SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2009

Nov 15, 2009

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16 November 2009

Dear Shareholder

CALL FOR PAYMENT OF FIFTEEN CENTS ON CONTRIBUTING SHARES (ASX: SFRCA)

As outlined in the Company’s announcement to ASX on 9 November 2009, Sandfire Resources NL (the Company) gives notice that a call has been made for the amount of $0.15 per contributing share (Contributing Share) payable on or before 5.00pm (AWST) on 30 November 2009 (Call).

Enclosed with this letter is a Call Payment Notice providing details of your holding of Contributing Shares and the Call. It contains important information on the total amount due and how it can be paid. Please read it carefully.

Importantly, if you fail to pay the Call within 14 days after it is due, your Contributing Shares on which the Call is not paid will be automatic automatically forfeited. Further information on the consequences of nonpayment is set out below.

The following information is provided to assist you in complying with the Call Payment Notice.

Amount of Call: $0.15 per Contributing Share. Due time and date for payment: No later than 5.00pm (AWST) on 30 November 2009. Amount remaining unpaid on Nil. Contributing Shares after Payment of Call: Method of payment: Cheque to be drawn on an Australian bank or Bpay. Refer further details contained in the Call Payment Notice. Consequences of non-payment: If holders of Contributing Shares fail to pay the Call within 14 days after the due date of 30 November 2009, the Contributing Shares on which the Call has not been paid will be automatically forfeited and will be sold by the Company at public auction in accordance with the Company’s Constitution, the ASX Listing Rules and the Corporations Act 2001 (Cth). The auction will be advertised between 14 and 21 days before it take place and it must take place within 6 weeks after 15 December 2009 (although it can be postponed in accordance with the Corporations Act 2001 (Cth), ASX Listing Rules and the Company’s Constitution). If Contributing Shares are sold in this manner, the proceeds of sale will be applied in the following order:

1. in paying the expenses of the sale; 2. in paying any expenses necessarily incurred in respect of the forfeiture; and 3. in paying the unpaid Call.

The balance of the proceeds of sale (if any) will be paid to those persons whose Contributing Shares have been forfeited and sold.

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Price information on Contributing Shares SFRCA:

Market price immediately before the Company announced the Call to ASX on 9 November 2009 was $2.05.

Market price immediately before the date of this letter was $2.05. Highest and lowest market prices in the last 3 months was $2.05. Price information on Ordinary Market price immediately before the Company announced the Call fully paid Shares SFR: to ASX on 9 November 2009 was $4.05. Market price immediately before the date of this letter was $4.11. Highest and lowest market prices in the last 3 months: highest: $4.11; lowest: $2.22.

Key dates

The key dates in relation to the Call and how the Contributing Shares will trade on ASX prior to and after the date for pay of the Call are set out below.

Date	Action
9 November 2009	Call announced.
16 November 2009	Call notice sent to all holders of Contributing Shares.
27 November 2009	Last day for trading call unpaid Contributing Shares.
30 November 2009	Call due and payable.
4 December 2009	Last day for share registry to accept transfers of call unpaid
	Contributing Shares.
11 December 2009	Entry of call paid Contributing Shares on register and despatch of
	new holding statements.
15 December 2009	Callunpaid Contributing Sharesforfeited.

Use of Funds

The funds raised from the Call will be used to assist in the Company’s exploration and drilling programs over its Doolgunna tenements and for general working capital purposes.

Update on the Company’s projects

Details of the Company’s exploration activities are set out in recent ASX Releases which can be found on the Company’s website www.sandfire.com.au.

Directors’ holdings and intentions

The directors do not hold any Contributing Shares.

Tax advice

Holders of Contributing Shares are encouraged to obtain their own independent advice as to the effect on their Contributing Shares, including taxation implications, of paying or failing to pay the Call.

Yours faithfully

Jean Mathie

Company Secretary

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FINAL CALL NOTICE

THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN DOUBT AS TO HOW TO DEAL WITH IT, PLEASE CONTACT YOUR STOCKBROKER OR LICENSED PROFESSIONAL ADVISER .

