Highfield Resources (HFR) Investor Update summary

Transaction update

• China Minmetals Corporation and Qinghai Salt have decided not to proceed with the proposed transaction after completing their exclusive due diligence process.

• The decision was internal to CMC and does not reflect any change in the fundamentals of the Muga project or the company.

• The implementation agreement with Yankuang remains in place and has not been terminated.

Funding and capital management

• Convertible notes issued to EMR Capital and others have matured following Qinghai Salt's withdrawal.

• EMR Capital continues to engage constructively regarding the maturity of these notes, while reserving their rights.

• The company is actively evaluating strategic options and remains disciplined in capital management.

Stakeholder engagement and project outlook

• Meetings with the Spanish government have reaffirmed support for the Muga project.

• Confidence remains high regarding the Goya permit and ongoing legal alternatives.

• Commitment to advancing the Muga project and delivering long-term value to shareholders remains unchanged.