SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2013

Apr 16, 2013

March 2013 Quarterly Report

Webcast – Karl Simich, Managing Director and CEO 17 April 2013

Access this presentation at: http://www.brrmedia.com/event/111178 http://www.sandfire.com.au

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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.

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• 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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Highlights

Safety Mining Processing Production & Sales Exploration Summary

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Production and Operations

Continued improved safety performance

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Open pit completed in April 2013, transitioning to wholly underground operations Ramp-up of underground mine on schedule Plant ramp-up and optimisation continuing On track for nameplate production rates from mid-CY 2013

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Contained metal production	Sep 2012 Qtr	Dec 2012 Qtr	Mar 2013 Qtr	Year to Date
COPPER
Concentrator	-	7,962	11,632	19,594
DSO	20,175	8,430	2,051	30,656
Total Copper (tonnes)	20,175	16,392	13,683	50,250
GOLD
Concentrator	-	3,938	6,287	10,225
DSO	6,161	6,241	3,167	15,569
Oxide gold	1,174	4,516	2,609	8,299
Total Gold (ounces)	7,335	14,695	12,063	34,093

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Exploration

In-mine mapping has revealed numerous insights into structural controls, extending exploration opportunities near-mine, including the DeGrussa offset target

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Progressing Ore Reserve and Mineral Resource upgrade including extensions to Conductor 4 and Conductor 5 from drilling including:

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Conductor 4 – 10.6m @ 4.46% Cu testing the interpreted eastern extension

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Conductor 5 – 26.1m @ 7.2% Cu and 3.1g/t Au (existing model estimated 11m), 28.3m @ 5.3% Cu and 2.7g/t Au (existing model estimated 8m), 15.2m @ 8.6% Cu and 2.3g/t Au (existing model estimated 7m)

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Exciting new near-mine exploration results and regional targets

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Financial and Corporate

First $50M debt repayment completed to reduce debt to $330M, with further funds deposited for the next scheduled payment of $45M in June 2013

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LTIFR of 2.6 at March Quarter-end, reduced from December Quarter-end

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1 lost time injury sustained for the Quarter Safety performance in line with targets established in Safety Management Action Plan

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OPEN PIT

Stage 1 open pit completed December 2012 – 7.7Mbcm mined

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Stage 2 open pit completed mid-April 2013 – 5.4Mbcm mined, extracting remaining sulphide and copper and gold oxide material

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UNDERGROUND

Three stopes developed and in production – 487,718 tonnes of sulphide ore mined to date

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Current underground mining rate of 1.2Mtpa – on target to achieve 1.5Mtpa steady-state from mid-CY2013

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Paste plant commissioning underway – first stope paste poured in early April 2013

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Evans Decline now +2km from the portal , 340m below surface Total underground development progressed to 12.8km

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MILL THROUGHPUT

310,727 tonnes milled – 24% increase vs. December Quarter

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Steady increase in tonnes processed: on track to achieve nameplate target of 375,000t per quarter from mid-CY 2013

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RECOVERY

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

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Recovery increased from 65% (Dec Quarter) to 80% (March Quarter)

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Nameplate target
24%
251,016t 310,727t
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Nameplate target
65% 80%
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MILL THROUGHPUT

310,727 tonnes milled – 24% increase vs. December Quarter

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Steady increase in tonnes processed: on track to achieve nameplate target of 375,000t per quarter from mid-CY 2013

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RECOVERY

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

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Recovery increased from 65% (Dec Quarter) to 80% (March Quarter)

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CONCENTRATE & METAL PRODUCTION

48,085 tonnes of concentrate produced – 31% increase vs. December Quarter (target: 75,000 tonnes mid-CY 2013)

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11,632 tonnes of contained copper produced – 46% increase vs. December Quarter (target: 19,200 tonnes from mid CY-2013)

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Nameplate target
31%
36,578t 48,086t
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Nameplate target
46%
7,962t 11,632t
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Increasing monthly recoveries, targeting +90% by mid-CY 2013 – constrained to mid-CY2013 by:

Lower recoveries (+60%) for transitional open pit sulphide material, as previously announced Head grade from initial stopes in Conductor 1 of ~4% Cu: progressing into higher grade DeGrussa stopes ( first 15 days of April 2013: ~3,000t Cu production at 5.6% Cu feed grade; +85% recovery )

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Achieved concentrate specification

Successful 2-day plant shut-down completed late February 2013:

