Sheffield Resources Ltd. — Regulatory Filings 2011

Jun 26, 2011

ASX and Media Release

27 June 2011

MAIDEN DRILLING PROGRAM DELIVERS BROAD TALC INTERSECTIONS

KEY POINTS

Sheffield's first diamond drilling program in the Moora Talc Belt intersects significant zones of talc in four of six prospects tested, including:

Fowlers

72.3m of talc from 0.9m depth in drill hole MODD006, and 83.7m of talc from 0.8m depth in drill hole MODD008

Tilleys

26.5m of talc from 45m depth in drill hole MODD009.

Sampling in progress with analytical results expected in August.

Bulk minerals explorer Sheffield Resources ("Sheffield") (ASX:SFX) today announced broad intersections of talc from a successful maiden drilling program at its Moora Talc Belt project located 300km north of Perth in Western Australia"s Mid West region (Figure 1).

The diamond drilling program of 1,238m returned significant talc intersections from four of the six targets tested (see Table 1 for further details). In particular, the talc intersections in drill holes MODD006 and MODD008 at Fowlers are amongst the longest recorded at that prospect (Figure 2).

Sampling of the drill core is in progress and the samples will be submitted for XRF analysis and brightness measurements to determine the suitability of the talc for various end use applications. The results of this work are expected in August.

Whereas many past explorers in the Moora Talc Belt have tended to focus their drilling on shallow talc targets within the zone of weathering (which can be from 30m to 60m depth) Sheffield"s approach is to target fresh talc below the base of weathering and to undertake systematic sampling to identify zones of higher quality talc.

Sheffield has a dominant tenure position over the 175km long Moora Talc Belt (Figure 1). The Moora Talc Belt includes Rio Tinto"s world class Three Springs talc mine which has been producing premium grade microcrystalline talc from a relatively simple "dig-and-deliver" operation since 1948.

Managing Director, Bruce McQuitty said the drilling results are a positive start to Sheffield"s exploration campaign in the Moora Talc Belt.

"Our strategy is to prove up large deposits, or clusters of deposits, containing high quality talc capable of supporting long-life direct shipping mining operations."

Sheffield is one of very few listed public companies in the world offering significant exposure to talc.

Sheffield Resources Ltd ACN 125 811 083

14 Prowse Street West Perth WA 6005 T: +61(0) 8 6424 8440 F: +61(0) 8 9321 1710

About Talc

Talc, with a chemical formula of Mg3Si4O10(OH)2, is a hydrous silicate mineral made up of magnesium (Mg), silica (SiO2) and water. It is one of the softest minerals known to man and is also chemically inert, non-toxic, repels water and readily absorbs oil.

Talc may be sold both as a raw lump product to talc mills and also after milling as a micronised product.

Paper represents the largest end-use industry for talc, followed by the ceramics industry. Talc is also used in the manufacture of plastics. Surging requirements in the automotive market for recyclable and lightweight materials have largely been contributing to the escalating demand for plastics, which in turn is propelling growth of talc products. Talc has many other industry uses including rubber, paints, roofing and pharmaceuticals.

Chinese producers dominate the world market (approximately 50%) with regard to volume production. The Chinese talc industry has been facing a number of challenges which have created insufficient supply of high-grade talc. This is due primarily to the exhaustion of high grade talc mines in China and an increase in demand both domestically and in export markets. Chinese output of high grade talc is considered insufficient to meet the current needs of neither the Chinese domestic market nor export demand.

During 2008 and 2009 talc prices ranged between US$259 and US$460 per tonne depending on grade.

North Perth Basin Mineral Sands Project Update

Assaying and resource estimation work is progressing according to the timetable announced on 2 June 2011. Resource estimation is in progress for the Company"s Yandanooka prospect.

Pilbara Iron Project Update

Detailed geological mapping and sampling has been completed at the Company"s Three Pools project, located 20km north of Newman. An aboriginal heritage survey has been scheduled for late July, ahead of drilling planned to commence in September.

