HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2015

Jan 19, 2015

ASX Release 20 January 2015

MOU WITH PORT OF BILBAO

Highlights

• MOU signed with Port of Bilbao, one of Spain’s largest ports and a major European Atlantic port

• Port of Bilbao is located 220km by road from the Muga Project

• MOU confirms 25,000m[2] of wharf space and 200m berth allocated

Spanish potash developer Highfield Resources Limited (“Highfield” or “the Company) (HFR: ASX) is pleased to advise it has signed a Memorandum of Understanding (or “the MOU”) with the Port Authority of Bilbao.

This MOU complements a similar agreement with the Port of Pasajés (San Sebastián), announced 18 December 2014, and confirms the availability of 25,000m[2 ] of wharf space for the construction of handling facilities including 200m of dedicated mooring. These two MOUs provide complementary options for the shipment of 100% of production from the Muga Potash Project (“Muga” or “the Project”).

==> picture [431 x 255] intentionally omitted <==

Figure 1: Aerial View of the Port of Bilbao

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 C/– HLB Mann Judd Avenida Carlos III Derek Carter Secretary 169 Fullarton Road 13, 1°B, 31002 Richard Crookes Donald Stephens 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

The Port of Bilbao is located 220km by road from the site of the Muga Project and was Spain’s fourth largest port by total tonnage handled in 2013. It is one of the main hub ports of the European Atlantic seaboard and covers 350 hectares of land, 17 kilometres of dock, has 252 hectares of open storage, 30,000m[2] of covered storage, 25,300m[2] of cold storage and terminals for containers, solid and liquid bulks, forest products, vehicles, general cargo, and passengers.

With a history of 700 years of trade and commerce, it operates commercial services for all types of markets and can accommodate vessels of up to 32m draught.

Highfield Resources’ Managing Director Anthony Hall, commented:

"We are extremely fortunate to have two large commercial ports within easy reach of the Muga Project’s future production facilities. Our agreement with the Port of Bilbao is an important element of developing the mine's logistics solution with a long-term view, flexibility and increased optionality from the onset.

The Port of Bilbao is a major LNG terminal and a hub for maritime traffic. It is well prepared for and well connected to service north and south Atlantic trade; both of which we expect to work with as our operations build scale.

Coupled with the MOU signed last month with the Port of Pasajés, we are now in an excellent position to assess routes to export markets."

==> picture [418 x 296] intentionally omitted <==

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

Markets

The MOU confirms the availability of 25,000m[2] of wharf for the construction of dedicated facilities under either a concession arrangement or preferential availability, together with 200 linear metres of berth and the charging mechanism for shipments up to and beyond 400,000 tonnes per annum. The target operational date is early 2017.

Page 2 of 3

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 the March quarter 2015.

==> picture [481 x 318] intentionally omitted <==

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

Page 3 of 3