SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2014

Oct 23, 2013

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September 2013 Quarterly Report Presentation Webcast – Karl Simich, Managing Director and CEO 24 October 2013

Access this presentation at: http://www.brrmedia.com/event/116580/ http://www.sandfire.com.au

S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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Forward-Looking Statements

• This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the date of this presentation. The presentation is in summary form and does not purport be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

• This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

• This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

• This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

• To the fullest extent permitted by law, Sandfire Resources NL, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

• This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Sandfire Resources NL. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Sandfire Resources NL does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based..

Competent Person’s Statement

• The information in this public presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr John Evans who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Evans is a permanent employee and Director of Sandfire Resources NL. Mr Evans 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 Evans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

• Highlights

• Safety

• Mining

• Processing

• Sales

• Production, Cost and Capital

• Exploration

• Summary

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

Production and Operations

• 16,446t copper and 8,613oz gold produced; C1 cash cost of US$1.28/lb

• 1.5Mtpa Concentrator throughput maintained; open pit blend completed, recovery increasing with 100% underground ore

• Ramp-up of underground mine to 1.5Mtpa nearing completion ; large stopes commenced, 1.4Mtpa September 2013 mining rate achieved

• FY2014 production guidance maintained: 65-75,000t copper , 35-45,000oz gold weighted towards the second half of FY2014 due to head grade and recovery profile ; C1 cash cost US$1.05-1.15/lb

Exploration

• Underground diamond drilling commenced and set to accelerate in FY 2014 from C4/C5 decline

• Strong ongoing focus on near-mine and regional exploration: sustained by robust operating cash flows

• Targeting further mine life extensions at depth and along exploration corridor

Corporate and Financial

• Finance facility repayment profile revised following adoption of Life-of-Mine Plan

• $270M remaining facility balance at 30 September 2013; $101M cash and deposits

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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• LTIFR of 4.4 at Quarter-end (vs. 4.4 at June Quarter-end)

• Long-term safety performance trend in line with DeGrussa Safety Plan

• Safety intervention involving visual leadership undertaken to address poor performance during the Quarter

• Positive improved safety performance in later part of the Quarter and into October 2013

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

UNDERGROUND

• Six stopes now on-line with several large stopes commenced

• Open pit transitional ore blending has ceased

• Underground mining rate of 1.4Mtpa for September 2013 – targeting 1.5Mtpa steady-state from October 2013 onwards

• –

• Paste plant performance stabilised and improving Conductor 1 primary stopes filled

• Progressed development of C1 (244m) and C4/C5 (298m) declines from Evans Decline junction

• Total underground development progressed to + 15km

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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MILL THROUGHPUT

Tonnes

• 377,719t milled at average head feed grade of 5.3% Cu

• Nameplate 1.5Mtpa throughput target achieved since April 2013

RECOVERY

• Increased overall recovery of 82.0% reflecting continuing impact of blending open pit transitional material: blending now ceased

• Achieved recoveries of 85-92% for primary underground ore when processed through the Concentrator – targeting nameplate +90%

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400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000 310,727t 373,375t 377,719t
0
March Qtr June Qtr Sept Qtr
Recovery
100
90
80
70
60
50
40
30
20
80% 80% 82%
10
0
March Qtr June Qtr Sept Qtr
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MILL THROUGHPUT

Concentrate

• 377,719t milled at average head feed grade of 5.3% Cu

• Nameplate 1.5Mtpa throughput target achieved since April 2013

RECOVERY

• Increased overall recovery of 82.0% reflecting continuing impact of blending open pit transitional material: blending now ceased

• Achieved recoveries of 85-92% for primary underground ore when processed through the Concentrator – targeting nameplate +90%

CONCENTRATE & METAL PRODUCTION

• 68,018t of concentrate produced

• 16,446t of contained copper produced: upper end of guidance due to strong head feed grade of 5.3% Cu

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80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000 48,086t 59,939t 68,018t
0
March Qtr June Qtr Sept Qtr
Copper Production
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
11,632t 14,293t 16,446t
2,000
0
March Qtr June Qtr Sept Qtr
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Unit costs – DeGrussa Mine	Q1 FY2014 Actual (US$/lb)	Q4 FY2013 Actual (US$/lb)	Commentary
Mining (net of development) Processing	0.64 0.33	0.57 0.45	Unit cost reduction from the June 2013 Quarter driven by higher head grade and resultant metal production.
Business services	0.12	0.15
			Mining unit costs remain above FY guidance level with ore cost of open pit
Transport, treatment and refining	0.50	0.54	ore in blend.
C1 cost (pre-by product credit)	1.59	1.71	FY2014 C1 guidance maintained at US$1.05–1.15/lb.
By-product credit (gold)	(0.31)	(0.34)
C1 cost	1.28	1.37	Variability in stope grades for the December 2013 Quarter and 2H FY2014
			expected to drive variability in C1 unit costs.
Royalties	0.19	0.15
Production cost	1.47	1.52	Underground amortisation rate assumptions increased, driving D&A.
Depreciation and amortisation	0.62	0.69	Underground development capital estimated at $78-80 million; ahead of
Total production cost	2.09	2.21	scheduled development rates.

FY2014 Assumptions:

Gold – US$1,300/oz; Currency – A$1.00:US$0.90; Unit cost Guidance provided on mid-point of FY2014 copper and gold production (70,000t Cu, 40,000oz Au)

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

• Quarterly sales of 15,764 tonnes of copper and 7,482oz of gold

• Concentrate shipments progressing as scheduled

• 9,000 tonnes concentrate holding at site and at port

• Port Hedland and Geraldton Ports both operating well

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

• Development of the C1 and C4/C5 declines well advanced from junction off Evans Decline

• • Underground drilling underway targeting depth extensions and repeats of C4 and C5

NOTE: Drill-hole locations indicative only

S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

• Strong production performance:

• 16,446t copper and 8,613oz gold production at C1 unit cost of US$1.28/lb

• Guidance of 65-75,000t copper and 35-45,000oz gold

• C1 unit cost of US$1.05-1.15/lb maintained

• Strong operating cash flow:

• Decline and mine development, repaying finance facility, strong exploration commitment, business development opportunities

• Finance facility amendment following successful commissioning

• Underground exploration set to accelerate in FY2014

• Well placed to pursue external growth opportunities

A premier Australian copper producer.

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S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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September 2013 Quarterly Report Presentation Webcast – Karl Simich, Managing Director and CEO 24 October 2013

Access this presentation at: http://www.brrmedia.com/event/116580/ http://www.sandfire.com.au

S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I a n C o p p e r P r o d u c e r

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Competent Person’s Statement – Mineral Resources and Open Pit Ore Reserves

• The information in this report that relates to Mineral Resources and Open Pit Ore Reserves is based on information compiled by Mr. Ekow Taylor who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Taylor is a permanent employee of Sandfire Resources and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Taylor 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 Resources is based on information compiled by Mr Shane McLeay who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr. McLeay is a permanent employee of Entech Pty Ltd and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for 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 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 Mineral Resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.

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