Ann: Sheffield and Yansteel Execute Binding JV Agreements, page-2

YANSTEEL AND SHEFFIELD SIGN JOINT VENTURE AGREEMENTS
• Sheffield Resources and Yansteel execute binding definitive documents to form a 50:50 Joint Venture on the Thunderbird Mineral Sands Project and associated tenements (Project)
• Formation of the JV, including payment of A$130.1 million by Yansteel to acquire 50% of the Project, expected over the coming weeks
• Confirms a long term strategic partnership with a large private steel company that underpins their entry into titanium dioxide production
• Demonstrates a credible path to construction and production for Thunderbird, bringing hundreds of jobs and economic opportunities for the Kimberley and the rest of Australia
Sheffield Resources Limited (“Sheffield” or “the Company” (ASX: SFX) is pleased to advise that potential joint venture partner YGH Australia Investment Pty Ltd (“Yansteel” and Sheffield executed definitive binding documents for Yansteel’s proposed $130m investment to acquire 50% of the Thunderbird Mineral Sands Project (“Joint Venture” or “Thunderbird” on 6 January 2021.
The parties have commenced the process to satisfy the remaining conditions precedent including lender agreement and receipt of the A$130m investment from Yansteel to finalise the formation of the Joint Venture with completion expected over the coming weeks. Once the Joint Venture is formed a final bankable feasibility study will be completed ahead of concluding project finance arrangements and an expected final investment decision (FID) during 2021.
As part of finalising the financing arrangements for the Joint Venture, Sheffield and Taurus Funds Management Pty Limited (“Taurus” agreed to terminate their existing financing agreements and to work collaboratively with the JV towards new financing agreements with the Joint Venture. “Taurus looks forward to working with Yansteel and Sheffield to assess and consider new financing facilities for Thunderbird”, said Mike Davies Taurus’ Executive Director.
Sheffield Managing Director Bruce McFadzean said the signing was a major milestone towards the development of the Thunderbird Minerals Sands Project. “This is another exciting step forward for Thunderbird, our partnership with Yansteel, and for Sheffield Resources’ investors and stakeholders,” Mr McFadzean said.
“In Yansteel we have a partner that is equally committed to the Project and we are both looking forward to a long and productive relationship. What is particularly pleasing is that both parties are committed to creating hundreds of jobs in the Kimberley, for decades to come.”
“Yansteel is pleased to sign the binding documents to form the Joint Venture and looks forward to working with Sheffield to progress towards FID in 2021,” expressed by the Board of Tangshan Yanshan Iron & Steel Co., Ltd the ultimate owner of Yansteel.
This announcement was authorised for release by the Company’s Board of Directors.