Highfield Resources Ltd Investor Presentation

November 2014

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 Ltd. CORPORATE OVERVIEW

3

Highfield Resources November 2014 For further information see www.highfieldresources.com.au

CONTENTS APPENDICES

1. Highfield Resources – A Potash Developer A. Board and Senior Management

2. Corporate Snapshot B. Management Experience Case Study

3. 2014 Achievements C. Potash Prices in Different Markets

4. Four 100% owned projects D. Potash Producer – Valuation Metrics

5. Located in a producing basin E. Break Down of Producer Costs

6. Muga-Vipasca and Pintano Projects

7. Sierra del Perdón

8. Muga-Vipasca Pre-Feasibility Study and Timeline

9. Projects "Tick All the Boxes“

10. First Quartile Cash Costs to Customer

11. Real Community Engagement

12. Summary and Outlook

1. Highfield Resources (ASX:HFR) – A Potash Mine Developer

4

• ASX-listed developer of potash mines with four projects in Northern Spain (Head office in Pamplona)

• Mines will be underground conventional mines with limited visual and environmental impact

• Highly attractive PFS delivered at combined Muga-Vipasca Project in May 2014

• PFS demonstrated compelling economics due to significant locational advantages, existing infrastructure and underground conventional mining accessed via a decline

• Well-funded following successful A$32m institutional placement in June 2014

Virtual image of the Process Plant Installation in the typical landscape of the region (for marketing purposes only)

2. 2014 Financial Year Achievements

5

• Highly attractive PFS delivered for combined Muga-Vipasca Project in May 2014

• Consistent drilling success across all projects, with high-grade shallower intersections of mineralisation

• Two JORC Resource Estimates (maiden inferred and upgraded JORC Resource Estimate for Javier Project (now Muga-Vipasca)

• Maiden JORC Resource Estimate at Pintano Potash Project

• Scoping Study for Sierra del Perdón progressed significantly

• Discovered new Vipasca Project area, with additional drilling success at Javier Project split into two projects:

• Muga Project – the shallower of the two – the Company’s target for initial mine

• Vipasca, potash mineralisation is deeper and at higher grade

• Completed $32m institutional equity placement

• Expanded Spanish operational team to 25 professional staff (directly employed)

3. Corporate Snapshot

6

Fully Diluted Equity

Ordinary Shares on Issue 200.50m

Options 39.25m

Performance A* Shares 51.50m

Performance B* Shares 51.50m

Fully Diluted 342.75m

Undiluted Market Cap at 62c $122m

Fully Diluted Market Cap at 62c $209m

Cash as at 30 September 2014 ~A$30m

Average Daily Volume (3months) ~400,000

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 $0.90

Canaccord Genuity BUY $0.98

Foster Stockbroking BUY $1.35

GMP Securities BUY $0.94

Numis Securities BUY $2.20

Taylor Collison BUY $1.18

0.00

500,000.00

1.00mm

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3.00mm

3.50mm

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4. Highfield has four 100% owned projects

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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

8

5. Projects are located in a producing basin

Israeli Chemicals Ltd (ICL:IT) has a market capitalisation of ~US$10 billion (September 2014). ~85% of ICL earnings are from potash, with around 5m tonnes of potash (MOP) produced and sold.

Highfield

Iberpotash

ICL CEO, Stefan Borgas, on 7 August 2014, discussing the Iberpotash expansion project: “…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.“

9

6. Muga-Vipasca and Pintano Projects

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 k

m

Vipasca Project Area

Pintano Project Area

Muga Project Area

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

7. Sierra del Perdón Project

10

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

Map of Sierra del Perdón showing historic mine infrastructure and drill holes

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% K

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Potash Production History

Production Grade

Source: Annual Minestrio de Industria lodgements by Mina de Potasas de Navarra and Subiza, SA (former mine owner)

8. Muga-Vipasca Pre-Feasibility Study

11

• Post tax NPV10 of US$1.06bn

• Post tax, unlevered IRR of 48.4%

• EBITDA in first year of full production estimated at $US235m

• Initial 20 year mine life at an average of 860k tonnes of potash (K60 product) per annum

• Pre-production capital cost estimated at less than US$250m (from total capital cost estimate of US$307.9m)

• All in cash costs to port of Bilbao of US$145 per tonne.

