3 Sheffield Resources Limited Annual Report 2023 CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION The Kimberley Mineral Sands team has been preparing for the start-up of operations throughout the year. Maintaining our commitment to employ as many local people as possible and maintaining a large proportion of the permanent residential workforce and their families based in the West Kimberley is a core focus for Kimberley Mineral Sands. This approach ensures that as much economic benefit as possible is retained in the region, through increased spend and population growth which contribute to both economic and social benefits. To date, over 80% of the Kimberley Mineral Sands workforce are resident in the Kimberley region, with more than half of them recruited from the Kimberley and the remainder relocating to the region. Kimberley Mineral Sands has also been very successful in recruiting a diverse workforce with 25% of employees identifying as indigenous and female employees accounting for nearly 30% of the workforce recruited to date. In addition to our investment in Kimberley Mineral Sands, we were able to add to our portfolio of mineral sands interests during the financial year with the execution of a binding investment agreement with Mineração Santa Elina Indústria e Comércio S/A. and Kromus Xi Fundo De Investimento Em Participações, current owners of Rio Grande Mineração S/A (RGM), providing Sheffield with an option to acquire a 20% interest in RGM, the 100% owner of the South Atlantic Project in Brazil, via an initial option contribution of US$2.5m, with further staged payments totalling US$12.5m based upon the achievement of key milestones. The South Atlantic Project consists of four main deposits, Retiro, Estreito, Capao do Meio and Bujuru with Exploration Targets developed for the Retiro and Bujuru deposits. RGM is planning a drilling program of up to 10,000m in late 2023, with milestones for the project scheduled during the first half of 2024 prior to the proposed option exercise date in the 2024 September quarter. Your company has $24m in cash, following a successful $23m equity raising during the year, and is fully funded for expected activities at South Atlantic including exercise of the option and corporate costs through to late 2025 when we anticipate initial cash distributions from Kimberley Mineral Sands. I appreciate the support of existing and new shareholders demonstrated by their participation in the equity raise. With Thunderbird commissioning activity underway, the next year will see your Company move to transition from developer to mineral sands producer. This is a great achievement, and I would like to thank my fellow Directors, our employees, the Kimberley Mineral Sands team and their contractors, our joint venture partner Yansteel, along with our financiers NAIF and Orion for their efforts in achieving these key milestones for your Company this year. In closing, I sincerely thank Sheffield’s shareholders for your support as we look forward to commencing production at Thunderbird, ahead of customer shipments in early 2024. Bruce Griffin Executive Chair
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