Highfield Resources LtdSchröder Equities

Australian Resources Conference

Zurich

Corporate Presentation

17 February 2015

ASX Code: HFR

COMPETENT PERSON STATEMENT

Information relating to resources was prepared by Mr Leo Gilbride, P.Eng and Ms

Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person under JORC

Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo. of

Agapito Associates of Colorado, USA. Mr Gilbride is a licensed professional engineer

in the State of Colorado, USA and is a registered member of the Society of Mining,

Metallurgy and Exploration Inc. Ms Santos is a licensed professional geologist in

South Carolina and Georgia, USA, and is a registered member of the Society of

Mining, Metallurgy and Exploration Inc.

The Society of Mining, Metallurgy and Exploration Inc is a JORC Code ‘Recognized

Professional Organization’ (RPO). An RPO is an accredited organization of which the

Competent Person under JORC Code Reporting Standards must belong in order to

report Exploration Results, Mineral Resources, or Ore Reserves through the ASX. Mr

Gilbride is the Vice President of Engineering and Field Services and Ms Santos is the

Chief Geologist with Agapito Associates and both have sufficient experience to

qualify as a Competent Person for the relevant style and type of mineralisation and

deposit under consideration of this release. Mr Gilbride and Ms Santos consent to the

inclusion in the report of the matters based on this information in the form and

context in which it appears.

FORWARD LOOKING STATEMENTS

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.

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.

Highfield Resources Limited

3

CONTENTS APPENDICES

1. Introduction A. Corporate Overview

2. The Projects B. Muga, Vipasca and Pintano Projects

3. Project Advantages – Proven producing basin C. Sierra del Perdón Project

4. Project Advantages – Proven mining and processing techniques D. Permitting

5. Project Advantages – First quartile margin in production E. 2015 MOP market supply and demand

6. Management have built and operated mines

7. 2015 – A Company defining year

8. Summary

1 Introduction

4

Highway from within seven kms of mine gate to port, Aerial phot of Port of Bilbao, and

virtual image of proposed aboveground operations

Decline accessed underground mine with project economics

boosted by first world infrastructure and domestic markets• Highfield Resources is developing one of its four

100% owned potash projects in northern Spain.

• Located in a producing potash basin where

undergound mines have operated via decline with

simple sylvinite flotation circuit processing.

• The flagship Muga Mine Project has the lowest

capex of any development stage potash project.

• In production Muga will have first quartile

EBITDA margins due to a combination of high

price end markets and low total cash costs to

customer.

• Management team has proven mine building

experience in Spain and operating experience in

potash.

• 2015 is a Company defining year.

2 The Projects

5

Developing one of its four 100% owned potash projects in northern Spain

Mines in the Ebro Basin have produced for close to 100 years

Navarra Sub-basin

Two producing mines operated

between 1963 and 1997

Catalan Sub-basin

Two producing mines operating

since 1925

Underground conventional mining

accessed via a decline

Underground conventional mining

accessed via a decline

6

3 Project Advantages – Proven producing basin

Israeli Chemicals Ltd (ICL:IT) owns Iberpotash and has a market capitalisation of ~US$9 billion (February 2015).

~85% of ICL earnings are from potash, with around 5m tonnes of potash (MOP) produced and sold.

Highfield

Iberpotash

“…we have identified a possibility to expand this mine by around a million tons for probably a record low CAPEX level; less than half, much less

than half of what you would see in CAPEX-to-production ratio in other parts of the world in the average of this industry.”

".. It's a concept study at this point in time but it's so shockingly attractive that we're putting an accelerator on this and hopefully by the end of the

year, we can make it a project.“

ICL CEO, Stefan Borgas, when discussing ICL’s Ebro Basin expansion projects on 7 August 2014

3 Project Advantages – Proven mining and processing techniques

7

The majority of producing mines are undergound mines with sylvinite flotation circuit processing

76%

19%

5%

Underground Conventional Brines Solution

Source: Scotiabank, HFR Research

Mining

Decline access into underground conventional room and pillar mine

Processing

Flotation circuit processing of sylvinite ore

Estimated 2015 MOP Production by Mining Method

Virtual images of decline access into

conventional underground mines

Total capex (in absolute terms) Capital intensity per tonne of production

0 500 1,000 1,500

Highfield: Muga

Potashcorp: Rocanville

Prospect Global

Uralkali: Ust

Allana: Danakil

South Boulder: Colluli

Verde: Cerrado Verde

Passport: Hollbrook

Eurochem: Usolskiy

Karnalyte: Wynyard

Elemental: Sintoukola

Uralkali: Polovodovsky

Brazil Potash: Autazes

Encanto: Muskowekwan

MagIndustries: Mengo

Eurochem: VolgaKaliy

W. Potash: Milestone

Capital Intensity US$/tonne of Production

0 2,000 4,000 6,000

Highfield: Muga

Allana: Danakil

Pros. Glb'l: Hollbrook

MagIndustries: Mengo

South Boulder: Colluli

Uralkali: Ust

Elemental: Sintoukola

Passport: Hollbrook

Brazil Potash: Autazes

Karnalyte: Wynyard

Verde: Cerrado Verde

Uralkali: Polovodovsky

Encanto: Muskowekwan

Eurochem: Usolskiy

Potashcorp: Rocanville

W. Potash: Milestone

Eurochem: VolgaKaliy

Capital Expenditure US$ millions

4 Project Advantages – Lowest capital cost

8

Muga is a stand-out MOP project in terms of total capex and capital intensity

Average: US$810/tonne

Source: GMP Europe Research May 2014

Average: US$2,091 million

$(95)$(63) $(67)