Tailings thickener capacity increased stability

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SAG mill grate modifications to improve ore retention Cleaner circuit hopper mods to improve plant stability Shut-down and shorter month constrained copper production

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Optimisation continuing over the June Quarter in line with ramp-up schedule

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• Variation in head feed grade between stopes (generally 4-6% Cu)

• Targeted recovery range (88-93%) varies with feed grade due to fixed tail grade

• Results in effective monthly production targets ranging from 4,500-7,000 tonnes per month

• As underground development and stoping progresses further, blending for plant feed will minimise variation – underpinning the target quarterly copper production of 19,250t Cu (6,400t Cu per month)

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Target first 3 years
Target based on quarterly feed
Head feed Head feed
4.9% 4.7%
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Concentrator production has steadily ramped up following the start of commissioning in October 2012 During the ramp-up of underground mine production, transitional open pit sulphide material is being processed along with underground ore This will continue during the June Quarter, with production forecast to be sourced wholly from underground from the September 2013 Quarter onwards

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• Increased Quarterly copper sales of 12,297t Cu and 10,155oz Au

• Last high-grade DSO shipment completed in early January 2013

• Low grade ~30,000t at +10% Cu to complete the DSO sales program

• Concentrate shipments progressing as scheduled

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	Metal production	Q1-Q3FY13 – Actual	Q1-Q3FY13 – Actual	Q4FY13 –	Guidance	To June 2013 – Guidance	To June 2013 – Guidance
		Cu(kt)	Au(koz)	Cu(kt)	Au(koz)	Cu(kt)	Au(koz)
	Concentrator	20	10	15	7	35	17
	DSO	30	16	-	-	30	16
	Oxide gold	-	8	-	3	-	11
	Total – 2012/2013	50	34	15	10	65	44
	DSO	4	2			4	2
	Oxide gold	-	1			-	1
	Total – 2011/2012	4	3			4	3
	Total – Project to date	54	37	15	10	69	47

• Full year concentrator production guidance maintained at 35kt Cu and 17koz Au

• Final sales results for prior quarter DSO sales has marginally reduced total DSO production year to date (DSO production completed during the March Quarter)

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+30km strike length prospective for VMS mineralisation

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150m
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• VMS mineralising environment confirmed over +30km long, 2km wide corridor

• Minimal exploration below 100m : host sequence at depth still to be explored

• DeGrussa deposit extents have a strike length of just 1.2km : small footprint, high value

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Area available for mapping

• In-mine mapping over small area opened up to date has revealed numerous insights into structural controls

• New targets delivered from these initial theories and extrapolation from within the near-mine area

150m

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• Multiple target zones identified

• Extending exploration opportunity nearmine

• Structural geology delivering robust targets

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• One drillhole completed to test the interpreted eastern extension of the C4 orebody – intersected 10.6m @ 4.46% Cu.

• Resources will be updated for C4 to reflect this intersection and the increased knowledge of bounding structures and orebody morphology

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• Thickest intersection of C5 massive sulphide drilled to date

• Potential for resource increase (Main and Upper Zones) towards Merlot Fault

• 1 conventional and 3 directional drillholes completed during Q1 2013

• C5 resource being remodelled to reflect thicker central zone

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Concentrator commissioning and underground mine ramp-up continuing as planned Optimisation of grade, recoveries and throughput advancing On track for nameplate production rates from mid-CY2013 Successful transition from open pit to underground mining operations Ore Reserve and Mineral Resource upgrade in progress First scheduled $50M debt repayment completed $45M deposited for the end June 2013 scheduled repayment

Australia’s newest copper producer.

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March 2013 Quarterly Report

Webcast – Karl Simich, Managing Director and CEO 17 April 2013

Access this presentation at: http://www.brrmedia.com/event/111178 http://www.sandfire.com.au

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March 2013 Quarter Tonnes Grade (% Cu) Grade (g/t Au) Contained Copper (t) Contained Gold (oz) DSO Mined - - - - - Crushed 19,925 10.3 4.9 2,051 3,167 DSO sales 17,649 16.9 3.7 2,989 2,072 Concentrator Mined 447,425 5.2 1.6 23,442 23,488 Milled 310,727 4.7 1.7 14,540 17,442 Concentrate produced 48,085 24.2 4.1 11,632 6,287 Concentrate sold 38,418 24.2 4.4 9,308 5,434 Oxide gold Mined - - - - - Milled (toll treatment) 25,251 - 3.5 - 2,882 Gold production - - - - 2,609 Gold sales - - - - 2,609 Total Mined 447,425 5.2 1.6 23,442 23,488 Crushed/Milled 355,903 4.7 2.1 16,591 23,491 Copper production 68,010 20.1 4.3 13,683 9,454 Gold production - - - - 2,609 Contained metal - - - 13,683 12,063 Copper and gold sales 56,067 21.9 - 12,297 10,115

