SANDFIRE RESOURCES LIMITED — Earnings Release 2013

Aug 27, 2013

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

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ASX/Media Release 28 August 2013

SANDFIRE ANNOUNCES MAIDEN ANNUAL PROFIT 12 months ended 30 June 2013

• Sales revenue of $507.3M: metal sales of 62,154t contained copper and 41,725oz of gold

• Strong operating cash flow from operating activities of $250.2M

• DeGrussa Mine segment earnings before net finance and income tax of $194.5M

• Profit before net finance and income tax of $142.1M

• Maiden annual net profit after income tax of $88.0M – no tax payable for the year

• Earnings per share of 57.48cps (basic) and 57.38cps (diluted)

• Strong production for FY14 year-to-date, with record mill throughput in July

• Production guidance of 65-75kt Cu, 35-45koz Au confirmed for FY2014

Sandfire Resources NL (ASX : SFR : “Sandfire”) is pleased to announce a maiden annual net profit after income tax of $88.0M for the year ended 30 June 2013. The net profit after income tax equates to earnings per share of 57.48 cents (basic) and 57.38 cents (diluted).

The DeGrussa Copper Mine in Western Australia achieved a strong financial performance in its commissioning and ramp-up year. Sales revenue of $507.3M , from metal sales totalling 62,154 tonnes of contained copper and 41,725 ounces of gold, drove strong cash flow from operating activities of $250.2 million. Profit before net finance and income tax was $142.1M .

The DeGrussa Mine segment generated earnings before net finance and income tax of $194.5M after depreciation and amortisation charges of $123.4M .

Sales revenue consisted of high-grade DSO (31,921 tonnes of contained Cu) produced from the open pit and plant concentrate production (30,233 tonnes of contained Cu) during ramp up of the underground mine and Concentrator from October 2012. Total contained metal production for the 12 months to 30 June 2013 was 64,017 tonnes of copper and 42,697 ounces of gold.

The overall result included total charges for depreciation and amortisation (D&A) of $125.8 million, including $69.6 million of non-recurring charges relating to amortisation of development and production phase stripping for Stage 1 and 2 of the open pit. $56.2M million related to underground mine development, Concentrator, other mine infrastructure and assets.

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ASX/Media Release

28 August 2013

As previously outlined in the March 2013 Quarterly Report, the second half result included a reduction in DSO production and sales based on final results.

The financial performance of the operation during the second half was also impacted by the previously announced impact of blending transitional open pit sulphide material on overall Concentrator recovery.

As at 30 June 2013, Sandfire had $77.1 million in cash, having made two finance facility repayments during the year totalling $95 million. The next scheduled payment of $45M is due at the end of September 2013. The balance of the $380 million DeGrussa finance facility was reduced to $285 million as at 30 June 2013.

This information should be read in conjunction with Sandfire’s audited consolidated 2013 Financial Report and accompanying notes.

Operations Update

Underground mine development has been accelerated to provide access to the deeper Conductor 4 and 5 deposits and is continuing ahead of schedule with the new Conductor 4/5 and Conductor 1 Declines advancing from the junction off the Evans Decline.

This accelerated development will provide significant production flexibility, securing the long-term future of the DeGrussa Operation, whilst also providing underground drilling positions to target existing lenses as well as extensions and repeats of the known deposits.

Stoping operations in the DeGrussa and Conductor 1 deposits are continuing, with five stopes in various stages of production. The paste plant is ramping up to full production levels.

The ramp-up of the DeGrussa Concentrator has continued with pleasing progress achieved for the September 2013 Quarter so far. Record mill throughput was achieved for the month of July with over 131,700 dry tonnes of ore milled at a grade of over 5% Cu, resulting in production of 5,674 tonnes of contained copper. Copper recovery of 83% was above forecast, with recoveries impacted by blending of the remaining stockpiled open pit sulphide ore. The Company expects to achieve production for the September Quarter in the range of 14-16,000 tonnes of copper.

Sandfire reiterates its production guidance for FY2014 of 65-75,000 tonnes of copper and 35-45,000oz of gold at a forecast C1 cash operating cost in the range of US$1.05-1.15/lb, weighted towards the December to June Quarters due to processing of the remaining transitional open pit material in the September 2013 Quarter:

As outlined previously, FY2014 copper and gold production is expected to come solely from the concentrator, with the DSO and oxide gold production and sales programs now complete.

Refer to Sandfire’s June 2013 Financial Results Presentation (released today) for current guidance on operating parameters, production guidance, unit costs and capital expenditure.

Management Comment

Sandfire’s Managing Director, Mr Karl Simich, said the delivery of a strong maiden annual profit result capped a year that had seen a number of important achievements, including the successful transition from open pit to underground operations, the ramp-up of the DeGrussa Concentrator and a significant investment in underground capital development to secure the long-term future of the mine.

“This is a very pleasing result, with the DeGrussa operation generating earnings before net finance, taxation, depreciation and amortisation of over $317 million. That is a tremendous result in anyone’s language given this was a ramp-up year where we completed a highly profitable open pit DSO program, plant construction and ramp-up, with a substantial investment in underground mine development.

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ASX/Media Release

28 August 2013

“The result was skewed towards the first half, which saw the majority of the benefits of the low cost DSO production. Higher depreciation and amortisation charges relating to the completion of Stage II of the open pit operations, adjustments on final DSO sales, a lower and more volatile copper price and the processing of transitional open pit sulphide material were all reflected in the second half.

“With record production in July and final blending of open pit ore approaching, we are looking forward to a very strong year ahead for DeGrussa and Sandfire,” Mr Simich said.

ENDS

For further information contact: Sandfire Resources NL Read Corporate Karl Simich – Managing Director/CEO Mobile: +61 419 929 046 (Nicholas Read) Office: +61 8 6430 3800 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.

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