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ASX Release

8 October 2013

HIGHFIELD RESOURCES

LIMITED ACN 153 918 257

ASX Code

HFR

Registered Office

Level 1 330 Churchill Avenue

Subiaco WA 6008 Australia

Tel: +61 8 9200 4426 Fax: +61 8 9200 4469

Head Office

Calle Navas de Tolosa, 5 - 1°B, 31002

Pamplona, Spain

Tel: +34 948 050 577 Fax: +34 948 050 578

Contact

Anthony Hall Managing Director

Directors

Derek Carter

Richard Crookes

Scott Funston Anthony Hall

Owen Hegarty

Pedro Rodriguez

Company Secretary

Aaron Bertolatti

Issued Capital

135.5 million shares 103 million

performance shares 20.5 million options

HIGHFIELD RESOURCES DELIVERS MAIDEN INFERRED JORC RESOURCE OF 163.2Mt OF SYLVINITE AT JAVIER

HIGHLIGHTS

Maiden JORC Inferred Resource estimate of 163.2 million

tonnes of sylvinite at 10.9% K2O (17.3% KCl) for Javier Project

The infill and step-out drilling campaign that commenced in

July 2013 is aimed at upgrading and expanding the current

Inferred Resource beyond the limits of historical drilling

The Exploration Target* of 250 to 400 million tonnes of sylvnite

ranging in grade between 9% and 12% K2O supports the

potential upside in the drilling campaign

JORC resource estimates expected for the Company´s

additional Spanish projects over the coming months

Fronterizo permit approved by the local regions, Navarra and

Aragon

The Board of Highfield Resources (ASX: HFR) is pleased to report a maiden JORC Inferred Mineral Resource estimate for its 100%-owned Javier Potash Project, Northern Spain.

Independent geology and mining consultant Agapito Associates, Inc. prepared the JORC Code compliant Inferred Mineral Resource estimate of 163.2 million tonnes of sylvinite at 10.9% K2O (17.3% KCl).

There is further potential upside as the JORC Mineral Resource estimate represents a fraction of the total Exploration Target* of 250 to 400 million tonnes of sylvinite ranging in grade between 9% and 12% K2O.

“The maiden JORC Mineral Resource estimate is an important milestone in the development of the Company´s potash projects and demonstrates a real mining opportunity at Javier,” Managing Director Anthony Hall said.

“We are highly encouraged by the initial resource, especially as it only encompasses a small portion of the Exploration Target area. We expect the current drilling at Javier to increase the resource, which will ultimately be reflected in any mining studies.”

The Company expects to present additional JORC Code compliant Mineral Resource estimates for its two additional 100%-owned Spanish potash projects, Sierra del Perdón and Pintano over the coming months.

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JAVIER POTASH PROJECT MAIDEN JORC CODE COMPLIANT RESOURCE

Potash mineralisation on the Javier property (the “property”) occurs in three principal sylvinite beds (A, B, and 1)

ranging in depth from 200 meters (m) to more than 1,000m. The JORC Code compliant Mineral Resource estimate

for the property was independently developed by U.S. geology and mining consultant Agapito Associates, Inc. and

is based on the results of documented geological studies, 2D seismic analysis, exploration drilling, electric logging

(elogs), and chemical analysis on core from 10 exploration holes drilled during the 1980’s by Potasas de Subiza,

S.A.

Highfield Resources (Highfield) initiated a multiple drill rig exploration campaign on the Javier property in July 2013

with early results anticipated in Q4 2013.

The JORC Mineral Resource estimate was calculated using a computer gridded-seam geologic model constructed

with Mintec Inc. MineSight 3D© v7.9 software by Mr. Leo J. Gilbride, P.E., Vice President AAI, and Ms. Vanessa

Santos, AAI Chief Geologist, both registered members of the Society for Mining, Metallurgy, and Exploration, Inc.

and JORC competent persons. Proprietary historical data for the property have been reviewed by the competent

persons for quality and completeness.

