SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2017

Jul 30, 2017

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ASX Announcement

31 July 2017

SANDFIRE INCREASES OWNERSHIP OF BLACK BUTTE COPPER PROJECT, USA

Acquires additional 16.9% stake in Tintina Resources, lifting its shareholding to 78.1%

Sandfire Resources NL (ASX: SFR; “Sandfire”) is pleased to advise that it has increased its ownership of the high-grade Black Butte Copper Project in central Montana, USA. The acquisition of the 16.9% stake in North American-listed Tintina Resources Inc (TSX-V: TAU; “Tintina”) held by fellow shareholder Electrum Global Holdings L.P. takes its holding in Tintina from 61.2% to 78.1%.

The acquisition of this strategic stake from Tintina’s second-largest shareholder further consolidates Sandfire’s ownership position of one of the world’s premier high-grade undeveloped copper projects.

The Black Butte Copper Project is a key part of Sandfire’s longer term strategic growth pipeline, with the latest acquisition continuing its strong corporate, financial and strategic support of Tintina since its original acquisition of a 36% stake by way of a share placement in 2014.

The purchase price for Electrum’s holding, comprising 54,632,580, shares, is C$0.13 per share for a total purchase price of C$7.1 million (A$7.1 million), representing a 15% premium to the 5-day volume weighted average price (VWAP) of Tintina shares on the TSX-V. This acquisition takes Sandfire’s total investment in Tintina to A$31 million.

Sandfire’s Managing Director, Mr Karl Simich, said the acquisition of Electrum’s holding reflected the Company’s long-term commitment to support and drive the responsible development of the Black Butte Copper Project as a world-class underground copper mine.

“The acquisition cost is equivalent to around US$3c/lb of contained copper in resource,” he said.

“By any measure, this means we have acquired close to 80 per cent of substantial high-grade copper resource comprising almost 600,000 tonnes of copper at a very attractive cost.

“Given the positive outlook for copper as the market continues to tighten, we see this as a great opportunity to consolidate our growth pipeline with an asset which has the potential to deliver high grade, low-cost production for many years into the future.

“At the same time, the development of the Black Butte Project represents an opportunity to bring significant jobs and economic opportunities to the State of Montana and to showcase a world-class development plan which is consistent with our own environmental credentials.

“We look forward to working closely with CEO John Shanahan and his team at Tintina as the project continues to move forward towards development, coming on stream during what is shaping up as a very exciting time in the global copper market,” he said.

About the Black Butte Project

Located on private land near Helena in the State of Montana, the Black Butte Copper Project comprises NI 43-101 Measured and Indicated Resources totalling 15.7Mt grading 3.4% Cu, 0.1% Co and 14g/t Ag for 533,600t of contained copper and Inferred Resources totalling 2.3Mt grading 2.8% Cu, 0.09% Co and 14g/t Ag for 63,500t of contained copper.

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A Preliminary Economic Assessment (PEA) completed in 2013 confirmed that the deposit has the potential to underpin a robust underground mining operation with forecast life-of-mine production of ~30,000tpa of copper-in-concentrate over a mine life of ~11 years based on total mill throughput of 11.8 million tonnes at an average head grade of 3.1% Cu.

The Black Butte Project is continuing through the permitting process, with Tintina having responded to a third round of comments from the Montana Department of Environmental Quality (MT DEQ) with regards to its submission in the Complete and Compliant portion of the Black Butte Copper Mine Operating Permit (“MOP”) process.

Once the project has achieved Complete and Compliant status, a draft Mine Operating Permit will be transmitted and the process moves forward to the next step; an Environmental Impact Study (EIS).

The EIS will be a comprehensive third-party review of the MOP and will result in a Final Record of Decision. In addition, Tintina will be required to attain other permits including Air Quality, Public Water Supply, and a Montana Pollutant Discharge Elimination System (MPDES). A Clean Water Act 404 permit is currently in process.

Further details can be found at the Tintina website, www.tintinaresources.com.

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)

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.

SANDFIRE RESOURCES NL

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