SANDFIRE RESOURCES LIMITED — Board/Management Information 2008

Dec 10, 2008

ASX ANNOUNCEMENT

11 December 2008

==> picture [595 x 52] intentionally omitted <==

==> picture [595 x 52] intentionally omitted <==

MANGANESE – DRILLING PROGRESS REPORT BORROLOOLA PROJECT, NORTHERN TERRITORY

During September to November 2008, Sandfire Resources NL (ASX: SFR ) ( Sandfire or the Company ) carried out a RAB and air core drilling program for Cretaceous, sedimentary manganese mineralisation within the Company’s wholly owned Borroloola Project located in the Northern Territory.

Four hundred and thirty-five shallow drill holes were completed, testing six of the original twelve targets, being:

Rosie Creek Rosie SW Reconnaissance Area Tawallah 1 and 2 Yiyintyi Range Eastern Creek

Basal Cretaceous nodular manganese mineralisation was intersected at the Rosie Creek and Rosie SW Reconnaissance prospects. It was at South Rose Creek that BHP previously announced the occurrence of manganese.

Of the 435 holes, 382 were drilled on the Rose Creek and Rosie SW Reconnaissance prospects for both infill and exploration testing and 163 holes intersected manganese at the base of the Cretaceous sedimentary sequence. The distinctive manganese intervals varied from 1 to 4 metres thick in loose manganiferous sandy and clayey sediments typically at shallow depths. Assay results for the manganese samples submitted for analysis are awaited.

Air core drilling on the two prospects was typically on grids of 100 m x 100 m and, to a lesser extent, 200 m x 100 m. Estimated manganese mineralisation volumes present at the two prospects are:

Rosie Creek Prospect: 2.1 million cubic metres Rosie SW Reconnaissance: 1.1 million cubic metres

The mineralisation at Rosie SW Reconnaissance prospect is open to the north, west and south.

Following receipt of the assay results, Sandfire will carry out metallurgical testwork to determine possible product grades and recoveries.

- ENDS -

Released by: John Evans Technical Director Sandfire Resources NL Telephone: +61-8 9226 5833

The information in this release is based on information compiled by John Evans who is a Fellow of the Australasian Institute of Mining and Metallurgy. John Evans has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. John Evans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [595 x 34] intentionally omitted <==