• Total C3 costs of US$162 per tonne

• 2016 FOB Vancouver potash price reference of $384 per tonne (nominal)

ASX Release 20 May 2014

Underground mine accessed via a decline supported by first world infrastructure and domestic markets

Virtual images of proposed mining operations Highway between Sangüesa and Pamplona and Port of Bilbao

8. Muga Project Timeline

12

2014 2015 2016 2017 2018 2019

DFS and Approvals Construction

Ph1 Production Ph1

Construction Ph2 Full Production…

9. Projects “Tick All the Boxes”

13

Virtual image of proposed decline and aboveground installation

Permit Process flow chart

• Shallow mineralisation (less than 250m beneath surface)

• Decline access to mineralisation

(All four potash mines in Ebro Basin have been accessed via a decline)

• Underground conventional mining

(Significant Capex and Opex advantages)

• Pre production Capex (less than USD250m)

• Support from significant cornerstone investor

• European commercial bank financing likely

• Developed EU economy with positive geopolitical risk profile

• Minimal visual and environmental impact

• Backfilling of tailings

• Legislated process with recent legislative changes designed to quicken environmental approval process

• Strong community engagement

• Momenutm improving in Spain following recent approvals

(W Resources (WRES LN) Ormonde Mining (ORM LN))

Extr

acti

on

Fu

nd

ing

Perm

itti

ng

Lodgement Mine Project Environmental Impact Study

30 days

4 months

Construction Ready

30 days Construction Application

Licence

Construction

Public Consultation

Review Review

Mining Approval

Positive Env. Declaration

Mining Concession

Gazetting Period

10. First Quartile Cash Costs to Customer

14 Source: Company Reports and street research

* Not in production with estimates based on public announcements,

Underground Mines 6 4 1 0 0 1 5 6 3 4

Brines Operations 0 0 0 1 0 0 0 0 0 0

Solution Mines 0 0 0 0 1 0 1 1 1 2

FY14 mt (if app) 13.0 9.0 10.0 4.0 2.8 0.9 9.0 3.1** 11.5 0.9

** 3.1m tonnes of MOP (4m tonnes low grade potash and magnesium products are also produced)

$63 $63 $67 $80 $80

$95 $105

$165 $171

$215

$186

$162 $154

$137

$239

$152

$212

$229

$280

$317

$-

$50

$100

$150

$200

$250

$300

$350

Uralkali Belaruskali BHP Jansen* ICL Dead Sea K+S Legacy* Highfield Muga*

PotashCorp K+S Germany Mosaic Intrepid

Operating Costs

Total

11. Real Community Engagement

15

Nursery Project with marginalised workforce in Liédena, Javier and Sangüesa

Tree planting as part of a forest restoration program in Sangüesa

Four Branches Safety first Ensuring best practice environmental outcomes Delivering positive social benefits Spreading the economic opportunities to all stakeholders

Geoalcali Foundation logo

Corporate Responsibility through the Geoalcali Foundation

12. Summary and Outlook

16

• ASX-listed potash developer with four projects in Northern Spain.

• Mines will be underground conventional mines with limited visual and environmental impact.

• PFS results for combined Muga-Vipasca Project demonstrated very compelling project showing benefits from underground conventional mine accessed via a decline with first world infrastructure and domestic markets.

• Mine funding and permitting both appear achievable.

• Real community engagement focus.

• Valuation metrics for potash producers indicate significant latent value in the Company´s potash projects.

• Muga Potash Project mining concession application

• Sierra del Perdón Maiden JORC Resource Estimate

• Upgraded Muga-Vipasca JORC Resource Estimate

• Delivery of Definitive Feasibility Study for Muga Project

The Next Steps:

Appendix A. Board and Senior Management

17

Derek Carter Non Executive Chairman MSc, BSc, FAusIMM(CP)

A geologist with over 40 years experience in exploration and development, including nearly 20 years in management of ASX listed exploration companies. Held senior positions in the Shell Group, including Chief Geologist in Spain. Was the Managing Director of ASX listed Minotaur Resources from its inception in 1993 to 2010.

Anthony Hall Managing Director BBus, LLB (Hons), AGIA

A qualified lawyer and company secretary with close to 20 years commercial experience in venture capital, risk management, strategy and business development. Was responsible for the listing process of Highfield Resources in 2011 and prior to this worked in roles in the strategy, energy, risk management and legal industries.

Pedro Rodriguez Development Director MSc, BSc

A geologist with over 30 years experience in mining services in Spain. He has worked for major international mining companies including Billiton International, Navan-Almagrera and Newmont. Most recently he had direct responsibility to the Board of ALMAGRERA SA for delivering a mining chemical complex with more than 460 direct employees and revenues of US$50m pa.

Richard Crookes Non Executive Director BSc (Geol), Grad Dip App Fin

A geologist with over 25 years experience in the resources and investments industry. Prior to joining EMR Capital as an Investment Manager, he was an Executive Director in Macquarie Bank’s Metals Energy Capital Division and Chief Geologist and Mining Manager of Ernest Henry Mining (now Xstrata).

Owen Hegarty Non Executive Director BEc (Hons), FAusIMM

Forty years experience in the global mining industry, including 25 years with Rio Tinto where he was MD of Rio Tinto Asia and of the Group’s Australian copper and gold business. A Director of various listed and unlisted resources’ companies including Chairman of specialist resources private equity firm, EMR Capital, Highfield’s largest shareholder and cornerstone investor.

John Claverley General Manager CEng, Eur Ing, BSc, MCIBSE

A professional engineer with over 30 years experience in major construction and infrastructure projects across Europe. Has worked for more than 20 years in Spain in a design, project management and Enterprise Management capacity for international firms in the construction and infrastructure sector.

