SHEFFIELD SIGNS OFFTAKE MOUs

Written on the 5 April 2017

Sheffield  Resources  Limited  ("Sheffield",  "the  Company")  (ASX:  SFX)  is  pleased  to  advise  that  it  has signed  two  memorandums  of  understanding  (MOUs)  for  the  future  sale  of  premium  zircon  from  its Thunderbird Mineral Sands Project (Thunderbird), in Western Australia.

The  MOUs  are  non-binding  and  were  signed  with  an  industry  leading  Indian  ceramics  company,  Ruby Ceramics Pvt  Ltd  (Ruby), and a well-established European ceramics company,  CFM Minerales s.a.  (CFM),
of Spain. The  combined agreements represent up to approximately 20% of the estimated total volume of premium zircon to be produced from Stage 1 of the Thunderbird Project. 

The signing of these MOUs follows significant product testing and discussions between the parties.  The parties intend to finalise negotiations and enter into binding offtake agreements over the coming months.

Sheffield is also in negotiations with other potential consumers of its products and will update the market as required.

The execution of the MOUs follows the release of the Company's  Bankable Feasibility Study  (BFS),  which confirmed  Thunderbird  as  a  world-class  mineral  sands  project  capable  of  producing  significant annualised volumes of premium zircon and ilmenite over an estimated mine life of 42 years.

Sheffield's Managing Director, Bruce McFadzean, said: "The  MOUs  have  been  signed  with  zircon  consumers  with  a  high  standing  in  the  industry,  confirming Sheffield's  capability  of supplying the  global  market  with  very high quality products  once  in production.

The recent  BFS  confirms that zircon will represent  62%  of the estimated project revenues and  we look forward  to  advancing  binding  offtake  agreements  with  both  Ruby  and  CFM,  as  cornerstone  premium zircon customers of the Company.

"In  conjunction  with  these  arrangements,  we  are  working  with  our  financial  advisor,  Azure  Capital,  to progress  the funding for project development.   We are pleased with the progress being made and look forward to providing our shareholders with further offtake and financing updates in the near future."