SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2010

Jan 26, 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 December 2010	NL Quarter ended (“current quarter”) 31 December 2010
	SANDFIRE RESOURCES	NL
	ABN 55 105 154 185 Consolidated statement of cash flows
		31 December 2010
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 (3 months) $A’000
		- (16,043) - - (1,402) - 1,235 - - -	- (29,423) - - (3,024) - 1,604 - - -
		(16,210)	(30,843)
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)		- (866) - - - - - - (347)	- (1,191) - - - - - - (834)
		(1,213)	(2,025)
		(17,423)	(32,868)

• See chapter 19 for defined terms.

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1.13 Total operating and investing cash flows (broughtforward)	(17,423)	(32,868)
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	105,168 - - (19) - (4,252) -	106,213 - - (38) - (4,792) -
	100,897	101,383
Net 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	83,474 40,875 -	68,515 55,834 -
	124,349	124,349

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
		713
		-
	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 whichthereporting entityhas an interest
	None.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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
	9,107
	20,686
	-
	1,516
Total	31,309

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	13,700	2,536
5.2	Deposits at call	-	-
5.3	Bank overdraft	-	-
5.4	Term Deposits	110,649	38,339
	Total: cash at end of quarter(item 1.23)	124,349	40,875

• See chapter 19 for defined terms.

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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
	SEL26831 SEL26833 SEL26835 SEL26836 SEL26837 SEL26938 SEL26939		NT Exploration License Reduction in area (blocks) Reduction in area (blocks) Reduction in area (blocks) Reduction in area (blocks) Reduction in area (blocks) Reduction in area (blocks) Reduction inarea (blocks)	100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100%
	EL28508 EL28534 EL28540 EL28541 L52/125 L52/126 L52/127 M52/1046 L52/122 L52/120		NT Exploration License Application Application Application Application WA Miscellaneous Licence Application Application Application WA Mining Lease Granted WA Miscellaneous Licence Granted Granted	- - - - - - - 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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)	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

• See chapter 19 for defined terms.

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7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through contributing shares paid upin full	148,167,539	148,167,539				Fully paid
	4,827,027 10,525,752 50,000 210,000 380,000 360,000 100,000 60,000 60,000 60,000	4,827,027 10,525,752 50,000 210,000 380,000 360,000 100,000 60,000 60,000 60,000		$7.00 $6.60 $0.40 $1.40 $0.60 $0.80 $1.00 $4.66 $5.44 $6.22		Fully paid Fully paid Fully paid Fully paid Fully paid Fully paid Fully paid Fully paid 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	141,430 425,000 1,600,000 597,000 200,000 1,010,000 1,340,000 1,600,000 990,000 1,000,000			Exercise price $0.35 $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	Expiry date 7 Feb 2011 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
	50,000 210,000 380,000 360,000 100,000 60,000 60,000 60,000			$0.40 $1.40 $0.60 $0.80 $1.00 $4.66 $5.44 $6.22	8 Aug 2011 6 Jul 2012 12 Jul 2013 12 Jul 2013 12 Jul 2013 27 Nov 2014 27 Nov 2014 27 Nov 2014
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: 27 January 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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