Highfield Resources LtdUtopia in Potash

RFC Ambrian Potash and Phosphate Day

1 December 2014For

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COMPETENT PERSON STATEMENT

Information relating to resources was prepared by Mr Leo Gilbride, P.Eng andMs Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person underJORC Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo.of Agapito Associates of Colorado, USA. Mr Gilbride is a licensed professionalengineer in the State of Colorado, USA and is a registered member of theSociety of Mining, Metallurgy and Exploration Inc. Ms Santos is a licensedprofessional geologist in South Carolina and Georgia, USA, and is a registeredmember of the Society of Mining, Metallurgy and Exploration Inc.

The Society of Mining, Metallurgy and Exploration Inc is a JORC Code‘Recognized Professional Organization’ (RPO). An RPO is an accreditedorganization of which the Competent Person under JORC Code ReportingStandards must belong in order to report Exploration Results, MineralResources, or Ore Reserves through the ASX. Mr Gilbride is the Vice Presidentof Engineering and Field Services and Ms Santos is the Chief Geologist withAgapito Associates and both have sufficient experience to qualify as aCompetent Person for the relevant style and type of mineralisation and depositunder consideration of this release. Mr Gilbride and Ms Santos consent to theinclusion in the report of the matters based on this information in the form andcontext 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 thatinvolve various risks and uncertainties. There can be no assurances that suchstatements will prove accurate, and actual results and future events coulddiffer materially from those anticipated in such statements.

Such information contained herein represents management’s best judgment asof the date hereof based on information currently available. The company doesnot assume any obligation to update any forward looking statement.F

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Highfield Resources LtdUtopia in Potash

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CONTENTSSection 1 – Background

Global fertiliser marketPotash 101Highfield Resources – Corporate snapshotHighfield Resources – Project mapHFR – Muga-Vipasca Pre-Feasibility Study

Section 2 – Utopia in PoashGeological setting and mineralogyInfrastructure and locationGlobal project comparison

Section 3 – What does it mean?

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Global fertiliser market – K is key to participation in a $200bn market

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Source: IFA Fertilizers Global Supply 2014 – 2018, Ceresana

N153Mt

P47Mt

K70Mt

Specialty90Mt

World Fertiliser supply breakdown - 2014

Marketconcentration

Barriers to entry (capexand mineable resources)

High

Medium

Low*

* Noting this is relative as the fertiliser market generally has highbarriers to entry

K K

P P

N N

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What is Potash?

Also know as Muriate of Potash (MOP) or potassium chloride (KCl)

Most common method of providing potassium to crops

Over 95% of production is destined for use in fertilisers

Supply/Demand

Global consumption of MOP currently ≈ 60m tpa

Expected to trend upwards as population grows and hence food demand grows

Different views on production capacity but most believe there is a capacity gap beyond 2020

Potash 101

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Source: Integer’s Outlook for Potash, Edition 4 (Oct 2014)

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Corporate Snapshot

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Fully Diluted EquityOrdinary Shares on Issue 200.50m

Options 39.25m

Performance A* Shares 51.50m

Performance B* Shares 51.50m

Fully Diluted 342.75m

Undiluted Market Cap at 60c $120m

Fully Diluted Market Cap at 60c $206m

Cash as at 30 September 2014 ~A$30m

Average Daily Volume (6 months) ~325,000

Shareholders (Fully Diluted)

Spanish in-country management 21%

Australian based management 8%

EMR Capital 20%

Other Shareholders 51%

Total 100%

* Performance shares were granted for acquisition of the Spanish assets with the following milestones

A. JORC Indicated Resource of 150m tonnes at 13% K20 (20.6% KCl); andB. Construction and operating approvals for production of 500,000 tonnes of

potash per annum.

Broker Recommendation 12-month Price Target

Bell Potter BUY $0.90

Canaccord Genuity BUY $0.98

Foster Stockbroking BUY $1.35

GMP Securities BUY $0.94

Numis Securities BUY $2.20

Taylor Collison BUY $1.18

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Nov-09 Feb-10 May-10 Aug-10 Nov-10

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Project map

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0 5 10km

15 20

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Highfield - Muga-Vipasca Pre-Feasibility Study

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• Post tax NPV10 of US$1.06bn

• Post tax, unlevered IRR of 48.4%

• EBITDA in first year of full production estimated at $US235m

• Initial 20 year mine life at an average of 860k tonnes of potash (K60 product) per annum

• Pre-production capital cost estimated at less than US$250m (from total capital cost estimate of US$307.9m)

• All in cash costs to port of Bilbao of US$145 per tonne.

