Sheffield Resources Limited

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.

Sheffield Resources Limited will host a shareholder webinar on Thursday 25 July at (2.30pm Perth / 4.30pm Sydney) to present June 2024 quarterly results and offer an open dialog with investors.

The mine commenced production in late 2023 ahead of schedule and on budget, with production ramp up now underway, with bulk shipments regularly scheduled for all products.

Hosted by Bruce Griffin, Executive Chair.

Register your attendance here: https://us06web.zoom.us/webinar/register/WN_9ShY1OtwTgK04upg8RjHqg#/registration

Report Highlights:

• Sheffield Resources, holding a 50% interest in Kimberley Mineral Sands (KMS), has reported notable advancements at the Thunderbird mine during the June quarter. The mine achieved significant production improvements, mining 2.5 million tons of ore and producing 165,014 tons of concentrate. Production is expected to stabilize between 2.5 and 3.0 million tons per quarter, with the process plant performing at or above design specifications.
• Sheffield Resources made significant progress on its South Atlantic Project in Brazil, with a 10,000-meter drilling program well advanced and expected to be completed by the September quarter. Additionally, a pre-feasibility study and a Mineral Resource estimate for the project are anticipated in the same timeframe. Despite regional flooding, the project remains on track for these key milestones.
• As of June 30, 2024, Sheffield Resources reported a cash balance of AUD 9.9 million. The company has announced an investor and shareholder webinar scheduled for July 25, 2024, to discuss the quarterly results and provide further updates on their ongoing projects and financial status.

Video Highlights:

• In June 2024, the Thunderbird Mine produced approximately 825,000 tons of ore, 55,000 tons of ilmenite, and 13,000 tons of zircon, with shipments expected to reach a record 90,000 tons of concentrate.
• Sheffield Resources contributed AUD 7.5MM to KMS for working capital, with total ore mined for the June 2024 quarter projected to be 2,200,000 tons, 20% above the 2022 Bankable Feasibility Study estimates, and recovery rates at the Wet Concentrator Plant and Concentrate Upgrade Plant exceeding design rates.
• June 2024 is set to be a record month for shipments, potentially reaching an annualized rate of 1,100,000 tons per annum, and positive operating cash flows are anticipated from the September 2024 quarter onwards.

Release Highlights:

• Sheffield Resources is pleased to announce its increased mining production at the Thunderbird Mineral Sands Mine in June 2024, with approximately 825,000 tons of ore producing 55,000 tons of ilmenite concentrate and 13,000 tons of zircon concentrate, with expected shipments of 90,000 tons.
• Operational improvements and higher recovery rates resulted in an 85% yield of final products from the ore mined, while Sheffield and Yansteel each contributed AUD 7.5mm to KMS for working capital, anticipating positive cashflows by September 2024.
• Sheffield oversaw record shipments in June 2024, including 48,000 tons of ilmenite and 22,000 tons of zircon concentrate, with total shipments for the quarter reaching 190,000 tons.

Release Highlights:

• Sheffield Resources Ltd. is pleased to announce significant increase in production at the Thunderbird Mineral Sands Mine in Western Australia, achieving approximately 750,000 tons in May 2024, compared to the 1,350,000 tons produced for the current quarter.
• Modifications to the Dry Mining Unit have led accelerated processing of ilmenite and zircon concentrates. Despite material and inflationary challenges, Thunderbird is advancing towards its annualized mining target of 10,000,000 tons.
• Beyond Thunderbird, Sheffield is active in the mineral sands sector, including advancing the South Atlantic Project in Brazil, which has faced delays due to severe flooding. Sheffield is also negotiating a potential acquisition of an interest in the Eastern Minerals Project in Sri Lanka. Despite some pricing pressures, Thunderbird is on track, reinforcing its status as a world-class mineral sands asset with long-term potential.

Video Highlights:

• Sheffield Resources owns 50% of the world’s largest zircon reserve, the Thunderbird Mine located in Kimberley, Western Australia. The mine commenced production in Q4 2023 ahead of schedule and on budget, with ramp up currently underway.
• Additionally, Sheffield has an option to acquire an interest in the South Atlantic Project in Brazil and has also recently announced a 10% interest in AIM listed Capital Metals Plc, with potential 100% ownership of a mineral sands project in Sri Lanka.
• First cashflow was achieved during Q1 2024, with bulk shipments now regularly scheduled for all products. These growth options provide a pathway for Sheffield to become a global, multi asset, mineral sands producer.

Report Highlights:

• Production from the Thunderbird Mineral Sands Mine in the Kimberley region of Western Australia progressed during the quarter with ore mined totaling 1.1Mt and concentrate production of 101,716 dry metric tonnes.
• A Pre-Feasibility Study (PFS) for the South Atlantic Project in Rio Grande do Sul Coastal Plain is currently underway via experienced engineering and mineral sands consultancy Hatch, which will include relevant development options for the Project.
• During the quarter, Sheffield announced it has entered into a share subscription agreement with Capital Metals Plc (AIM: CMET), the owner of the Eastern Minerals Project in Sri Lanka, with Sheffield acquiring a 10% interest in CMET.

• Sheffield Resources Limited advised that Kimberley Mineral Sands (KMS) has completed its maiden bulk shipment of approximately 10,000 metric tonnes of non-magnetic (zircon) concentrate from its Thunderbird Mineral Sands Mine in Western Australia.
• The shipment, which also included an additional 1,100 metric tonnes of bagged non-magnetic (zircon) concentrate, has departed the Port of Broome and will be delivered to an existing offtake customer.

• Sheffield Resources has entered into a share subscription agreement with Capital Metals Plc (Capital Metals) (AIM: CMET), the owner of the Eastern Minerals Project in Sri Lanka, whereby Sheffield shall subscribe for 34,500,000 ordinary shares of Capital Metals for total consideration of GBP 1,250,000.
• Following completion of the Agreement, Sheffield will own approximately 10% of the issued capital of Capital Metals, with the Company also securing a 12 month share option to acquire a further 17,250,000 shares for total consideration of GPB 843,750, enabling Sheffield to increase its interest in Capital Metals to approximately 14% of total issued capital.
• Sheffield and Capital Metals have also agreed conditional terms to fund project development, providing the Company with the opportunity to acquire up to 50% of the Eastern Minerals Project in Sri Lanka.
• Sheffield expects to fund the initial share subscription, any subsequent option exercise, and any pre-FID investment at the project level from existing cash reserves.