SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2009

Aug 18, 2009

ASX RELEASE

19 August 2009

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DOOLGUNNA: FURTHER DRILLING SUCCESS

More Highly Promising Assays; Step‐Out Drilling Continues to Extend High‐ Grade Mineralisation

Sandfire Resources NL (ASX: SFR ; Sandfire ) is pleased to report further high‐grade copper‐gold assay results from its 100%‐owned Doolgunna Copper‐Gold Project in Western Australia, including final results for diamond core hole, DGDD‐001, and assay results from the third hole, DGDD‐003. Ongoing drilling also continues to intersect significant extensions to the DeGrussa and Conductor 1 zones.

Final Assay Results for DGDD‐001

Final assay results have now been received for Intersection 4 in the first diamond drill hole, DGDD‐001 (first 11.3 metres previously reported).

Intersection 4 (part of Conductor 1):

8.3m @ 5.0% Cu, 0.4% Zn, 1.8g/t Au, 18.1g/t Ag from 348.0m

The complete results of this hole are now reported as follows.

The complete	r	esults of this hole a	re now reported as follows.	re now reported as follows.	re now reported as follows.
			Interval (downhole)			Copper	Gold
			From	To	Total	(Cu)	(Au)
			(m)	(m)	(m)	%	g/t
Intersection	1	– DeGrussa	146.1	167.4	21.3	16.3	1.3
Intersection	2	– DeGrussa	175.9	207.8	31.9	17.9	3.5
Intersection	3	– Conductor 1	319.0	324.5	5.5	4.2	2.2
Intersection	4	– Conductor 1	336.7	356.3	19.6	3.6	1.6

In total, DGDD‐001 intersected 78.3 metres of high‐grade copper‐gold mineralisation.

Assay Results for DGDD‐003

Assay results have now also been received for drill hole DGDD‐003 – which is located at 733960mE and 7173040mN, 120 metres east and 40 metres north of DGDD‐001:

DGDD‐003:

21.9m @ 5.0% Cu, 1.8% Zn, 2.0g/t Au, 14.9g/t Ag from 322.2m

This intersection is interpreted to be part of the Conductor 1 zone.

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DOOLGUNNA: FURTHER DRILLING SUCCESS

19 August 2009 Page | 2

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Drilling Update: New Massive Sulphide Intersections (s ee previous ASX Announcements for full diagram of drill hole locations )

Hole DGDD‐008 (7172990mN, 733880mE) – located 40 metres east of DGDD‐001

Hole DGDD‐008(7172990mN,	733880mE) – located 40 metres east of DGDD‐001
Hole	FromToWidth**Type **Comment
DGDD‐008	245.9m286.5m40.6mMassivesulphideDeGrussa‐stylemineralisation
DGDD‐008DGDD‐008	342.6m347.3m4.7mSulphideConductor 1 stylemineralisation347.3m362.8m15.5mMassivesulphideConductor 1 stylemineralisation

Hole DGDD‐009 (717292mN, 733840mE) – located 80 metres due south from DGDD‐001. No significant mineralization – intersected gabbro unit similar to that intersected by hole DGDD‐002, 40 metres to the south.

Hole DGDD‐010 (717292mN, 733880mE) – located 40 metres east and 40 metres south from DGDD‐001

Hole	FromToWidth**Type **Comment
DGDD‐010	317.2m321.0m3.8mMassivesulphideDeGrussa‐stylemineralisation
DGDD‐010	371.8m373.82.0mSulphideConductor 1‐stylemineralisation
DGDD‐010	373.8m387.2m13.4mMassivesulphideConductor 1‐stylemineralisation
DGDD‐010	392.3m394m1.7mMassivesulphideConductor 1‐stylemineralisation

The results seen to date are consistent with Sandfire’s geological model for DeGrussa and Conductor 1, which suggest that they are two separate zones of steeply‐dipping mineralisation.

Diamond drilling is continuing with two drilling rigs operational to provide further information on the scale and orientation of the mineralisation discovered at DeGrussa and Conductor 1.

W JOHN EVANS

TECHNICAL DIRECTOR (AUSIMM Competent Person)

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by John Evans who is a Fellow of the Australasian Institute of Mining and Metallurgy. John Evans 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves. John Evans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information contact: Sandfire Resources NL Read Corporate Karl Simich – Managing Director Mobile: +61 419 929 046 (Nicholas Read) John Evans – Technical Director Mobile: +61 421 619 084 (Paul Armstrong) Office: +61 8 9226 5833

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