$(215)

$(80)

$(35)

$(43) $(45)

$(40)

$(58)

$(9)$(37) $(10)

$(15)

$(36)

$(21)

$(14)

$(40)

$(13) $(19) $(11)

$(33)

$(25)

$214 $180

$136 $115

$51

$(350)

$(300)

$(250)

$(200)

$(150)

$(100)

$(50)

$-

$50

$100

$150

$200

$250

Operating Costs Freight Costs Sustaining Capital Royalties Corporate SG&A EBITDA Margin

5 Project Advantages – First quartile margin in production

Source: Street research, Company reports and HFR estimates

* Under development

1 Assumes granular premium over standard product in Brazil of US$20/tonne

2 Assumes China, SE Asia, Brazil1 & Europe sales evenly distributed

9

Estimated

delivered cost

to customer

(US$ / tonne)

Estimated

EBITDA

margin

(US$ / tonne)

Project Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy*

Price at Customer CFR Brazil / CIF NW Europe

US$366 / tonne1

Asia2 / Brazil / Europe

US$342 / tonne

FOB Vancouver

US$290 / tonne

CIF US Midwest

US$432 / tonne

FOB Vancouver

US$290 / tonne

US$152 US$162 US$154

US$317

US$239

First quartile margin is driven by high priced end markets and low total costs to customer

0 0.8

Africa0.5

12.5

Asia2

1.8 2.2

Sth America1

10

1.5

8.7

USA

4.2 6.5

EU*

18.7

0.8

Canada

0.3

9.3

Brazil

21.0

3.8

FSU

5.5

13.0

China

6.5 1.4

Middle East

1Excluding Brazil2Excluding China

MOP spot Prices in USD as at 1 Jan 2015 – Prices for Standard Product

Source: IFA, Scotiabank, Uralkali, HFR Research

Global Totals (2014)

Production Consumption

60.0 59.0

FOB Vancouver

$290

CFR Brazil

$350

CFR India

$322

CFR China

$305

CFR SE Asia

$330

CIF US Midwest

$432

CIF NW Europe

$363

MOP spot

US$/mt

Competitive access to high priced MOP markets

5 Project Advantages – First quartile margin in production

Estimated 2014 MOP supply and demand by region

11

Source: Company Reports and street research• Not in production with estimates based on public

announcements,

• Includes 3.1m tonnes of MOP production and 4m tonnes

of low grade potassium and magnesium products.

$80 $95

$67 $63 $63

$105

$165

$80

$171

$215

$15

$35

$45 $43 $50

$33

$15

$58

$45

$40

$16

$9

$10 $37

$48

$35

$23

$36

$28

$15

$6

$21 $-

$1

$30

$1 $40

$23

$14

$20

$13 $11 $19

$24

$9 $25

$25

$13

$33

1

$-

$50

$100

$150

$200

$250

$300

$350

ICL Dead Sea HighfieldMuga*

BHP Jansen* Belaruskali Uralkali PotashCorp K+S Germany K+S Legacy* Mosaic Intrepid

Corporate SG&A

Royalties

Sustaining Capital

Freight Costs

Operating Costs

Low total cash costs to customers with large royalty and logistics advantages

5 Project Advantages – First quartile margin in production

$138

$152 $154$162

$192

$212

$229$239

$280

$317

12

Pedro

Rodriguez

Development

Director

• Geologist with over 30 years experience in Spain,

including for senior management roles for multi-nationals

including Billiton, Navan-Almagrera and Newmont

• Direct responsibility for permitting and delivery of the

Aguas Teñidas, Los Santos and Mazaron mines

Alfredo Luis

Menendez Diaz

EGM

Construction

• Mining Engineer with over 30 years experience in Spain

including for HUNOSA and SADIM

• As General Manager of HUNOSA, was directly

responsible for construction or operation of a number of

projects including Aguas Teñidas , Sotiel, La Zarza, Rio

Tinto, Los Santos and Cobre Las Cruces

Michael

Schlumpberger

EGM

Operations

• Mining Engineer with extensive underground mining

experience including over 21 years at PotashCorp

• Operational responsibility for the expansion and ongoing

operations at PotashCorp’s 8Mtpa Lanigan underground

mine

6 Management have built and operated mines

Aguas Teñidas CU-Pb-Zn mine in Huelva Province, Spain. Opened 2009

Proven in-country team with over thirty professionals including experienced mine builders