• Total C3 costs of US$162 per tonne

• 2016 FOB Vancouver potash price reference of $384 per tonne (nominal)

ASX Release 20 May 2014

Underground mine accessed via a decline supported by first world infrastructure and domestic markets

Virtual image of proposed mining operations

Port of BilbaoHighway between Sangüesa and Pamplona

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Utopia in Potash – Geological setting and mineralogy

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Criteria Utopia is Utopia means

Depth Shallow depth from surface: less than 500m but deep enough to enable conventional mining

Decline access or shallow, low cost shaft

Water Absence of aquifers and rivers above mineralisation No expensive shafts through aquifers or water leaking into mines

Mining horizon Thick, continuous beds of sylvinite Efficient, highly mechanised mining

Mining method Underground conventional mining Lower opex, capex and sustaining capital with higher extraction ratios

Evaporite geology Continuous evaporite, minimal faulting, horizontalbeds with minimal folding

Lower opex, capex and sustaining capital with higher extraction ratios

Net grade High grade sylvinite and high recovery rates Lower mining and processing costs

Scale Deposits facilitating annual production of 2m tpa or greater Positive economies of scale

Ease of processing Minimal magnesium, sulphur and insolubles, with coarse grains and limited incursions into KCl grains

Lower processing costs and simpleflotation circuitsF

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Utopia in Potash – Infrastructure and location

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Criteria Utopia is Utopia means

Utilities Proximity to, quality and reliability of electricity, gas and water networks Lower capex and lower opex

Energy cost Cost of energy at the lower end of global pricing scale Lower opex

Labour Access to qualified, experienced and economical workforce Low cost mining and processing

Logistics High quality roads, rail and ports with available capacity, in close proximity to operations

Minimised transport-related capexand opex

Geopolitical profile Stable, transparent and favourable jurisdiction Access to more sources cost of capital at a lower cost

Tax regime Low corporate tax rate, mining tax incentives and low royalty rates

Higher net margins and more robust economics

By-product credits Ability to monetise by-products Additional margin

Addressable markets

Proximity to multiple sources of significant demand paying relatively higher prices

Maximised margin and consistent demandF

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Company Highfield Intrepid PotashCorp Mosaic Belaruskali Uralkali ICL

Project Muga Carlsbad West Lanigan Belle Plaine Soligorsk III Bereznikl IV Suria

Location Spain USA Canada Canada Belarus Russia Spain

Mining method1 Conventional Conventional Conventional Solution Conventional Conventional Conventional

Access1 Decline Shaft Shaft N/A Shaft Shaft Decline / Shaft

Scale1 0.9 mtpa 0.4 mtpa 2.5 mtpa 2.8 mtpa 2.3 mtpa 3.0 mtpa 0.8 mtpa

Geo

logi

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ettin

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d m

iner

alog

y Depth ++ + = = + + ++

Water ++ = = = - - =

Mining horizon + = ++ ++ + + +

Mining method

Evaporite geology

Net grade + - ++ ++ + + +

Scale + = ++ ++ + ++ +

Ease of Processing + + + = + + +

Infr

astr

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Utilities ++ + = = + + ++

Energy cost = + + + ++ ++ =

Labour ++ + + + ++ ++ ++

Logistics ++ ++ = = = = ++

Loca

tion

Geopolitical profile ++ ++ ++ ++ - - ++

Tax regime ++ - - - = = ++

By-product credits + = = = = +

Addressable markets ++ ++ - - = = ++

- Most favourable - Least favourableTable based on Highfield assessment

1) Company information 11

Project comparison

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$(95)$(63) $(67)

$(215)

$(80)

$(35)$(43) $(45)

$(40)

$(58)$(9) $(37) $(10)

$(15)

$(36)$(21)

$(14)

$(40)$(13) $(19) $(11)

$(33)

$(25)

$228 $188

$156 $108

$71

$(400)

$(300)

$(200)

$(100)

$-

$100

$200

$300

Operating Costs Freight Costs Sustaining Capital Royalties Corporate SG&A EBITDA Margin

What does it mean?

Source: Street research, Company reports and HFR estimates* Under development

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Estimateddelivered

cost to customer

(US$ / tonne)

EstimatedEBITDA margin

(US$ / tonne)

Project Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy*

Price at Customer

CFR Brazil / CIF NW EuropeUS$380 / tonne

SE Asia / Brazil / EuropeUS$350 / tonne

FOB VancouverUS$310 / tonne

CIF US MidwestUS$450 / tonne

FOB VancouverUS$310 / tonne

US$152 US$162 US$154

US$317

US$239

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REGISTERED OFFICE

169 Fullarton RoadDulwich SA 5065

Australia

HEAD OFFICE

Avenida Carlos III, 13-15, 1B, 31002 Pamplona, SpainT +34 948 050 577 | F +34 948 050 578

www.highfieldresources.com.auinfo@highfieldresources.com.au

FURTHER INFORMATION

Anthony Hall Managing Director T +34 617 872 100John Claverley General Manager T +34 607 748 435

Hayden Locke Coporate Development T +34 609 811 257For

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