

• Wear clothing free from grease, gasoline, oil and other �ammable materials.

• Carry out all welding operations in a well ventilated space.

35,000

40,000

9,939 9,939

12,427 11,915 11,896

36,238

• Wear proper personal protective equipment in accordance with the job being performed. For example, appropriate eye protection, gloves, respirators, insulated mats used…etc.

• Establish procedures that require welders to cover metal with approved insulated mats or dry wood when lying to weld in con�ned areas.

• Handle compressed gas bottles with care. Be aware that compressed oxygen is �ammable and there is a high ignition potential if you are oily or grease covered.

Don’ts• Welding and cutting should not be done in the immediate proximity of �ammable materials.

• Do not keep the gas cylinder near the naked �ame and never lubricate its valve or other �ttings.

• Avoid whenever possible welding in a con�ned space.

• Do not weld while you are wet or standing in water.

SRL RE-STARTS INTERNAL COMMUNICATIONS BRIEFING FOR EMPLOYEES

The Ebola outbreak and consequent ban on public gatherings had put a temporary halt to Sierra Rutile’s monthly sta� communications meetings, but declining numbers of Ebola cases has been accompanied by an easing of restrictions and the company has restarted a scaled down version of the communications meeting.

Now being held in Kpanguma Dining Hall, with attendance limited to only 25 employees, the monthly meeting will operate on a shift basis, meaning that each department will send a di�erent representative each month.

Management use the meeting to explain company strategy and provide updates on the business and related developments, as well as discuss long and short term goals, and new initiatives. This is followed by a question and answer session with sta�.

SRL’s General Manager, Desmond Williams updated attendees on the company’s successes and challenges; and reminded sta� that we all still have to guard against complacency, despite the encouraging decline in EVD cases in Sierra Leone.

Volume 4 Issue 7 2015

Volume 4 Issue 7 2015

A MODERN-DAY MINERAL SEPARATION PLANT

The Mineral Separation Plant (MSP) at Sierra Rutile has a long and productive history with the company and its recent multi-million dollar upgrade ensures it will continue to serve the mine as it evolves and expands, meeting its processing requirements for the foreseeable future.

The MSP processes heavy mineral concentrate from the Dredge and Lanti Dry Mining Plant to produce rutile and Ilmenite products and a zircon-rich concentrate and is capable of producing 225,000 tonnes per annum of rutile. The mineral concentrate is separated into product streams by magnetic, electrostatic and gravity separation methods.

The plant’s upgrade increases processing �exibility so that we can always meet customer speci�cations for sulphur reduction, where required. It also includes a new Tailings Retreatment Circuit which can treat 100 metric tons per hour (MTPH) of tailings to produce 2-3 MTPH of rutile and 2.5 MTPH of ilmenite. The upgrade also ensures that additional feed from future production expansion projects can be easily accommodated and was an important component of Sierra Rutile’s strategy of expansion.

The two-year engineering project was worked on by a team of 80 technical experts. Top of the range parts, such as the Orekinetics separators, were �own or shipped in from all over the world - South Africa, USA, Australia, United Kingdom, Spain and Ghana. It included the installation of a Ball Mill (grinding device) and new �otation tank cells, new spirals, Orekinetics High Tension Roll Separators and the new Tailings Retreatment Circuit. Also important was the installation of a SCADA/PLC computer based control system which enables a complete view of the process �ow as well as vital information about each piece of equipment, all of which can now be stopped and started from the computer.

Sierra Rutile is committed to building a skilled national workforce and a tailored training course was organised for the company’s MSP Electrical and Instrumentation Superintendent in South Africa in SCADA/PLC use and maintenance. The SCADA/PLC operators were trained in the Lanti Dry Mining Plant where a SCADA/PLC system is already in use.

Commissioning of the Ball Mill will be completed shortly and Sierra Rutile’s upgraded MSP will con�dently deliver improved plant recoveries and grade. Osman Lawalli, MSP Manager, says: “This has been an exciting and challenging project. The upgrade to our Mineral Separation Plant will deliver outstanding results that will adapt to the meet the mine’s expanded processing needs.”