ENDS

Website: www.sheffieldresources.com.au

For further information please contact: Bruce McQuitty Managing Director Tel: 0409 929 121 bmcquitty@sheffieldresources.com.au

Media: Annette Ellis / Warrick Hazeldine Purple Communications Tel: 08 6314 6300 AEllis@purplecom.com.au

COMPETENT PERSONS' STATEMENT

The information in this announcement that relates to exploration results is based on information compiled by David Archer. Mr Archer is a full time employee of the Company. Mr Archer is a Member of the Australasian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity to which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code")". Mr Archer consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS

Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forwardlooking statements include, but are not limited to, statements concerning the Company"s exploration programme, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "prospective", and similar expressions.

Figure 1. Location of Sheffield"s Tenements and priority targets in the Moora Talc Belt**.**

Figure 3. Tilleys Prospect plan and section showing hole MODD009 intersecting significant zones of talc consistent with historic drilling.

Figure 2. Fowlers plan and sections showing consistently thick talc intersected over 250m strike. Note historic work did not comprise systematic sampling of all talc intersections.

Figure 4: Fowlers Prospect white talc (MODD007 – 23.9m, PQ core) Figure 5: Nivens Prospect cream talc

(MODD001 – 61m, HQ core)

Figure 6: Tilleys Prospect green talc (MODD009 – 60.8 to 64.3m, HQ core)

Figure 7: Prowaka South cream talc (MODD003 – 71.9m to 75.4m, HQ core)

Prospect	Hole ID	Depth From	Depth To	Interval	Description	Colour
Nivens	MODD001	60.77	61.84	1.07	Talc	cream
Nivens	MODD002	59.83	61.46	1.63	Talc, minor dolomite	cream
Nivens	MODD002	62.76	64.87	2.11	Talc, minor dolomite	cream
Nivens	MODD002	70.85	72.21	1.36	Talc	cream
Prowaka S	MODD003	63.05	64.16	1.11	Talc-Dolomite	cream
Prowaka S	MODD003	72.78	76.79	4.01	Talc, minor dolomite	cream
Prowaka S	MODD003	78.92	79.96	1.04	Talc	cream
Prowaka S	MODD003	81.38	86.69	5.31	Talc, weakly foliated	cream-grey
Prowaka S	MODD003	90.94	98.73	7.79	Talc	cream
Prowaka S	MODD003	102.58	103.96	1.38	Talc	light green
Prowaka S	MODD003	174.77	177.37	2.6	Talc	light green
Prowaka S	MODD003	180.26	197.94	17.68	Talc	green
Prowaka S	MODD003	214.68	223.03	8.35	Talc-Dolomite	green-grey
Haigs	MODD005	13.26	20.4	7.14	Weathered Talc Breccia	white
Haigs	MODD005	25.6	27.1	1.5	Weathered Talc Breccia	white
Fowlers	MODD006	0.9	15.65	14.75	Talc	white
Fowlers	MODD006	15.65	46.3	30.65	Talc, 1m iron-stain zones	white-red
Fowlers	MODD006	46.3	73.16	26.86	Talc	white, pearly
Fowlers	MODD006	76	86.78	10.78	Talc	white, pearly
Fowlers	MODD006	93.27	94.61	1.34	Talc	cream
Fowlers	MODD007	0	4.2	4.2	Talc breccia, iron-stained	cream-red
Fowlers	MODD007	4.2	19	14.8	Talc, minor iron-stained	white, pearly
Fowlers	MODD007	19	63.5	44.5	Talc
Fowlers	MODD008	0.8	84.5	83.7	Talc	white, pearly white
Fowlers	MODD008	104.9	110.5	5.6	Talc	cream
Tilleys	MODD009	5	13	8	Talc, weathered	cream
Tilleys	MODD009	13	17.7	4.7	Talc, iron-stained	cream-red
Tilleys	MODD009	17.7	21.5	3.8	Talc	green-grey
Tilleys	MODD009	29.2	31.4	2.2	Talc	green-grey
Tilleys	MODD009	34.7	36.7	2	Talc	green-grey
Tilleys	MODD009	40.7	42.4	1.7	Talc	green-grey
Tilleys	MODD009	45	71.5	26.5	Talc	green-grey

Table 1. Geological summary of logged talc intervals >1m.

