SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2011

Nov 9, 2011

Sandfire Resources NL ABN 55 105 154 185 Level 2, 31 Ventnor Ave, West Perth Western Australia 6005 Phone: +61 8 6430 3800 Fax: +61 8 6430 3849 Email: info@sandfire.com.au Web: www.sandfire.com.au

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ASX/Media Release 10 November 2011

FIRST DRAWDOWN UNDER $390M DEGRUSSA PROJECT LOAN FACILITY

Sandfire Resources NL (ASX : SFR ; “Sandfire”) is pleased to advise that it has completed the first drawdown of funding under the recently executed $390 million project financing facility (“Facility B”) for its 100%-owned DeGrussa Copper-Gold Project in Western Australia following satisfaction of all conditions precedent to the facility.

Final documentation for the fully underwritten and secured Facility B, which is the main facility for construction and development of the DeGrussa Project, was executed in late September 2011. Facility B includes $10 million relating to environmental bonding.

Sandfire has drawn down a total of $190 million under Facility B, with funds to be used for the following purposes:

• $122 million to fund estimated project development and construction costs at DeGrussa into Q1 2012;

• $60 million to repay the funds drawn down under the initial $75 million mine development facility (Facility A). Facility A will now be closed;

• $8 million to fund the establishment of debt service reserve accounts and transaction costs.

Australia and New Zealand Banking Group Limited ("ANZ") has commenced the syndication process for Facility B, and will retain a cornerstone position.

Sandfire’s Managing Director, Mr Karl Simich, said the first drawdown of funds under the main $390 million project financing facility marked another significant milestone in the funding, development and construction of the DeGrussa Project.

“The DeGrussa site is a hive of activity, with over 475 people currently on site and the overall project now more than 40 per cent complete,” Mr Simich said.

“The satisfaction of conditions precedent for the main project financing facility enables us to repay the initial mine development facility and ensures that funding is in place for the balance of the construction phase.”

“Despite the distractions of volatile global markets and commodity prices, our team has remained focused on ensuring that we deliver this project on time and on budget,” Mr Simich said. “I would like to commend them for their efforts and also take the opportunity to thank ANZ for their support.”

Sandfire is undertaking concurrent development of an open pit and a longer term underground mine at DeGrussa. As outlined in the Company’s September Quarterly Activities Report, released on 31 October 2011, the Stage 1 open pit is on schedule, with a total of 3.5 million bcm (bank cubic metres) of material mined to date, while the “Evans Decline” has progressed beyond 700 metres from the portal.

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ASX / Media Release

10 November 2011

Construction of the 1.5Mtpa DeGrussa Concentrator commenced towards the end of the September Quarter, marking the beginning of the most significant construction phase for the Project to date.

Sandfire remains on target to achieve its key project milestones of:

• First direct shipping ore (DSO) from the open pit – Q1 2012;

• First underground ore on the ROM stockpile – Q1/2 2012; and

• First ore in the SAG mill – Q3 2012.

Total expenditure on the DeGrussa Project to the end of October 2011 was $140 million.

ENDS

For further information contact: Sandfire Resources NL Karl Simich – Managing Director/CEO Office: +61 8 6430 3800

Read Corporate Mobile: +61 419 929 046 (Nicholas Read) Mobile: +61 421 619 084 (Paul Armstrong)

Figure 1 – DeGrussa Copper-Gold Project location

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Forward-Looking Statements

Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Sandfire’s Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.

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