HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2015

Aug 26, 2015

ASX Release 27 August 2015

HIGHFIELD RESOURCES AGREES PROJECT FINANCE MANDATE WITH FOUR MAJOR EUROPEAN BANKS

Highlights

• Project finance mandate for Muga Mine has been agreed with four major European commercial banks (“banking syndicate”)

• The banking syndicate have all received initial internal approvals to participate in long term project finance facilities of up to €222m on a debt to equity ratio of up to 65%

• Detailed due diligence scheduled to be completed in October with legal documentation expected to be executed shortly thereafter , in advance of commencing construction in Q4

Spanish potash developer, Highfield Resources (ASX: HFR) (“Highfield” or “ the Company”), is pleased to advise it has agreed a mandate with four major European commercial banks with respect to the financing of the Muga Potash Mine. The banking syndicate consists of: BNP Paribas S.A., ING Bank N.V., Societe Generale Corporate & Investment Banking and Banco Santander S.A. (the "Mandated Lead Arrangers").

Under the terms of the mandate, the Mandated Lead Arrangers will use best efforts to arrange the eight (8) year term facility and cost overrun facility (together the “Project Finance Facilities”) totalling up to €222m, representing a maximum debt to equity ratio of 65%. All four banks have received initial internal approvals on the basis of a detailed term sheet to participate in the Project Finance Facilities subject to confirmatory due diligence.

Due diligence is expected to be completed in October 2015 enabling execution of definitive legal documentation shortly thereafter, prior to the commencement of construction of the Muga Mine in the December quarter of 2015.

Highfield Managing Director, Anthony Hall, commented:

“The mandate with the four European commercial banks provides a high level of confidence that the funding process will be completed prior to the commencement of construction at our flagship Muga Mine which we continue to target in the December quarter of 2015.

“The four banks have signed the mandate after receiving initial internal approvals to participate in a project finance syndicate.”

For more information:

Company

Anthony Hall Managing Director Ph: + 34 617 872 100

Investor Relations Executives

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

Highfield Resources Ltd. ACN 153 918 257 ASX: HFR

Registered Office C/– HLB Mann Judd 169 Fullarton Road Dulwich, SA 5065 Australia

Head Office Directors Company Secretary Avenida Carlos III, Derek Carter Donald Stephens 13 - 1°B, 31002 Richard Crookes Pamplona, Anthony Hall Spain Owen Hegarty –––––––––––––––––– Pedro Rodriguez

Issued Capital 310.3 million shares 51.5 million performance shares 40.8 million options

–––––––––––––––––– –––––––––––––––––– Tel: +61 8 8133 5098 Tel: +34 948 050 577 Fax: +61 8 8431 3502 Fax: +34 948 050 578

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 has recently completed a definitive feasibility study for its flagship Muga Project and is working towards commencing construction at the project in the fourth quarter of 2015.

www.highfieldresources.com.au

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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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