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HIGHFIELD RESOURCES LIMITED Capital/Financing Update 2013

May 21, 2013

65048_rns_2013-05-21_d2b46032-4734-430d-aca5-1ff6369ee666.pdf

Capital/Financing Update

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ABN 51 153 918 257

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22 May 2013

Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Via e-lodgement

INFORMATION REQUIRED UNDER ASX LISTING RULE 3.10.5A

Highfield Resources Limited (Company) provides the information required under ASX Listing Rule 3.10.5A as follows:

  • a) Dilution to existing shareholders:

The dilutive effect of the Placement on existing shareholders is as follows:

Placement issue under Listing Rule 7.1 (14,325,000 shares) 13.04%
Placement issue under Listing Rule 7.1A (9,430,626 shares) 6.87%
Total Dilutionas aresult ofthePlacement 19.91%

Further details of the approximate percentage of the issued capital post the Placement held by the pre-placement shareholders and new shareholders are as follows. Please note that this information relates specifically In relation to the portion of shares issued under Listing Rule 7.1A only (9,430,626 shares):

Pre-placement securityholderswho didnot participateinthe placement 100%
Pre-placement securityholderswho did participateinthe placement 0%
Participantsinthe placementwhowerenot previously securityholders 100%
  • b) The Company issued shares under LR7.1A as it considered the Placement as the most efficient and expedient method for raising the funds required to achieve its stated objectives given the funding certainty. The Company also considered that there were significant benefits in introducing a strong institutional shareholder partner that will add considerable value to the Company’s strategic goals.

  • c) No underwriting arrangements were in place for the placement, and

  • d) No fees were paid or are payable.

The Company would also like to advise an amendment to the Appendix 3B released on 17 May 2013. Section 6(g); the date on which the price of the securities to be issued was agreed is 16 May 2013 not 16 April 2013.

Yours faithfully

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AARON BERTOLATTI COMPANY SECRETARY HIGHFIELD RESOURCES LIMITED

Level 1/33 Richardson Street, West Perth 6005 PO BOX 826, West Perth, 6872 Ph: +61 8 9200 4426 Fax: +61 8 9200 4469 www.highfieldresources.com.au