SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2012

Apr 4, 2012

==> picture [331 x 63] intentionally omitted <==

MARCH 2012 QUARTERLY ACTIVITIES REPORT

First Direct Shipping Ore mined from the DeGrussa open pit, 17 February 2012.

ASX Code:

SFR

HIGHLIGHTS

• Ore production underway at the DeGrussa Copper-Gold Project with the first Direct Shipping Ore (DSO) and underground ore mined during the Quarter.

Issued Capital:

Ordinary Shares 151.153M Options 9.668M

Major Shareholders:

OZ Minerals 19.8% POSCO 15.7%

Directors:

Derek La Ferla Non-Executive Chairman

Karl M. Simich Managing Director and CEO

W. John Evans Executive Technical Director

Soocheol Shin Non-Executive Director

Robert Scott Independent Non-Executive Director

Management:

Matthew Fitzgerald CFO & Company Secretary

Martin Reed Project Manager

Robert Klug Commercial Manager – Legal

• Open pit mining on schedule with 6.6Mbcm mined to date and first chalcocite DSO mined on 17 February 2012.

• 4,750t of chalcocite DSO grading about 34% Cu and 3gt Au mined to date.

• First DSO shipment scheduled to depart from Geraldton to China in late April 2012, realising first cash flow from the DeGrussa Project, three years after the discovery.

• Underground decline development advanced to 1,250m from the portal, with first ore from underground mined on 29 February 2012.

• Construction of DeGrussa mine and infrastructure proceeding on schedule, with the overall project now 76% complete.

• Construction of the 1.5Mtpa process plant well advanced. Overall schedule on track for first concentrate production in Q3 2012.

• Haulage and Port Services Contract awarded to Qube Bulk for the provision of a fully integrated haulage & port services solution for DSO and concentrate production.

• Mr Soocheol (SC) Shin, the Managing Director of POSCO Australia Pty Ltd, appointed as a Non-Executive Director.

==> picture [381 x 107] intentionally omitted <==

Sandfire Resources NL ABN 55 105 154 185

Level 2, 31 Ventnor Ave, West Perth Western Australia 6005 Phone: +61 8 6430 3800 Fax: +61 8 6430 3849 CIcc Email: info@sandfire.com.au Web: www.sandfire.com.au

==> picture [217 x 158] intentionally omitted <==

. .

1.0 OVERVIEW

The March 2012 Quarter marked the opening of another momentous chapter in Sandfire’s history, with open pit and underground ore production commencing at its flagship DeGrussa Copper-Gold Project, located 900km north of Perth in Western Australia.

The first Direct Shipping Ore (DSO) was mined from the DeGrussa open pit on 17 February and the first underground ore was mined just two weeks later, on 29 February. The achievement of these twin milestones – slightly ahead of schedule and budget – puts Sandfire firmly on track to join the ranks of Australia’s leading midtier mining companies during 2012 as production ramps up.

The first shipment of DSO is scheduled to depart from Geraldton for China in late April 2012, which will realise the first cash flow from operations almost exactly three years after the initial drill holes at DeGrussa indicated the presence of a significant greenfields discovery.

The achievement of this remarkable milestone reflects the focus, dedication and team effort of the project development and operations team at DeGrussa, and positions Sandfire for a period of substantial growth and value uplift as production progressively ramps up over the course of the next few months.

==> picture [251 x 172] intentionally omitted <==

Sandfire is undertaking concurrent development of an open pit and a longer term underground mine at DeGrussa. The open pit is on schedule, with a total of 6.6 million bcm (bank cubic metres) of material mined to date, while the Evans Decline has progressed over 1,250 metres from the portal. Total underground development passed the 2.7km mark during the March 2012 Quarter.

The DeGrussa open pit will extract an estimated 143,000 tonnes of DSO reserves grading 25.6% copper and 2.5g/t gold containing approximately 37,000 tonnes of copper. Over the life-of-mine, the DeGrussa underground operation will extract an estimated 10.72 million tonnes of material grading 5% copper and 1.7g/t gold containing approximately 541,000 tonnes of copper and 599,000oz of gold.

Excellent progress was also achieved on construction of the 1.5Mtpa DeGrussa concentrator now over 67% complete. All major long-lead equipment items have arrived on site, and are being assembled by the contractor.

Other highlights during the Quarter included the completion of the 1.9km long sealed airstrip with regular flights now landing at DeGrussa; process infrastructure and buildings; and the access road. Sandfire remains on target to achieve its key project milestones of:

• First shipment of DSO chalcocite to overseas customers – Q2 2012;

• First concentrate production – Q3 2012; and

• First underground stoping ore on the ROM stockpile – Q4 2012.

