Sheffield Resources : Signs Cornerstone Ilmenite MOU

SHEFFIELD SIGNS CORNERSTONE ILMENITE MOU

HIGHLIGHTS

• MOU covers 45% of estimated ilmenite production from Stage 1 of Thunderbird Project

• CHTi is a premier Chinese producer of titanium dioxide and iron oxide pigments

Sheffield Resources Limited ("Sheffield", "the Company") (ASX: SFX) is pleased to advise that it continues to successfully advance offtake arrangements for the 100% owned Thunderbird Mineral Sands Project (Thunderbird), in northern Western Australia, with the signing of a cornerstone non-binding Memorandum Of Understanding (MOU) for the future sale of high quality low temperature roast (LTR) ilmenite.

The maiden LTR ilmenite MOU was secured with the premier Chinese manufacturing entity CNNC Huayuan Titanium Dioxide Co. Ltd (CHTi), which invests in the research, development and production of titanium dioxide and iron oxide pigments. The agreement with CHTi represents approximately 45% of the estimated total volume of LTR ilmenite to be produced from Stage 1 of the Thunderbird project.

This MOU follows a succession of similar agreements executed in April 2017 in relation to the Company's premium zircon and zircon concentrate products, confirming Thunderbird as a world class mineral sands project capable of producing globally significant annualised volumes of zircon and ilmenite over a 42 year mine life.

Sheffield's Managing Director, Bruce McFadzean, said:

"Sheffield Resources welcomes CHTi as a cornerstone customer for our high quality Thunderbird LTR ilmenite product. Coupled with the zircon MOUs executed earlier this quarter, this agreement confirms Sheffield's high quality product capability when in production. The recently completed Thunderbird Bankable Feasibility Study showed LTR ilmenite will generate 29% of the estimated project revenue. We look forward to concluding a binding offtake agreement with CHTi and establishing a long-term business relationship going forward.

"The industry is seeing sustained improvement in zircon and ilmenite commodity prices throughout 2017. We are pleased with the market demand shown for the range of products to be produced from Thunderbird, and we are equally pleased by the progress being made on financing arrangements. We look forward to providing our shareholders with further offtake and financing updates in the near future."

ENDS

ABOUT SHEFFIELD RESOURCES

Sheffield Resources Limited is focused on developing its 100% owned, world class Thunderbird Mineral Sands Project, located in north-west Western Australia. Sheffield continues to also assess other regional exploration opportunities.

THUNDERBIRD MINERAL SANDS

Thunderbird is one of the largest and highest grade mineral sands discoveries in the last 30 years.

Sheffield's Bankable Feasibility Study shows Thunderbird is a technically low risk, modest capex project that generates strong cash margins from globally significant levels of production over an exceptionally long mine life of 42 years.

Thunderbird will generate a high quality suite of mineral sands products with specifications suited to market requirements. These products include Premium Zircon suitable for the ceramic sector and LTR Ilmenite which will be one of the highest grade sulfate feedstocks available globally.

Thunderbird is located in one of the world's most attractive mining investment jurisdictions and is well placed to deliver long term, secure supply of high quality products to a range of potential customers.

Subject to permitting activities, the Company is targeting project construction commencing in late 2017 with initial production in 2019. The initial planned production profile is aligned with expected emerging supply gaps in global mineral sands markets.