SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2012

Mar 19, 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

20 March 2012

DEGRUSSA PROJECT PICTORIAL UPDATE

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

• First underground ore was mined on 29 February 2012.

• Underground mine development is progressing on schedule with the “Evans Decline” currently advanced to 1,300 metres from the portal.

• Open pit mining is progressing on schedule with a total of 6.2 million bank cubic metres (bcm) of material mined to date from the open pit, which is over 70 per cent complete. The open pit is currently at a depth of 63 metres below surface with over 1.4 million tonnes of copper oxide mineralisation at 1.05% Cu mined and stockpiled.

• Completion of major infrastructure is progressing well with the aerodrome now in use and construction of the tailings storage facility (TSF) in progress.

• Construction of the 1.5Mtpa DeGrussa concentrator has progressed with 70% of the concrete now poured and large quantities of equipment arriving each day. All the major long lead equipment items have arrived on site, with a small number of minor items in transit.

First underground ore – 29 February 2012

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ASX / Media Release 20 March 2012
Evans decline advanced 1,300 metres
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ASX / Media Release

20 March 2012

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DeGrussa open pit at a depth of 63 metres below surface
6.2 bcm of material mined to date
Tailings storage facility
Open Pit
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ASX / Media Release

20 March 2012

Process plant construction

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Mill motors and gearboxes in position
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Ball mill
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SAG mill trunions in positon
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ASX / Media Release

20 March 2012

Final strake on crushed ore bin

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Flotation cell foundation formwork
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ASX / Media Release

20 March 2012

Crusher structure

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Plant Area
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ASX / Media Release

20 March 2012

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Flotation building's footings
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Plant Area
U/G portal entrance ROM pad
Water Storage dams
Open Pit
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ASX / Media Release

20 March 2012

DeGrussa aerodrome complete

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First aircraft landing
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ASX / Media Release

20 March 2012

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DeGrussa Accommodaton Village
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Village landscaping and sporting facilities
under construction
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ASX / Media Release

20 March 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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