2.0 CONSTRUCTION & DEVELOPMENT

Construction and development activities continued at the DeGrussa Project during the Quarter, with the overall project now over 76 per cent complete and total spend to the end of the Quarter of $255 million, in line with budget.

==> picture [239 x 161] intentionally omitted <==

2.1 Construction Progress

Further significant progress was achieved during the Quarter towards construction of the DeGrussa Project, with the status of key items outlined below:

2

• . .

• The Haulage & Port Services contract for the DeGrussa Project was awarded to Qube Bulk, a wholly-owned subsidiary of Qube Logistics Holdings Limited (ASX: QUB). The contract, which has a total estimated value of more than $120 million over a five-year term, encompasses the provision of a fully integrated haulage and port services solution for both DSO and copper concentrate production from the DeGrussa Project. The DSO and concentrate will be trucked to port in purpose-built half-height sea containers, which will enable ship-loading using Qube’s Rotabox container rotating frame system.

• The DeGrussa Aerodrome was completed and is now being used for regular flights. Registration with CASA in 2Q12 will allow aircraft of up to 100 seats capacity to land at DeGrussa.

• Construction of the Tailings Storage Facility (TSF) is nearing completion, with contractor Watpac continuing to place geofabric and lining.

• Installation of all process infrastructure and buildings is complete.

• Construction of the sealed access road to the Great Northern Highway is complete.

• Construction of the Process Plant is well underway having advanced to more than 67% completion during the Quarter. Major equipment including three grinding mills, thickeners, flotation cells and filter are on site and being assembled. Structural steel work continues with electrical and piping installation just starting at the end of the Quarter. Plant construction is scheduled for practical completion and commissioning in Q3 of CY 2012.

• An EPC contract was awarded to GR Engineering Services (ASX:GNR) for the construction of a paste plant to service the underground operation. This plant is due for completion in Q4.

• The on site laboratory, managed by Bureau Veritas, was commissioned during the quarter.

3.0 OPERATIONS

Mining continued in the DeGrussa open pit and in the underground mine during the Quarter, with excellent progress being achieved.

==> picture [251 x 172] intentionally omitted <==

3.1 Open Pit Mining & Ore Production

First Chalcocite Direct Shipping Ore (DSO) was mined from the Open Pit on 17 February 2012. At the end of the Quarter 4,750t of chalcocite DSO grading 34% Cu and 3gt Au had been mined and crushed. In addition some 1.4 million tonnes of oxide copper material grading 1.1% Cu and 169,000 tonnes of oxide gold ore grading 2.1g/t Au has been mined and stockpiled.

A total of 6.6 million bank cubic metres (bcm) of material had been mined from the open pit to the end of the March Quarter. The planned open pit is over 75 per cent complete, and is currently at a depth of 65 metres below surface.

An agreement has been reached with Barrick (Plutonic) for the sale of some 100,000 tonnes of higher grade oxide gold ore currently stockpiled on site and forecast to be mined. Trucking of this ore to the Plutonic Gold mine for processing commenced during the Quarter.

3.2 Underground Mining

Underground mine development progressed on schedule during the Quarter, with the Evans Decline advancing to 1,250 metres from the portal by Quarter-end.

First ore from the underground mine was hauled to the surface on 28 February 2012. Total ore mined and delivered to the surface for the Quarter was 1,000 tonnes grading 3% Cu.

3

• . .

==> picture [251 x 175] intentionally omitted <==

Development in the Evans Decline was impacted at times during the Quarter by the completion of major upgrades to the primary and secondary ventilation systems, combined with the shotcreting of some areas in the decline.

The first stopes will be 50m high, between the 2425 and 2375 levels. At Quarter end, the decline was well past 2375L access that is the first extraction level for underground stoping. Substantial progress has been made in opening up the 2400 and 2425 levels as well as the permanent ventilation and other access. Total development to date in the underground mine exceeded 2,800m in the Quarter.

Underground diamond drilling commenced with Swick Mining Services in January. Drilling is focussed on grade control at the current time with a total of 7,776m drilled in the quarter. Current work has confirmed the grade and shape of the mineralisation defined in the resource.

5.0 FEASIBILITY STUDIES & METALLURGY

5.1 Copper oxide

Testing of copper oxide samples continued during the Quarter with improving results. A composite was tested using scrubbing and gravity separation before flotation using sulphidisation. The test proved very successful with overall recovery to concentrate in excess of 75%.

