SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

Apr 25, 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

26 April 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 load of Direct Shipping Ore (DSO) was trucked from the DeGrussa Copper Mine to Geraldton on 10 April 2012 where it is being stockpiled for shipment in early May. The first 7,000 tonne shipment of DSO at 27% Cu will be sent to customers in China.

• Open pit Stage 1 mining is progressing on schedule with a total of 6.3 million bank cubic metres (bcm) of material mined to date. A further 0.8M bcm has been mined from Stage 2.

• Underground mine development is progressing on schedule with the Evans Decline currently advanced to 1,300 metres from the portal. Including ventilation and other access drives, a total of 3,300 metres of development has been completed.

• Construction of the Process Plant continues on schedule with all major equipment on site.

• The Tails Storage Facility (TSF) is nearing completion.

• The Civil Aviation Safety Authority has approved the DeGrussa Aerodrome for landing of aircraft up to 100 seat capacity.

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First shipment of DSO material – cartage to Geraldton
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ASX / Media Release

26 April 2012

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Crushed stockpiles of DSO grading an average 27% Cu
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Crushed DSO grading an average 27% Cu

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ASX / Media Release

26 April 2012

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Underground: Massive Sulphide Mineralisation at C1 footwall contact
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ASX / Media Release

26 April 2012

• 6.3M bcm of material mined to date from DeGrussa open pit Stage 1

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Open Pit – Stage 1 Open Pit – Stage 2
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0.8M bcm of material mined to date from DeGrussa open pit Stage 2

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ASX / Media Release

26 April 2012

Process plant construction

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Jaw Crusher installation
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Reagents Area
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ASX / Media Release

26 April 2012

7.3m dia SAG mill and mill area structural steelwork

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4.7m dia x 7.5m
long Ball Mill
3.4MW SAG
Mill motor
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ASX / Media Release

26 April 2012

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Flotation foundations and Lime Silo support structure
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Flotation and thickening areas
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ASX / Media Release

26 April 2012

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Regrind Mill and Motor
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Weighbridge foundations in concentrate shed

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ASX / Media Release

26 April 2012

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Weighbridge decks poured
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Tailings Storage Facility - lining nearing completion

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ASX / Media Release

26 April 2012

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DeGrussa Village - recreational facilities
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ASX / Media Release

26 April 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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