Sydney, Feb 1, 2006 (ABN Newswire) - Iluka Resources Limited (ASX: ILU) advises that the media release issued today by Downer EDI Limited ("Clarification of Statements by Iluka Resources Limited Re: Contract Dispute Concerning Douglas Mineral Sands Project") does not represent a clarification of Iluka's position.

Specifically, the Downer EDI media release contains several significant factual inaccuracies along with legal errors and omissions. These matters have been addressed today in a detailed and factual response to Downer EDI.

Iluka remains very confident of its contractual position and believes the contract resolution procedures will endorse the rejection of claims as stated in Iluka's release of 30 January 2006.

Iluka has considered it necessary to make this statement to ensure the market is accurately informed of Iluka's position on this matter.