SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2004

Mar 1, 2004

SANDFIRE RESOURCES NL ABN 55 105 154 185 COMMITTED EXPENDITURE

The following sets out the Company's proposed application of funds raised if (and only if) none of the Company's present tenement applications are granted. It should be noted the Company has 3 granted tenements presently andthe Company has no reason to believe that its applications for further tenements will not be granted. This sta being made to demonstrate to ASX that the Company has commitments to spend at least half its cash assets.

CategoryProjects:	COMMITTED	NON-COMMITTED	TOTAL
Sandfire Project (granted)	$1,090,000		$1,090,000
Borroloola Project (granted)	$595,000		$595,000
Other Projects - Airborne (currently applications)		$160,000	$160,000
Total Projects			$1,845,000
Corporate (2yrs);
Mng Dir (Corporate Allocation)1		$82,000	$82,000
Corporate 2		$530,000	$530,000
Total Corporate			$612,000
Repay Loans	$415,000		$415,000
ASX Fees	$30,000		$30,000
Capital Raising Fees	$300,000		$300,000
Other IPO Expenses	$145,000		$145,000
Gen Work Cap		$1,653,000	$1,653,000
TOTAL	$2,575,000	$2,425,000	$5,000,000
	51.5%	48.5%

1 Project Allocation of MD's remuneration = 2 Corporate Allocation of MD's remuneration =

75% 25%