Sheffield to raise up to A$17.1 million in oversubscribed institutional placement

Written on the 25 August 2016

Sheffield to raise up to A$17.1 million in oversubscribed institutional placement

Sheffield  Resources  Limited  ("Sheffield"  "the  Company")  (ASX:SFX)  is  pleased  to  announce  it  has received commitments to raise up to a total of $17.1 million (before costs) through a placement of 32.9
million  fully  paid  ordinary  shares  in  the  Company  at  an  issue  price  of  52  cents  per  share  ("the Placement").  The Placement price of 52 cents per share represents a 17% discount to the 30 day volume
weighted average price of Sheffield shares up to and including Friday, 19 August 2016.

Significantly, the Placement is underpinned by a number of new domestic and international institutional and cornerstone investors in addition to other professional and sophisticated investors.

The  Company  is  delighted  with  the  overwhelming  demand  for  the  Placement,  which  has  seen  the introduction of several  well-regarded institutional investors to the register. The funds raised, together with
existing  cash  reserves,  will  allow  Sheffield  to  complete  the  Bankable  Feasibility  Study  (BFS)  at  its Thunderbird Mineral Sands Project near Derby in Western Australia and undertake continued exploration
in the region. A small portion of the funds will be reserved for general working capital purposes.

Sheffield's Managing Director Bruce McFadzean said the Placement was undertaken in keeping with the Company's strategy of strengthening its institutional shareholder base and increasing its profile in global
financial markets as it advances Thunderbird toward production.

"We are very pleased with the  strong  support received  for the Placement,  which will allow  Sheffield  to continue the momentum at its  world class Thunderbird Mineral Sands Project. The Company  welcomes
the addition of some of the world's most respected investment funds as shareholders."

"This  support  further  underlines  the  quality  of  Thunderbird,  which  is  a  long  life  asset  of  strategic importance  to  the global mineral sands industry.  Thunderbird's strategic significance  is  further  supported
by the "Lead Agency" status award by the Western Australian Government for the project."

"Whilst always recognising the wonderful support from our current shareholder base, it is important that we now have greater  institutional investor representation,  enabling  Sheffield to go to the next level and
assist in unlocking further value for all shareholders."

"The Company is  now fully  funded  beyond  the  conclusion of  the Thunderbird BFS, which is expected to occur at the end of 2016 and to continue  offtake and financing negotiations  as a part of the development
of this tier 1 mineral sands asset."

Sheffield has received firm commitments and undertakings from investors  to whom disclosure  is  not required to  be provided  in accordance with s708 of the Corporations Act.  The Placement is not subject
to shareholder approval and will be completed pursuant to the Company's capacity under ASX Listing 

24 AUGUST 2016
Page 2
Rule 7.1 and 7.1A with 18,163,060 and 14,776,934 fully paid ordinary shares to be issued under those capacitates respectively. Settlement of the Placement is scheduled to occur on  Wednesday, 31  August
2016 with the new shares expected to be issued and commence trading on the same day.

Bridge  Street  Capital  Partners  and  Pulse  Markets  Pty  Ltd  acted  as  Joint  Capital  Markets  Advisors ("JCMAs")  in relation to  the Placement  and have been appointed  by  the Company for a period of 12
months.  As consideration for this ongoing role, the Company has agreed to issue the JCMAs a total of 4 million (2 million each)  unlisted options over the fully paid ordinary shares  ("Options")  at an exercise price
of 67.6 cents per Option, representing a 30% premium to the issue price of the Placement shares.

The Options are exercisable at any time during the period ending 3 years after the date of their issue and are not transferrable by the holder. The issue of the Options is not subject to shareholder approval and
will be issued under the Company's capacity under ASX Listing Rule 7.1.  No funds will be raised from the issue of the Options as they are issued as part consideration for services provided by the  JCMAs to the

For further information please contact:
Bruce McFadzean
Managing Director
Tel: 08 6555 8777

Media: Luke Forrestal
Cannings Purple
Tel: 0411 479 144

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  explore  the  Dampier
Project for other mineral sands targets identified within the region.
Sheffield is also exploring the Eneabba and McCalls regions north of Perth, Western Australia for mineral
sands  deposits.  As  an  exploration  company,  Sheffield  continues  to  assess  other  regional  exploration


Thunderbird is one of the largest and highest grade mineral sands discoveries in the last 30 years.
The deposit is rich in zircon, which sets it apart from many of the world's operating and undeveloped
mineral sands projects which are dominated by lower value ilmenite.
Sheffield's Pre-Feasibility study shows Thunderbird is a modest capex project that generates strong cash
margins from globally significant levels of production over a 40 year mine life.
The Company is targeting project construction commencing in 2017 with initial production in 2019. The
initial planned production profile is aligned with expected emerging supply gaps in global mineral sands

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