SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2007

Jan 23, 2007

MINING EXPLORATION ENTITY QUARTERLY REPORT

Name of entity:

Sandfire Resources NL

ABN:			Quarter ended ("current quarter")
	55 105 154 185		31/12/2006
	Consolidated statement of cash flows
	Cash flows related to operating activities	Current quarter \$AUD'000	Year to date $(6$ months) \$AUD'000
1.1	Receipts from product sales and related debtors
1.2	Payments for: (a) exploration and evaluation (b) development (c) production	(1, 272)	(1,778)
	(d) administration Dividends received	(81)	(179)
1.3 1.4	Interest and other items of a similar nature received	22	96.
1.5 1.6 1.7	Interest and other costs of finance paid GST Refund/GST Paid Other (provide details if material)	(49)	(86)
	Net Operating Cash Flows	(1,380)	(1, 947)
1.8	Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets	(18)	(45)
1.9	Proceeds from sale of: (a) prospects (b) equity investments
1.10 1.11 1.12	(c) other fixed assets Loans to other entities Loans repaid by other entities Other Capital Raising Costs		(291)
	Net investing cash flows	(18)	(336)
1.13	Total operating and investing cash flows (carried forward)	(1, 398)	(2, 283)

1.13	Total operating and investing cash flows (brought forward)	(1,398)	(2, 283)
1.14	Cash flows related to financing activities Proceeds from issues of shares, options,	329	4,802
	etc.
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	329	4,802
	Net increase (decrease) in cash held	(1,069)	2,519
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	8,196	4,608
1.22	Cash at end of quarter	7,127	7,127

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 \$AUD'000
1.23	Aggregate amount of payments to the parties included in item 1.2	(180).
1.24	Aggregate amount of loans to the parties included in item 1.10	Nil

• 1.25 Explanation necessary for an understanding of the transactions
• $N/A$

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
• $N/A$
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

Financing facilities available

		Amount available	Amount used
		\$AUD'000	\$AUD'000
3.1	Loan facilities	Νi	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

	Total	(511)
-4.2	Development	$\mathbf{m}$
4.1	Exploration and evaluation	(511)
		\$AUD'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$AUD'000	Previous quarter \$AUD'000
5.1	Cash on hand and at bank	97	196
5.2	Deposits at call	7,030	8,000
5.3	Bank overdraft
5.4	Other (provide details) – Short Term Deposit
	Total: cash at end of quarter (item 1.22)	7,127	8,196

Changes in interests in mining tenements

		Tenement reference	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed		N/A
6.2	Interests in mining tenements acquired or increased		N/A

Issued and quoted securities at end of current quarter

		Total number	Number quoted	Issue price per security (cents)	Amount paid up per security (cents)
7.1	Preference securities	N/A
7.2	Issued during quarter	Nil
7.3	Ordinary securities	63,871,626 11,060,652	63,871,626 11,060,652		Fully paid Partly paid to 0.0001 cents
7.4	Issued during quarter (a) Increases through conversions (b) Increases	1,415,000 208,000 200,000	1,415,000 208,000 200,000	\$0.15 \$0.25 \$0.20	Fully paid Fully paid Fully paid
	through new issues	Nil	Nil
7.5	Convertible debt securities	N/A
7.6	Issued during quarter	Nil
7.7	Options			Exercise price	Expiry date
	Non-employee Options	725,000 2,392,000 6,900,000 3,000,000	Not Quoted Not Quoted Not Quoted Not Quoted	\$0.20 \$0.25 \$0.60 \$0.50	30.9.2008 31.12.2008 30.6.2007 30.9.2011
7.8	Issued during quarter	3,000,000	Not Quoted	\$0.50	30.9.2011
7.9	Exercised during quarter	200,000 208,000	Not Quoted Not Quoted	\$0.20 \$0.25	30.9.2008 31.12.2008
7.10	Expired during quarter	Nil
7.11	Debentures	N/A
7.12	Unsecured notes	N/A

Compliance statement

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

Greg Steemson Managing Director Date: 24 January 2007