HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2013

Nov 26, 2013

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ASX Release

SIERRA DEL PERDON POTASH PROJECT UPDATE

27 November 2013

HIGHLIGHTS

• Five confirmatory drill holes completed

HIGHFIELD RESOURCES LIMITED ACN 153 918 257

ASX Code HFR

Registered Office Level 1

330 Churchill Avenue Subiaco WA 6008 Australia

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

Head Office

Calle Navas de Tolosa, 5 - 1°B, 31002 Pamplona, Spain

Tel: +34 948 050 577 Fax: +34 948 050 578

• SDP004 intersected a 4.80m sylvinite seam of 15.9% K2O (25.2% KCl)

• SDP005 intersected a 1.80m sylvinite seam of 15.5% K2O (24.5% KCl)

• SDP006 intersected a 1.90m carnallite seam of 13.5% K2O (21.4% KCl)

• Work commenced on JORC code Mineral Resource estimate

• Development strategy to be confirmed and released in January 2014

Spanish potash developer Highfield Resources is pleased to provide an update on its 100% owned Sierra del Perdón potash project located in Northern Spain. The project covers an area of over 100km[2] and contains two former operating mines that produced close to 10 million tonnes of potash between 1972 and 1997.[1 ]

CONFIRMATORY DRILLING CAMPAIGN RESULTS

Contact Anthony Hall Managing Director

Directors

Derek Carter Richard Crookes Scott Funston Anthony Hall Owen Hegarty Pedro Rodriguez

Company Secretary Aaron Bertolatti

Issued Capital

135.5 million shares 103 million performance shares 20.5 million options

Highfield has completed five drill holes as part of its confirmatory drilling campaign (SDP004, SDP005, SDP006, SDP009 and SDP013). Each drill hole was designed to test an element of the project including the extent of potash mineralisation, thickness of sylvinite and carnallite seams and potassium grades. The SDP002 drill hole was not completed when circulation was lost after intersecting a 6.0m potash seam. It was replaced by SDP006.

Holes SDP004, SDP005, SDP006 and SDP013 each intersected a thick carnallite seam confirming historical information with respect to the thickness of carnallite above some halite interbedding with sylvinite. The assay results of SDP004 showed a potash intersect containing an upper interbedded carnallite seam of around 9.0m and lower interbedded sylvinite seam of 5.0m ( Table 1 ). The drill hole intersected 7.5m of continuous mineralisation at 14.9% K2O (23.6% KCl) comprising the lower carnallite seam and underlying sylvinite seam.

Drill hole SDP009 was aimed at testing the extent of potassium within the evaporite. The hole was drilled down to a depth of 94.5m at which time it was determined potassium mineralisation did not extend into the shallow Eastern section of the evaporite.

1 Source: Annual Minestrio de Industria lodgements by Mina de Potasas de Navarra and Subiza

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Assay results for SDP005 show a potash intersect commencing at a depth to surface of 415m and finishing at 435m ( Table 2 ). Within this intersect is a 5.1m a lower carnallite seam at an average grade of 11.0% K2O (17.4% KCl) and a 1.8m sylvinite seam of 15.5% K2O (24.5% KCl). Above this sylvinite seam was a void of 2.7m. Historical mine records suggest this area was mined for its sylvinite content.

Assay results for SDP006 show a potash intersect commencing at a depth to surface of 201m and finishing at 207.5m ( Table 3 ). Within this intersect is a 1.9m lower carnallite seam at an average grade of 13.5% K2O (21.4% KCl). Historical mining records indicate the sylvinite seam was fully mined.

Drill hole SDP013 has recently been completed. A 10m potash seam was intersected at a depth from surface of 510m. Samples have been prepared and sent for chemical testing.

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Figure 1: Location of Highfield’s initial drill holes at Sierra del Perdón

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Figure 2: Potash mineralisation intersected in drill hole SDP013

STRATEGY

The Company is awaiting the assay results from drill hole SdP013 before confirming its development strategy for the Sierra del Perdón project. This information is expected to be received and in turn released in the January Quarter of 2014 at which time the Company expects to release a JORC code Mineral Resource estimate.

CORPORATE

The Company´s focus remains on developing its 100% owned Spanish potash projects. The Company is presently developing both its Javier and Sierra del Perdón potash projects where significant in place infrastructure and shallow sylvinite mineralisation appear ideal for mineral extraction via declines. These advantages are likely to support relatively low capex initial mines.

For more information:

Anthony Hall Managing Director Ph: +61 (0) 417 466 039

Simon Hinsley Investor Relations Ph: +61 (0) 401 809 653

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Competent Persons’ Statement

This ASX release was prepared by Mr. Anthony Hall, Managing Director of Highfield Resources. The Competent Person under JORC Code standards and reviewer for this release pertaining to the resource information is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo. of Agapito Associates of Colorado, USA. Mr Gilbride is a licensed professional engineer in the State of Colorado, USA and is a registered member of the Society of Mining, Metallurgy and Exploration Inc. Ms Santos is a licensed professional geologist in South Carolina and Georgia, USA, and is a registered member 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 accredited organization of which the Competent Person under JORC Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, or Ore Reserves through the ASX. Mr Gilbride is the Vice President of Engineering and Field Services and Ms Santos is the Chief Geologist with Agapito Associates and both have sufficient experience to qualify as a Competent Person for the relevant style and type of mineralisation and deposit under consideration of this release. Mr Gilbride and Ms Santos consent to the inclusion in the report of the matters based on information in the form and context in which it appears.

		DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)	DDH SDP-004 POTASH GRADES(ICP analysis)
				K2O(%)	MgO(%)	Na2O(%)	Cl(%)	SO3(%)	CaO(%)	Water Insolubles
	fr	Potash Interval om 395.8 to 409.9 Wide: 14.1	Average max. Value min. Value	11.47 31.30 0.31	5.70 12.85 0.41	23.43 49.90 6.26	43.86 64.60 24.00	2.96 7.16 0.86	4.27 9.99 0.85	14.53 47.74 0.98
	fr	Carnallite Seam om 395.8 to 405.1 Wide: 9.3	Average max. Value min. Value	8.49 15.65 0.66	7.58 12.85 1.60	20.14 42.70 6.26	39.01 58.80 24.00	2.38 4.12 0.86	4.70 9.99 1.08	18.53 47.74 2.50
	Upper Carnallite Seam from 397.7 to 400 Wide: 2.1		Average max. Value min. Value	9.87 14.55 6.37	9.21 12.85 6.27	15.83 25.10 7.67	34.11 44.70 24.00	1.83 2.70 0.86	4.15 7.19 1.08	14.15 28.62 2.50
	f
	Low	er Carnallite Seam om 402.4 to 405.1 Wide: 2.7	Average max. Value min. Value	13.03 15.65 9.26	10.48 12.70 6.94	13.58 21.50 6.26	40.70 45.10 35.00	2.24 3.91 1.44	2.57 4.84 1.78	9.26 14.92 3.00
	fr
	fr	Sylvinite Seam om 405.1 to 409.9 Wide: 4.8	Average max. Value min. Value	15.94 31.30 0.31	1.85 3.49 0.41	29.98 38.00 41.20	51.66 59.70 58.70	4.03 7.16 1.87	4.24 7.62 0.85	11.55 26.14 0.98

Table 1: Summary of ICP Analysis for DDH SDP004

	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004	Table 1: Summary of ICP Analysis for DDH SDP004
	DDH SDP-005 POTASH GRADES(ICP analysis)
				K2O(%)	MgO(%)	Na2O(%)	Cl(%)	SO4(%)	CaO(%)	Water Insolubles
(Including2	Wide: 20.6 voids of 3.0m and 2.7m wide) Potash Interval from 415.2 to 435.8		Average max. Value min. Value	8.31 26.50 0.45	4.68 10.51 0.27	22.17 10.88	43.98 55.00 24.40	4.17 10.28 1.14	2.54 4.60 0.74	16.27 50.37 1.75
Wide: 16.1 (Includinga 3.0m void) Carnallite Seam from 415.2 to 431.3			Average max. Value min. Value	7.39 13.07 0.45	5.19 10.51 0.27	21.08 37.47 10.88	43.15 55.00 24.40	3.70 6.44 1.14	2.43 3.95 0.74	17.52 50.37 3.53
U	Wide: 3.3 pper Carnallite Seam from 418.5 to 421.8		Average max. Value min. Value	8.73 13.07 3.55	6.88 10.51 1.86	18.88 32.76 10.88	45.86 55.00 36.70	2.54 4.43 1.14	1.70 3.23 0.74	14.19 35.75 5.74
L	Wide: 5.1 ower Carnallite Seam from 426.2 to 431.1		Average max. Value min. Value	11.01 12.89 6.08	7.27 10.00 3.47	17.55 29.79 12.50	44.61 54.40 37.50	4.13 6.44 2.55	2.50 3.95 1.54	7.78 25.83 3.62
	Wide: 1.8 from 434.0 to 435.8 Sylvinite Seam		Average max. Value min. Value	15.50 26.50 4.46	0.74 1.39 0.43	30.75 37.07 23.39	50.52 54.30 46.60	7.86 10.28 6.05	3.41 4.60 2.22	6.44 10.62 1.75

Table 2: Summary of ICP Analysis for DDH SDP005

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		DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)	DDH SDP-006 POTASH GRADES(ICP analysis)
						K2O(%)	MgO(%)	Na2O(%)	Cl(%)	SO4(%)	CaO(%)	Water Insolubles
	Wide: 6.4 Carnallite Seam from 201.1 to 207.5				Average max. Value min. Value	7.74 23.91 0.47	3.33 11.17 0.30	26.16 40.44 9.19	47.89 55.30 39.70	3.96 8.27 1.14	2.33 4.81 0.67	14.56 25.08 2.02
	Wide: 0.9 Upper Carnallite Seam from 203.8 to 204.7				Average max. Value min. Value	10.60 14.09 7.41	7.56 11.17 4.29	16.32 24.67 9.19	45.60 49.60 39.70	2.51 3.54 1.14	1.50 2.11 0.67	8.91 15.50 2.02
	Wide: 1.9 from 205.6 to 207.5 Lower Carnallite Seam				Average max. Value min. Value	13.53 23.91 4.99	2.84 7.73 0.30	23.98 31.95 16.58	48.13 53.10 44.50	5.34 8.27 3.90	2.99 4.81 2.06	11.91 20.88 6.26

Notes

• 1 Chemical analysis conducted by ALS Global (Galway, Ireland)

• 2 ICP (inductively coupled plasma) quantitative method

• 3 Intervals are cored intervals (versus true thickness intervals), conversion to true thickness pending updated structural model

• 4 Composite grades calculated as length-weighted averages

Table 3: Summary of ICP Analysis for DDH SDP006

ABOUT HIGHFIELD RESOURCES

Highfield Resources is an ASX-Listed potash company with three 100% owned projects located in Spain.

Highfield’s Javier, Pintano and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain covering a project area of around 300km[2] . The Sierra del Perdón project includes two former operating mines. The Company has recently raised significant funds to progress feasibility studies at both the Sierra del Perdón and Javier Projects.

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Figure 3: Location of Highfield’s Javier, Pintano and Sierra del Perdón Projects in Northern Spain

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