Sheffield Resources Limited

Release Highlights:

• Sheffield Resources Ltd. (ASX: SFX) is pleased to announce consistent production at the Thunderbird Mineral Sands Mine, with ilmenite and zircon concentrate production and shipments expected to meet targets for the December 2024 quarter.
• Since being implemented in October 2024, the Business Improvement Initiative has identified cost-saving measures, including a 20% KMS workforce reduction and operational changes aimed at improving productivity and efficiency in overburden removal and ore processing.
• Sheffield Resources is transitioning waste mining operations to more efficient methods and continues to explore ways to optimize throughput at the process plant, with updates expected in the December Quarterly Report or earlier if significant developments occur.

Presentation Highlights:

• Sheffield Resources Ltd. (ASX: SFX) is building a portfolio of global mineral sands assets aimed at long-term cash generation and growth. Its core asset, the Thunderbird Mineral Sands Mine (50% interest), has entered production phase, with Thunderbird Stage 2 expected to add an incremental NPV8 of AUD 548M (USD 362M), supported by additional mineralization zones across a 120 km trend.
• The South Atlantic Option in Brazil presents a significant exploration target ranging between 500-720 million tons at 3.2-4.0% heavy mineral content, including sulfate ilmenite and zircon. An option agreement has allocated AUD 2.5M (USD 1.65M) of a planned AUD 4 million (USD 2.65M) investment to advance de-risking activities in this region.
• Sheffield is also leveraging its mineral sands and funding expertise to unlock value from advanced mineral sands projects, including a 10% stake in Capital Metals (AIM: CMET), which owns the Eastern Mineral Sands Project in Sri Lanka. Additionally, with record quarterly ore mining of 2.6 million tons and a prepayment of AUD 21.8M (USD 14.2M) from Yansteel Group, Sheffield is well-positioned to support near-term liquidity and project advancement.

Report Highlights:

• Sheffield Resources Ltd. (ASX: SFX) has achieved record tonnage from its Thunderbird project, with a total ore mining volume of 2.6 million tons for the quarter, and strong process plant recovery rates consistently outperforming design specifications, having produced 154,260 tons of heavy mineral concentrate.
• While softer market conditions in China led to deferred zircon shipments, Sheffield successfully shipped 121,591 tons of ilmenite concentrate and secured a prepayment of USD 14.2M (AUD 21.8M) from mining and metal resource conglomerate Yansteel Group, providing a significant boost to short-term working capital for enhanced liquidity.
• As of September 30, 2024, Sheffield holds a cash balance of USD 5.8 million (AUD 9.0 million), and remains committed to driving operational efficiencies, strengthening financial flexibility, and advancing key project developments within its broader asset portfolio.

Report Highlights:

• Sheffield Resources has achieved a major milestone in October 2023 with the transition to full scale production at the Thunderbird Mineral Sands Mine. This was achieved ahead of schedule, on time, and within the original AUD 484M budget, despite challenges posed by global inflationary pressures.
• Alongside the successful ramp-up of production at Thunderbird, Sheffield made strategic investments in international projects, including a USD 2.5M investment in the South Atlantic Project in Brazil, supporting exploration and feasibility studies. The company is well-positioned for the future, with AUD 10M in cash, and expectations of sustained mineral sands production in the upcoming financial year.
• The company demonstrated outstanding safety performance over the 1.5 million hours of work completed during both construction and operational phases with zero lost time injuries. Sheffield has remained committed to employing its predominantly local workforce in the West Kimberley region, with 83% local residents and a diverse team with 30% Aboriginal employees and 29% female representation.

Release Highlights:

• Sheffield Resources (ASX: SFX) has entered into a variation agreement with Rio Grande Mineração S/A (RGM) to extend its initial option term from August 2024 to August 2025.
• SFX has previously agreed to invest USD 2.5 M in 2023 and 2024, with an additional USD 1.5M contribution now required to fund project activities and due diligence, payable in three instalments of USD 0.5M each starting mid-2025.
• If Sheffield exercises its option to acquire up to 20% interest in RGM, the total investment will amount to USD 15M, with the final decision to be made by August 2025, funded from Sheffield Resource’s existing cash reserves.

Presentation Highlights:

• Sheffield Resources Limited (ASX: SFX) is actively building a diverse portfolio of mineral sands development and production assets worldwide. Their core focus includes the Thunderbird Mineral Sands Mine in Australia, which boasts the world’s largest high-grade zircon reserve, and a significant exploration project in the South Atlantic region of Brazil.
• The Thunderbird Mine, a 50/50 joint venture with Yansteel, is progressing well with Stage 1 nearing its nameplate mining capacity of 10 to 12 million tons per annum. Positive operating cash flow is anticipated starting in September 2024. Stage 2 of the project, planned for post-2026, aims to double mining capacity, increase final product output by 50%, and extend the mine’s life from 33 to 36 years, all from existing reserves, highlighting the project’s robust potential and low-risk profile.
• In the South Atlantic region of Brazil, Sheffield Resources has committed US$2.5 million for an option to acquire a 20% interest in a promising project by investing an additional US$12.5 million. The project, located in Rio Grande do Sul, has an exploration target of 500 to 720 million tons at 3.2 to 4.0% heavy minerals. A 10,000-meter drilling campaign began in early 2024, and a Pre-Feasibility Study (PFS) is expected by Q3 2024, indicating a strong potential for future growth and development in the region.