Corporate Presentation January 2019
COMPETENT PERSONS STATEMENT FOR MUGA POTASH PROJECT This update was prepared by Mr Peter Albert, Managing Director of Highfield Resources. The information in this update that relates to Ore Reserves is based on information prepared by Dr Mike Armitage, the Chairman of SRK Consulting (UK) Limited. Dr Mike Armitage is the Competent Person who assumes overall professional responsibility for the Compliance Opinion. The information in this update that relates to Mineral Resources, Exploration Results and Exploration Targets is based on information prepared by Ms Anna Fardell, Senior Consultant at SRK Consulting (UK) Limited, and Mr Tim Lucks Principal Consultant at SRK Consulting (UK) Limited. Dr Mike Armitage is employed by SRK Consulting (UK) Limited. The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled under the direction of Dr Mike Armitage, who is a Member the Institute of Materials, Metals and Mining (“IMMM”) which is a ‘Recognised Overseas Professional Organisation’ (“ROPO”) included in a list promulgated by the Australian Securities Exchange (“ASX”) from time to time. Dr Mike Armitage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ . Dr Mike Armitage consents to the inclusion in this update of the matters based on this information in the form and context in which it appears. Ms Anna Fardell is a Resource Geologist employed by SRK Consulting (UK) Limited, and has at least five years’ experience in estimating and reporting Mineral Resources relevant to the style of mineralisation and type of deposit described herein. Ms Fardell is a registered member of the Australian Institute of Geoscientists (6555) and considered a Competent Person (CP) under the definitions and standards described in the JORC Code 2012. Ms Fardell takes responsibility for the Mineral Resource Statement presented here. Ms Anna Fardell consents to the inclusion in this update of the matters based on their information in the form and context in which it appears. COMPETENT PERSONS STATEMENT FOR MINERAL RESOURCES AND EXPLORATION TARGETS OTHER THAN THE MUGA POTASH PROJECT This update was prepared by Mr. Peter Albert, Managing Director of Highfield Resources. The information in this update that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on information prepared by Mr José Antonio Zuazo Osinaga, Technical Director of CRN, S.A.; and Mr Manuel Jesús Gonzalez Roldan, Geologist of CRN, S.A. Mr José Antonio Zuazo Osinaga is a licensed professional geologist in Spain, and is a registered member of the European Federation of Geologists, an accredited organisation to which Competent Persons (CP) under JORC 2012 Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, Ore Reserves or Exploration Targets through the ASX. Mr José Antonio Zuazo Osinaga has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as CP as defined in the 2012 edition of the JORC Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. José Antonio Zuazo Osinaga and Mr. Manuel Jesús Gonzalez Roldan consent to the inclusion in this update of the matters based on their information in the form and context in which it appears. FORWARD LOOKING STATEMENTS This presentation includes certain ‘forward looking statements’ . All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not assume any obligation to update any forward looking statement. 2 Corporate Presentation
Highfield Resources Limited CONTENTS Vision and Core Values 1. Corporate Summary 2. Muga Mine Competitive Advantages 3. Board and Senior Management 4. Muga Project and Permitting Progress to Date 5. Muga’s Strategic Location 6. Timeline to Production and Key Milestones 7. Muga’s Competitive Position 8. Favourable Local Environment 9. Environmental and Social Focus 10. Potash Market Overview 11. Upside Potential 12. Summary 13. 3 Corporate Presentation
Highfield Resources ’ Vision and Core Values “To build a successful, sustainable, potash business with respect for stakeholders and the environment” Commitment Respect We are committed to best practices in To act and communicate health and safety, the environment, collaboratively with transparency, and the communities in which we sincerity and an understanding of operate. cultural diversity. Excellence Attitude We are committed to best practices in To uphold the highest standards in health and safety, the environment, regards to ethical performance, and the communities in which we honesty, integrity, fairness and equality operate. with all stakeholders. 4 Corporate Presentation
Corporate Summary Equity Ordinary Shares in Issue 329.5m Options 43.7m Fully Diluted 373.2m Undiluted Market Cap at A$0.64 (29/01/2018) A$210.9m Cash as at 31 December 2018 A$55.2m Enterprise Value A$155.7m / EUR€97.5m Average Daily Volume (6 months) ~190,000 Shareholders (Fully Diluted) Spanish in-country management 4% Board 4% EMR Capital 28% Other Shareholders 64% Total 100% 5 Corporate Presentation
Muga Mine Competitive Advantages Muga Project Update Confirms Commercial Potential Favourable Environment C1 cash costs of €104/t, including salt by -product credit Well advanced permitting approvals and strong community support NPV 8 of €1.16 billion, IRR 23% Qualified and available local labour market addressing EBITDA of €300 million per annum at full production depopulation challenges Conventional Mining and Processing Proximity to Markets First Class Infrastructure Decline access to shallow mineralisation Located in a potash consuming region Direct connection to national Underground Room and Pillar mining electricity grid Good access to the large Brazilian, No aquifers Close to ports and access to road North African and US markets Flotation and small crystalliser systems 6 Corporate Presentation
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