The Javier Mineral Resource estimate is summarised by potash bed in Table 1. The Mineral Resource estimate

assumes a minimum bed composite cut-off grade of 8.0% K2O and a minimum bed thickness of 2.0m, consistent

with reasonable prospects for economic extraction by conventional and/or solution mining methods. Drill holes

show that the potash beds, where mineralisation is present, range in thickness from 0.6 to 4.9m with composite

grades ranging from 5.3% to 16.5% K2O. All drill holes included in the model were assumed vertical as no deviation

surveys were available. The JORC Mineral Resource estimate has an effective date of 22 August 2013.

The Mineral Resource estimate is reported as in-place tonnes of sylvinite contained in the respective potash beds.

Sylvinite is a mechanical mixture of halite and sylvite (KCl) with minor inclusions of insolubles (typically clays) and

limited carnallite (KCl·MgCl2·6H2O). Tonnages are based on an average bulk density of 2.1 tonnes per cubic

meter (t/m3) derived from 2012 bulk density testing of historical sylvinite cores by North Rim Exploration Ltd. and

historical values published by E.N. Adaro de Investigaciones Mineras S.A. for the Javier and Pintanos properties.

Also reported are equivalent tonnes of pure K2O and KCl contained within the potash beds derived from the K2O

and KCl grades of the in-place sylvinite.

Average

Thickness

(m)

Resource

Area

(ha)

In-Place

Tonnes1,2

(millions)

In-Place

K2O

(wt %)

In-Place

KCl

(wt %)

Contained

K2O

Tonnes

(millions)

Contained

KCl

Tonnes

(millions)

INFERRED3

A Sylvinite 3.8 1,247.3 97.1 11.8 18.8 11.5 18.2

B Sylvinite 3.5 681.4 48.9 8.9 14.1 4.3 6.9

1 Sylvinite 2.6 322.8 17.3 11.2 17.8 1.9 3.1

TOTAL 163.2 10.9 17.3 17.7 28.2

1 Average bulk density of sylvinite 2.1 tonnes/m3.

2 Resource cutoffs: composite grade 8.0% K2O and bed thickness 2.0 m.

3 Inferred Resource located w ithin 1,500-m radius from an historical exploration core hole w ith assays.

Table 1. Javier Property Mineral Resource

(Effective date 22 Aug 2013)

Potash

Bed

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The JORC Mineral Resource estimate is classified as Inferred because of reliance upon historical exploration data

of limited and uncertain quality and reliability. The historical data are sufficient to imply, but not verify, geological

and grade continuity. A radius of influence (ROI) of 1,500 m around core holes was used to define the Inferred

Mineral Resource estimate. This was further limited by the presence of lease boundaries, barren holes, interpreted

boundary faults and basin margins, and projected dissolutioning of the potash beds near outcrops.

Figure 1. Javier Inferred Mineral Resource and Exploration Target Areas

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The 163.2 Mt JORC Code compliant Inferred Mineral Resource estimate represents between 40 and 65% of the total Javier Exploration Target which was originally estimated to range from 250 to 400 Mt sylvinite in-place with an average grade ranging between 9.0 and 12.0% K2O. The Exploration Target represents the initial estimate of the total potential mineralisation contained on the Javier property located within the historically interpreted limits of the depositional basin, including the area now classified as a JORC Inferred Mineral Resource estimate (original Exploration Target includes yellow and blue areas in Figure 1). Total tonnes and grade were based on the extrapolation of mineralisation in potash beds A, B, and 1 from nine historical exploration holes to the limits of the property or basin.

A subset of the Exploration Target has been upgraded to a JORC Inferred Mineral Resource estimate based on re-assays of core from three historical holes, confirmation of sylvinite mineralization in the first Highfield exploration hole (J13-03), and geologic modelling conducted by AAI. The part of the original Exploration Target beyond the current JORC Inferred Mineral Resource estimate (blue area in Figure 1) remains a target for exploration and is not being claimed as a JORC Mineral Resource estimate. The reader is cautioned that this remaining Exploration Target is conceptual in nature, that there has been insufficient exploration to estimate a JORC Mineral Resource, and that it is uncertain if further exploration will result in the estimation of a JORC Mineral Resource.

