Statement by Tronox Limited Regarding Tronox vs. Anadarko Settlement

     Statement by Tronox Limited Regarding Tronox vs. Anadarko Settlement

Tronox to Receive $5.15 Billion Dollar Tax Benefit

Total Tax shield now estimated to be $10.15 billion

PR Newswire

STAMFORD, Conn., April 3, 2014

STAMFORD, Conn., April 3, 2014 /PRNewswire/ --Tronox Limited (NYSE: TROX)
today issued the following statement in response to the settlement announced
in the U.S. federal bankruptcy court case Tronox Incorporated vs. Anadarko
Petroleum Corp.:

"Tronox is pleased that the environmental and tort trusts and Anadarko
Petroleum were able to have reached a settlement in this important case. As a
result of this accord, the cleanup of the Kerr-McGee legacy environmental
damages can begin and people injured by those actions can finally be
compensated. Tronox does not receive any portion of the $5.15 billion
settlement amount. However, for Tronox this settlement has significant
economic value, as the company should receive billions of dollars in U.S.
federal income tax deductions as the money is spent by the trusts," said
Tronox Chairman & CEO Tom Casey.

Tronox Limited

"The tort trust for the civil suits is entitled to receive 12 percent of the
$5.15 billion settlement. Although we have no control over it, we would
anticipate that these funds will be spent very soon after the trust is
funded. We feel that the majority of the settlement funds earmarked for
environmental claims will be spent by the trusts over a multiyear period. All
of the trusts involved in this litigation are considered grantor trusts for
federal income tax purposes, therefore in every year that the trusts spend the
money they received in this settlement, Tronox should receive a tax deduction
for the same amount," Casey added.

"We have roughly $1.4 billion of cash on our balance sheet. And, as I
discussed in our last earnings call, we now have approximately $10.15 billion
gross U.S. and foreign tax attributes. In addition to the tax benefits
resulting from the Anadarko settlement, Tronox currently holds tax loss
carry-forwards totaling $3 billion of federal, state and foreign net operating
losses -- U.S. federal Net Operating Losses of $1.2 billion, U.S. state Net
Operating Losses of $1.4 billion and foreign jurisdictions Net Operating
Losses of $600 million.

Tronox also holds interest expense deductions of $2 billion resulting from
U.S. borrowing activity. These deductions can be taken over a ten-year period
subject to an annual taxable income limitation of $200 million with unlimited
carry forward of interest disallowance due to taxable income. We believe
these attributes position us for growth since we can produce more cash from an
earnings stream than any party that does not have these substantial tax
attributes," Casey concluded.

Background
Tronox was spun off from Kerr-McGee in 2005 and at that time Kerr-McGee
stripped Tronox of assets that left it without the financial capability to
settle its environmental liabilities.

As a result, the company declared bankruptcy in Jan. 2009. As part of its
bankruptcy proceedings, Tronox, along with the United States Government, filed
suit against Kerr-McGee (subsequently Anadarko, which acquired Kerr-McGee).
That lawsuit is the basis of this settlement.

The bankruptcy settlement, including the transfer of the lawsuit to the
trusts, allowed Tronox to emerge from bankruptcy as a reorganized company,
free of these legacy liabilities, and to become a global leader in the mining
and processing of titanium ore and other important minerals and the production
of titanium dioxide, a pigment used in everyday life by consumers and
industries around the world. The company is steadfastly committed to
environmental stewardship and sustainability in all aspects of its business
operations.

For more information about Tronox, visit http://www.tronox.com.

Forward Looking Statements
Statements in this release that are not historical are forward-looking
statements within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based upon management's
current beliefs and expectations and are subject to uncertainty and changes in
circumstances and contain words such as "believe," "intended," "expect," and
"anticipate" and include statements about expectations for future results
including revenues. The forward-looking statements involve risks that may
affect the company's operations, markets, products, services, prices and other
risk factors discussed in the company's filings with the Securities and
Exchange Commission (SEC), including those under the heading entitled "Risk
Factors" in our Annual Report on Form 10-K for the year ended December 31,
2013. Significant risks and uncertainties may relate to, but are not limited
to, our ability to integrate the recently acquired mineral sands business
including achieving the expected cost savings; financial, economic,
competitive, environmental, political, legal regulatory and technological
factors including, our access to unrestricted cash, compliance with our bank
facility covenants, the price of our shares, general market conditions, our
customers potentially reducing their demand for our products due to, among
other things, the economic downturn, more competitive pricing from our
competitors, increased supply from our competitors; operating efficiencies and
other benefits expected. Unless otherwise required by applicable laws, the
company undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information or future developments.

Media Contact: Bud Grebey
bud.grebey@tronox.com
Direct: +1.203.705.3721

Investor Contact: Brennen Arndt
Direct: +1.203.705.3722

Logo - http://photos.prnewswire.com/prnh/20131106/DA11850LOGO

SOURCE Tronox Limited

Website: http://www.tronox.com
 
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