Sheffield Resources Limited Annual Report 2024

Notes to the Consolidated Financial Statements for the year ended 30 June 2024 17. Reserves (continued) Reconciliation of movements in reserves is as follows: 2024 $’000 2023 $’000 Equity Reserve Opening balance at the beginning of the year 13,691 13,310 Performance rights redeemed as shares (transferred to Issued Capital) (365) (533) Share-based payments expenses 706 914 14,032 13,691 Employee share option plan Employees of the Group (including Directors) may be issued with options over ordinary shares of Sheffield. Options are issued for nil consideration and are subject to performance criteria established by the Directors of Sheffield. The objective of the grant of options to employees is to assist in the recruitment, retention, reward and motivation of the employees of the Group. Options granted may be exercised at any time from the date of vesting to the date of expiry. The exercise price for employee options granted under the Employee Share Option Plan will be fixed by the Directors prior to the grant of the option. Each employee share option converts to one fully paid ordinary share of Sheffield. The options do not provide any dividend or voting rights and are not quoted on the Australian Securities Exchange. The following options were in place at the end of the year: Expiry date Grant date Exercise price Number under options 30 November 2025 25 November 2021 $0.65 480,000 30 October 2026 25 November 2021 $0.33 700,000 30 November 2026 22 November 2022 $0.84 480,000 1 December 2027 22 November 2022 $0.59 421,2711 1 December 2028 22 November 2023 $0.68 465,5151 2,546,786 Note 1: Options issued during the year as part of remuneration to Key Management Personnel, as approved by the 2023 Annual General Meeting of Shareholders. Detailed disclosures regarding vesting conditions of the options are also set out in the Remuneration Report, which forms part of the Directors’ Report. The table lists the inputs to the model for the options issued during the year: Number 465,515 Expiry date 1 December 2028 Grant date 22 November 2023 Vesting date 30 June 2026 Exercise price $0.68 Dividend yield 0% Expected volatility 70% Risk-free interest rate 4.135% Expected life of options 4.42 years Grant date share price $0.68 Fair value at grant date per option $0.383 66 Annual Report 2024 Sheffield Resources Limited

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