SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

Oct 1, 2012

Sandfire Resources NL ABN 55 105 154 185 Level 1, 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

2 October 2012

FIRST COPPER CONCENTRATE PRODUCED AT DEGRUSSA

ORE COMMISSIONING UNDERWAY: FIRST STOPE ORE TO BE FIRED WITHIN WEEKS

Sandfire Resources NL (ASX : SFR ; “Sandfire”) is pleased to advise that it has successfully produced first copper concentrate from its 100%-owned DeGrussa Copper-Gold Project in Western Australia, with ore commissioning of the 1.5Mtpa processing facility underway following the introduction of ore to the SAG mill.

The engineering, procurement and construction (EPC) contractor, Abesque, has completed construction of the DeGrussa Concentrator and are now actioning punch list items and supporting ore commissioning. The regrind mill is undergoing final wet commissioning before being introduced into the pre commissioning process. The handover of the concentrator to Sandfire and production ramp-up will occur on the finalisation of punch list items.

Underground mining is proceeding on schedule with the first stoping horizon in the Conductor 1 orebody fully developed, and development of the second horizon well advanced. The first stoping ore is scheduled to be fired during October 2012, with the underground mine expected to reach full production rates in H1 2013.

A total of 78,000 tonnes of massive sulphide ore with an average grade of 4.3% Cu has been mined from the underground and open pit mines and is stockpiled on the ROM pad ready for processing.

Sandfire’s Managing Director, Mr Karl Simich, said the project development team at DeGrussa had achieved another important milestone with the introduction of first ore into the SAG mill and production of the first copper concentrate.

“This signals the start of our ramp-up towards full production, which we expect to achieve during the first half of 2013,” Mr Simich said. “The contractor is now in the process of handing the plant over to our operations team and we are on track to ramp up copper production to our targeted annualised rate of 77,000tpa.”

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)

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ASX/Media Release

2 October 2012

Figure 1 – DeGrussa Copper Mine 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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