SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2011

Apr 20, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

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	NL Quarter ended (“current quarter”) 31 March 2011	NL Quarter ended (“current quarter”) 31 March 2011
	SANDFIRE RESOURCES	NL
	ABN 55 105 154 185 Consolidated statement of cash flows
		31 March 2011
Cash flows related to operating activities 1.1 Receipts from provision of services 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 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		Current quarter $A’000	Year to date (9 months) $A’000
		- (7,271) (10,800) - (1,518) - 1,640 - - -	- (36,749) (10,800) - (4,542) - 3,246 - - -
		(17,949)	(48,845)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 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) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (331) - - - - - (94)	- - (1,469) - - - - - (1,047)
		(425)	(2,516)
		(18,374)	(51,361)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (broughtforward)	(18,374)	(51,361)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, 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 Share issue expenses 1.20 Other Net financing cash flows	51 - - (30) - (7) -	106,264 - - (68) - (4,799) -
	14	101,397
Net (decrease) increase in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.21 1.23 Cash at end of quarter/year	(18,360) 124,230 -	50,036 55,834 -
	105,870	105,870

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

1.24 1.25 1.26	Aggregate amount of payments to the parties included in item 1 Aggregate amount of loans to the parties included in item 1.10 Explanation necessaryforanunderstanding ofthe transactions	Current quarter $A'000
		520
		-
	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.

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Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	7,487
	51,797
	-
	1,607
Total	**60,891 **

Reconciliation of cash

Reconciliation of cash	Reconciliation of cash
Reconciliation of cash at the end of the quarter (as		Current quarter	Previous quarter
shown	in the consolidated statement of cash	$A’000	$A’000
flows)	to the related items in the accounts is as
follows.
5.1	Cash on hand and at bank	19,501	13,700
5.2	Deposits at call	-	-
5.3	Bank overdraft	-	-
5.4	Term Deposits	86,369	110,530
	Total: cash at end of quarter(item 1.23)	105,870	124,230

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference		Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL28656 EL28657 EL28658 EL28659		NT Exploration License Application Application Application Application	Nil Nil Nil Nil	100% 100% 100% 100%

• See chapter 19 for defined terms.

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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 security (seenote 3)	Issue price per security (seenote 3)	Amount paid up per security (seenote 3)	Amount paid up per security (seenote 3)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through contributing shares paid up in full	148,309,969	148,309,969				Fully paid
	1,000 141,430	1,000 141,430		$1.40 $0.35		Fully paid Fully paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	425,000 1,600,000 596,000 200,000 1,010,000 1,340,000 1,600,000 990,000 1,000,000 3,250,000			Exercise price $0.40 $0.50 $1.40 $3.00 $0.60 $0.80 $1.00 $4.66; $5.44 and $6.22 $3.80; $4.40 and $5.00 $9.00; $10.30 and $11.70	Expiry date 8 Aug 2011 30 Sep 2011 6 Jul 2012 30 Sep 2012 12 Jul 2013 12 Jul 2013 12 Jul 2013 27 Nov 2014 15 Jun 2015 28 Feb 2016
	1,000 141,430			$1.40 $0.35	6 Jul 2012 7 Feb 2011
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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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: 21 April 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.

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