Rio Tinto's shares in Ashton Mining of Canada taken up by Stornoway Diamond

20 September 2006

Rio Tinto has been advised by Stornoway Diamond Corporation ("Stornoway") that Rio Tinto's shares in Ashton Mining of Canada Inc. ("Ashton") have been taken up by Stornoway under its take-over bid for Ashton. Rio Tinto (through both Ashton Canada Pty. Limited ("ACPL"), an indirect, wholly-owned subsidiary of Rio Tinto Limited, and QIT-Fer et Titane Inc. ("QIT"), an indirect, wholly-owned subsidiary of Rio Tinto plc), had held 49,037,982 common shares of Ashton, representing approximately 51.7 per cent of Ashton's issued and outstanding common shares.

Under the Stornoway bid, ACPL and QIT will receive in exchange for their Ashton shares cash totaling approximately C$29.6 million (approximately US$26.1 million) and approximately 25.6 million Stornoway common shares. Rio Tinto has been advised by Stornoway that upon payment for all shares taken up on September 18, 2006 under the bid and completion of certain related transactions by Stornoway, Rio Tinto will hold approximately 17.7 per cent of Stornoway's issued and outstanding common shares.

Rio Tinto has no present intention of acquiring other securities of Stornoway or of disposing of any of the securities of Stornoway which it holds. Depending upon its evaluation of Stornoway's business, prospects and financial condition, the market for Stornoway's securities, general economic conditions and other factors, Rio Tinto may acquire additional securities of Stornoway or sell some or all of the securities it holds.