ERA Q4 operations review

Rio Tinto PLC
15 January 2008



Energy Resources of Australia Ltd - Fourth Quarter Operations Review (unaudited)



15 December 2007

Ranger

                                    Q4 07        vs Q4 06     vs Q3 07      12 mths 07      vs 12 mths 06
Ore Mined (tonnes)                 764,372         -51%         +9%         2,926,950            -11%
Ore Milled (tonnes)                484,333         -13%         +1%         1,924,427            -7%
Mill Head Grade (%)                  0.36          +5%          +16%           0.31              +23%
Mill Recovery (%)                    89.2          +2%          +1%            88.2              +1%
Production - U3O8                                  -7%          +14%                             +14%

- tonnes                            1,553                                     5,412
- 000 lbs                           3,423                                     11,931


Improved operational performance and an increase in grade of ore mined resulted
in full year production in 2007 of 5,412 tonnes, 14 per cent higher than 2006.
The 2007 annual  production is the second highest annual production on record
for the Ranger mine.


The exceptionally heavy rainfall at the Ranger mine in the March quarter of 2007
resulted in an elevated water level in the operational pit, preventing access to
higher grade ore. ERA successfully deployed a number of strategies to increase
the rate of water removal from the operational pit.  This resulted in an
increase in the grade of ore as the higher grade was located towards the bottom
the pit.



Drummed production of 1,553 tonnes of uranium oxide in the fourth quarter of
2007 was 14 per cent higher than the third quarter of 2007 due largely to the
higher mill head grade.  This was a result of the higher grade ore mined in the
bottom of the pit. Ore milled was one per cent higher than in the third quarter
of 2007.



Ore mined was nine per cent higher than in the third quarter of 2007 as a result
of improved access due to the lowering of water levels in the pit.  The pit was
essentially emptied of water in November. Mining is now focused on stockpiling
sufficient ore to lessen the impact on future production should the wet season
be unusually heavy.



ERA met all delivery commitments by the end of 2007 resulting in sales of 5,324
tonnes (2006: 5,760 tonnes). Force majeure, declared after the February/March
weather event, has now been lifted.  Subject to experiencing a normal wet
season, production should be restored to more normal levels in 2008.



ERA's average contractual sales price is only partially influenced by the spot
market due to the portfolio of contracts containing a range of pricing
mechanisms entered into when the uranium oxide market was considerably weaker.
The spot market price at the end of December was US$89.50 per pound (December
2006: US$72.00 per pound). The average realised sales price of uranium oxide for
the year was US$25.06 per pound (2006: US$18.36/lb per pound).



Exploration and evaluation



During the quarter, the exploration and evaluation program focused on infill
drilling to support the previously announced pre-feasibility study (PFS).
Expenditure on exploration and evaluation for 2007 was $14.1 million (2006: $7.2
million), including $4.6 million in the fourth quarter. Exploration during the
fourth quarter focused on the evaluation of the uranium resource contained
within the carbonate hosted Lower Mine Sequence (LMS) below the current Ranger
Pit 3 final pit shell. This drilling will form the basis of ongoing studies into
the first quarter of 2008.

Vicinity of Ranger's current operating pit



Ranger 3 mineralisation is known to extend 'down dip' to the east of the current
pit and has been the focus of exploration efforts in previous quarters. In the
fourth quarter, the emphasis of the drilling program shifted to the location of
current pit operations in order to test the LMS hosted uranium mineralisation.
Both areas of mineralisation have potential to be exploited with further
expansions to mining operations.

Figure 1 shows the location of all holes drilled in 2006 and 2007. A total of 66
holes were completed during the quarter in the vicinity of the current pit for a
total of 16,281metres (10,571 metres RC metres and 5,710 diamond drilled
metres).

Figure 1: Ranger 3 drilling locations



(see www.riotinto.com for images)



Table 1: Significant intersects in the PFS Area


                   Depth (m)        Interval
Hole ID          From        To        (m)     %eU3O8
  S3PD771         51         57         6          0.26
  S3PD795        251        262        11          0.49
    893           39         50        11          0.13
    893           77         84         7          0.25
    893           87         92         5          0.38
    893          203        217        14          0.12
    893          250        268        18          0.16
    896           58         76        18          0.10
    896          264        281        17          0.25
    901           0          5          5          0.38
    901           81         92        11          0.16
    901           96        111        15          0.33
    901          322        329         7          0.28
    907          330        336         6          1.44
    908          136        147        11          0.20



Note: All intersections were determined using a 0.08% U3O8 cut-off at a minimum
five metres composite, including a maximum of two metres of non mineralised
internal material. Intersections are down-hole lengths and the true width of the
intersections has not been calculated



At Ranger 3, extensive reinterpretation of the deposit geology has highlighted
the potential for significant mineralisation to occur at depth, north of the
previously drilled Ranger 3 Deeps holes. Several historic holes drilled in this
area returned intercepts of up to 13m with grades to 0.55% U3O8. After the
completion of the PFS drilling, the focus of exploration in 2008 will move to
this zone.

Ranger Project Area Lease Exploration

During the quarter, studies have indicated that the application of the seismic
modelling technique has the potential to detect structures that control and host
uranium mineralisation. Orientation surveys are currently planned at Ranger 3 to
confirm the modelling results and refine the technique. If successful, seismic
surveys will be applied at Ranger 18 East and other prospective areas within the
RPA to focus the 2008 drilling programs more effectively.



About Rio Tinto



Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which
is listed on the Australian Securities Exchange.



Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.







For further information, please contact:

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Website: www.riotinto.com   and    www.energyres.com.au
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