SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2006

Jun 20, 2006

I VENTNOR AVE WEST PERTH 6005 WESTERN AUSTRALIA

T-461-8-9226-5833 F +61 8 9226 5844 Cadmini Sandiiraamam

No. of pages lodged: 1

Company Announcements Office Australian Stock Exchange Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

SHARE PURCHASE PLAN (SPP)

Sandfire Resources NL advises that application forms for 4,002,929 SPP shares were received pursuant to the Company's SPP announced 26 May 2006, raising \$1,401,025.

The issue of 8.285.300 SPP shares to raise \$2.899.855 was underwritten. The Underwriter is now proceeding to place the shortfall, which is subject to shareholder approval at a General Meeting on 30 June 2006.

Mal Smartt Company Secretary 21 June 2006