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Highfield D Resources ASX Release 30 April 2021 QUARTERLY ACTIVITIES REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2021 Muga Mining Concession Process • As previously announced ( refer ASX release 1 March 2021 , " Muga Project Permitting Update ” ) , by the end of February 2021 the Company had submitted answers to the fifth and final section of the Mining Concession documentation for its Muga Project : О ○ о О O The scope of section 5 covers the restoration and emergency plans , the backfilling process and water management . While the sections 1 to 4 were mainly reviewed exclusively by the relevant mining Authorities in Madrid , Aragón and Navarra ( " the Mining Authorities ” ) , section 5 , given its scope , has required the review of several other Spanish government entities . In March 2021 , following the Company's final submission , the Mining Authorities had requested a review of different parts of section 5 by the Ebro Water Agency , the three environmental departments of Navarra , Aragón and Madrid , and the Emergency Services Department in Navarra . Since the quarter end , the thorough review by the various government entities has progressed satisfactorily for the Project . The Ebro Water Agency and the two environmental departments of Madrid and Navarra have submitted positive reports to the Mining Authorities . The Navarra Emergency Services Department has also approved the Emergency Plan for Muga . The Company is now awaiting the environmental department of Aragón to finalise its report , which the Company understands is close to completion . Additionally , the Company has been advised that the Mining Authorities have finalised their review of those queries raised during the public exposition carried out in August 2020. The public exposition related exclusively to the restoration plan that is also part of the scope of section 5 . о No material issues have been raised by the Mining Authorities as a result of these reviews . The Company has been advised that once the report from the environmental department of Aragón is received and if no further clarification is required by the Authorities , the next step is to send the text of the Mining Concession document to the Central Government's lawyers for its final legal review prior to the Mining Concession award being issued . • Cash at bank as at 31 March 2021 was : A $ 15.8m . • The Company has put in place several initiatives to preserve cash until the grant of the Mining Concession : о It has continued with the temporary reduction of 50 % of all Highfield's management and staff's working time and salaries until the Mining Concession is granted . A similar reduction has been applied to all consultants . Highfield Resources Limited ACN 153 918 257 ASX : HFR Issued Capital Registered Office 169 Fullarton Road Dulwich , SA 5065 Australia Head Office Avenida Carlos III , 13 - 1 ° B , 31002 Pamplona , Spain 329.6 million shares 22.82 million options T. +61 8 8133 5000 T. +34 948 050 577 www.highfieldresources.com.au F. +34 948 050 578