HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2012

Oct 21, 2012

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ASX Release

22 October 2012

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HIGHFIELD RESOURCES LIMITED ACN 153 918 257

Level 1 33 Richardson Street West Perth WA Australia

Tel: +61 8 9200 4426 Fax: +61 8 9200 4469

ACQUISITION OF SPANISH ASSETS COMPLETE

HIGHLIGHTS

• Ø Completion of acquisition of a 100% interest in Navarra and Aragon Potash Projects in Spain

• Ø Projects complement Company’s existing potash project

The Board of Highfield Resources Limited is pleased to announce the completion of the Company’s acquisition of a 100% interest in the Navarra and Aragon Potash projects located in Spain’s Ebro potash producing basin.

These exciting acquisitions are a perfect complement to the Company’s existing potash asset – the McLarty potash project. The Company is now very well positioned with three potash projects at different stages in the development cycle.

1. Navarra Potash Project A former operating mine with a 25 year production history, a known path to recommencing production and a significant unmined area for future resource identification and production.

2. Aragon potash project

Contact Mr Anthony Hall Managing Director

E-mail info@highfieldresources. com.au

Officeholders

Derek Carter Anthony Hall Pedro Rodriguez Mark Arundell Jonathan Murray Aaron Bertolatti Scott Funston

Issued Capital 95.5 million shares 100 million performance shares 10 million options

ASX Code HFR

• An advanced exploration project with 16 drill holes into the package, shallow potash mineralisation, strong visibility of a JORC Resource and the potential for a relatively short horizon to production; and

1. McLarty potash project Significant greenfields’ asset covering over 1,700kms[2] of highly prospective areas in the Canning Basin of northern Western Australia that displays all necessary attributes for economic potash mineralisation including a thick salt sequence of over 600m in depth, sub horizontal salt layer for economic extraction and indications of potash mineralisation from previous exploration on and near the package.

Anthony Hall Managing Director

ABOUT HIGHFIELD RESOURCES

Highfield Resources is an ASX Listed potash company with three key projects located in Spain and Australia.

Highfield’s Navarra and Aragon potash projects are located in the Ebro potash producing basin in Northern Spain. The Navarra potash project includes a former operating mine with Highfield’s key objective being recommencing production from the mine. The Aragon potash project is located in two separate sub basins within 60 kilometres of the former operating mine. Highfield owns a 100% interest in the six granted tenements that comprise the two projects and cover around 430 km2.

Highfield’s McLarty potash project is located in the Canning Basin of northern Western Australia. The Canning Basin contains vast accumulations of Ordovician evaporite salt bearing sediments at relatively low depths underground that is considered prospective for economic potash mineralisation. The Company has entered into a farm in agreement to explore three granted tenements and may obtain an interest of up to 80% of the project

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