HIGHFIELD RESOURCES LIMITED — Investor Presentation 2012

Nov 6, 2012

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Highfield Resources Limited
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A Unique Potash Company

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Company Presentation
Europe, November 2012
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The information contained in this presentation that relates to Exploration Results, Mineral Resources or Ore Resources is based on information reviewed and compiled by Mr Mark Arundell who is a member of the Australian Institute of Geoscientists. Mr Arundell is a consultant to Highfield Resources.

This presentation includes certain ‘forward looking statements’. All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements .

Mr Arundell has sufficient experience that is relevant to the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources. Mr Arundell consents to the inclusion in this presentation of the matters based on his information in the form an d con ex w t t hi c h it appears.

Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not assume any obligation to update any forward looking statement.

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an d con ex w t t hi c h it appears.
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Why Potash?

Key Nutrient for Plants and Animal Life

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Sunflower
N NP NPK
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Source: 1997. IPI Coordination India

Source: 2004. M.S. Brar and IPI Coordination India

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Why Potash?

Great Long Term Fundamentals

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Farmland Per Capita
4
Source: FAO Source: IPNI, Fertecon, PotashCorp
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Why Highfield Resources? Former Operating Mine

Close to 10m tonnes of potash produced and sold over a 25 year p eriod from Zones A , C , E and a portion of B.

Known resource.

Known path to production. Analogous to Intrepid Potash’s* Moab Mine.

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Production History
600,000
500,000
400,000
Potash
300,000
200,000
100,000
-
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Source: Annual Minestrio de Industria lod g ements b y Mina de Potasas de Navarra, SA ( former mine owner )

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*Intrepid Potash are listed on the NYSE with a market capitalisation of over US$1.5bn

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Management , Management , Management

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management
Iberian Minerals Corp – Aguas Tenidas Copper, Zinc and
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Why Highfield Resources? Location , Location , Location

Markets By Products Infrastructure Transport EU C t oun ry 0 200kms Tax Positives

Within Spain and close to France, Portugal and Northern African markets where demand presently exceeds production.

Markets readily available for main processing by product of sodium chloride . (table salt) leading to enhanced margins

Access to grid electricity, gas and water networks and large labour force.

Close to major highways, rail and within 150kms of an industrial port.

Known process for mine development within a European Union country.

Royalty free and large capex offsets that reduce tax payable thus significantly enhancing net margins.

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Exceptional Optionality

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prospects:
1. Sierra del Perdon Old Mine
2
1
2 . Si erra e d l P er d on D & F
3. Javier Sub Basin
4 . Pintano Sub Basin 3
4
0 10kms
Options to start with small
operations and cash flow fund
expansion or to move into
s gn i ifi can t i n iti a pro l d uc ti on.
8
N
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Capital Structure

Strong Management Alignment

Equity Number Ordinary 95.5m Options 10.0m Performance A 51 . 5m Performance B 51.5m Full Diluted 208.5m y

Performance Shares milestones

A. JORC Indicated Resource of 150m tonnes at 13% K20*; and

B. Construction and operating approvals for production of 500 , 000 tonnes of potash per annum.

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64%
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Fully Diluted Equity Split

24% Spanish in Country Mgt 12% Other Management Other Shareholders Financial Metrics (as at 31 Oct 2012) Cash at Bank – A$2 . 7m Share Price – $A0.25 Fully Diluted Market Cap – $52m

*Other thresholds apply with higher grades of K20

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Highfield Resources Limited
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A Unique Potash Company

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Contact Details
Anthony Hall, Managing Director
Level 1, 33 Richardson Street
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www.highfieldresources.com.au

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Additional Information

1. Management Team 2. Navarra Potash Project

3. Aragon Potash Project 4. McLarty Potash Project 5. Performance Share Terms 6. Historical Potash Prices

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1. Management Team

Derek Carter Non Executive Chairman BSc, MSc, FAusIMM(CP)

Anthony Hall Manag ng i Direc ort BBus, LLB (Hons), ACSA

Pedro Rodriguez Development Director BSc, MSc

Mark Arundell Lead Consultant BSc ( Hons ), MEconGeol

Jonathan Murray Non Executive Director LLB (Hons)

• A geologist with over 40 years experience in exploration and development, including nearly 20 years in management of ASX listed exploration companies.

• He has held senior positions in the Shell Group of Companies, including Chief Geologist in Spain and was the Managing Director of the ASX listed Minotaur Resources from its inception in 1993 to 2010.