REGISTERED OFFICE: 1 VENTNOR AVENUE WEST PERTH WA 6005

«Holder_name» «Address_line_1» «Address_line_2» «Address_line_3» «Address_line_4» «Address_line_5»

SHARE REGISTRY: Security Transfer Registrars Pty Ltd All Correspondence to: PO BOX 535, APPLECROSS WA 6953 770 Canning Highway, APPLECROSS WA 6153 T: (08) 9315 2333 F: (08) 9315 2233 E: registrar@securitytransfer.com.au W: www.securitytransfer.com.au

SANDFIRE RESOURCES NL

ACN 55 105 154 185

ASX Code: SFRCA

HOLDER NO: «Holder_number»

Contributing Shares held @ 5.00PM WST: «Securities» on 13 November 2009

MAXIMUM SHARE ENTITLEMENT: «Entitlement» AMOUNT PAYABLE: «Amount_payable»

CONTRIBUTING SHARES FINAL CALL NOTICE A$0.15

DUE ON OR BEFORE 30 NOVEMBER 2009

Sandfire Resources NL ( Company ) hereby gives notice that a call has been made against all partly paid shares in the Company ( Contributing Shares ) and that the final payment of the call of 15 cents per Contributing Share ( Final Payment ) is due on or Before 30 November 2009.

NUMBER SHARES	OF TO	CONTRIBUTING CONVERT	@	$0.15PER SHARE			AMOUNT ENCLOSED*
,		,		$0.15	AUD $	,	,	.

(1) I/We enclose have enclosed/made payment for amount shown above (following the payment instructions as detailed overleaf).

(2) I/We hereby authorise you to place my/our name(s) on the register of members in respect of the number of New Shares allotted to me/us.

(3) I/We agree to be bound by the Constitution of the Company.

(4) Sufficient cleared funds should be held in your account as your acceptance may be rejected if your cheque is dishonoured.

(5) My/Our contact details in case of enquiries are:

Telephone

Area Code Contact Name Email B L O C K @ L E T T E R S . C O M

Your Final Payment must be received by Security Transfer Registrars on or before 30 NOVEMBER 2009

Share Registry Use Only Registry Date Stamp PAYMENT INFORMATION - Please also refer to payment instructions overleaf. Biller Code: 117226 CHEQUE/MONEY ORDER Ref: «EFT_reference_number» All cheques (expressed in Australian currency) are to be made payable to SANDFIRE RESOURCES NL and crossed "Not Negotiable".

LODGEMENT INSTRUCTIONS

PAYMENT INSTRUCTIONS

CHEQUE/MONEY ORDER

Biller Code: 117226

All cheques and bank drafts should be drawn on an Australian bank and expressed in Australian currency and crossed "Not Negotiable".

Sufficient cleared funds should be held in your account as your acceptance may be rejected if your cheque is dishonoured.

BPAY® this payment via internet or phone banking. Your reference number is quoted on the front of this form.

Multiple acceptances must be paid separately.

Applicants should be aware of their financial institution's cut-off time (the time payment must be made to be processed overnight). If paying by BPay, ensure that your payment is processed by your financial institution on or before the day prior to the closing date of the offer. BPay applications will only be regarded as accepted if payment is received by the registry from your Financial Institution on or prior to the closing date.It is the Applicant's responsibility to ensure funds are submitted correctly by the closing date and time.

You do not need to return this form if you have made payment via BPAY.

Your BPAY reference number will process your payment to your entitlement electronically and you will be deemed to have applied for such Securities for which you have paid.

Cheques or bank drafts drawn on overseas banks in Australian or any foreign currency will NOT be accepted. Any such cheques will be returned and the acceptance deemed to be invalid.

Do not forward cash as receipts will not be issued.

When completed, this form together with the appropriate payment should be forwarded to the share registry:

Security Transfer Registrars Pty Ltd PO Box 535, APPLECROSS WA 6953.

Applications must be received by Security Transfer Registrars Pty Ltd no later than 5.00pm WST on the closing date.

LAST DAY FOR TRADING

The last day for trading call unpaid Contributing Shares is 27 November 2009

FAILURE TO PAY CALL / AUCTION PROCESS

If the Company does not receive the Call by the Due Date and you fail to pay the Call within fourteen (14) days after the Due Date:

1. The Contributing Shares on which the Call has not been paid will be automatically forfeited and will be sold by the Company at public auction in accordance with the Company's constitution, the Australian Stock Exchange Limited (ASX) Listing Rules and the Corporations Act 2001 (Cth).

2. The auction will be advertised between 14 and 21 days before it takes place and will take place within six weeks after 15 December 2009.

3. The proceeds from the sale of the Contributing Shares forfeited will be applied to the payment of expenses for the sale and the payment of the unpaid call up to fifteen cents. The balance (if any) will be paid to you.

TRANSFERS

The last day for the Company’s share registry to accept transfers of Contributing Shares is 4 December 2009.

This notice is dated 16 November 2009.

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ENQUIRIES

All enquiries should be directed to the Company's share registry:

Security Transfer Registrars Pty Ltd

PO Box 535, Applecross WA 6953 AUSTRALIA

770 Canning Highway, Applecross WA 6153 AUSTRALIA

Telephone +61 8 9315 2333 Facsimile +61 8 9315 2233

Email registrar@securitytransfer.com.au