What are the Short Term Incentive performance criteria for the year ended 30 June 2025? For the 2025 financial year, the following performance financial and non-financial measures were reviewed and considered by the Remuneration & Nomination Committee to be appropriate, aligned with the Company’s strategy: – Production - Achievement of product throughput quantity milestones in relation to the Thunderbird Mineral Sands Mine, in accordance with the Board approved budget. – Per Tonne Unit Operating Costs - Achievement of targeted cost of production in relation to the Thunderbird Mineral Sands Mine, in accordance with the Board approved budget. – Health, Safety & Environmental Performance - satisfactory achievement of health, safety and environmental performance targets across the Thunderbird Mineral Sands Mine. Are there any gateways or other conditions? The Committee also recommended that the above performance measures should be further qualified by the following factors: – Health, Safety, Environmental and Governance objectives being met. In the event of a fatality or other catastrophic event, the Board would be expected to exercise its discretion to award no STI cash or equity bonus for the period; and – In addition to the above, the Senior Executive KMP must be employed during the entire period to be eligible for the award (noting that applicable good leaver provisions may apply). How much value is ascribed to the Short Term Incentive opportunity? The Executive Chair has a target STI opportunity of 56% of TFR, with a maximum opportunity (if the stretch targets are achieved) of 75% of TFR. Other Senior Executive KMPs have a target STI opportunity of 41% of TFR, with a maximum opportunity (if the stretch targets are achieved) of 55% of TFR. STI opportunity levels are determined based on mining industry benchmark data with a market position set at the 66th percentile for the 2025 financial year. What is the Short Term Incentive assessment process? Based upon objective performance measures and data points collected, the Board determines the extent to which the corporate performance criteria has been satisfied and achieved. How is the Short Term Incentive paid? STI award outcomes are typically paid as cash remuneration to an employee. However, to provide greater alignment with shareholder value, Sheffield provides 50% of the STI award in cash, with the remaining 50% balance awarded via vesting of performance rights, subject to shareholder approval provisions. Are there any malus or claw back provisions associated with a Short Term Incentive Award? Yes. Where, in the opinion of the Board, a Senior Executive KMP acts fraudulently or dishonestly, is grossly negligent or has his or her employment or office terminated due to serious or willful misconduct or otherwise for cause without notice, the Board may undertake necessary steps to annul, cancel or seek commensurate compensation for any performance rights granted in favor of the Senior Executive KMP associated with the Short Term Incentive award. How is the Short Term Incentive Award treated upon a Change of Control? For the 2025 financial year, for the portion of STI award applicable by way of the granting of performance rights in favour of the Senior Executive KMP, performance rights shall automatically vest. In relation to the cash component of any STI award, the Board may exercise its direction to determine a commensurate STI award (if any), taking into account any conditions or information that may be relevant. Remuneration Report (audited) continued 24 Sheffield Resources Limited Annual Report 2025
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