Sheffield Resources Ltd. — Capital/Financing Update 2026

May 19, 2026

ASX AND MEDIA RELEASE
20 May 2026
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SheffieldResources
LIMITED

UPDATE ON THUNDERBIRD SENIOR LOAN FACILITY

Sheffield Resources Limited ("Sheffield" or "the Company") (ASX: SFX) provides the following update in relation to the Kimberley Mineral Sands (KMS) owned Thunderbird Mineral Sands Mine (Thunderbird) in Western Australia.

Sheffield refers to its previous announcements regarding Sheng Feng (Hong Kong) Co. Ltd (Sheng Feng) a related party of Yansteel (sharing the same ultimate beneficial owners) acquiring the Production Linked Loan Note Facility ("Facility") from Orion. Please refer to the ASX Announcement "US$110M Project Finance Facility" of 8 August 2022 for further details of the Facility. At the time of the acquisition by Sheng Feng the outstanding balance of the Facility was US$99,000,000 as a result of the repayment of US$11,000,000 made by KMS to Orion in June 2025.

KMS and Sheng Feng have agreed to amend the Facility to include an additional tranche of up to US$10,147,500 which can be drawn under the Facility. The funds drawn under the new tranche will be used for KMS general working capital requirements. Repayment of funds drawn under the new tranche is required in full by 31 December 2026 and KMS may request to make the repayment by delivering an equivalent amount of product on terms to be agreed between KMS and Sheng Feng.

KMS received US$10,147,500 of funds under the new tranche of the Facility from Sheng Feng on 19 May 2026 which will be used to meet working capital requirements. There is no certainty that KMS will continue to receive the funds necessary from shareholders to meet its future working capital requirements.

Whilst discussions regarding a resculpting of the KMS debt obligations with Sheng Feng and NAIF remain ongoing, there can be no certainty that any amendments to the senior secured loan facilities will be successfully completed. Sheffield and YGH Australia Investment Pty Ltd (YGH), a wholly owned Australian subsidiary of Yansteel, remain sponsors and guarantors to the senior secured loan facilities.

Sheffield will continue to keep the market informed of material developments concerning the business operations of KMS and the Thunderbird Mineral Sands Mine.

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

ENDS

For further information please contact:

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

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Sheffield Resources

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ASX AND MEDIA RELEASE

20 May 2026

SheffieldResources

LIMITED

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.

KIMBERLEY MINERAL SANDS

Kimberley Mineral Sands Pty Ltd, (KMS) is a 50:50 Joint Venture between Sheffield and Yansteel. The joint venture owns and operates the Thunderbird Mineral Sands Mine and actively exploring adjacent tenements on the Dampier Peninsula. Yansteel holds its interest in KMS through its wholly owned Australian subsidiary YGH Australia Investment Pty Ltd.

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 Mineral Resources developed for the Retiro and Bujuru deposits. The combined Mineral Resource for Retiro and Bujuru is 771Mt of material at an average grade of 3.0% THM (please refer to ASX announcement dated 25 June 2025 titled "South Atlantic Project: Maiden Mineral Resource & Retiro Licence Approval".

The tenements are held by RGM. Sheffield entered into an option agreement with RGM in February 2023, with subsequent extensions agreed in August 2024 and October 2025. Sheffield will provide funding for project related activities over an initial 48 month period and earn an option to acquire up to 20% of RGM a total investment of US$15m, less any funds contributed during the option period. 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%.

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ASX AND MEDIA RELEASE

20 May 2026

SheffieldResources

LIMITED

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. Forward-looking 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.