Highfield Resources Limited (ASX: HFR) ('Highfield' or 'the Company') is pleased to provide an update on the Muga Potash Mine ('Muga' or 'the Mine') permitting process.

One of the key benefits of Muga is its location in Spain, and specifically in Navarra and Aragon where there is excellent access to world class infrastructure for transportation and electrical power.

Highfield would like to advise that the Company has been granted the administrative authorisation for construction of key sections of the high voltage electrical supply line needed to build the Mine.

Highfield CEO, Mr Ignacio Salazar, said: 'Receiving these authorisation permits for these key sections of the power line from Sanguesa to the mine portal is an important step in the permitting process and shows the overall level of confidence the administration has in the project.'

On 11 September 2020, the Industry Department of the Government of Navarra granted the administrative authorisation for construction of the high voltage electrical supply from Sanguesa to the planned principal substation on site, including the substation. On 15 September 2020, the Industry Department of central government granted the complementary authorisation for the continuation of the high voltage connection from the principal substation up to and including the planned portal substation.

Notwithstanding the normal local construction licences, and subject to the issue of the mining concession, these authorisations are the essential approvals necessary to proceed with the construction of the overhead lines and substations that will provide grid power to the Muga Mine.

Muga Project Overview

Highfield Resources (ASX: HFR) is a Spanish potash developer. The Company's flagship Muga Project is targeting the relatively shallow sylvinite beds in the Muga Project area that cover about 60km2 in the Provinces of Navarra and Aragon. Mining is planned to commence at a depth of approximately 350 metres from surface and is therefore ideal for a relatively low-cost conventional mine.

Contact:

Ignacio Salazar

Tel: +34 948 050 577

About Highfield Resources

Highfield Resources is an ASX listed potash company with three 100% owned tenement areas located in Spain. Highfield's Muga-Vipasca, Pintanos, and Sierra del Perdon potash tenement areas are located in the Ebro potash producing basin in Northern Spain, covering an area of around 277km2 . Following the granting of a positive environmental permit in mid-2019 Highfield submitted the documentation required for the Mining Concession in mid-March 2020 and is continuing to work on the relevant construction permits necessary to take the Muga Project into the construction phase.

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