GANGAMA DRY MINE PROJECT UPDATE

This is the �rst of a series of monthly updates keeping you informed about the progress of The Gangama Dry Mine project. Gangama represents a massive $77 million investment in our operations and Sierra Leone. It will increase our production capacity, contribute to the sustainability of the mine and add value to our local communities and the country by creating more jobs locally, developing our skills base and generating more business for our suppliers.

Gangama will be developed in two phases, each capable of mining 500 tonnes per hour. Sierra Rutile’s board of directors has approved the $44 million budget for the �rst phase of the project.

Gangama Phase One is well underway. The EMV team have been heavily involved in the preparatory earthworks which started in 8 May 2015. Gangama Phase One is well underway. The EMV team have been heavily involved in the preparatory earthworks (excavating the earth and then back�lling) which started on 8 May 2015. DRA are the team of civil engineers who are managing the construction of Gangama. Under their supervision the EMV department has excavated a massive 32 000 cubic meters of earth and rocks. We are now reusing the earth by replacing it in layers and compacting it to form the plant terrace. In order to achieve the correct degree of compaction we have been fortunate to have the use of a Humboldt nuclear moisture and density gauge loaned to us by the civil contractor, WBHO in Freetown. In addition WBHO’s QC engineer provided training on the instrument to three SRL employees. The Humboldt is a specialist soil compaction measuring device which gives us the convenience of measuring the soil compaction on terrace, rather than having to take samples to a laboratory for analysis. The required compaction of >100% makes sure the terrace will be �rm enough to take the mass and vibration of the plant.

Recently o�ces have been erected on the construction site by a Freetown contractor. These o�ces will house all the construction admin for the project, after which they will be removed.

And behind the scenes, accommodation is being built, renovated and overhauled by two local contractors for the team of 75 contractors who will be on site working on the project. Five new houses are being constructed in South Spur together with a laundry and bar. The existing 10 prefabs are being fully renovated and the condemned BQ block at Mobimbi rebuilt.

GANGAMA PHASE ONE BY NUMBERS:

• 32 000 cubic meters of material excavated• 5 new 3 bedroom houses at South Spur• 10 renovated South Spur Houses• 14 new BQs

Volume 4 Issue 7 2015

42 DAY COUNTDOWN BUT VIGILANCE AGAINST EBOLA MUST CONTINUE

Sierra Leone is working towards becoming Ebola free. With each day, we come closer to our target. There have been some false starts and the country has learnt lessons from each of them.

Even when we reach zero, the authorities know that there is a high risk that more case could emerge. It as as Sierra Leone's National Ebola Response Center OB Sisay says: "The job is far from over."

Peter Kamuray, HR Operations Manager advises that the company’s Ebola response e�orts will continue: “The risk is de�nitely not over. So we need now to continue to work together and with the communities, to make sure that that we will be able to identify and contain any potential Ebola cases. We also have to maintain our individual e�orts against the disease. Relaxing into complacency at this critical stage could undo all the good work to date.”

Over the course of the epidemic, Sierra Rutile and its shareholders have donated US$487,000 to the GOSL and associated charities for Ebola prevention and control, and in June donated an additional Le36 million to Moyamba and Bonthe Districts to boost the work of the Ebola checkpoints.

The company has also maintained a regular programme of sensitisation and information sharing on the virus, alongside daily community temperature screening and surveillance, and recently increased these activities when news of the Gangama dry mine project brought an in�ux of job seekers into SRL’s mining communities.

PREVENTION IS BETTER THAN CURE - SAYS SRL CLINIC

“Prevention is better than cure” says the team at Sierra Rutile’s clinic who have instituted a campaign of health awareness among employees, most notably the Health Walk on two Saturdays a month, complemented by Health Talks on di�erent topics throughout the month.

The clinic’s Dr. Neneh Barrie is one of the pioneers of the Health Walk. She explains that “30 minutes of brisk walking helps keep weight down and regulates the heartbeat, and so reduces the chances of hypertension”.

The Health Talks cover relevant health issues. Key topics include hypertension, diabetes, alcohol, obesity, hepatitis, cholesterol, prostate cancer and diet, among others.