Sheffield Resources Limited

Release Highlights:

• Sheffield Resources Limited (ASX: SFX) is actively developing a robust portfolio of mineral sands assets, with a primary focus on the Thunderbird Mineral Sands Mine in Western Australia. The Thunderbird Project, a 50/50 joint venture with Yansteel, is recognized as one of the world’s largest zircon reserves and operates within a stable, low-risk jurisdiction. The mine has an estimated resource base of 750 million tons and is expected to produce approximately 900,000 tons per annum of ilmenite and zircon concentrates. With an anticipated mine life exceeding 30 years, Thunderbird is expected to generate strong, consistent cash flow while securing a significant position within the global mineral sands market. Sheffield is also leveraging its partnership with Chinese steel conglomerate Yansteel on its downstream processing capabilities in China, ensuring a consistent export market for its mineral products​.
• The company is expanding beyond Australia, with a key strategic focus on the South Atlantic Project, located in Rio Grande do Sul, Brazil. These emerging mineral sands project features an exploration target of 500 to 720 million tons at 3.2 to 4.0% heavy minerals (HM), primarily consisting of sulfate ilmenite and zircon, two valuable materials in global markets. The project is well-positioned in a region with established industrial infrastructure, including ports, roads, and power, supporting potential large-scale development. Sheffield has already invested USD 2.5MM / AUD 4.1MM of a total of USD 4MM / AUD 6.5MM commitment under an option agreement to acquire a 20% interest and is actively de-risking the project with ongoing exploration. A 10,000-meter drilling campaign was completed in Q3 2024, and a resource update is expected in Q1 2025, with a pre-feasibility study (PFS) currently underway to further assess the project’s long-term viability​.
• In response to evolving market conditions and operational challenges, Sheffield Resources has implemented a Business Improvement Initiative to enhance operational efficiency, reduce costs, and optimize production. A 20% reduction in the Kimberley Mineral Sands (KMS) workforce was executed in December 2024 as part of efforts to streamline operations. Additionally, the company is transitioning overburden mining to a drill-and-blast method, which commenced in January 2025, aiming to improve mine productivity and reduce unit costs. Other measures include evaluating alternative ore mining and in-pit processing methods to maximize plant throughput. These improvements are designed to ensure long-term sustainability and profitability, particularly as Sheffield prepares for future expansion phases of the Thunderbird Mine and evaluates additional mineral sands opportunities globally.

Report Highlights:

• Sheffield Resources Ltd (ASX: SFX) is pleased to announce that Kimberley Mineral Sands achieved record quarterly production of 198,704 tons of concentrate, shipped 208,354 tons of product, and expanded its zircon concentrate customer base to eleven approved offtakers, with shipments expected to grow further in 2025.
• The Thunderbird Mine maintained strong health, safety, and environmental performance with zero lost-time incidents and continued process plant efficiency, achieving higher-than-expected heavy mineral grades and consistently exceeding recovery design rates for TiO2 and ZrO2.
• Sheffield Resources reported a cash balance of approximately AUD 8.4 MM (USD 5.9 MM) at the end of December 2024, launched a cost-reduction initiative involving workforce restructuring, and secured AUD 22 MM (USD 15.4 MM) in offtake prepayments from Yansteel to support working capital needs.

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.