Highfield Resources provided an update to the Muga-Vipasca Potash Project (Muga or the Project) Feasibility Study (FS) that reconfirms the compelling economics of the Project. The Project Economics of the Feasibility Study have been updated while maintaining the same Mineral resources and Mine Plan as presented in the 2021 Muga Feasibility Study Update. The 2021 Mine Plan was prepared by Highfield with technical mine planning support from the Spanish mining engineering consultants, IGAN Consulting Group.

The portion of the plan that supports the Ore Reserve was reviewed by SRK Consulting ("SRK") which incorporated various capital and operating cost sensitivities into their assessment to confirm its robustness in December 2021. The Mine Plan is based on the Proved and Probable Ore Reserves, but also integrates Inferred Mineral Resources1 as well as the abutting Exploration Target2 tonnes that remain unchanged as per the ASX announcement released on the 23 November 2021, and the additional Measured, Indicated and Inferred Mineral Resources audited by SRK as per the ASX release on 30 March 2021. All technical parameters in the 2021 Mine Plan continue to apply and have not changed in 2022.

Regarding the Inferred Resources included in the Mine Plan, specific areas with thickness below the expected minimum of 2 metres but greater than 1.6 metres have also been considered, given it has the potential to be mined with low profile equipment. The Measured and Indicated Resources that have been included in the Mine Plan refer to the pillars in the exclusion zones under towns and the Bardenas Channel. Highfield considers that these could potentially be mined in the future if and once the backfilling provides enough support to demonstrate there will be no impact on the surface.

The Mine Plan which has not changed from the December 2021 Muga Feasibility Study update with a planned production up to approximately 1,000,000 tpa of Muriate of Potash ("MOP") over a mine life of 30 years 3 comprising approximately 18 years of mine life from Ore Reserves and 12 years from additional Mineral Resources and the Exploration Target. Graph 1 below shows the sequencing of the mine plan. Developed by the engineering company Subterra Ingeniería S.L. ("Subterra"), the twin parallel declines have an approximate length of 2.6 km and are planned to be constructed at an average gradient of ­ 15%, which will provide underground access from surface to an approximate depth of 350 metres.

The two declines will be built 25 metres apart and will be linked by six cross-cuts. Both declines will have an arched profile and a cross-sectional area of approximately 31 m2 and will be widened at the cross-cut connections and at other various points to accommodate pumping stations and electrical substations. The West decline will accommodate the permanent backfill conveyor during mine operation and will work as the intake ventilation airway, while the East decline will contain the permanent ore conveyor and also act as the return ventilation airway to surface.

A bypass will be constructed at the top of the East decline to accommodate the main fans. The planned decline gradients are suitable for both ore conveying and vehicle access, and the decline design provides for underground infrastructure requirements, i.e., staged pumping stations and underground electrical installations. Five different levels of ground support have been specified depending on the various rock type and ground conditions expected along the full length of the declines.

A single portal boxcut is shared by both declines and will be adequately protected against rainfall and surface water incursion into the decline developments. The Company plans to implement mechanical excavation by roadheader and/or conventional excavator combined with conventional drilling and blasting. This has now been included in a revised construction project design, which does not include the use of a bolter miner in the West ramp as had been anticipated in the 2021 feasibility study.

The bolter miner had a long lead time to construction that required significant advanced payments and did not provide as much flexibility as the Company initially anticipated. This change was the result of extensive engagement with ramp construction contractors who confirmed that the current methodology provides more flexibility in terms of construction and scheduling. Both declines will be excavated using trackless mobile equipment.

Roadheaders and/or conventional excavators in combination with two-boom jumbos will be utilised for excavation, face drilling and rockbolting, while 30-tonne low profile mining haul trucks and 14-tonne load-haul-dump loaders ("LHD") will be used to transport material to surface. Development waste rock will initially be moved back from the faces to storage bays and then loaded onto trucks to be hauled to the surface during other development activities. The development excavation will be supported by sprayed concrete and rockbolts.

The thickness of sprayed concrete and bolt spacing will be determined by the geological surveys developed by the horizontal drilling undertaken.