Sheffield Resources Ltd. — Capital/Financing Update 2021

Nov 18, 2021

ASX AND MEDIA RELEASE 19 NOVEMBER 2021

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THUNDERBIRD MINERAL SANDS PROJECT ADVANCED TO NAIF DUE DILIGENCE PHASE

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Sheffield Resources Limited (“Sheffield” “the Company”) (ASX: SFX) is pleased to advise that the Northern Australia Infrastructure Facility (NAIF) has completed a strategic assessment of the Thunderbird Mineral Sands Project (Thunderbird), with Thunderbird now proceeding to NAIF’s due diligence phase.

NAIF previously approved an Investment Decision in favour of Thunderbird in 2018 by way of a loan up to $95 million (https://naif.gov.au/media-releases/west-kimberley-naif-loan-third-to-support-westernaustralia/). As is customary with the NAIF investment process, NAIF and Kimberley Mineral Sands Pty Ltd (KMS) will now undertake technical, legal and financial due diligence prior to NAIF considering an updated Investment Decision.

The completion of a strategic assessment does not represent a formal decision to offer or commit finance by NAIF in favour of Thunderbird or KMS and there is no certainty that any definitive agreement will be concluded between the parties.

Sheffield Executive Chairman, Bruce Griffin, said: “ NAIF’s continued support of the world class Thunderbird Mineral Sands Project is extremely pleasing and we look forward to concluding the Thunderbird definitive feasibility study and project financing activities ahead of an expected 2022 Final Investment Decision.”

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 6555 8777 info@sheffieldresources.com.au Website: www.sheffieldresources.com.au

ASX AND MEDIA RELEASE 19 NOVEMBER 2021

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ABOUT SHEFFIELD RESOURCES

Sheffield Resources Limited is focused on developing the world class Thunderbird Mineral Sands Project, located in north-west Western Australia. Sheffield continues to assess other regional exploration opportunities.

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.

Construction of a 500ktpa integrated titanium dioxide processing facility including a titanium slag smelter has commenced by the company. This complex will consume the Low Temperature Roast (“LTR”) ilmenite offtake from Stage 1 of the Thunderbird Mineral Sands Project.

THUNDERBIRD MINERAL SANDS

Thunderbird is one of the largest and highest grade mineral sands discoveries in the last 30 years. Sheffield’s 2019 Bankable Feasibility Study Update shows Thunderbird is a technically low risk, modest capex project that generates strong cash margins from globally significant levels of production over an exceptionally long mine-life spanning multiple decades.

Thunderbird will generate a high-quality suite of mineral sands products with specifications suited to market requirements. These products include a zircon products and ilmenite suitable for manufacturing titanium dioxide pigment or smelting into chloride slag.

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.

KIMBERLEY MINERAL SANDS

In January 2021, Sheffield and Yansteel executed binding agreements for the formation of a 50:50 Joint Venture (Kimberley Mineral Sands Pty Ltd, KMS) to own and develop the Thunderbird Mineral Sands Project and adjacent tenements on the Dampier Peninsula. Yansteel subscribed for a 50% interest in KMS and provided A$130.1m in project equity funding. Sheffield shall fund any project equity shortfall between A$130.1m and A$143m, less Project costs incurred prior to a Final Investment Decision (“FID”). KMS will secure project finance and, if required, project equity in excess of A$143m will be funded 50:50 by Yansteel and Sheffield. The Yansteel A$130.1m project equity investment in KMS, together with the A$12.9m funding under the Yansteel Share Placement completed on 12 August 2020 and combined with project financing is expected to deliver a fully funded project.

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.