Sheffield Resources Ltd. — Capital/Financing Update 2025

Feb 19, 2025

ASX AND MEDIA RELEASE 20 February 2025

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THUNDERBIRD OPERATIONS & SALES UPDATE

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Sheffield Resources Limited (“Sheffield” or “the Company”) (ASX: SFX) provides the following update to March 2025 quarter production and shipment outlook for the Kimberley Mineral Sands (KMS) owned Thunderbird Mineral Sands Mine (Thunderbird) in Western Australia.

Increase Zircon Sales Guidance for March 2025 Quarter

Following strong zircon shipments for the quarter to date, consistent with a broadening of the KMS customer base, total zircon shipments for the March 2025 quarter are expected to range between 55,000 and 70,000 tonnes, above the previous guidance for the period of 40,000 to 60,000 tonnes provided in the December 2024 quarterly report. Zircon inventory levels remain buoyant.

Total estimated ilmenite concentrate shipments for the March 2025 quarter remain between 160,000 and 180,000 tonnes.

Temporary Concentrate Production Interruption

The Great Northern Highway between Port Hedland and Broome in Western Australia has been temporarily closed following Cyclone Zelia. KMS has been monitoring the situation and with the road closure continuing, LNG fuel supply to Thunderbird is constrained, and KMS has determined to temporarily suspend mining and processing plant operations. Operations are expected to recommence in the coming days once supply routes are restored.

Product shipments and sales are not affected by the closure and are continuing on a regular basis with no impediment to road or transit infrastructure between the Thunderbird Mine and the Port of Broome.

Expected ilmenite concentrate production and zircon concentrate production estimates remain unchanged, ranging between 160,000 and 180,000 tonnes and between 40,000 and 45,000 tonnes respectively. Sheffield shall provide a further update following resumption of operations.

Business Improvement Initiative

The transition to drill and blast is continuing and has resulted in improved digging conditions for the truck waste mining fleet. A new waste mining contractor has been appointed and has commenced mobilising to site. KMS continues to directly manage waste mining activities pending full mobilisation.

Mining and in-pit processing plans continue to be developed to achieve cost reductions and increase throughput rates to the process plant. The implementation plan, including additional initiatives to maximise throughput at the process plant is being finalised, and Sheffield will provide further updates on these initiatives and progress on other productivity enhancing measures going forward into 2025.

Sheffield Resources Executive Chair, Mr Bruce Griffin said, “ The increase in zircon shipments above our initial expectation for the March quarter represents a significant turnaround. This is a direct result of the efforts of the KMS marketing team and the strong interest we are seeing from existing and new customers for Thunderbird zircon concentrate.”

This ASX announcement has been authorised for release by the Company’s Board of Directors.

ENDS

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@Sheffield_ASX

Sheffield Resources

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ASX AND MEDIA RELEASE 20 February 2025

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For further information please contact:

Bruce Griffin Executive Chair Tel: 08 9215 6500 info@sheffieldresources.com.au Website: www.sheffieldresources.com.au

ABOUT SHEFFIELD RESOURCES

Sheffield Resources Limited is focused on assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth.

Our core asset is our 50% investment in Kimberley Mineral Sands Pty Ltd (KMS), the owner of the world class Thunderbird Mineral Sands Mine in operation in north-west Western Australia.

Additionally, Sheffield executed a binding agreement in February 2023, providing the Company with an option to acquire up to an initial 20% interest in the South Atlantic Mineral Sands Project in Brazil, and owns 10% of Capital Metals Plc (AIM: CMET), the owner of the Taprobane Mineral Sands Project in Sri Lanka.

KIMBERLEY MINERAL SANDS

Kimberley Mineral Sands Pty Ltd, (KMS) is a 50:50 Joint Venture between Sheffield and Yansteel. The joint venture owns and is operating the Thunderbird Mineral Sands Mine and actively exploring adjacent tenements on the Dampier Peninsula.

KMS is governed by a four person Board of Directors with Sheffield and Yansteel each nominating two directors. Key Joint Venture decisions require unanimous approval of both shareholders. KMS operates as a standalone entity with its own management and employees.

THUNDERBIRD MINERAL SANDS MINE

The Thunderbird Mineral Sands Mine (“Thunderbird”) is one of the largest and highest grade mineral sands discoveries in the last 30 years.

Now in production Thunderbird is expected to generate a high-quality suite of mineral sands concentrate products suited to market requirements. These products include a zircon concentrate and an ilmenite concentrate that contains a high quality ilmenite suitable smelting into chloride slag or for manufacturing titanium dioxide pigment.

Thunderbird is located in one of the world’s most attractive mining investment jurisdictions and is well placed to deliver long term, secure supply of high quality products to a range of potential customers over a decades long mine life.

ABOUT YANSTEEL

Yansteel is a wholly-owned subsidiary of Tangshan Yanshan Iron & Steel Co., Ltd, a privately owned steel manufacturer headquartered in Hebei, China producing approximately 10mt per annum of steel products and has annual revenues of ~A$6bn.

Yansteel’s 500ktpa integrated titanium dioxide processing facility, which includes a titanium slag smelter, will consume the magnetic concentrate from Stage 1 of the Thunderbird Mineral Sands Project under a take or pay offtake agreement.

SOUTH ATLANTIC PROJECT

The South Atlantic Project is located in south east Brazil. Four main deposits have been identified within the project area: Retiro, Estreito, Capao do Meio and Bujuru with Exploration Targets developed for the Retiro and Bujuru

ASX AND MEDIA RELEASE 20 February 2025

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deposits. The combined Exploration Target for Retiro and Bojuru is estimated between 500 and 720 Mt of material at an average grade of 4.0% to 3.2% HM.

The tenements are held by RGM. Sheffield entered into an option agreement with RGM in February 2023 and extended it in August 2024. Sheffield will provide US$4.0m to fund project related activities over an initial 30 month period and earn an option to acquire up to 20% of RGM via the progressive investment of a further US$11.0m (US$15.0m in total) to acquire a 20% interest. Should Sheffield elect to exercise the option, subject to various conditions being satisfied, including project financing being obtained and all funds required for project construction being secured, Sheffield may exercise a further option to increase its interest in RGM up to 80%.

FORWARD LOOKING AND CAUTIONARY STATEMENTS

The contents of this announcement reflect various technical and economic conditions at the time of writing. Given the nature of the resources industry, these conditions can change significantly over relatively short periods of time. Consequently, actual results may vary from those detailed in this announcement.

Some statements in this announcement regarding estimates or future events are forward-looking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forwardlooking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “forecast”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, "predict", "foresee", "proposed", "aim", "target", "opportunity", “could”, “nominal”, “conceptual” and similar expressions. Forward-looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

Forward-looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward-looking statements may be affected by a range of variables that could cause actual results to differ from estimated results, and may cause the Company’s actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that actual outcomes will not materially differ from these forward-looking statements.