Gonzalo Mayoral Director of Mining BEng(Mining), MBA

A qualfied mining engineer with over 15 years experience in Spanish construction and infrastructure projects. Prior to joining Highfield Resources was the General Manager of a large Spanish construction and geotechnical consultancy.

Fernando Palero Head of Geological Exploration PhD Geol,

Doctor in Geologic Science from the University of Salamanca with more than 30 years of experience in the mining sector and International Consulting. Professor of Drilling and Exploration at University of Castilla la Mancha. Author of numerous professional publications. Full Member of IAGOD-SEG and SEM.

Andrés Zapico Martín Construction Manager PhD, BEng(Mining)

Spanish qualified mining engineer with a PhD in Mining from the University of Oviedo. He started his career as a site engineer with various geotechnical and drilling specialists and subsequently moved into construction management. He has some 15 years´ experience in senior roles across a wide range of major civil and industrial engineering projects including hydroelectric power plants, tunnels (NATM and TMB-EPB), railways, highways, major underground excavations and mine infrastructure. He has worked for a number of major international contractors and consultants and was most recently based in Mexico delivering a hydroelectric energy plant.

Appendix B. Team Experience Case Study – Aguas Teñidas

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• Aguas Teñidas is a Copper, Lead, Zinc concentrates mine in Huelva Province.

• The mine was developed, built and initially operated by members of the Highfield senior management team.

• The facility opened in 2009 after a 12 month approvals period (for surface installations).

• Approx 15K T/ yr Cu and approx 40K T/ yr Zn.

• Decline access to 300m depth and 350 T/ hr ROM.

• Mine and process plant employ around 800 people

• Now owned and operated by Trafigura.

Aerial view of Aguas Teñidas complex

Appendix C. Potash Prices in Different Markets

19

Graph courtesy of Integer Research, Sept 2014

November Spot CIF Europe - €300/t CFR Brazil - US$380/t FOB Vancouver - US$310/t

Appendix D. Producer – Valuation Metrics

20

EV/EBITDA (x) Price/Earnings (x)

% of EBIT from

Potash

Producers Ticker Last Price Market Cap

(millions) EV (US$m)

Net Debt (US$m)

2013 2014E 2015E 2013 2014E 2015E

Arab Potash APOT JR 24 JOD US$2,824 2,555 269 10.8x 12.4x 11.0x 25.2x 27.1x 23.5x 100%

Intrepid Potash IPI US US$15.03 US$1,144 1,259 (115) 13.0x 12.7x 9.5x 41.8x 88.4x 37.6x 100%

K+S SDF GR €24.10 €4,606 4,782 (176) 5.2x 6.0x 5.9x 9.9x 14.8x 14.8x ~78%*

Mosaic MOS US US$47.25 US$17,702 18,397 (695) 8.8x 8.5x 7.3x 16.2x 17.8x 13.7x 73%

PotashCorp POT US US$34.84 US$28,894 32,928 (4,034) 10.4x 11.2x 10.0x 15.7x 19.6x 16.8x 56%

SQM SQM US US$27.77 US$7,115 7,727 (612) 8.8x 10.8x 9.8x 14.5x 22.0x 17.9x 23%

Uralkali URKA LI US$18.72 US$10,971 14,880 (3,909) 11.9x 10.2x 9.6x 17.6x 17.3x 10.7x 100%

ICL ICL IT US$7,60** US$9.476 12.131 (2.655) 8,6x 9,1x 7.7x 11,2x 13,8x 10,6x 82%

AVERAGE 9.8x 10.2x 9.0x 20.1x 29.6x 19.3x

Source: Bloomberg, as at 4 September 2014

*~78% of K+S earnings are from its Potash and Magnesium division

** note share price converted to US dollars from Israeli Shekel

Appendix E. Full Break Down of Producer Costs

21 Source: Company Reports and street research

** 3.1m tonnes of MOP (4m tonnes low grade potash and magnesium products are also produced)

$63 $63 $67 $80 $80

$95 $105

$165 $171

$215

$50 $43 $45 $15

$58 $35 $33

$15

$45

$40

$48 $37

$10

$16

$36

$9

$35

$23

$28

$15

$1

$- $21

$6

$40

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$1

$23

$14

$24

$19 $11

$20

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$13

$9 $25

$13

$33

0

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Uralkali Belaruskali BHP Jansen* ICL Dead Sea K+S Legacy* HighfieldMuga*

PotashCorp K+SGermany

Mosaic Intrepid

Corporate SG&A

Royalties

Sustaining Capital

Freight Costs

Operating Costs

* Not in production with estimates based on public announcements,

REGISTERED OFFICE

169 Fullarton Road Dulwich SA 5065

Australia

HEAD OFFICE

Calle Navas de Tolosa, 5 – 1°B, 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 Simon Hinsley Investor Relations T+61 401 809 653