SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2007

Feb 18, 2007

SANDFIRE RESOURCES NL

ABN 55 105 154 185

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DRILLING UPDATE FOR DOOLGUNNA, WA

SUMMARY

19 FEBRUARY 2007

• Thirteen RC holes completed at East Shed Well $\bullet$
• Two RC holes completed at Cow Hole Bore $\bullet$

ASX CODE: SFR

SFRCA

OFFICE AT:

1 VENTNOR AVENUE WEST PERTH 6005 WESTERN AUSTRALIA

T: +61 8 9226 5833 F: +61 8 9226 5844 E: admin@sandfire.com.au www.sandfire.com.au

CORRESPONDENCE: PO BOX 1495 WEST PERTH 6872 WESTERN AUSTRALIA

ABN 55 305 154 185

DOOLGUNNA (Sandfire 100%)

As advised in the December Quarterly Report, further drilling programs at Doolgunna were pending various regulatory approvals. In the week commencing 5^th February the Company was able to obtain an RC drilling rig for a short time and was given approval for a part of the proposed drilling programs.

Thirteen RC holes were drilled at East Shed Well. These holes are part of the planned follow up program to test the mineralisation intersected in previous drilling.

Two RC holes were drilled at Cow Hole Bore. These holes were designed to test the high grade quartz vein intersected in previous RAB drilling. Since the completion of the RAB program, the mineralised structure has been located on the surface from which samples of free gold have been obtained thus confirming continuity between the RAB intersections.

Results from this program are expected to be available in April.

G Steemson Director 19th February 2007

The information in this report that relates to Exploration Results is based on information compiled by Greg Steemson who is a Fellow of the Australasian Institute of Mining and Metallurgy. Greg Steemson 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. Greg Steemson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Corporate Information Directors and Executive Management

B R Coppin:	Non-Exec Chairman
	G H Steemson: Managing Director
G Hutton:	Executive Director
R M Lewis:	Company Secretary

Issued Capital

As at the date of this report the issued capital of the Company is comprised of:

• 63.971.626 fo shares
• 11,060,652 contributing shares with $\bullet$ \$0.15 to pay, no call before 3/3/07
• 2.392m 31/12/08 \$0.25 opts
• 0.625m 30/9/08 \$0.20 opts
• 6.9m 30/6/07 \$0.60 opts
• 3.0m 30/9/11 \$050 opts

Substantial Shareholders

Faustus Nominees Pty Ltd 8.89% Evolution Master Fund 6.52% Resource Development Company 4.40%

Shareholder Enquiries

Matters related to shares held, change of address, tax file numbers and the like should be directed to the Company's Registry: Security Transfer Registrars Pty Ltd Phone - 08 9315 2333

Investors interested in receiving copies of ASX announcements can register such interest on the Company's website www.sandfire.com.au.