SANDFIRE RESOURCES LIMITED — AGM Information 2012

Nov 26, 2012

Sandfire R e sources NL ABN 55 105 154 185 Level 2, 31 Ventnor Ave, W est Perth Western Australia 6005 Phone: +61 8 6430 3800 Fax: +61 8 6430 3849 Email: info@sandfire. c om.au Web: www.sandfire.com.au

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ASX/Media Release

27 November 2012

2012 ANNUAL GENERAL MEETING – CHAIRMAN’S ADDRESS

Good afternoon Ladies and Gentlemen and welcome to Sandfire’s 2012 Annual General Meeting.

The past year has, without doubt, b e en one of the most important in Sandfire’s h istory. While perhaps not delivering quite the adrenalin rush of o u r discovery years, the Company has been able t o capitalise on its discovery success by completing the all-important transition from explorer to producer and joining the ranks of Australia’s leading mid-tier mining companies.

Against the backdrop of soaring cost inflation in the Australian resource sector – which, according to the Institute of Public Affairs, has seen the average c o st of a typical mine and mineral processing facili t y jump by more than 70 per cent over the past decade – we have d e livered the DeGrussa Copper Project on time a n d on budget.

This significant achievement – which w as recognised by two prominent industry award s during the year (Digger of the Year at Diggers and Dealers in Ka l goorlie; and Developer of the Year at Mines an d Money in Sydney) – is the fundamental reason that the Sandfire team has been able to maintain and continu e to build the value of our Company at a time when market volatility and uncertainty has impacted many resource s tocks.

Our Managing Director and CEO, Karl Simich, will shortly expand in more detail on the achievements of the past year, which culminated recently with t h e dispatch of our first shipment of copper con c entrate produced from the DeGrussa plant to customers in China.

Our production ramp-up is now well underway and we expect to achieve full prod u ction rates in early 2013, cementing our position as a high-grade, low-cost copper producer.

Achieving such a seamless sequence o f project milestones does not just happen. Our success in achieving these milestones is due to our culture of h a rd work, professionalism, teamwork, commitm e nt and a positive “can do” attitude. This culture has been firmly e stablished, not just at DeGrussa but across all parts of our organisation – and it is this culture which in my view i s one of the distinguishing features of Sandfire.

It also reflects the quality and leaders h ip of our management team, which is in turn re f lected by the quality of the personnel we have across our organis a tion.

I would like to take this opportunity to acknowledge the efforts of our Managing Direct o r & CEO, Karl Simich, our Project Manager, Martin Reed, our Ge n eral Manager Operations at DeGrussa, Craig D a wson, the remainder of our senior executive team and indeed all o f our on-site development, operations and corpor a te teams.

With leadership of this calibre at the controls, and the consequential high calibre of personnel we have overall, I am very confident about the future of o ur Company and our potential to make the next quantum leap in our development. I want to emphasise tha t the start of commissioning and ramp-up at De G russa marks the start of an exciting new chapter in Sandfire’s history, a chapter of growth and diversification.

The strong cash flows generated by D e Grussa should allow us to achieve a balance of o rganic growth, shareholder returns, finance facility repayment and business development that will put us in an even more enviable position – at a time when difficult market conditions a re delivering an increasing flow of opportunities to our doorstep.

ASX / Media Release

27 November 2012

Another VMS discovery at DeGrussa or the broader Doolgunna area would of course provide further significant value uplift for our shareholders. We are now the dominant operator in this region with the only operating copper production facility.

To this end, we have a world-class growth and business development team on the ground and a $20-25 million annual exploration budget. This has already yielded some very exciting new targets – some of which are being drilled as we speak.

We recognise the need to continue to refine our growth and business development focus and, under the experienced hands of our Technical Director John Evans and Exploration & Business Development Manager Bruce Hooper, we have a highly experienced and motivated business development team which has begun assembling a quality portfolio of new quality growth ventures and opportunities.

We have already announced some exciting asset-driven exploration and project joint venture initiatives in Australia and overseas, including the world-class Mount Isa/Cloncurry region of North Queensland, the Lachlan Fold Belt of South Australia and the Gawler Craton of South Australia.

We are also spreading our wings into the copper-rich yet relatively under-explored South American nations of Chile and Peru. Shareholders can expect to hear more about these activities in the months ahead – some of which are targeting Tier One project opportunities in IOCG-style copper-gold, Broken Hill Type base metals and porphyrystyle copper-gold.

Karl will expand on these initiatives further in his presentation.

We also recognise it is important to continue to grow and refine the structure and membership of our Board. In this regard, it is our intention to identify and appoint one or perhaps two additional directors within the next 6 to 12 months, with the qualifications and experience of these additional directors designed to compliment and add to the qualifications and experience of our current Board members.

In conclusion, I would like to thank our shareholders for their support in helping us to build Sandfire into the company it has become. Sandfire is already well-known within the industry and across global markets for being one of Australia’s most exciting modern-day mining success stories. All of us, including in particular you, our shareholders, can and should be justifiably proud of what has been achieved.

However, we also know that our work has only just begun. As I said last year, our performance will ultimately be judged on how successful we are in building a truly diversified Australian mining company. And we are looking forward to this next chapter with enthusiasm and excitement. I trust and hope you are as well.

Thank you.

Derek La Ferla Non-executive Chairman

ENDS

For further information contact: Sandfire Resources NL Read Corporate Karl Simich – Managing Director/CEO Mobile: +61 419 929 046 (Nicholas Read) Office: +61 8 6430 3800 Mobile: +61 421 619 084 (Paul Armstrong)

Forward-Looking Statements

Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Sandfire’s Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.

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