SRX.L Regulatory News (SRX)

Sierra Rutile Limited

Grant of Exploration Licences

London, UK, 1 March 2013: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to announce the approval by the Sierra Leone Ministry of Mineral Resources of two Exploration Licences adjacent to its current mining licence, Area 1.

Exploration Licences

Sierra Rutile has been granted Exploration Licences over the Jagbwema deposit, located immediately south-east of Area 1, and the Gbangbaia deposit immediately west of Area 1. These licences are in addition to the Semabu Exploration Licence granted in August 2012, which is located approximately 7 km to the south-east of the Area 1 mining licence.

The Jagbwema, Gbangbaia and Semabu Exploration Licences cover areas of 109.2 km2, 104.9 km2 and 189.2 km2, respectively. The Jagbwema and Gbangbaia deposits were previously investigated by Sierra Rutile during 2011 and 2012 under reconnaissance licences, with sufficient levels of heavy mineral mineralisation found to warrant a full exploration programme on each.

This announcement with a map of the Exploration Licences areas can be viewed on Sierra Rutile's website at:

www.sierra-rutile.com/uploads/explorationlicencespressrelease.pdf.

Exploration Capacity Increase

Sierra Rutile also is pleased to announce the purchase of an additional three drill rigs, thereby increasing its annual exploration capacity to more than 50,000 metres. Sierra Rutile's laboratory has also been expanded to complement the exploration upgrade, with a second X-Ray Fluorescence Analyser and supporting sample preparation equipment which were commissioned in October 2012.

Exploration Programme

Sierra Rutile will commence with a phased exploration programme and mineral resource evaluation across all three Exploration Licences areas during 2013 for which the total cost of this project is estimated to be approximately US$1.5 million. Sierra Rutile will provide further updates on these projects as and when appropriate.

Commenting on the Exploration Licence approval, John Sisay, Chief Executive Officer of Sierra Rutile, said: "These new Exploration Licences provide Sierra Rutile with a great opportunity to expand our already world-class deposit"

For Further Information:

Notes to Editors

About Sierra Rutile Limited

Sierra Rutile produces titanium feedstock industrial minerals (primarily rutile, with some associated ilmenite), as well as smaller quantities of zircon. Sierra Rutile's mine, located in the south west of Sierra Leone, is one of the largest natural rutile deposits in the world, with a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 600 million tonnes (as at February 2011).

www.sierra-rutile.com