SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

Aug 29, 2012

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 30 August 2012

DEGRUSSA PROJECT PICTORIAL UPDATE

Sandfire Resources NL is pleased to provide a pictorial update on the ongoing progress of construction, mining and production at DeGrussa.

• Mining of open pit Stages 1 and 2 is progressing on schedule with a total of 10.2 million bank cubic metres (bcm) of material mined to date, including:

• 60,000 tonnes of Direct Shipping Ore (DSO) chalcocite at a grade of 30% Cu;

• 2,000,000 tonnes of oxide copper material at a grade of 1.1% Cu.

• Underground mine development is progressing on schedule with the Evans Decline currently advanced to 1,720 metres from the portal and 270m below surface. A total of 6,200 metres of development has been completed to date and:

• 60,000t of massive sulphide ore at a grade of 4.2% Cu has been mined from the underground mine and is stockpiled on the ROM pad ready for processing.

• Construction of the 1.5M tonne per annum Concentrator continues on schedule with first ore to be processed in September 2012. Commissioning of selected areas of the Concentrator continues.

62 tonne chalcocite boulder from open pit, averaging 50% Cu (XRF), 7 August 2012 Sandfire personnel L-R: Craig Dawson (GM DeGrussa), John Evans (Technical Director), Martin Reed (Project Manager), Karl Simich (Managing Director), Glen Church (Open Pit Engineer)

ASX / Media Release

30 August 2012

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10.2Mbcm of material mined from DeGrussa Open Pit
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Open Pit, Stage 1
7.4Mbcm
Open Pit, Stage 2
2.8Mbcm
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Open Pit Stage 2
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ASX / Media Release

30 August 2012

Crushing of direct shipping ore

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New half height sea containers being loaded with Direct Shipping Ore at DeGrussa

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Paste Plant – tank and equipment installation nearing completion

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Process Plant construction

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Crusher - commissioned
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Coarse ore bin and crusher (background)

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ASX / Media Release

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Flotation Circuit and Process Water Tank – commissioning under way

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SAG mill feed conveyor and scats recycle conveyors
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ASX / Media Release

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Grinding and Flotation areas – view from ROM pad
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Concentrate shed – nearing completion

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Regrind mill, cyclones and filter building
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Completing installation of 2MW Generators

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ASX / Media Release

30 August 2012

DeGrussa Mine (open pit) mineral types

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Malachite encrusted with calcite
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Calcite and crystalline cuprite on goethite
and native copper host
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Chrysocolla and malachite on goethite host
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Calcite encrusted chrysocolla

Calcite encrusted chrysocolla growing into cavity

Crystalline cuprite clusters on calcite encrusted goethitic host

Crustiform calcite, cuprite and malachite on goethitic host

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ASX / Media Release

30 August 2012

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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– - 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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