HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2015

Oct 18, 2015

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ASX Release 19 October 2015

HIGHFIELD RESOURCES PROGRESSES FLAGSHIP MUGA POTASH MINE

Highlights

• Community consultation process responses completed as a critical element of progressing the mining concession application process

• Encouraging community and Government support

• Financial close, subject to mining concession award, targeting year-end 2015

• Positive environmental declaration expected by February 2016

• Definitive grid electricity supply contract executed, grid connection process commenced

Spanish potash developer, Highfield Resources (ASX: HFR) (“Highfield” or “the Company”), is pleased to announce it has completed its final responses resulting from the community consultation process for the mining concession application for its flagship Muga Potash Mine (the “Project” or “Mine”).

Highfield’s Managing Director, Anthony Hall, commented:

• “We are pleased to have completed our responses to the community consultation process.

We are enjoying very positive support from the community and all levels of Government which we believe will lead to a positive environmental declaration that will pave the way for us commence construction of a low-capex, high-margin potash mine as the first step of our target to become a significant global potash producer.”

Permitting and Community Consultation Process

The Environment Department in Madrid delivered final submissions to the Company from the community consultation process on Friday 11 September 2015. The Company has responded in full to all submissions. The Company now expects a positive environmental declaration (DIA) by February 2016 and a full mining concession by April 2016.

Considered submissions received from infrastructure bodies required lengthy technical responses to ensure the requests for additional information were answered with appropriate detail. Importantly, the Company believes that nothing detrimental to the Project’s success has been identified through the community consultation process. Highfield has been pleased to also receive positive submissions from multiple municipalities and interested community groups.

Community and Government Support

The Company is encouraged by the support it has received from the community and all levels of government for the Project. The Company maintains a positive dialogue with local municipalities, the provinces of Aragón and Navarra, and the central administration in Madrid.

Highfield Resources Ltd. ACN 153 918 257 ASX: HFR Issued Capital 310.3 million shares 51.5 million performance shares 40.8 million options

Registered Office Head Office Directors Company Secretary C/– HLB Mann Judd Avenida Carlos III, 13 - Derek Carter Donald Stephens 169 Fullarton Road 1°B, 31002 Richard Crookes Dulwich, SA 5065 Pamplona, Anthony Hall Australia Spain Owen Hegarty –––––––––––––––––– –––––––––––––––––– Pedro Rodriguez T. +61 8 8133 5098 T. +34 948 050 577 F. +61 8 8431 3502 F. +34 948 050 578

www.highfieldresources.com.au

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The Company’s community engagement program continues to be well received. It is designed to demonstrate Highfield’s commitment to becoming an important organisation and a force for positive social and economic contribution within the communities located around the mine. The Geoalcali Foundation now supports more than 15 community projects. Further information about the Foundation can be found at www.geoalcali.com/en/geoalcali-foundation.

Financing Process

The Company is aiming to complete the final mine design, cost plan, timeline and production profile later this month. Once this is completed, the Company expects to conclude the financing process by the end of December 2015. Financial close will be subject to final mine approvals.

Electricity Pre-Commitments

The Company and the regional electrical supply company, Iberdrola, have jointly signed an undertaking for the permanent electrical supply to be made available from the local grid substation. Works have been initiated to ensure a sufficient grid electricity supply is in place for the majority of construction activities. This is a significant step in preparing to commence the construction and operations of the Project.

For more information:

Company

Investor Relations Executives

Anthony Hall Managing Director Ph: + 34 617 872 100

Simon Hinsley APAC Investor Relations Ph: +61 401 809 653

Hayden Locke Head of Corporate Development Ph: +34 609 811 257

Nuala Gallagher / Simon Hudson UK Investor Relations Ph: +44 207 920 3150

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www.highfieldresources.com.au

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About Highfield Resources

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

Highfield’s Muga, Vipasca, Pintano, Izaga and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain covering a project area of more than 550km[2] . The Sierra del Perdón project includes two former operating potash mines.

The Company completed a Definitive Feasibility Study for its flagship Muga Project in March 2015, which was optimised to enhance operational efficiencies, sales and marketing activities, and life of mine in October, 2015. Highfield is on track towards commencing construction at the project in the fourth quarter of 2015.

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Figure 1: Location of Highfield´s Muga, Vipasca, Pintano, Izaga and Sierra del Perdón Projects in Northern Spain

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www.highfieldresources.com.au