SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2011

Mar 7, 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 8 March 2011

INVESTMENT IN CHILEAN COPPER-GOLD EXPLORER 17.1% STAKE IN WHINNEN RESOURCES PROVIDES EXPOSURE TO COPPER-GOLD PORTFOLIO

Sandfire Resources NL (ASX : SFR ; “Sandfire”) is pleased to advise that it intends to subscribe for a cornerstone 17.1% stake in junior explorer Whinnen Resources Limited (ASX: WWW – “Whinnen”), which intends to secure an extensive portfolio of high-quality copper, gold and silver exploration projects in the Atacama mining region of northern Chile.

The proposed investment provides Sandfire with a low-cost, low-risk exposure to an emerging resource portfolio in one of the world’s richest copper-gold provinces and is consistent with its objective of identifying and securing potential future business development opportunities outside of its flagship DeGrussa Copper-Gold Project in Western Australia and other copper, gold and manganese interests in Australia.

Whinnen has announced the proposed conditional acquisition of 100% of the privately owned company Mystic Sands Pty Ltd, which has assembled an extensive and highly prospective copper portfolio and also holds an option over a prospective gold project in Chile. Mystic Sands was established by an incountry English expatriate geologist with extensive experience in the Chilean mining industry.

Sandfire will subscribe for 26.5 million shares ($1.9 million) as part of a $7.28 million share placement being undertaken by Whinnen to sophisticated investors at $0.07 per share. In addition, Sandfire will be issued with 17 million Whinnen shares and 14.5 million 30 April 2014 options with an exercise price of A$0.20 per share as part of a Technical Services Agreement between the companies.

This will result in Sandfire acquiring a 17.1% interest in Whinnen on completion of the capital raising and acquisition, both of which are subject to shareholder approval and the other conditions included in the announcement by Whinnen.

Sandfire will provide ongoing technical advice and support in relation to exploration activities on the Mystic Sands properties or any new projects acquired by Whinnen in the future.

As part of the agreement, Sandfire has the right to maintain its interest in the event of any future capital raisings by Whinnen which would result in the dilution of its position. In addition, Sandfire has a first right of refusal to purchase 70% of any future minerals produced from Whinnen’s projects and can nominate two Directors to join the Whinnen Board.

“This is a great opportunity for Sandfire to participate in the incubation of a what could potentially be a significant copper-gold opportunity in South America,” said Sandfire CEO, Mr Karl Simich. “We look forward to working with the team at Whinnen to progress the exploration and evaluation of the exciting portfolio of copper and gold projects in northern Chile.”

For further information contact: Sandfire Resources NL Read Corporate Karl Simich – Managing Director/CEO Mobile: +61 419 929 046 (Nicholas Read) John Evans – Executive Technical Director Mobile: +61 421 619 084 (Paul Armstrong) Office: +61 8 6430 3800

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