HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2013

Feb 24, 2013

==> picture [124 x 47] intentionally omitted <==

ASX Release

25 February 2013

==> picture [108 x 39] intentionally omitted <==

HIGHFIELD RESOURCES LIMITED ACN 153 918 257

UPDATE ON SPANISH POTASH PROJECTS

HIGHLIGHTS

• Developing three distinct Spanish potash projects:

• Sierra del Perdon

• Pintano

• Javier

Level 1 33 Richardson Street West Perth WA Australia

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

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

• 3D modelling work on target for completion in current quarter that will facilitate resource modelling on the Sierra del Perdon project

• Significant Exploration Target based on historical drill hole logs on target for release on the Pintano project in current quarter

• JORC Code compliant resource estimate being progressed on Javier project

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.

THREE SPANISH POTASH PROJECTS

Highfield’s Navarra and Aragon potash projects sit in the Navarra sub basin of Spain’s Ebro potash producing basin (diagram 1). The projects have now been divided into three distinct potash projects with each project being developed in parallel (diagram 2). The Navarra project will be known as the Sierra del Perdon potash project. The Aragon project will be split into the Javier and Pintano potash projects.

Splitting the Aragon project into two distinct projects is consistent with the size of the evaporite under Highfield’s control (some 30kms by an average width of 5kms) and the depth differential between the Javier and Pintano sub basins. The depth to the top of the potash at Javier ranges from 300m to 530m, whilst the depth to the top of the potash at Pintano ranges from 510m to 800m moving east into the deeper unexplored sections of the basin.

SIERRA DEL PERDON PROJECT UPDATE

Transposing the historic mine workings across the two mines into a 3D model is almost complete. With this information Highfield expects to be in a position to release detailed information on this project either late in the current quarter or early next quarter.

ASX Code HFR

With this information complete, a preliminary mine method scoping study will be completed with a drilling programme to be commenced in the second quarter to test this mine method hypothesis.

==> picture [124 x 47] intentionally omitted <==

PINTANO PROJECT UPDATE

Highfield’s geological consultants, North Rim Exploration, are presently finalising an Exploration Target based on four historic drill holes. Highfield expects to release the Exploration Target over the coming week.

As with Sierra del Perdon, a preliminary mine method scoping study will be completed with a drilling programme to be commenced later this Calendar Year to confirm the hypothesis and deliver a JORC Code compliant resource estimate.

JAVIER PROJECT UPDATE

Core samples from three historic drill holes are presently being re-assayed to confirm historic drill hole logs. With this information, North Rim Exploration has indicated a JORC Code compliant resource estimate will be possible. Highfield expects to be in a position to release this in the second quarter of 2013.

As with Sierra Del Perdon and Pintano, a preliminary mine method scoping study will be completed with a drilling program to be initiated later this Calendar Year to confirm the hypothesis and increase the resource estimate.

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.

==> picture [124 x 47] intentionally omitted <==

==> picture [375 x 221] intentionally omitted <==

Diagram 1 – Key sub basins within Spain’s Ebro Basin

==> picture [483 x 349] intentionally omitted <==

Diagram 2 – Highfield’s three distinct potash projects within the Navarra sub basin