HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2013

Apr 16, 2013

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ASX Release

17 April 2013

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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

$10 MILLION PLACEMENT TO INSTITUTIONAL INVESTOR

HIGHLIGHTS

• Highfield Resources has agreed to issue 40 million new shares to EMR Capital at an equivalent 8.7% premium on total funds raised.

• Tranche 1 of 23.75m ordinary shares to be allotted at an average price of 21.6c to raise $5.13m.

• Tranche 2 of 16.25m ordinary shares to be allotted at 30c to raise $4.87m, a premium of 30% on last traded share price of $0.23 (subject to shareholder approval).

• Strong institutional “partner” EMR Capital to hold 40 million ordinary shares post placement (Tranche 2 subject to shareholder approval).

• Funds to be applied to Feasibility Studies on Sierra del Perdon and Javier Potash Projects.

Contact Mr Anthony Hall Managing Director

E-mail info@highfieldresources. com.au

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

Issued Capital

95.5 million shares 100 million performance shares

10 million options

ASX Code HFR

PLACEMENT

The placement to EMR Capital ( EMR ) represents a significant milestone in the Company’s development of its three Spanish potash projects. EMR is a recently established institutional fund led by highly respected and knowledgeable industry executives including Owen Hegarty, Jason Chang and Richard Crookes.

Highfield Resources will allot 23,755,626 ordinary shares at an average price of 21.6c raising $5,126,688 to EMR ( Tranche 1 ). These shares will represent 19.9% of outstanding issued ordinary share capital. The placement of Tranche 1 will be conducted under the Company’s existing placement capacity pursuant to Listing Rules 7.1 and 7.1A.

An additional allotment of 16,244,374 ordinary shares at 30c raising $4,873,312 will be subject to shareholder approval ( Tranche 2 ). Should Tranche 2 receive shareholder approval, EMR will hold 40 million ordinary shares. This represents 29.5% of outstanding ordinary share capital on an undiluted basis and 15.9% on a fully diluted basis.

Under the subscription agreement, EMR also has a right to appoint a director to the Board of Highfield Resources.

The placement is non brokered and the meeting of shareholders will be held as soon as practicable to approve the Tranche 2 investment.

EMR CAPITAL

EMR is an Australian based specialist resources based private equity fund manager. EMR is presently seeking to increase commitments in its current fund from $100m to $300m. EMR’s investment team has an outstanding track record of resource discovery and development with an ability to recognise and unlock significant value by advancing projects from pre-production through to large scale production.

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USE OF FUNDS

With these additional funds the Company’s cash position will increase to approximately $11.7 million. These funds will enable the Company to progress Feasibility Studies on two of Highfield Resources Spanish potash projects. The Board’s present targets are the advanced Sierra del Perdon and Javier potash projects.

The Board views this significant placement as a strong vote of confidence in the robustness of the Company’s advanced Spanish potash projects. EMR is a strong institutional shareholder partner that will add considerable value to Highfield’s strategic goals. Execution of the Company’s development programme will see the delivery of significant milestones this Calendar Year which will continue to reinforce Highfield’s near term potash mine development and production prospects.

Anthony Hall Managing Director

ABOUT HIGHFIELD RESOURCES

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

Highfield’s Javier, Pintano and Sierra del Perdon potash projects are located in the Ebro potash producing basin in Northern Spain. The Sierra del Perdon project includes two former operating mines. Highfield’s key objective is to quickly recommence production from these mines. The Javier and Pintano potash projects are located in two separate sub basins within 60 kilometres of the former operating mine. Highfield owns a 100% interest in the five granted tenements with three applications pending that comprise the three projects and cover over 400 km[2] .

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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