Highfield Resources (HFR) Update Summary Company Overview - **Company**: Highfield Resources (HFR) - **Date of Update**: August 19, 2025 - **Key Speakers**: Paul Harris (Chair), Carlos Alamin (CEO), Olivia Vigillo (Head of Operations) Core Points and Arguments 1. **Transaction Update**: Highfield announced that China Minnet Corporation (CMC) and its subsidiary, King High South, will not proceed with the proposed transactions outlined in the May announcement regarding a nonbinding letter of intent [2][3] 2. **No Change in Fundamentals**: The decision by CMC does not reflect any new information or changes in the fundamentals of Highfield or the merger project, which remain intact [3][4] 3. **Commitment to Project**: Highfield maintains high conviction regarding the Muga project, aiming to develop it into a long-life, low-cost European potash operation [4][9] 4. **Funding Management**: The company is actively managing its funding needs and has implemented internal cost-cutting measures. It is exploring various funding alternatives [4][5] 5. **Convertible Notes**: Highfield has withdrawn convertible notes that have matured, but EMR continues to engage constructively with the company regarding these notes [5] 6. **Implementation Agreement**: The implementation agreement with Yanqong remains active, allowing either party to terminate at any time [6][9] 7. **Strategic Objectives**: Highfield is committed to its strategic objectives and is evaluating options to deliver long-term value to shareholders [7][9] 8. **Stakeholder Engagement**: Highfield has met with the government of Navarra to discuss the merger project, receiving support from the government [8] 9. **Goya Permit Confidence**: The company remains confident regarding the Goya permit and its ability to proceed with the project [8][9] 10. **Future Updates**: Highfield will provide material updates to shareholders as they progress with alternative plans [10] Additional Important Information - **Investor Communication**: Highfield emphasizes transparency and encourages shareholders to reach out with questions [3][10] - **Market Reaction**: The announcement of the transaction's discontinuation is viewed as disappointing, but the company is exploring alternatives [10]