Table 2. Moora Talc Belt diamond drill hole details.

Prospect	Hole ID	Tenement	Easting	Northing	RL	Hole Depth	Hole Orientation
Nivens	MODD001	E70/3779	389694	6720959	265	123.8	Vertical
Nivens	MODD002	E70/3779	389661	6720801	262	120.7	Vertical
Prowaka South	MODD003	E70/3779	389290	6723431	247	240.7	Vertical
Buckingham	MODD004	E70/3779	388871	6721875	252	136	Vertical
Haigs	MODD005	E70/3779	389686	6718056	255	116.6	Vertical
Fowlers	MODD006	E70/3776	411764	6672083	290	150.2	Vertical
Fowlers	MODD007	E70/3776	411802	6671950	290	79.4	Vertical
Fowlers	MODD008	E70/3776	411809	6671938	290	180.2	Vertical
Tilleys	MODD009	E70/3778	403546	6697459	290	90.4	Vertical

Coordinates are MGA Zone 50 (GDA94).

ABOUT SHEFFIELD RESOURCES

Sheffield Resources Limited (Sheffield) is a new exploration company with a bulk minerals focus. The Company"s Projects are geared towards the steel industry feed cycle (iron ore and tungsten) and the emerging fillers-ceramics-pigments cycle (talc, zircon, titanium dioxide).

ASX Code –	Market Cap @ 25cps -
SFX	$14.7m
Issued shares –58.6mNEW EXPLORATION COMPANY -BULK COMMODITY FOCUS	Cash -$5.8m(at 31 Mar 2011)

The Company has over 6,000km2 of highly prospective tenure, all situated within the state of Western Australia.

TALC

Sheffield has 1,152km2 of tenure over the 175km-long Moora Talc Belt which represents a dominant ground position over a region that has, for the last 50 years, been exclusively controlled by major mining companies.

The Moora Talc Belt includes the large Three Springs mine which is owned by Rio Tinto Limited subsidiary Luzenac Australia Pty Ltd. Three Springs is renowned for producing high purity talc and is a relatively simple "dig-and-deliver" operation.

The existing infrastructure is excellent. A railway and a sealed highway transect the project and connect to Geraldton port approximately 170km to the northwest.

Sheffield"s large tenement holding contains numerous talc occurrences and has the potential to become a strategic talc asset. Sheffield therefore represents a unique opportunity for investors to gain exposure to one of the few high-grade talc explorers in the world.

HEAVY MINERAL SANDS

Sheffield controls over 5,000km2 of mineral sands tenure in the established North Perth Basin mineral sands province and the emerging Carnarvon, Eucla and Canning Basin provinces.

Sheffield"s North Perth Basin tenement package of over 2,500km2 contains seven advanced exploration projects: West Mine North, Ellengail, Yandanooka, Durack, Beekeepers, and Irwin which are located near Eneabba and the large McCalls deposit - a former BHP project located near Gingin. These projects are well located close to existing mineral sands operations and to a network of highways and railway lines connecting to Geraldton and Fremantle/Kwinana ports. Sheffield"s strategy is, subject to exploration success, to build multiple HMS projects capable of supporting a flexible mobile mining plant.

IRON

Sheffield"s Pilbara iron ore projects consist of five granted tenements and 15 tenement applications, of which three are second-in-time applications and nine are subject to ballot with multiple competing parties. Sheffield"s strategy is to target hematite mineralisation adjacent to infrastructure in the world class Pilbara iron province and to build up consolidated tenement holdings over time. Reconnaissance mapping has so far identified iron enrichment on three of the Company"s tenements.