HIGHFIELD RESOURCES LIMITED — AGM Information 2019

May 22, 2019

==> picture [354 x 452] intentionally omitted <==

==> picture [428 x 339] intentionally omitted <==

AGM Presentation May 2019

==> picture [781 x 56] intentionally omitted <==

==> picture [345 x 307] intentionally omitted <==

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.

Highfield Resources overview

• Muga Mine will be a high margin potash mine located favourably for premium local Southern European market and international export, in a commodity vital to sustaining food supply to a growing global population

==> picture [152 x 35] intentionally omitted <==

----- Start of picture text -----

Muga is our flagship
project
----- End of picture text -----

==> picture [228 x 35] intentionally omitted <==

----- Start of picture text -----

All executive team based in Pamplona
near the Muga Project site
----- End of picture text -----

• Key significant shareholders EMR Capital and Australian Super

• Cash as at 31 March 2019 of A$50.2m

The Muga Mine will be one of only two potash mines in the premium Southern European market

The Muga Mine – Environmental Approval

==> picture [73 x 29] intentionally omitted <==

Recent achievement

• All work, reports and submissions in relation to the Environmental Approval completed

• Continuous dialogue with the Environmental Authority in recent weeks, multiple meetings and exchanges of information

• Advice from the authority is that the Company has provided all that is required and that it is finalising the determination and the conditions that would come with the environmental permit.

Next steps

At full production the mine will be producing 1Mtpa in a global market of around 65Mtpa

Potash demand steadily increasing

to 22% increase in global demand since 2012

==> picture [678 x 293] intentionally omitted <==

----- Start of picture text -----

70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2012 2013 2014 2015 2016 2017 2018
Africa & Middle East Europe Other Latin America & Caribbean Brazil
North America Other Asia & Oceania China India
FSU Other
----- End of picture text -----

Source: Argus Media, Highfield Resources

The future for potash demand looks positive

Crop production and population growth

==> picture [677 x 408] intentionally omitted <==

----- Start of picture text -----

2.0 10.0
1.8 9.0
1.6 8.0
1.4 7.0
1.2 6.0
1.0 5.0
0.8 The consensus view of potash market 4.0
0.6 3.0
0.4 2.0
analysts is around 2.5% growth p.a.
0.2 1.0
0.0 0.0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Crop Production Global Population
Source: Food and Agriculture Organization of the UN
Arable land (hectare per person)
0.24
0.23
0.22
0.21
0.2
0.19
0.18
0.17
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: The World Bank
Billion
Billions of tonnes
----- End of picture text -----

Arable land (hectare per person)

Muga’s location is one of its major attributes

==> picture [67 x 34] intentionally omitted <==

==> picture [781 x 425] intentionally omitted <==

----- Start of picture text -----

7 Mt
4 Mt
Total Europe
Shipping costs to Brazil
Based on 30,000t ships
Loading Cost (US$/t)
Canada $25/t
Russia $15/t
Spain $10/t
1 Mt
10 0 Mt
Mt
Total Africa
Muga Mine MOP trade routes
Production Demand
0.5
Mt
----- End of picture text -----

==> picture [54 x 8] intentionally omitted <==

----- Start of picture text -----

Total Brazil
----- End of picture text -----

Source: Argus Media, Highfield Resources

Potash price recovery

European prices have maintained a premium to other prices

Tight local supply due to mine closures and high cost local producers have maintained the European price premium

==> picture [729 x 315] intentionally omitted <==

----- Start of picture text -----

450 Prices are expected to remain strong
as current market fundamentals are
forecast to continue
400
350
300
250
200
Potash Standard MOP bulk fob Vancouver US$/t Potash Granular MOP bulk cfr northwest Europe (EUR/t converted to US$/t)
US$/t
12 Jun 2014 12 Aug 2014 12 Oct 2014 12 Dec 2014 12 Feb 2015 12 Apr 2015 12 Jun 2015 12 Aug 2015 12 Oct 2015 12 Dec 2015 12 Feb 2016 12 Apr 2016 12 Jun 2016 12 Aug 2016 12 Oct 2016 12 Dec 2016 12 Feb 2017 12 Apr 2017 12 Jun 2017 12 Aug 2017 12 Oct 2017 12 Dec 2017 12 Feb 2018 12 Apr 2018 12 Jun 2018 12 Aug 2018 12 Oct 2018 12 Dec 2018 12 Feb 2019 12 Apr 2019 12 Jun 2019 12 Aug 2019 12 Oct 2019 12 Dec 2019 12 Feb 2020
----- End of picture text -----

Source: Argus Media, Highfield Resources

The Muga Mine – Recent achievements

==> picture [73 x 29] intentionally omitted <==

Recent key milestones

• Completed mine design optimisation including work by specialist consultant, SRK Consulting

• Recently updated Mineral Resources estimate and Ore Reserves estimate

• Muga project update, with updated capex, opex and financial outcomes

• Updated MOU signed with Acciona, one of Spain’s largest construction companies

Muga Mine Competitive Position

Two phase mine development

Approximately 500,000 tpa of MOP for phase 1 and 1,000,000 tpa post phase 2.

