Slide 1: For personal use only
For personal use only 1
Slide 2: A Unique Potash Company
For personal use only Highfield Resources Limited A Unique Potash Company Company Presentation Perth, September 2012 2
Slide 3: Disclaimer and important note
For personal use only The information contained in this presentation This presentation includes certain ‘forward that relates to Exploration Results, Mineral looking statements’. All statements, other than Resources or Ore Resources is based on statements of historical fact, are forward looking info
Slide 4: Unique Advantages
For personal use only Unique Advantages A 100% interest in the Navarra Potash Project located in 1. Former Operating Spain’s Ebro Basin, that includes a former operating mine Mine that averaged 400,000 tonnes of potash pa over 25 years. Majority of asset remains under explored and unmined. Ara
Slide 5: Table of Contents
For personal use only Table of Contents 1. Potash 2. Potash Market 3. Navarra Potash Project 4. Aragon Potash Project 5. Spanish Project Advantages 6. McLarty Potash Project 7. Capital Structure 8. Value Creation 9. Unique Potash Company 5
Slide 6: Potash: What is Potash?
For personal use only 1. Potash What is Potash? The term potash is used to describe various minerals and chemicals valued primarily for their potassium content. The main source of potash is potassium chloride. Potash is a widely used nutrient fertiliser along with nitrogen and phosphorous. Fertilise
Slide 7: Potash: What is Potash? (plant role)
For personal use only 1. Potash What is Potash? Its primary role in plants is to support and improve: • Plant growth; Sunflower • Water retention; • Nutrient value; • Enzyme activation; • Yield; • Taste; and • Disease resistance. Potash also helps N NP NPK the milk production process in animals. 7
Slide 8: How is it formed?
For personal use only 1. Potash How is it formed? Evaporite Basin Diagram http://higheredbcs.wiley.com/legacy/college/levin/0471697435/chap_tut/chaps/chapter10-06.html 8
Slide 9: How is it mined?
For personal use only 1. Potash How is it mined? Solution Room and Pillar What is Potash?, IMEx Consulting 2010 http://www.kgs.ku.edu/Hydro/Hutch/SaltMining/index.html 9
Slide 10: Potash Market: Historical Pricing
For personal use only 2. Potash Market Historical Pricing Potash prices per tonne in USD (FOB) 10
Slide 11: Potash Market: Long Term Fundamentals
For personal use only 2. Potash Market Long Term Fundamentals Global Population Farmland per capita Source: FAO Source: FAO 11
Slide 12: China, Brazil and India Upside
For personal use only 2. Potash Market China, Brazil and India Upside Note: “Potential” equates to the scientifically recommended usage. 12
Slide 13: Spanish Potash Projects: Location
For personal use only 3. Spanish Potash Projects Location Location in Ebro Potash Location in Spain Producing Basin Highfield Iberpotash 13
Slide 14: Two Projects in different sub basins
For personal use only 3. Spanish Potash Projects Location Two Projects in different sub basins Mine Location Navarra Aragon 14
Slide 15: Key Market Differentiation
For personal use only 3. Spanish Potash Projects Key Market Differentiation Best Risk / Return Profile A 100% interest in the Navarra Potash Project that operated 1. Former Operating as a mine for 25 years averaging close to 400,000 tonnes of Mine potash production per annum through to 1997. Maj
Slide 16: Navarra Potash Project: Former Operating Mine
For personal use only 4. Navarra Potash Project Former Operating Mine Produced between 1972 Former Operating Mine Zones and 1997 at an average rate of close to 400,000 N tonnes of potash per annum. Zones A, B, C and E are areas of historic mining. Potential for significant remnant reserves in Zone B
Slide 17: Aragon Potash Project: Exploration Upside
For personal use only 5. Aragon Potash Project Exploration Upside Drill Holes in Tenement Package Drill hole results indicate two extensive, shallow beds of potash mineralisation (sylvinite). Significant mineralisation intersected in Pintano area – PP2: 2.48m @ 15.6% K20 from 517.3m Exceptional expl
Slide 18: McLarty Potash Project: Great Project Location
For personal use only 6. McLarty Potash Project Great Project Location The Canning Basin contains a thick salt sequence (Mallowa Salt) largely untested for Potash. Close to potential ports of Broome and Derby. Good access to Asian markets. OECD Country. Skilled workforce. 18
Slide 19: McLarty Potash Project: Substantial Evaporite
For personal use only 6. McLarty Potash Project Substantial Evaporite Largely untested evaporite Proposed Drill Hole Locations basin. Positive signs from previous exploration. Relatively shallow depths to top of salt layer. Thick salt layer between 500m and 700ms. Sub-horizontal salt layer for econo
Slide 20: Capital Structure Post Spanish Acquisition
For personal use only 7. Capital Structure Post Spanish Acquisition Equity Number Highfield Resources' Capital Ordinary 93.5m Structure Options 10.0m 250,000 Performance #1 51.5m 200,000 Performance #2 51.5m 150,000 Fully Diluted 206.5m Spanish Acquisition Capital 100,000 Pre Spanish Performance Sha
Slide 21: Value Creation: Clear Pathway to Production
For personal use only 8. Value Creation Clear Pathway to Production Commence Production Financial Close on reopening Complete Navarra mine. Feasibility (All approvals Studies in place, Release Maiden JORC infrastructure Resource on agreements Complete both Spanish completed Spanish assets and off ta
Slide 22: Unique Potash Company
For personal use only 9. Unique Potash Company A 100% interest in the Navarra Potash Project located in 1. Former Operating Spain’s Ebro Basin, that includes a former operating mine Mine that averaged 400,000 tonnes of potash pa over 25 years. Majority of asset remains under explored and unmined
Slide 23: Highfield Resources Limited
For personal use only Highfield Resources Limited A Unique Potash Company Company Presentation Perth, September 2012 23