SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2007

Jul 8, 2007

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Name of entity SANDFIRE RESOURCES NL ABN 55 105 154 185

We (the entity) give ASX the following information.

Part 1 - All issues

1 Class of securities issued or to be issued 2 Number of securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the securities (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if convertible securities, the conversion price and dates for conversion) 4 Do the securities rank equally in all respects from the date of allotment with an existing class of quoted securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration	Ordinary shares, paid to $0.0001 with $0.15 payable
	430,000
	Yes
	$0.0001 per share

Sandfire Resources NL – Appendix 3B

---

6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering securities into uncertificated holdings or despatch of certificates 8 Number and class of all securities quoted on ASX (including the securities in clause 2 if applicable) 9 Number and class of all securities not quoted on ASX (including the securities in clause 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	The shares were issued to employees and consultants who have continued to serve and are currently serving the company as at 1 July 2007 as anticipated in an ASX release dated 11 July 2006.	The shares were issued to employees and consultants who have continued to serve and are currently serving the company as at 1 July 2007 as anticipated in an ASX release dated 11 July 2006.
	9 July 2007
	Number	Class
	SFR – 65,059,626 SFRCA – 11,102,652	Ordinary shares fully paid Ordinary shares partly paid to $0.0001 with 15 centspayable
	Number	Class
	SFRAM – 2,392,000 SFRAP – 525,000 SFRAS – 3,000,000	Options exercisable on or before 31.12.2008 at $0.25 per option Options exercisable on or before 30.9.2008 at $0.20 per option Options exercisable on or before 30.9.2011 at $0.50 per option
	N/A

Sandfire Resources NL – Appendix 3B

---

Part 2 - Bonus issue or pro rata issue

NO ISSUES TO BE ADVISED

11	Is security holder approval
	required?
12	Is the issue renounceable or non-
	renounceable?
13	Ratio in which the+securities will
	be offered
14	+Class of+securities to which the
	offer relates
15	+Record date to determine
	entitlements
16	Will holdings on different registers
	(or subregisters) be aggregated for
	calculating entitlements?
17	Policy for deciding entitlements in
	relation to fractions
18	Names of countries in which the
	entity has+security holders who will
	not be sent new issue documents
	Note: Security holders must be told how their
	entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of
	acceptances or renunciations

Sandfire Resources NL – Appendix 3B

_________ 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_ through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date

___________

Sandfire Resources NL – Appendix 3B

---

Part 3 - Quotation of securities

==> picture [174 x 100] intentionally omitted <==

----- Start of picture text -----

34 Type of securities
( tick one )
(a) Securities described in Part 1
(b) All other securities
----- End of picture text -----

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

NO NEW CLASS OF SECURITIES BEING FORMED

==> picture [411 x 164] intentionally omitted <==

----- Start of picture text -----

35 If the [+] securities are [+] equity securities, the names of the 20 largest holders of the
additional [+] securities, and the number and percentage of additional [+] securities held by
those holders
36 If the [+] securities are [+] equity securities, a distribution schedule of the additional
+securities setting out the number of holders in the categories
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
37 A copy of any trust deed for the additional [+] securities
----- End of picture text -----

Entities that have ticked box 34(b)

NOT REQUIRED TO BE COMPLETED

==> picture [180 x 71] intentionally omitted <==

----- Start of picture text -----

38 Number of securities for which
+quotation is sought
39 Class of +securities for which
quotation is sought
----- End of picture text -----

Sandfire Resources NL – Appendix 3B

---

40 Do the[+] securities rank equally in all respects from the date of allotment with an existing[+] class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period

• (if issued upon conversion of another security, clearly identify that other security)

Number +Class 42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

Quotation agreement

• 1 Quotation of our additional securities is in ASX’s absolute discretion. ASX may quote the securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those securities should not be granted quotation.

• An offer of the securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any securities to be quoted and that no-one has any right to return any securities to be quoted under sections

Sandfire Resources NL – Appendix 3B

---

737, 738 or 1016F of the Corporations Act at the time that we request that the securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the securities to be quoted, it has been provided at the time that we request that the securities be quoted.

• If we are a trust, we warrant that no person has the right to return the securities to be quoted under section 1019B of the Corporations Act at the time that we request that the securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before quotation of the securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 9 July 2007

Print name: Greg Steemson – Managing Director