Updated MRE of 234.75 Mt at 12.3% K2O*

Updated Ore Reserve Estimate of 108.7 Mt of Proved and Probable Reserves at 10.2% K2O*

27 year mine life

Phase 1 capex of €342 million with additional Phase 2 capex of €199 million.

Competitive C1 cash cost of €104/t, including salt byproduct credit.

Updated MOU with Acciona, one of Spain’s largest construction companies

*Competent Persons Statements found at the end of presentation

The Company confirms that all material assumptions underpinning these figures, in-line with the initial public report released on the 15[th] October 2018 (refer ASX release “Muga Project Update”), continue to apply and have not materially changed.

The life of mine is based on an exploration target. The potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised

Muga’s competitive position against world peers

C1 Costs Components	Euros/tonne of MOP
Mining Processing Salt treatment Waste and backfilling Environmental & Other Sub Total G&A Sustaining Capital Net By‐Product Credit Total C1 Costs C2 Costs Components Depreciation C1 Costs Total C2 & C3 Costs	38.15 47.74 3.53 4.85 3.23
	97.51 7.79 9.99 ‐11.72
	103.57 23.60 103.57
	127.16

FOB Cost curve forecast for 2024 (real US$)

==> picture [353 x 199] intentionally omitted <==

----- Start of picture text -----

350
300
250
200
150
100
50
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Rest of World Highfield
MOP US$/t
----- End of picture text -----

Margin curve forecast for 2024 (real US$)

==> picture [353 x 195] intentionally omitted <==

----- Start of picture text -----

250
200
150
100
50
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Highfield Rest of World
MOP US$/t
----- End of picture text -----

The updated costs and forecasted revenues position the mine as potentially one of the highest margin potash mines globally

The Company confirms that all material assumptions underpinning these figures, in-line with the initial public report released on the 15[th] October 2018 (refer ASX release “Muga Project Update”), continue to apply and have not materially changed.

Source: Argus Media 2024 cost forecasts (Q3 2018 dataset), Highfield Resources., ASX Release 15 Oct. 2018

Summary – Highfield Resources

==> picture [72 x 28] intentionally omitted <==

Significant long term upside

Muga Project Update data confirms low capital cost to production Very strong community and local government support

High margin driven by technical factors and project location

Experienced team of mine builders and operators Experienced board and management team

Advancing environmental and development permits to commence construction Potash market demand and price increasing year-on-year Very positive short term and long term market fundamentals

==> picture [781 x 119] intentionally omitted <==

REGISTERED OFFICE

169 Fullarton Road Dulwich SA 5065 Australia

SPAIN HEAD OFFICE

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

FURTHER INFORMATION

Peter Albert Managing Director T +34 628 590 109 Olivier Vadillo Investor Relations T +34 609 811 257

Competent Persons Statements

COMPETENT PERSONS STATEMENT FOR MUGA POTASH PROJECT

This presentation was prepared by Mr Peter Albert, Managing Director of Highfield Resources. The information in this presentation 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 presentation 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 report 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. Anna Fardell consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

COMPETENT PERSONS STATEMENT FOR MINERAL RESOURCES AND EXPLORATION TARGETS OTHER THAN MUGA MINERAL RESOURCES.

This presentation was prepared by Mr Peter Albert, Managing Director of Highfield Resources. The information in this presentation 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 and Mr Manuel Jesús Gonzalez Roldan consent to the inclusion in this presentation of the matters based on their information in the form and context in which it appears.

==> picture [103 x 115] intentionally omitted <==

==> picture [116 x 116] intentionally omitted <==

==> picture [117 x 30] intentionally omitted <==

==> picture [148 x 115] intentionally omitted <==

==> picture [141 x 115] intentionally omitted <==

==> picture [161 x 118] intentionally omitted <==

==> picture [117 x 29] intentionally omitted <==

==> picture [117 x 30] intentionally omitted <==

==> picture [117 x 29] intentionally omitted <==

www.highfieldresources.com.au

==> picture [779 x 167] intentionally omitted <==