12 Sheffield Resources Limited Annual Report 2025 Review of Operations SOUTH ATLANTIC PROJECT The South Atlantic Project is located within the Rio Grande do Sul Coastal Plain, a region located in the southernmost state of Brazil, Rio Grande do Sul, along the coast of the Atlantic Ocean. Sheffield has in place an investment agreement (RGM Option 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$4m, with further staged payments totalling US$11m subject to the achievement of key milestones. Subject to various other conditions being satisfied, Sheffield may increase its interest in RGM up to 80% (refer ASX announcement dated 28 February 2023 for further details). As at the end of the reporting period, Sheffield had contributed a total of US$2.5m, with funding applied toward an exploration drilling program, detailed technical studies, mineral resource estimation and permitting activities. Maiden Mineral Resource estimates for Retiro and Bujuru were completed during the reporting period. The South Atlantic Project comprises a Mineral Resource estimate of 771Mt @ 3.0% THM (Indicated and Inferred) for 23Mt of contained THM for the combined Retiro and Bujuru projects (Refer ASX announcement dated 25 June 2025 for further information). In addition to the Mineral Resource estimate, RGM has been granted an Installation Licence for the Central Retiro area of interest, part of the greater Retiro deposit, paving the way for RGM to progress a Mining Decree for the initial project area. Ongoing activities at RGM are focused on securing the Central Retiro mining decree, progressing project related approvals and the pre-feasibility study. Sheffield expects that the timeframe to conclude licencing and regulatory approvals processes for the South Atlantic Project will extend beyond timeframes previously anticipated, with any material contribution by the Company to acquire a 20% interest in RGM likely to be deployed over an extended time period. Sheffield will continue to provide stakeholders with relevant updates to the proposed RGM work program going forward. CAPITAL METALS PLC Sheffield retains a 10% interest in Capital Metals Plc (AIM: CMET), the owner of the Taprobane Minerals Project in Sri Lanka. CMET is progressing in-country activities within Sri Lanka toward development of the Taprobane Minerals Project. During the reporting period, Sheffield participated in a CMET share placement alongside a strategic investor, contributing a $419,000 share subscription to maintain its 10% interest in CMET and associated rights.
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