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ASX ANNOUNCEMENT

ASX: HFR

15 February 2022

Muga Mine Advances Towards Construction with all Remaining Key

Process Plant Equipment Purchase Contracts Signed

HIGHLIGHTS

  • €2.9 million purchase contract signed for the process plant's thickeners with Outotec.
  • Purchase contract for the dryers signed with TEMA for a value of €2.6 million.
  • These long lead item purchase contracts are key in advancing Muga towards construction and allow the Company to mitigate future inflationary risk.
  • With the execution of these two contracts, Highfield has now signed purchase contracts for all of Muga Mine's critical process plant equipment.

Highfield Resources (ASX: HFR) ("Highfield" or "the Company") is pleased to announce the signing of all remaining purchase contracts for the key components of the process plant (see figure 1) of its flagship Muga Potash Mine ("Muga" or "the Mine" or "the Project").

The Company continues to progress development at Muga and utilise the capital raised in August and September 2021 to sign purchase contracts for key long lead items which will further advance the Project towards construction.

A €2.9 million contract has been signed with Metso Outotec Finland Oy. ("Outotec"), to provide the thickeners (see figures 2, 3 and 4) needed to remove impurities from the brine solution within the crystallization process.

A contract has also been signed with TEMA Process BV ("TEMA"). This €2.6 million contract, will provide both the potash ("KCl") and salt ("NaCl") dryers, as well as the dedusting systems (see figures 5 and 6) and the wet scrubber of the crushing area (Figure 7). The KCl dryer will be used for drying the KCL prior to it entering the compaction circuit while the NaCl dryer will be used for drying the vacuum salt prior to its storage and sales.

Ignacio Salazar, CEO, commented: "We are delighted to report another important step towards construction at Muga. With the signing of these contracts, all key process plant equipment has been procured, reducing future potential inflationary risk and construction risk."

-ENDS-

Highfield Resources

Head Office

ACN 153 918 257

Avenida Carlos III, 13 - 1°B 31002 Pamplona, Spain | +34 948 050 577

ASX: HFR

Registered Office

www.highfieldresources.com.au

169 Fullarton Road, Dulwich, SA Australia | +61 8 8133 5000

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This announcement has been authorised for release by the Directors of Highfield Resources Limited

About Outotec

Metso Outotec was created through the combination of Metso Minerals and Outotec on 30 June 2020. They are considered to be a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally.

About TEMA

TEMA Process B.V. is a specialised design and manufacturing company for fluid bed systems for the drying of a range of materials including minerals, chemicals, food, feed and biomass. The TEMA Fluid Bed can be applied not only for drying, but also for cooling, roasting, torrefaction, puffing, blanching, stripping, as well as spices and herbs sterilisation and pasteurisation and calcining.

For more information:

Highfield Resources Limited

Ignacio Salazar - Chief Executive Officer

Ph: +34 948 050 577

Olivier Vadillo - Investor Relations

Ph: +34 609 811 257

Australia based queries:

Alex Cowie - NWR Communications - Director

Ph: +61 (0) 412 952 610

Highfield Resources

ACN 153 918 257

ASX: HFR

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FIGURE 1: PROCESS PLANT LAYOUT

PRE-LEACHING

THICKENER

BRINE

TREATMENT

THICKENER

FIGURE 2: LOCATION OF THE PRE-LEACHING AND BRINE TREATMENT THICKENERS IN THICKENERS AND TANKS AREA

Highfield Resources

ACN 153 918 257

ASX: HFR

3

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LEACHING

THICKENER

FIGURE 3: LOCATION OF THE LEACHING THICKENER DEWATERING AREA

HOT

THICKENER

FIGURE 4: LOCATION OF THE HOT THICKENER IN THE CRYSTALLIZATION AREA

Highfield Resources

ACN 153 918 257

ASX: HFR

4

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KCL DRYER

FIGURE 5: LOCATION OF THE KCL DRYER IN THE DRYING PLANT

NACL DRYER

FIGURE 6: LOCATION OF THE NACL DRYER IN THE CRYSTALLIZATION PLANT

Highfield Resources

ACN 153 918 257

ASX: HFR

5

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Highfield Resources Limited published this content on 14 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2022 21:53:01 UTC.