• A qualified lawyer and company secretary with over 15 years commercial experience in venture capital, ri s k m a n age m e nt , s tr a t egy a n d bus in ess de v e l op m e nt.

• • Prior to his appointment he was Head of Strategy and Business Development for the solar energy division of an ASX listed top 50 corporation.

• A geologist with over 30 years experience in mining services in Spain working with six international mining companies over that period including Billiton International, Navan-Almagrera and Newmont.

• Most recently he had direct responsibility to the Board of Directors of ALMAGRERA SA for delivering a mining chemical complex with more than 460 direct employees and sales greater than US$50m pa.

• A geologist with over 25 years experience with companies such as Rio Tinto and North Ltd, including being principal geologist for Rio Tinto Exploration's Industrial Minerals Exploration division in Australia.

• • He has consulted on p otash p ro j ects for a number of clients across six continents.

• A lawyer with over 15 years commercial experience in equity capital markets, takeovers, project acquisition and divestments, corporate governance, commercial law and strategy.

• He has extensive global networks and is a director of multiple ASX listed entities.

Scott Funston Non Executive Director BBus, CA, ACSA

Aaron Bertolatti Company Secretary BCom, CA, ACSA

• A chartered accountant with over 10 years experience in the mining industry and accounting profession.

• His expertise is in financial management and general corporate advice. He is a Director and Company Secretary of multiple ASX listed entities.

• A chartered accountant with over 8 years experience in the mining industry and accounting profession .

• • He has both local and international experience, having worked offshore for a period of his career and is the Company Secretary of multiple ASX listed entities. 12

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2. Navarra Potash Project
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Produced between 1972 Former Operating Mine Zones
and 1997 at an average
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N

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Zones A, B, C and E are
areas of historic mining.
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o en a or s gn can
remnant reserves in Zone
B.
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Zones D and F are
F
unmined with significant
resource potential for
future production. 0 2Km
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3. Aragon Potash Project

Drill Holes in Tenement Package

Drill hole results indicate two extensive, shallow beds of potash . mineralisation sylvinite ( ) Significant mineralisation intersected in Pintano area – PP2: 2.48m @ 15.6% K 0 from 517.3m 2 E xcep ti ona exp ora l l ti on play proximal to Navarra asset.

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1. McLarty Potash Project

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The Cannin Basin
g
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The Cannin Basin g contains a thick salt sequence (Mallowa Salt) largely untested for Potash. Close to potential ports of Broome and Derb . y Good access to Asian markets. . OECD Country Skilled workforce.

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4. McLarty Potash Project

Largely untested evaporite basin.

Proposed Drill Hole Locations

Positive signs from previous exploration. R l i l h a ll d h s e at ve y s ow ept to top of salt layer. Thick salt layer between 500m and 700m.

Sub-horizontal salt layer f or econom c ex rac i t ti on. Access arrangements ne g otiated and drillin g ready to proceed.

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5. Performance Share Terms

A Class Performance Shares

B Class Performance Shares

Awarded upon the delineation of a JORC Code (or equivalent) compliant Indicated Mineral Resource of:

(i) 150m tonnes at a minimum grade of 13% K20 by content; or (ii) 125m tonnes at a minimum grade of 14% K20 by content; or (iii) 100m tonnes at a minimum grade of 15% K20 by content; or (iv) 75m tonnes at a minimum grade of 17% K20 by content; or (v) 50m tonnes at a minimum grade of 20% K20 by content.

Awarded upon the announcement by the Company to the ASX of receipt of all required approvals for the construction of an operating mine with capacity for 500,000 tonnes of potash per annum on the Spanish projects.

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6. Historical Potash Prices – 1995 to 2012(1H)

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600
550
500
450
400
350
300
250
US Gulf / Intrepid
200
150
100
50
0
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Source: SRI Consulting, 2010, Intrepid Potash

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6. Historical Potash Prices – 2005 to 2012 600	6. Historical Potash Prices – 2005 to 2012 600	6. Historical Potash Prices – 2005 to 2012 600	6. Historical Potash Prices – 2005 to 2012 600
500 550
400 450 350
300 250			ICL PotashCorp Ulkli Agrium
200 150			raa APC Qinghai Mosaic
100 0 50
19 Source: company sources, Integer 2005 H1 2012 2010 2011 2006 2008 2009 2007