HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2016

Aug 10, 2016

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ASX Release 11 August 2016

HIGHFIELD RESOURCES ANNOUNCES MOU WITH CARGILL INC FOR SALT SALES IN USA

Highlights

• Highfield Resources has entered into a non-binding memorandum of understanding (“MOU”) with Cargill, Incorporated for the potential sale of salt by Highfield to Cargill in the US.

• Highfield and Cargill agree to assess the viability of long term commercial arrangement targeting salts sales by Highfield to Cargill for resale into the large US deicing and industrial salt markets.

Highfield Resources (ASX: HFR) (“Highfield” or “the Company”) is pleased to announce that it has signed a non-binding memorandum of understanding with Cargill, Inc. (“Cargill”) (together “the Parties”) to assess the economic and technical viability of salt sales into the US market.

Highfield is developing its flagship Muga Potash Mine. The primary by-product from this operation will be high purity NaCl (salt or halite), suitable for applications in deicing and for industrial purposes. The Parties will discuss initial tonnages from the Muga Potash Mine, as well as the potential for sales of specialty salts from its other operations.

Highfield Managing Director Anthony Hall commented:

“Cargill is an outstanding partner for Highfield Resources as it plans for the monetisation of its salt byproduct production from Muga. Cargill already has highly-respected salt business and is well positioned to market the tonnes Highfield produces into its distribution network.

We look forward to working closely with them on this exciting opportunity.”

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: +44 7729 197 707

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

Highfield Resources Ltd. ACN 153 918 257 ASX: HFR

Issued Capital

310.8 million shares 51.5 million performance shares 53.3 million options

Registered Office Head Office C/– HLB Mann Judd Avenida Carlos III, 13 - 169 Fullarton Road 1°B, 31002 Dulwich, SA 5065 Pamplona, Australia Spain –––––––––––––––––– –––––––––––––––––– T. +61 8 8133 5000 T. +34 948 050 577 F. +61 8 8431 3502 F. +34 948 050 578

Avenida Carlos III, 13 -

Directors Derek Carter Pauline Carr Richard Crookes Jim Dietz Anthony Hall Owen Hegarty

Company Secretary Donald Stephens

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 in November 2015 to enhance operational efficiencies, sales and marketing activities and the life of mine. Highfield is awaiting a positive environmental declaration which will enable it commence construction of the Mine.

In addition to the existing Muga Project, Highfield also has significant Exploration Targets for an extension to Muga, as well as for the Vipasca and Pintanos Potash Projects.

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

*The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource

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www.highfieldresources.com.au