SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

May 28, 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

29 May 2012

DEGRUSSA PROJECT PICTORIAL UPDATE

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

• The first shipment of Direct Shipping Ore (DSO) grading approximately 30% Cu has departed from Geraldton for delivery to customers in China.

• Open pit Stage 1 mining is progressing on schedule with a total of 6.5 million bank cubic metres (bcm) of material mined to date. A further 1.2 million bcm has been mined from Stage 2.

• Underground mine development is progressing on schedule with the Evans Decline currently advanced to 1,350 metres from the portal and 220m below surface. A total of 4,000 metres of development has been completed to date.

• 20,000t of massive sulphide ore has been mined from the underground mine to the ROM pad ready for processing.

• Construction of the Process Plant continues on schedule for completion in 3QCY2012.

• Construction of the Tailing Storage Facility (TSF) is complete.

• The Power Station became operational in April 2012, supplying power to the underground mine, workshops, batch plant and exploration and village areas.

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6,600 dry tonnes of DeGrussa DSO
grading approx 30% Cu shipped from Geraldton
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ASX / Media Release

29 May 2012

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Tailing Dam
DSO Stockpile
Open Pit – Stage 2
20,000t sulphide
Plant Area ore stockpile
Open Pit – Stage 1
ROM Pad Decline Entrance
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6.5M bcm of material mined from DeGrussa open pit Stage 1

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ASX / Media Release

29 May 2012

Copper oxide ore being mined from Stage 1

1.2 bcm of material mined from DeGrussa open pit Stage 2

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ASX / Media Release

29 May 2012

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Massive sulphide ore in the Conductor 1 ore body
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DeGrussa underground mine 220m below surface
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ASX / Media Release

29 May 2012

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Raise drill head
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Massive sulphide ore being stockpiled at the process plant

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ASX / Media Release

29 May 2012

Process plant construction

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Crusher installation nearing completion
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Crusher control room in position
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ASX / Media Release

29 May 2012

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CV2 in position
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Mill area
Directors’ site visit with Sandfire staff
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ASX / Media Release

29 May 2012

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Regrind mill filter building and thickeners
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Flotation and reagent areas
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DeGrussa 600 room accommodation village and aerodrome

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ASX / Media Release

29 May 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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