SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2004

Jun 16, 2004

12 WALKER AVENUE www.sandfire.com.au

ASX ANNOUNCEMENT

17 June 2004

NON-RENOUNCEABLE ENTITLEMENT ISSUE OF OPTIONS

Further to the announcement made on 16 June 2004, the Company has allotted a further 700,000 options as part of the recent issue of options. The application for these options had been received on 19 May 2004 (well before the due date) but not processed.

The revised capital structure of the Company following this offer is:

	Number
Ordinary Shares	39,000,000
Contributing Shares	4,000,000
Options pursuant to this issue	12.744.420
Broker Options issued pursuant to the IPO	3,000,000
Total securities on issue	58,744,420

The twenty largest options holders pursuant to this issue are:

HOLDER NAME		PERCENTAGEOF ISSUED
1	Resources Development Co.	14.41%
2	Thomas Peter + Susan	5.49%
3	All-State Finance Pty Ltd	5.49%
4	O'Meara Denis William	3.92%
5	Tongaat Pty Ltd	3.92%
6.	Biddlecombe Pty Ltd	3.92%
7	West Aust North Terr Exp	3.92%
8	I E Properties Pty Ltd	3.30%
9	Weybridge Pty Ltd	2.84%
10	James Commodity Exports	1.22%
11	Neeves Gregory Charles	1.14%
12	Sharples John	1.04%
13	Europa Investment Service	1.02%

HOLDER NAME		PERCENTAGEOF ISSUED
	14 Fund Academic Growth Inst	.98%
	15 Stratton Melissa	.98%
	16 Nutsville Pty Ltd	.98%
	17 Pata Nominees Pty Ltd	.94%
18	Mullen Natalea	.90%
19	Barrymore Geoffrey William	.88%
20	Ezzy Mervin Everett	$.80%$

The distribution of option holders pursuant to this issue are:

SPREAD OF HOLDINGS	HOLDERS	UNITS I	% OF ISSUED CAPITAL
Nil Holding
1 – 1.000		RQ5
$1,001 - 5,000$		682.917	536%
$5,001 - 10,000$		333,933	2 62%
$10,001 - 100,000$		4,320,943	33.90%
$100.001 -$		7,405,732	58.11%
Total On Register		12,744,420	100.00%

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Released by: GREG STEEMSON MANAGING DIRECTOR SANDFIRE RESOURCES NL Tel: +61 8 9226 5833