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Drilling Success at Irwin Mineral Sands Project

DRILLING SUCCESS AT IRWIN MINERAL SANDS PROJECT KEY POINTS Drilling results extend strike of HMS mineralisation at Irwin to over 5km Mineralisation is dunal style, with low slimes and low oversize New Exploration Licence application expands prospective zone to 15km Sheffield to undertake mineral assemblage work, with further drilling in first half of 2012 Bulk minerals explorer Sheffield Resources (Sheffield) (SFX) today announced results from a 31 hole drilling program at its Irwin heavy mineral sand (HMS) project located 80km southeast of the port of Geraldton in Western Australias Mid West region (Figure 1). These results follow the announcement on 16 August 2011 of Sheffields maiden resource at its nearby Yandanooka project of 1.84 million tonnes of contained heavy mineral within a total resource of 71.75Mt 2.6% HM, comprising 61Mt 2.8% HM (Indicated) and 10.75Mt 1.1% HM (Inferred). The drill results at Irwin, together with results of drilling by North Mining Ltd in 1994, confirm the presence of a large 1.52.5km wide zone of low grade (12% HM), dunalstyle mineralisation, and increase the strike length of the zone to 5km (Figure 3). Drilling results are shown in Table 2, with significant intersections including 18.0m 1.25% HM from 6.0m (IRAC008), 13.5m 1.40% HM from 7.5m (IRAC019), 15.0m 1.66% HM from 4.5m (IRAC031), 12.0m 1.70% HM from 7.5m (IRAC029), and 9.0m 2.58% HM from 25.5m (IRAC027). The mineralisation averages 10m in thickness but is locally up to 18m thick at 1% HM cutoff . It is variably overlain and enveloped by a halo of lower grade (0.51% HM) mineralisation. An important feature of the dunal mineralisation is the low slimes content (weighted average 6.4%) and low oversize (3.0%), which favour low cost processing techniques. Sheffield recently applied for an additional Exploration Licence (ELA70/4189) which extends the Irwin exploration target for an additional 10km to the north (Figure 2). Managing Director, Bruce McQuitty said the drill results outlined a large openended dunal mineral sands system in an area that has received little previous exploration. The Irwin project represents a large virgin exploration target, strategically located close to infrastructure and adjacent to Tiwests Dongara deposit. It is one of several projects that Sheffield is advancing in the world class North Perth Basin mineral sands province. The Irwin project is situated 60km north of Eneabba in a highly prospective setting on the Swan Coastal Plain at the foot of the Gingin Scarp.

It is immediately north of Tiwests Dongara deposit (181.6 Mt at 5.0% HM). Discovered in 2000 by Magnetic Minerals NL, the Dongara deposit is made up of nine discrete strand line deposits over a 25km strike length. The mineral assemblage of the total deposit is unknown, however the assemblages reported for six individual strand line deposits range from 621% zircon, 512% rutile and 5466% ilmenite (Magnetic Minerals Ltd ASX release 24 July 2002).

The deposit was acquired by the Tiwest JV following the takeover of Magnetic Minerals by Ticor Ltd in March 2003. The dunalstyle mineralisation at Irwin differs from the narrow strandline mineralisation at the Dongara deposit. Assemblage work is yet to be undertaken on the Irwin mineralisation. Sheffield will select representative composite samples from its recent drilling for mineral assemblage testwork in October. Further exploration drilling is planned for the first half of 2012. Sheffields ongoing resource estimation and scoping study schedule is provided in Table 1 below, and includes resource estimation work currently underway on the West Mine North and Ellengail deposits, located to the west of Eneabba. ENDS Website For further information please contact Bruce McQuitty Managing Director Tel 0409 929 121 Media Annette Ellis / Warrick Hazeldine Purple Communications Tel 08 6314 6300