SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2011

Mar 22, 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 23 March 2011

SANDFIRE ORDERS KEY LONG-LEAD ITEMS FOR DEGRUSSA COPPER-GOLD PROJECT

CONTRACT FOR LONG LEAD TIME BALL AND SAG MILLS AND OTHER KEY CONCENTRATOR

COMPONENTS

Further to the conditional development approval for its DeGrussa Copper-Gold Project in Western Australia announced on 4 March 2011, Sandfire Resources NL (ASX : SFR ; “Sandfire”) is pleased to advise that it has signed a contract with the leading European-based process technology group, Outotec, to purchase key long-lead processing equipment for the Project for a sum in excess of $20 million.

The award of the contract – for the supply and delivery of ball mill, SAG mill, flotation cells, thickeners and a concentrate filter that will be used in the construction of the 1.5Mtpa DeGrussa concentrator reflects Sandfire’s high level of confidence in the robustness of the DeGrussa Project and its commitment to proceed with project development.

“We are delighted to have signed a contract with a highly respected international organisation such as Outotec for the provision of key long-lead items and services required for the construction of the DeGrussa concentrator,” said Sandfire’s Managing Director, Mr Karl Simich.

“The award of this contract ahead of the completion of the Definitive Feasibility Study and project financing reflects our confidence in the DeGrussa Project and our commitment to move ahead with development as rapidly as possible,” he said. “Placing orders for key long-lead items now puts us in a position to achieve our timetable of commencing construction by mid-2011 and starting to commission the concentrator in the 3[rd] quarter of next year.’’

ENDS

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

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

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ASX / Media Release

23 March 2011

Figure 1 – DeGrussa Copper-Gold Project location

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Forward-Looking Statements

Certain statements made during or in connection with this statement, including, without limitation, those concerning exploration targets, contain or comprise certain forward-looking statements regarding Sandfire’s exploration operations, economic performance and financial condition. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, 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, 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. 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.

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