SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2004

Apr 29, 2004

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

SANDFIRE RESOURCES NL

ACN or ARBN

55 105 154 185

Quarter ended ("current quarter")

31 March 2004

Consolidated statement of cash flows

			Current quarter	Year to date
Cash flows related to operating activities			$Α	(9 months)
				$A
1.1	Receipts from product sales and related debtors
1.2	Payments for	(a) exploration and evaluation	(453, 480)	(453, 480)
		(b) development
		(c) production
		(d) administration	(18, 820)	(18, 820)
1.3	Dividends received
1.4		Interest and other items of a similar nature received	186	186
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (Working Capital)		(14, 893)	(14, 893)
	Net Operating Cash Flows		(487,007)	(487,007)
		Cash flows related to investing activities
1.8	Payment for purchases of:	(a)prospects
		(b) equity investments
		(c) other fixed assets	(25, 393)	(25, 393)
1.9	Proceeds from sale of:	(a)prospects
		(b) equity investments
		(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows		(25, 393)	(25, 393)
1.13		Total operating and investing cash flows (carried
	forward)		(512, 400)	(512,400)

$\div$ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows (broughtforward)	(512, 400)	(512,400)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	4,539,275	4,539,275
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
	Net financing cash flows	4,539,275	4,539,275
	Net increase (decrease) in cash held	4,026,875	4,026,875
1.20	Cash at beginning of quarter/year to date
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	4,026,875	4,026,875

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter
1.23	Aggregate amount of payments to the parties included in item 1.2	$\blacksquare$
1.24	Aggregate amount of loans to the parties included in item 1.10	$\blacksquare$

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$\div$ See chapter 19 for defined terms.

$\overline{\phantom{0}}$

Financing facilities availableAdd notes as necessary for an understanding of the position.

		Amount available$Α	Amount used$A
3.1	Loan facilities
3.2	Credit standby arrangements		$\sim$

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	500,000
4.2	Development	$\overline{\phantom{a}}$
	Total	500,000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown inthe consolidated statement of cash flows) to the related itemsin the accounts is as follows.		Current quarter$A	Previous quarterSA.
Cash on hand and at bank5.1		126,875
5.2	Deposits at call	600,000
5.3	Bank overdraft
5.4	Other - Bank Bill	3,300,000
	Total: cash at end of quarter (item 1.22)	4,026,875

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenementsrelinquished, reducedor lapsed
6.2	Interests in miningtenements acquired orincreased

$\div$ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices anddates.

		Total number	Number quoted	Issue price per security(see note 3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference*securities(description)
7.2	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returns ofcapital, buy-backs,redemptions
7.3	*Ordinary securities	39,000,0004,000,000	25,250,0000	0.0001c	$\tilde{\phantom{a}}$15c
7.4	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returns ofcapital, buy-backs
7.5	*Convertible debtsecurities(description)
7.6	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough securitiesmatured, converted
7.7	Options (descriptionand conversionfactor)	3,000,000	0	Exercise price25c	Expiry date31/12/08
7.8	Issued during quarter
7.9	Exercised duringquarter
7.10	Expired duringquarter
7.11	Debentures(totals only)
7.12	Unsecured notes(totals only)

$\div$ See chapter 19 for defined terms.

Compliance statement

• This statement has been prepared under accounting policies which comply with 1 accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Date: 30 April 2004

Print name: PETER THOMAS CHAIRMAN

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements $\overline{2}$ acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: 4 Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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+ See chapter 19 for defined terms.