SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

Aug 5, 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 6 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.

• Open Pit Stages 1 and 2 mining is progressing on schedule with a total of 9.5 million bank cubic metres (bcm) of material mined to date.

• Underground mine development is progressing on schedule with the Evans Decline currently advanced to 1,560 metres from the portal and 250m below surface. A total of 5,500 metres of development has been completed to date.

• +40,000t of massive sulphide ore at a grade of 5% Cu has been mined from the underground mine and is stockpiled on the ROM pad ready for processing.

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

• Commissioning has begun on selected areas of the Concentrator.

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Conveyor 2 to Coarse Ore Bin
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ASX / Media Release

6 August 2012

• 7.2M bcm of material mined from Open Pit Stage 1

2.3M bcm of material mined from Open Pit Stage 2

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ASX / Media Release

6 August 2012

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First primary stopes – Conductor 1 – producing from Q4 2012
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ASX / Media Release

6 August 2012

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Process Plant construction
Cyclones
Flash
flotation
cells
SAG Mill
SAG mill feed conveyor
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ASX / Media Release

6 August 2012

Concentrator - structural and mechanical installation complete

SAG mill feed conveyor and scats recycle conveyors installed

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ASX / Media Release

6 August 2012

Progress at the Mill Building

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Ball Mill feed end
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SAG Mill lines partly installed

Reliner Machine set up for SAG Mill lining

Ball Mill drive train installation complete

Mill area - pre-commissioning started

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ASX / Media Release

6 August 2012

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Paste Plant: Civils complete
– tank and equipment installation underway
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Concentrate shed construction

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ASX / Media Release

6 August 2012

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Concentrate Area overview
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Delivery of new half-height sea containers at Geraldton Port

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ASX / Media Release

6 August 2012

DeGrussa Mine and village aerial overview

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Concentrate shed - ????
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ASX / Media Release

6 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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