7 2015 – A Company defining year

13

The transition from developer to producer

Q1

•Muga-Vipasca JORC Resource estimate upgrade

•Sierra del Perdón maiden JORC Resource estimate

•Muga Mine Definitive Feasibility Study

Q2•Muga Mine project finance term sheets agreed

•Sierra del Perdón Scoping Study

Q3 •Muga Mine Financial Close

Q4 •Muga Mine construction commences

Brochure cover explaining the Company’s commitment to its four

pillars of corporate responsibility

8 Summary

14

Logo of the Company’s Spanish Foundation that is currently delivering

several projects with the local communities

• Highfiled Resources is developing one of its four 100% owned potash

projects in Northern Spain.

• The projects are in a producing potash basin where conventional

undergound mines have operated via decline and sylvinite flotation

circuit processing.

• The flagship Muga Mine Project has the lowest capex of any

development stage potash project.

• In production it will have first quartile EBITDA margins driven by

combination of high price end markets and low total cash costs to

customer.

• A management team has been assembled with proven mine building

experience in Spain and in potash operations.

• 2015 is a Company defining year.

Highfield Resources Ltd

Appendices

16

Fully Diluted Equity

Ordinary Shares on Issue 200.50m

Options 39.50m

Performance A* Shares 51.50m

Performance B* Shares 51.50m

Fully Diluted 343.00m

Undiluted Market Cap at 86c (13 Feb 15) $172m

Fully Diluted Market Cap at 86c $295m

Cash as at 31 December 2014 ~A$25m

Average Daily Volume (6months) ~220,000

Shareholders (Fully Diluted)

Spanish in-country management 21%

Australian based management 8%

EMR Capital 20%

Other Shareholders 51%

Total 100%

* Performance shares were granted for acquisition of the Spanish assets with the following

milestones

A.JORC Indicated Resource of 150m tonnes at 13% K20 (20.6% KCl); and

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

annum.

Broker Recommendation 12-month Price Target

Bell Potter BUY $1.15

Blue Ocean BUY $1.65

Canaccord Genuity BUY $1.30

Foster Stockbroking BUY $1.35

GMP Securities BUY $0.94

Numis Securities BUY $2.20

Pareto Securities BUY $1.20

Taylor Collison BUY $1.18

AVERAGE $1.37

16

Appendix 1 – Corporate Summary

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Vo

lum

e (

m)

Pri

ce (

A$

)

17

Over 450m tonnes of JORC Resource estimate*

covering less than 15% of Project area

Map of Muga-Vipasca and Pintano Project Areas showing JORC

Resource estimate, drill holes and seismic profiles

≈ 52 km

≈ 1

5 km

Vipasca

Project Area

Pintano Project

Area

Muga

Project Area

* Refer ASX Releases dated 16 May 2014 and 20 November 2013

Appendix 2 – Muga-Vipasca and Pintano Projects

18

Photo showing mine operations at Potasas de Subiza in the mid 1990s

Map of Sierra del Perdón showing historic mine infrastructure

and drill holes

0

5

10

15

20

25

30

0

100

200

300

400

500

600

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

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94

19

95

19

96

19

97

% K

Cl

An

nu

al p

rod

uct

ion

('0

00

t)

Potash Production History

Production Grade

Source: Annual Minestrio de Industria lodgements by Mina de Potasas de Navarra and Subiza, SA

(former mine owner)

Appendix 3 – Sierra del Perdón Project

19

Appendix 4 – Permitting

Lodgement Mine ProjectEnvironmental

Impact Study

30 days

4 months

Construction Ready

30 days Construction

Application

Licence

Construction

Public

Consultation

ReviewReview

Mining ApprovalPositive Env.

Declaration

Mining

ConcessionGazetting Period

A defined permit process is underway

Virtual image of proposed aboveground processing plant

Flow sheet of defined permit process

• Minimal visual and environmental impact

• Backfilling of salt tailings

• Legislated process with recent legislative changes designed

to quicken environmental approval process

• Strong community engagement

• Momentum improving in Spain following recent approvals

inluding Ormonde Mining (21 Nov 2014) and EMED Mining

(23 Jan 2015)

Appendix 5 – 2015 MOP market supply and demand

20

2015 MOP market is tight with most producers expected to be at full capacity

Source: BMO – 30 January 2015

• The only spare capacity sits with PotashCorp and Mosaic

REGISTERED OFFICE

169 Fullarton Road

Dulwich SA 5065

Australia

HEAD OFFICE

Avenida Carlos III, 13-15, 1B, 31002 Pamplona, Spain

T +34 948 050 577 | F +34 948 050 578

www.highfieldresources.com.au

info@highfieldresources.com.au

FURTHER INFORMATION

Anthony Hall Managing Director T +34 617 872 100

John Claverley General Manager T +34 607 748 435

Hayden Locke Corporate Development T +34 609 811 257