Following on from this success additional quantities of material have been selected from the deferred ore stockpiles on site and these were prepared in the on-site metallurgical test facility before being dispatched to AMMTEC in Perth for scrubbing, gravity and flotation testwork. Results from this work are expected in the next quarter.

The objective of the testing program is to convert oxide resources to Ore Reserves to allow inclusion of the associated revenue streams into the financial model, additional to the revenue estimates of the DFS.

5.2 Copper Sulphide

Massive sulphide metallurgical testing also continued during the Quarter, with a locked cycle test showing further exceptional results using Guar Gum (a lower cost reagent) in preference to CMC. The locked cycle results showed an improvement in concentrate grade of 1.6% copper and a recovery improvement of 1.2% copper. The design of the CMC system installed in the process plant is fit for either CMC or Guar.

4.0 PRODUCT SALE AGREEMENTS

The formal marketing campaign for concentrate commenced in March 2012 with 30 parties being asked to submit proposals by the end of the month for three years concentrate production commencing January 2013. A total of 20 offers were received. Discussions are continuing with several parties regarding the sale of the copper concentrate to be produced from the DeGrussa underground operation, with sales agreements to be concluded in Q2 2012. .

The metallurgical testing facility located within the on-site laboratory was commissioned and samples from the first round of underground diamond core drilling have been successfully tested using the bench scale flotation equipment.

Sales contracts covering 100 per cent of the open pit Direct Shipping Ore (DSO) production were secured in the December Quarter of 2011.

4

. .

==> picture [251 x 171] intentionally omitted <==

6.0 EXPLORATION

6.1 DeGrussa / Doolgunna Project

Sandfire has an annual exploration commitment of circa $20 million, predominantly for the Doolgunna Project, where exploration activity is aimed at identifying additional Volcanogenic Massive Sulphide (VMS) mineralised systems similar to DeGrussa.

RC Drilling for the quarter totalled 7,774m with the main focus of drilling being the Old Highway Gold Prospect, 22km south-west of DeGrussa. Drilling here was focussed on improving the definition of gold shoots discovered in earlier drilling. Best results from this drilling included ( see Appendix 3 for drill-hole collar locations ):

• 3m @ 22.52g/t Au from 85m (DGRC576)

• 7m @ 14.88g/t Au from 124m (DGRC577)

• 2m @ 12.80g/t Au from 130m (DGRC580)

• 27m @ 5.08g/t Au from 16m (DGRC581)

• 24m @ 2.51g/t Au from 60m (DGRC592)

• 46m @ 1.02g/t Au from 73m (DGRC595)

• 41m @ 1.45g/t Au from 36m (DGRC597)

• • 32m @ 2.65g/t Au from 72m (DGRC607)

• 29m @ 2.54g/t Au from 33m (DGRC608)

• 24m @ 1.35g/t Au from 61m (DGRC609)

• 7m @ 2.62g/t Au from 116m and 20m @ 2.39g/t Au from 133m (DGRC610)

• 4m @ 4.36g/t Au from 97m (DGRC613)

Drilling at the Old Highway Prospect continues to indicate strong structural controls and a correlation between the presence of coarsegrained euhedral pyrite and gold grade.

Highway Prospect to commence preliminary geological modelling.

At the DGAC1042 gold anomaly, located 11km south-west of DeGrussa, the final three RC holes of the drilling campaign were completed during the Quarter and assay results are pending. Preliminary resource modelling will commence on receipt of these final first-pass assays.

RC drilling also commenced at the Red Bore prospect, located 3km from DeGrussa, where several targets are to be tested.

Air Core and RAB drilling continued across the tenements penetrating transported cover and allowing the regional interpretation to be updated. RC drilling follow up of favourable horizons will occur in the coming quarter. A total of 23,085m of AC and RAB were drilled in the Quarter.

Diamond drilling (which totalled 2,119m for the Quarter) was highlighted by an intersection (20cm) of mixed pyrite and phyrotite (sulphides) in what is interpreted as prospective sequence in DGDD320. Of considerable note is that this is the western most collared diamond drill hole and again confirms the outstanding exploration potential in the tenement package.

Significant drilling time was lost in the Quarter due to a number of rain events, including Cyclone Lua. AC and RC drill rigs will begin drilling again in the first week of April 2012.

6.2 Borroloola Project

The Borroloola Project comprises a total area of over 10,000 square kilometres of tenements and tenements under application in the Northern Territory. The tenements are located near McArthur River, the second largest SEDEX base metal deposit in the world with a primary resource of approximately 230 million tonnes at a grade of + 13% combined lead and zinc. The tenements are also prospective for sedimentary manganese mineralisation, similar to the world-class Groote Eylandt manganese deposits in the Gulf of Carpentaria, uranium and iron ore.

