3 Sheffield Resources Limited Annual Report 2024 CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION Maintaining our commitment to employ as many local people as possible and maintaining a large proportion of the permanent residential workforce and their families based in the West Kimberley is a core focus for Kimberley Mineral Sands. This approach ensures that as much economic benefit as possible is retained in the region, through increased spend and population growth which contribute both economic and social benefits. During the 2024 financial year, Kimberley Mineral Sands recruited 108 people, with a total direct workforce of 119 employees. As of 30 June 2024, 83% of the direct workforce are permanent residents of Broome, Derby and surrounding West Kimberley communities, reflecting the commitment to a locally based workforce. Kimberley Mineral Sands proudly employs a workforce comprising 30% Aboriginal employees within its direct workforce, 29% female representation, and with 95% of staff employed on a full-time basis. While our initial ramp up of mining performance during the 2024 financial year met or exceeded expectations, higher oversize content than that expected and incorporated into the Dry Mining Unit (DMU) design constrained plant feed and throughput. Mining costs were also higher than expected due to lower waste mining productivity, greater ore pre-conditioning and DMU maintenance requirements, and initial low ore mining productivity and DMU availability. However, the final quarter of the financial year saw significant DMU productivity improvements following modification. The June 2024 quarter performance of 2.5 million tonnes, with the process plant performing at or above design provides a solid platform for the September 2024 quarter onwards, with mine production expected to be sustained at 2.5 – 3.0Mt of ore mined per quarter. Looking ahead to 2025, the focus of the Thunderbird team will be upon initiatives to increase production and shipping, implement operational improvements and efficiencies and commence loan repayments at the end of the 2025 financial year. We have a common goal to ensure that strong financial management takes place as we transition into a sustainable mineral sands business generating cash flows for shareholders over several decades. In addition to our investment in Kimberley Mineral Sands, we completed a US$2.5m investment in the South Atlantic Project in Brazil and also made an investment in Capital Metals Plc, the owner of the Eastern Minerals Project in Sri Lanka. The South Atlantic funding supported a 10,000m exploration drilling program alongside a pre-feasibility study with third party consultants, Hatch. We expect that the timeframe to conclude licencing and regulatory approvals in Brazil will extend beyond timeframes previously anticipated, and funds contributed to date should be sufficient to deliver the work program well into 2025. Your company has $10m in cash commencing the 2025 financial year. With the Thunderbird mine ramping up production, we expect the next year will see your Company achieve sustained mineral sands production, consistent with design objectives. I would like to thank my fellow Directors, our employees, the Kimberley Mineral Sands team and their contractors, our joint venture partner Yansteel, along with our financiers NAIF and Orion for their efforts and support in achieving pivotal construction and operational milestones for Sheffield throughout this year. In closing, I sincerely thank Sheffield’s shareholders for your ongoing support as we look forward to growing production at Thunderbird across the forthcoming year. Bruce Griffin Executive Chair
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