Objectives of the current exploration drilling program are to:

1. Upgrade the current JORC Inferred Mineral Resource estimate to JORC Indicated or Measured

Resources with infill drilling and;

2. Convert additional parts of the Exploration Target area to a JORC Mineral Resource estimate with step-

out drilling beyond the limits of historical drilling.

The Javier Exploration Target footprint covers an area of approximately 4,200 hectares (ha) of which 1,420 ha

comprises the current JORC Inferred Mineral Resource estimate. The Exploration Target area and JORC Inferred

Mineral Resource estimate footprints in each of the three reporting sylvinite beds are illustrated on the Javier

property map in Figure 1.

Drill holes J13-03, J13-06 and J13-09 are presently being drilled and as such were not included in the resource

calculation.

The reader is cautioned that a JORC Mineral Resource estimate is an estimate only and not a precise and

completely accurate calculation, being dependent on the interpretation of limited information on the location, shape,

and continuity of the occurrence and on the available sampling results. Actual mineralisation can be more or less

than estimated depending upon actual geological conditions.

JAVIER PROJECT PERMITS

Spanish mining permits are split into three categories: Exploration Permit (PE), Investigation Permit (PI) and Mining

Concession. A PE is for desk top studies and lasts for a period of one year (it may be rolled over once). A PI is

necessary for drilling and may include sinking shafts and declines and lasts for a period of three years (it may also

be rolled over for multiple three year periods). For a PI to be granted an environmental review must be completed

by the relevant Government. A Mining Concession is for mineral extraction and lasts for periods of 30 years (it

may be rolled over two times).

In addition to the above, if a permit sits in two regions it must be formally issued by the Central Government in

Madrid under Article 71.3 of the Spanish Mining Code.

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The Javier Project comprises three named permits: Goyo, Fronterizo and Muga.

Goyo – a PI granted by the Government of Navarra.

Fronterizo – a PI approved by both the Governments of Navarra and Aragon. The Company was advised on 23

September 2013 that the permit has been forwarded to the Central Government for issuing. The Company expects

the permit to be issued in October 2013.

Muga – a PI in application (the Company is presently seeking to reduce the size of its PE). The Company received a favourable environmental report on 16 September 2013 and the permit received definitive admission in the Government Bulletin on 23 September 2013. The Company expects the permit to be formally granted in Q4 2013. For more information: Anthony Hall Simon Hinsley Managing Director Investor Relations Ph: +61 (0) 417 466 039 Ph: +61 (0) 401 809 653

Competent Persons’ Statement

This ASX release was prepared by Mr. Anthony Hall, Managing Director of Highfield Resources, Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person under JORC Code standards and reviewer for this release pertaining to the resource information 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.

* Exploration Target Statement

The part of the original Exploration Target beyond the current JORC Inferred Mineral Resource estimate (blue

area in Figure 1) remains a target for exploration and is not being claimed as a JORC Mineral Resource

estimate. The reader is cautioned that this remaining Exploration Target is conceptual in nature, that there has

been insufficient exploration to estimate a JORC Mineral Resource, and that it is uncertain if further exploration

will result in the estimation of a JORC Mineral Resource.

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ABOUT HIGHFIELD RESOURCES

Highfield Resources is an ASX-Listed potash company with three 100% owned projects located in Spain.

Highfield’s Javier, Pintano and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain covering a project area of around 300km2. The Sierra del Perdón project includes two former operating mines. The Company has recently raised significant funds to progress feasibility studies at both the Sierra del Perdón and Javier Projects.

Figure 2: Location of Highfield’s Javier, Pintano and Sierra del Perdón Projects in Northern Spain