During the Quarter, Sandfire completed a review of the Borroloola Project and the results of the last dry season exploration campaign.

With this phase of drilling complete, Sandfire now has a sufficiently robust dataset for the Old

5

. .

This work has highlighted a priority target area along the Emu Fault Corridor that Sandfire considers to be prospective for SEDEX lead-zinc mineralisation. Deep diamond core drilling of this locality will be the focus of the Company’s 2012 field season.

New South Wales, located 48kms south-east of West Wyalong. The application covers sections of Ordivician Volcanic rocks, prospective for gold and copper mineralisation. The Company is seeking to expand its presence in this province.

7.0 CORPORATE

6.3 Yannarie Project

7.1 Appointment of Non-Executive Director

The Yannarie Project is located 250km northeast of Carnarvon on the west coast of eastern Australia.

No work was carried out on this Project during the March quarter. A review of the Project will be undertaken in the June quarter.

6.4 Urandy Project

The Urandy Project is located in the West Pilbara region some 80km southeast of the coastal town of Onslow. The property is prospective for gold and bases metals, hosted in the Paleoproterozoic Ashburton Formation.

No work was carried out on this Project during the March quarter. A review of this Project will be carried out during the June quarter.

6.5 Kennedy Highway Project

Sandfire has acquired an interest in three exploration licences in The Eastern Succession of the Mount Isa Block, some 220km south of Cloncurry. One granted licence is held in a joint venture with Global Resources Corporation Ltd, whereby Sandfire can earn up to an 80 per cent interest by funding exploration. The other two tenement applications are wholly owned by Sandfire.

The Project covers the western flank of a basement graben, together with three prominent magnetic anomalies, immediately to the west of the graben. These anomalies relate to large magnetite-rich deposits considered to be prospective for copper and gold mineralisation.

During the next two quarters, Sandfire is planning exploration programs to complete gravity surveys, and to drill two deep holes testing for lead and zinc mineralisation and for copper-gold mineralisation.

6.6 Bland Creek Project

Sandfire has made an application for an exploration licence in the Lachlan Fold Belt of

During the Quarter Mr Soocheol (SC) Shin was appointed to the Sandfire Board as a NonExecutive Director. Mr Shin is the Managing Director of POSCO Australia Pty Ltd, and joins the Board following the retirement from the Sandfire Board of former POSCO representative, Mr Jonghun Jong.

POSCO Australia, a subsidiary of the leading Korean-based global steel group POSCO, is a strategic shareholder of Sandfire, with a 15.8 per cent interest in the Company.

Mr Shin joined POSCO in 1989 and has held a variety of positions throughout his career, including Project Manager, POSCO Australia Pty Ltd; Team Leader, Coal Procurement Group; Team Leader, Steel Making Raw Materials Procurement Group and Group Leader, Raw Materials Transportation Group. He was appointed Managing Director of POSCO Australia in February 2012.

7.2 Cash Position and Funding

Sandfire’s cash position at the end of the March 2012 Quarter was $118 million. $100 million was drawn down under the Company’s project finance facility during the March 2012 quarter.

KARL M. SIMICH MANAGING DIRECTOR AND CEO

5 April 2012

For further information, please contact: Karl Simich – Managing Director/CEO John Evans – Technical Director Office: +61 8 6430 3800

Media Inquiries:

Nicholas Read – Read Corporate: Mobile: +61 419 929 046 (Nicholas Read)

6

. .

Figure 1 – DeGrussa Copper-Gold Project location

==> picture [201 x 248] intentionally omitted <==

==> picture [367 x 233] intentionally omitted <==

Appendix 1 – DeGrussa Copper-Gold Project – March 2011 JORC Resource Statement

		Tonnes	Copper	Gold	Contained	Contained Gold	Competent
Zone	Resource Category	(Mt)	(%)	(g/t)	Copper (t)	(oz)	Person
Gold Laterite	Measured	0.14	-	1.5	-	7,000	1
Copper	Measured	2.17	1.1	0.5	24,000	37,000	1
Oxides	Indicated	1.41	1.4	0.4	20,000	19,000	1
Supergene	Indicated	0.25	17.6	2.6	43,000	20,000	2
Chalcocite	Inferred	0.19	4.4	1.2	8,000	7,000	1
Primary Massive	Indicated	7.80	5.8	2.0	456,000	502,000	1
Sulphides	Inferred	2.32	4.3	2.0	100,000	149,000	1
Total		14.33	4.6	1.6	652,000	742,000

Note: Refer to the Competent Person’s Statements – Mineral Resources below.

