SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2014

Nov 19, 2014

Sandfire Resources NL ABN 55 105 154 185 Level 1, 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

==> picture [275 x 55] intentionally omitted <==

ASX/Media Release 20 November 2014

RESPONSE TO MARKET SPECULATION CONDUCTOR 4/5 DECLINE UPDATE

Sandfire Resources NL (ASX: SFR – “Sandfire” or “the Company”) has become aware of market speculation in relation to increased water flows into the Conductor 4/5 Decline at its DeGrussa Copper Mine.

These inflows have occurred at the location of underground drill holes completed as part of a long-term water management program for the underground mine. Dewatering capacity has been increased to match the level of water inflows. Activities have also commenced to seal the drill holes and reduce water inflow to enable development activities to recommence.

Development of the Conductor 4/5 Decline has been temporarily suspended and is expected to recommence around the end of the December 2014 Quarter.

The Conductor 4/5 Decline is being developed to provide access to the Conductor 4 and Conductor 5 deposits, which are not scheduled to contribute to mine production until FY2016 onwards.

All underground ore feed is currently sourced from the DeGrussa and Conductor 1 deposits and the DeGrussa Concentator is continuing to process run-of-mine (ROM) stockpiles. Mining activities in the Conductor 1 and DeGrussa orebodies have been temporarily put on hold, until early December 2014, as a precautionary measure.

Sandfire does not expect to change previously announced production guidance for FY2015.

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)