SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2012

Oct 30, 2011

Appendix 5B

Rule 5.3

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

SANDFIRE RESOURCES NL

ABN Quarter ended ("current quarter")

55 105 154 185 30 September 2011

Consolidated statement of cash flows

	Cash flows related to operating activities	Currentquarter$A'000	Year to date(3 months)$A'000
1.1	Receipts from provision of services	-	-
1.2	Payments for (a) exploration and evaluation	(11,138)	(11,138)
	(b) development	(24,282)	(24,282)
	(c) production	-	-
	(d) administration	(2,438)	(2,438)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature received	555	555
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Other - Movement in Working Capital	-	-
	Net Operating Cash Flows	(37,303)	(37,303)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects	-	-
	(b) equity investments	(1,855)	(1,855)
	(c) other fixed assets	(39,498)	(39,498)
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 (payments for security deposits/bonds)	(1,192)	(1,192)
	Net investing cash flows	(42,545)	(42,545)
1.13	Total operating and investing cash flows (carried
	forward)	(79,848)	(79,848)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(79,848)	(79,848)
1.141.151.161.171.181.191.20	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowingsDividends paidShare issue expensesOther	987-30,000(82)-(71)-	987-30,000(82)-(71)-
	Net financing cash flows	30,834	30,834
	Net (decrease) increase in cash held	(49,014)	(49,014)
1.211.22	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.21	74,041-	74,041-
1.23	Cash at end of quarter/year	25,027	25,027

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 $A'000
• 1.24 Aggregate amount of payments to the parties included in item 1 1,302
• 1.25 Aggregate amount of loans to the parties included in item 1.10 -
• 1.26 Explanation necessary for an understanding of the transactions Payment of director and consulting fees to directors and director related entities.

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 None.
• 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 None.

+ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	380,000	30,000
3.2	Credit standby arrangements	-	-

Note (i) The Company also has access to a $10 million environmental bonding facility (non cashbacked).

(ii) Funds under the $380 million loan facility and the $10 million environmental bonding facility will be available for drawdown following satisfaction of conditions precedent.

Estimated cash outflows for next quarter

	Total	70,934
4.4	Administration	1,906
4.3	Production	-
4.2	Development (including payments for purchases of other fixed assets)	80,679
4.1	Exploration and evaluation	4,494
		$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cashflows) to the related items in the accounts is asfollows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	21,576	14,397
5.2	Deposits at call	-	-
5.3	Bank overdraft	-	-
5.4	Term Deposits	3,451	59,644
	Total: cash at end of quarter (item 1.23)	25,027	74,041

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference	(note (2))	beginning	end of
				of quarter	quarter
6.1	Interests in mining		NT Exploration License
	tenements	EL26555	Reduction in area (blocks)	100%	100%
	relinquished,	EL26587	Reduction in area (blocks)	100%	100%
	reduced or lapsed	EL28508	Granted	100%	100%
		EL28534	Granted	100%	100%
		EL28540	Granted	100%	100%
		EL28541	Granted	100%	100%
		EL29022	Application	-	100%
6.2	Interests in mining		WA Miscellaneous License
	tenements acquired	L52/133	Granted	100%	100%
	or increased	L52/137	Application	-	100%
		L52/138	Application	-	100%

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per	Amount paid up per
7.1	Preference			security (see note 3)	security (see note 3)
	+securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreasesthrough returns of
	capital, buy-backs,
	redemptions
7.3	+Ordinary securities	150,879,969	150,879,969		Fully paid
7.4	Changes during
	quarter(a) Increases	350,000	350,000	$0.40	Fully paid
	through issues	600,000	600,000	$0.50	Fully paid
		185,000	185,000	$1.40	Fully paid
		360,000	360,000	$0.80	Fully paid
	(b) Decreases
	through contributingshares paid up in full
7.5	+Convertible debt
	securities(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreasesthrough securities
	matured, converted
7.7	Options (description			Exercise price	Expiry date
	and conversion	411,000		$1.40	6 Jul 2012
	factor)	200,000		$3.00	30 Sep 2012
		1,010,000980,000		$0.60$0.80	12 Jul 201312 Jul 2013
		1,600,000		$1.00	12 Jul 2013
		990,000		$4.66; $5.44	27 Nov 2014
				and $6.22
		1,000,000		$3.80; $4.40	15 Jun 2015
		3,250,000		and $5.00$9.00; $10.30	28 Feb 2016
				and $11.70
7.8	Issued during quarter
7.9	Exercised during	350,000		$0.40	8 Aug 2011
	quarter	600,000		$0.50	30 Sep 2011
		185,000		$1.40	6 Jul 2012
7.10	Expired during	360,000		$0.80	12 Jul 2013
	quarter
7.11	Debentures(totals only)
7.12	Unsecured notes
	(totals only)

+ See chapter 19 for defined terms.

Compliance statement

• 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 (see note 4).
• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:	Matthew Fitzgerald	Date: 31 October 2011
	(Company Secretary)

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.
• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements 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.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: 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.

+ See chapter 19 for defined terms.