SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2008

Jul 10, 2008

1 VENTNOR AVE PO BOX 1495 T +61 8 9226 5833 WEST PERTH 6005 WEST PERTH 6872 F +61 8 9226 5844 WESTERN AUSTRALIA WESTERN AUSTRALIA E admin@sandfire.com.au www.sandfire.com.au

ABN 55 105 154 185

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11 July 2008

Company Announcements Office ASX Limited

SANDFIRE RESOURCES NL (ASX: SFR (SANDFIRE)) SHARE PLACEMENT TO POSCO AUSTRALIA PTY LTD

On 3 July 2008 Sandfire announced to the market the completion of a share placement to Posco Australia Pty Ltd ( POSCO ) and on 4 July 2008 POSCO lodged with ASX and the Company a Form 603 (Notice of initial substantial holder).

Sandfire wishes to confirm that all the conditions precedent that were required to be satisfied before the placement of approximately 16.5 million ordinary fully paid shares and approximately 2.5 million ordinary contributing shares to POSCO to raise $7.23 million, were in fact satisfied in full on 19 June 2008, prior to the issue of those securities to POSCO.

The agreement of 3 May 2008 to issue shares and contributing shares to POSCO (comprising 19.9 percent of the capital of Sandfire) was in summary conditional upon:

1. Foreign Investment Review Board (FIRB) approval or waiver; and

2. approval by Sandfire shareholders in general meeting.

Both these conditions were required to be satisfied on or before 15 July 2008 or such other date agreed to by the parties.

Sandfire wishes to confirm that both conditions were satisfied by 19 June 2008, which resulted in POSCO paying for and receiving approximately 16.5 million ordinary shares and approximately 2.5 million contributing shares, the subject of POSCO’s substantial shareholder notice lodged on 4 July 2008.

Accordingly, the transaction has been completed.

MILES KENNEDY CHAIRMAN

SANDFIRE RESOURCES NL ABN 55 105 154 185