HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2014

Dec 17, 2014

ASX Release 18 December 2014

HIGHFIELD RESOURCES SIGNS MOU WITH PORT AUTHORITY

Highlights

• MOU signed with Port Authority of Pasajés

• Atlantic Port located within 150kms by road of the Muga Project

• Confirmed port capacity available of over 1 million tonnes of product per annum

• MOU confirms minimum capacity of 440k tonnes of product per annum

• Negotiations continuing with Port Authority of Bilbao giving further optionality in broader logistics solutions focused on rail and shipping options

Spanish potash developer Highfield Resources Limited (“Highfield” or “the Company”) (HFR: ASX) is pleased to advise it has signed a Memorandum of Understanding (“MOU”) with the Port Authority of Pasaia (Pasajés – the commercial port of San Sebastián). The MOU gives a non-binding commitment of port capacity for all of the product that is expected to be produced and exported from the Muga Project (“Muga” or “the Project”) and confirms the availability of significant port capacity.

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Figure 1: Aerial View of the Port of Pasajés, San Sebastián

The Port of Pasajés (“Pasajés” or “the Port”) is located 150km north, by road, of the Muga Mine site and is one of the largest commercial ports in the region. With excellent landside rail and road connections, it

Highfield Resources Ltd. ACN 153 918 257 ASX: HFR

Issued Capital 200.50 million shares 103 million performance shares 39.25 million options

Registered Office Head Office Directors Company Secretary C/– HLB Mann Judd Calle Navas de Tolosa, Derek Carter Donald Stephens 169 Fullarton Road 5 - 1°B, 31002 Richard Crookes Dulwich, SA 5065 Pamplona, Anthony Hall Australia Spain Owen Hegarty –––––––––––––––––– –––––––––––––––––– Pedro Rodriguez Tel: +61 8 8133 5098 Tel: +34 948 050 577 Fax: +61 8 8431 3502 Fax: +34 948 050 578

currently handles around 3 million tonnes of dry bulk product annually and in addition is the export hub for some 600,000 new cars and vans.

Highfield Resources Managing Director Anthony Hall, commented:

“Logistics and in particular port capacity are key to our commercialisation strategy, especially to markets outside Europe. This MOU is an important and necessary step in confirming our commercial path to market and gives us further confidence in our ability to execute on our strategy of exporting product to our key seaborne potash markets. The Port of Pasajés is closer to our site and on an operating cost basis should give us a better result relative to the logistics solution that was contemplated in the Pre-Feasibility Study. We continue to negotiate a similar MOU with the Port of Bilbao to maintain optionality and to ultimately allow for greater scale from our potash mines.”

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Figure 2: Map Showing the Muga Mine, Ports of Pasajes and Bilbao and Distances to Key Target Markets

The MOU confirms the parties will work together to locate shipping facilities at the Port enabling in excess of 440k tonnes of product handling per year and is planned to be available and operational from early 2017. Importantly, the facilities will allow for the shipment of over 1.5m tonnes of product each year.

The collaboration is based on providing port facilities which will include:

• 100m of quay frontage

• 6,000m[2] for the construction of storage and handling facilities

• Additional space for vehicle manoeuvres and unloading.

Negotiations are continuing with the Port Authority of Bilbao for similar facilities, which will give the Company further optionality in optimising its logistics solutions for its sales and distribution of potash and related products.

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For more information: Anthony Hall Simon Hinsley Nuala Gallagher / Simon Hudson Managing Director APAC Investor Relations UK Investor Relations Ph: +34 617 872 100 Ph: +61 401 809 653 Ph: +44 207 920 3150

www.highfieldresources.com.au

ABOUT HIGHFIELD RESOURCES

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

Highfield’s Muga, Vipasca, Pintano and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain covering a project area of close to 400km[2] . The Sierra del Perdón project includes two former operating mines. The Company has completed a PFS for its Muga Project and is currently working towards completing a DFS by the end of Q1 2015 Calendar Year.

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Figure 3: Location of Highfield´s Muga-Vipasca, Pintano and Sierra del Perdón Projects in Northern Spain

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