1 Competent Person for these zones of resource was Diederik Speijers of McDonald Speijers

2 Competent Person for these zones of resource was David Slater of Coffey Mining

7

. .

Appendix 2 – DeGrussa Copper-Gold Project – March 2011 JORC Ore Reserve Statement

	Reserve	Mining	Tonnes	Copper	Gold	Contained	Contained
Deposit	Category	Method	(Mt)	(%)	(g/t)	Copper(t)	Gold(oz)
DeGrussa	Probable	Open Pit - DSO	0.14	25.6	2.5	37,000	12,000
DeGrussa/C1/Chalcocite	Probable	Open Pit	0.23	6.1	2.4	14,000	17,000
DeGrussa	Probable	Underground	1.50	6.6	1.9	99,000	90,000
Conductor 1	Probable	Underground	5.76	4.9	1.8	283,000	337,000
Conductor 4	Probable	Underground	0.76	4.4	1.2	33,000	30,000
Total	Probable		8.39	5.6	1.8	465,000	485,000

Note 1 A cut-off grade of 8.5% Cu is applied on the Chalcocite to provide a targeted 26% Cu direct sale product (Achieved 25.6% Cu after dilution). All other material within the defined deposit boundaries has been included in the reporting of Ore Reserves with any subeconomic grade material being treated as internal dilutents. These Ore Reserves include an overall assumption of 2.5% mining dilution at nil grade for all grade categories along with an assumed 2.5% mining loss of ore tonnes when mined. Calculations rounded to the nearest 10,000 tonnes; 0.1% Cu grade, 0.1 g/t Au grade; 1,000 tonnes Cu metal and 1,000 ounces Au metal. Errors of rounding may occur. These Ore Reserves occur within an open pit design containing 26Mt of total material, resulting in a waste to ore strip ratio of 70:1.

Note 2 Mining recovery factor of 95% applied to diluted stoping blocks, with cut-off grade of 1.5% Cu and minimum stope size of 2,000t. Calculations rounded to the nearest 1,000t, 0.1%, 0.1g/t and 1,000 ounces; errors of rounding may occur.; assumes commodity prices of US$7,673/t for copper and US$1,300/oz for gold with a USD/AUD exchange rate of $0.86; assumes 91% metallurgical recovery rate. Note: Refer to the Competent Person’s Statement – Ore Reserves at the end of this release.

– – Appendix 3 Doolgunna Project Old Highway Gold Anomaly, 2012 RC Drilling Collar Locations

	Hole Depth
Hole ID	(m)	Easting	Northing	RL	Azimuth	Dip
DGRC576	126	717,324	7,161,370	563	340	-60
DGRC577	144	717,330	7,161,347	563	340	-60
DGRC580	144	717,415	7,161,402	563	345	-60
DGRC581	102	717,277	7,161,357	563	340	-60
DGRC592	114	716,293	7,160,969	568	340	-60
DGRC595	126	716,114	7,160,882	569	340	-60
DGRC597	120	716,199	7,160,939	568	340	-60
DGRC607	139	716,160	7,160,897	569	340	-60
DGRC608	98	716,157	7,160,920	569	335	-60

Competent Person’s Statement – Mineral Resources

The information in this report that relates to Mineral Resources (except the Indicated Resource of Supergene Chalcocite) is based on information compiled by Diederik Speijers who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Speijers is a permanent employee of McDonald Speijers and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Speijers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Competent Person’s Statement – Mineral Resources

The information in this report that relates to the Indicated Resource of Supergene Chalcocite is based on information compiled by David Slater who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Slater is a permanent employee of Coffey Mining and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Slater consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

8

. .

Competent Person’s Statement – Open Pit Ore Reserves

The information in this report that relates to Open Pit Ore Reserves is based on information compiled by Quinton de Klerk of Cube Consulting, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr de Klerk has sufficient experience which is relevant to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr de Klerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Competent Person’s Statement – Underground Ore Reserves

The information in this report that relates to Underground Ore Reserves is based on information compiled by Shane McLeay of Entech Pty Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McLeay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McLeay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Sandfire’s Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.

Exploration and Resource Targets

Any discussion in relation to the potential quantity and grade of Exploration Targets for the DeGrussa Project is only conceptual in nature. While Sandfire is confident that it will report additional JORC compliant resources for the DeGrussa Project, there has been insufficient exploration to define mineral resources in addition to the current JORC compliant resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.

9