Senior Executive KMP - Long Term Incentive (LTI) A description of the Long Term Incentive applicable for the 2025 financial year is set out below: What is the purpose of Long Term Incentives? Provision of LTI’s provide the Company with the opportunity to: – Align the interest of Senior Executive KMPs more closely with the interests of Shareholders by providing an opportunity to earn shares in the Company; – Provide Senior Executive KMPs with the opportunity to share in any future growth in the value of the Company; and – Provide greater incentive for Senior Executive KMPs to focus on the Company’s longer-term goals. Who is eligible to participate in Long Term Incentives? The Committee shall nominate eligible LTI participants for Board approval. Typically, individuals classified as Senior Executive KMPs shall be eligible to participate, in conjunction with selected employees of the Company that management considers capable of influencing LTI objectives. What is the Long Term Incentive performance period? Each LTI grant on 1 July (or any other appropriate date as determined by the Board) and is followed by a 3-year performance period, with testing occurring at the final day of the performance period. What types of equity may be granted under the LTI Plan? Performance rights are granted under the LTI program. Performance rights represent a right to be allocated one share in Sheffield, subject to satisfying any specified thresholds, standards and performance criteria. A participant is not entitled to participate in or receive any dividends or other shareholder benefits until the performance right has vested and been exercised and a share has been allocated to the participant. Share Options are an option to be allocated one share in Sheffield, subject to satisfying any specified thresholds, standards and performance criteria. A participant is not entitled to participate in or receive any dividends or other shareholder benefits until the share option has vested and been exercised and a share has been allocated to the participant. The Company has a preference to grant performance rights in favour of share options. How much value is ascribed to the LTI opportunity? The Executive Chair is awarded performance rights worth 125% of TFR. Other Senior Executive KMPs are awarded performance rights worth 85% of their TFR. LTI performance criteria are designed to target 50% vesting of awarded performance rights over time. Award opportunities and targeted vesting outcomes are based on industry benchmarks to achieve the remuneration policy intent of positioning TFR at the 66th market percentile. What were the LTI performance criteria for the year ended 30 June 2025? Share Options: (performance period 1 July 2022 to 30 June 2025): – Superior performance of Compound Annual Growth Rate (CAGR) calculated in respect of the Company’s share price, less the percentage CAGR calculated in respect of the S&P/ASX 300 Materials Index, calculated for the period commencing between 1 July 2022 and ending on 30 June 2025. Please refer to page 19 of the ASX Announcement titled “Notice of Annual General Meeting/Proxy Form” dated 14 October 2022 for further details. No Performance Rights were granted for the applicable triennium commencing 1 July 2022 to 30 June 2025. What happens to LTIs when a participant ceases employment? Where a participant ceases to be employed by the Company, unvested LTIs are typically automatically forfeited. In limited circumstances in accordance with the Incentive Performance Rights Plan, the Board may exercise discretion as to whether any unvested LTIs remain on foot and become capable of vesting in accordance with the Incentive Performance Rights Plan rules. Reasons may include, but are not limited to, death, total and permanent disablement, retirement or redundancy. How is the Long Term Incentive Award treated upon a Change of Control? Following 1 July 2024 and going forward, the Board has resolved that vesting conditions attached to LTIs shall not be deemed to be automatically waived in the circumstances where a Change of Control occurs, such that all LTIs will proportionately vest and become capable of being exercised based upon the elapsed period of time between date of grant and the date that a Change of Control has occurred. Historically, for the period up to and including 30 June 2024, and in accordance with the Incentive Performance Rights Plan rules, vesting conditions attached to LTIs will be deemed to be automatically waived in the circumstances where a Change of Control occurs, such that all LTIs will vest and become capable of being exercised. Remuneration Report (audited) continued 26 Sheffield Resources Limited Annual Report 2025
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