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FY2013 Year to Date Tonnes Grade (% Cu) Grade (g/t Au) Contained Copper (t) Contained Gold (oz) DSO Mined 138,216 21.9 3.5 30,333 15,392 Crushed 139,355 22.0 3.5 30,656 15,569 DSO sales 118,245 25.2 3.2 29,764 12,140 Concentrator Mined 794,760 5.1 1.7 40,779 43,320 Milled 561,743 4.8 1.8 26,901 32,513 Concentrate produced 84,663 23.1 3.8 19,594 10,225 Concentrate sold 67,390 22.9 3.6 15,434 7,872 Oxide gold Mined 3,559 - 0.8 - 94 Milled (toll treatment) 78,571 - 3.7 - 9,270 Gold production - - - - 8,299 Gold sales - - - - 8,299 Total Mined 936,535 7.6 2.0 71,112 58,806 Crushed/Milled 779,669 7.4 2.3 57,557 57,352 Copper production 224,018 22.4 3.6 50,250 25,794 Gold production - - - - 8,299 Contained metal - - - 50,250 34,093 Copper and gold sales 185,635 24.3 - 45,198 28,311

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Project to date Tonnes Grade (% Cu) Grade (g/t Au) Contained Copper (t) Contained Gold (oz) DSO Mined 155,512 22.6 3.6 35,180 17,907 Crushed 155,512 22.6 3.6 35,180 17,907 DSO sales 124,735 25.7 3.2 32,012 13,015 Concentrator Mined 823,892 5.1 1.7 42,121 44,315 Milled 561,743 4.8 1.8 26,901 32,513 Concentrate produced 84,663 23.1 3.8 19,594 10,225 Concentrate sold 67,390 22.9 3.6 15,434 7,872 Oxide gold Mined 278,603 0.2 1.8 463 16,446 Milled (toll treatment) 87,121 - 3.7 - 10,255 Gold production - - - - 9,264 Gold sales - - - - 9,264 Total Mined 1,258,007 6.2 1.9 77,764 78,668 Crushed/Milled 804,376 7.7 2.3 62,081 60,675 Copper production 240,175 22.8 3.6 54,774 28,132 Gold production - - - - 9,264 Contained metal - - - 54,774 37,396 Copper and gold sales 192,125 24.7 - 47,446 30,151

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• C4 interpreted to be the faulted offset of C1

Fault plane trace

• On this basis, DeGrussa (which is also truncated by the Shiraz Fault) should also have an offset equivalent

• This exploration premise has opened up the area on the southern side of the Shiraz Fault – the “DeGrussa Offset Target”

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SOUTH NORTH
WEST EAST OPEN PIT
DEGRUSSA
4m mineralised zone
OPEN PIT CONDUCTOR 1
8m mineralised zone
5.1m at 1.5% Cu
2.5m at 0.6% Cu
PRE-FAULTING
DEGRUSSA
1.4m at 0.3% Cu
CONDUCTOR 1
4.3m at 0.9% Cu CROSS
300m SECTION
5m & 2m mineralised zones
1.3m at 1.4% Cu
SOUTH NORTH
Current Hole
2.1m at 4.2% Cu CONDUCTOR 5
CONDUCTOR 4
DEGRUSSA
5.3m at 1.7% Cu OFFSET
TARGET
DEGRUSSA
HORIZON
OFFSET TARGET
4.0m at 1.1% Cu HORIZON
CONDUCTOR 4
LONGITUDINAL 0 200 400 600
SECTION metres
Previous Drill Program Intersection: Non-mineralised 300m
Previous Drill Program Intersection: Mineralised
Current Drill Program Intersection: Non-mineralised CROSS
Current Drill Program Intersection: Mineralised All widths are downhole SECTION
Current Drill Program Intersection: Assays pending True widths range from 30 – 60% of DH width
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• Both Priority and Secondary Target Units consist of Dolerite + Basalt + Sediments

• • Footwall Unit consists of Conglomerate, Siltstone and Hematite Shales

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• Leverage off local knowledge

• Understand broad basinal context

• Target into coinciding ‘hot spots’

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• Needs thorough analysis due to current anomaly size and strength

• • Current drilling still very wide spaced >400m x 100m

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