SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2013

Jan 23, 2013

December 2012

Quarterly Update Karl Simich, Managing Director and CEO

Access this webcast at:

http://www.brrmedia.com/event/109349/?popup=true http://www.sandfire.com.au

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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.

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..

• Highlights

• Safety

• Open pit mining

• Underground mining

• Processing

• Production & Sales

• Exploration

• Summary

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Contained metal production	September 2012 Quarter	December 2012 Quarter	1H FY2013	Project to Date
Copper (tonnes)	21,181	16,392	37,573	42,097
Gold (ounces)	6,716	14,695	21,411	24,713

Production and Operations

• Plant commissioning and ramp up progressing – on track for nameplate production rates mid-2013

• Shipments of plant concentrate commenced, three further sales contracts finalised

• Stage I open pit completed, underground development on schedule

• Exploration

• Drilling intersects up-plunge extensions of Conductor 4 – outside current resource

• Semi-massive and stringer sulphides intersected in offset DeGrussa lense position

• Financial and Corporate

• First scheduled $50M debt repayment funds deposited

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• Continued downward trend in LTIFR and TRIFR

• LTIFR of 3.0 at December Quarter-end

• One lost time injury sustained for the Quarter

• Safety performance in line with targets established in Safety Management Action Plan

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STAGE 1

• Stage 1 completed – 7.7Mbcm of material mined, extracting:

• 147,297t of DSO chalcocite @ 24.9% Cu (36,622t Cu metal)

• 1.8Mt of oxide copper @ 1.2% Cu (21,500t Cu metal)

• 134,000t of sulphide ore @ 6.4% Cu (8,500t Cu metal)

• 98% reconciliation to ore reserve achieved for DSO

STAGE 2

• 4.7Mbcm of material mined to 31 December 2012

• Stage 2 to continue until Q2 CY2013

Completion of Stage 1 marks the transition from open pit to underground as the main source of ore production at DeGrussa.

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• Evans Decline advanced to 2,026m from the portal

• Total underground development 8,938m

• 241,000t of sulphide ore grading 5.1% Cu and

• 1.9g/t Au mined to date from underground

• Full underground mining rates on track to be achieved by mid-CY2013

Underground mine ramping up to provide ore feed to the concentrator.

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• Concentrator commissioning commenced

• 251,016t of sulphide ore grading 4.9% Cu and 1.9g/t Au processed

• 36,578t of concentrate grading 21.8% Cu and 3.3g/t Au produced

• Mill throughput rates restricted due to commissioning and optimisation processes including:

• Tailings disposal thickener

• Optimisation of flotation performance

• Optimisation of control system – with actions underway to continue to improve concentrate grade and recovery

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• Steady improvement in concentrate grade achieved

• Recoveries impacted by optimisation and commissioning processes

• Copper production trended steadily upwards on a monthly basis:

• 7,962t of contained copper produced

• 3,938oz of gold produced

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• 37,573t of copper, 21,411oz of gold produced for 1HFY13

• 80% of first half copper production sourced from open pit DSO

• DSO = 29,611t

• Concentrator = 7,962t

• 4,524t of copper and 3,303oz of gold produced from DSO and oxide gold in FY12

42,097t of contained copper and 24,713oz of gold produced to date at DeGrussa.

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• Total sales for 1HFY13 of 34,001t of copper, 17,626oz of gold

• 11 shipments of DSO chalcocite completed to China

• First shipment of plant copper concentrate completed in late November

• 136,000t of DSO and plant concentrate @ 26% Cu shipped

• Three new sales contracts finalised for copper concentrate

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Production Guidance

		To June 2013 - Guidance Cu(kt) Au(koz) 35-39 25 32 13 - 11 67-71 49 4 2 - 1 4 3 71-75 52
Metal production	To December 2012 2HFY13 – Guidance
	Cu(kt) Au(koz) Cu(kt) Au(koz)
Concentrator	8 4 27-31 21
DSO	30 12 2 1
Oxidegold	- 6 - 5
Total – 2012/2013	38 22 29-33 27
DSO	4 2
Oxidegold	- 1
Total – 2011/2012	4 3
Total – Project to date	42 25 29-33 27

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• Disciplined approach drawing on latest technology and expertise

• Mapping, geophysics, geochemistry, seismic

• $20M annual budget for DeGrussa

• Structural interpretation from in-mine mapping has proved to be a breakthrough

• ~60,000m of drilling completed in 1HFY13

• Recent breakthroughs in near-mine positions

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DeGrussa Near-Mine Exploration Structural mapping from underground unlocking exciting new near-mine opportunities

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• Concentrator commissioning and ramp-up continuing

• Optimisation of grade, recoveries and throughput advancing

• On track for nameplate production rates by mid-CY2013

• Successful transition from open pit to underground mining operations

• Concentrate sales ramping up

• Near-mine exploration beginning to deliver exciting results

• First scheduled $50M debt repayment funds deposited

Australia’s newest copper producer.

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December 2012 Quarterly Update Karl Simich, Managing Director and CEO

Appendix: DeGrussa – Quarterly Mining & Production Summary	Appendix: DeGrussa – Quarterly Mining & Production Summary	Appendix: DeGrussa – Quarterly Mining & Production Summary	Appendix: DeGrussa – Quarterly Mining & Production Summary	Appendix: DeGrussa – Quarterly Mining & Production Summary	Appendix: DeGrussa – Quarterly Mining & Production Summary
Strong production and sales performance
December 2012 QTR		Tonnes	Grade (% Cu)	Grade (g/t Au)	Contained Copper (t)	Contained Gold (oz)
	Mined	43,912	19.2	4.0	8,420	5,707
DSO	Crushed	47,652	17.7	4.1	8,430	6,241
	DSO sales	60,567	27.0	3.2	16,328	6,230
	Mined	296,809	5.1	1.9	15,063	17,713
	Milled	251,016	4.9	1.9	12,361	15,071
Concentrator
	Concentrate produced	36,578	21.8	3.3	7,962	3,938
	Concentrate sold	28,972	21.1	2.6	6,126	2,438
	Mined	-	-	-	-	-
	Milled (toll treatment)	33,819	-	4.7	-	5,092
Oxide gold	Gold production					4,516
	Gold sales					4,516
	Mined	340,721	6.9	2.1	23,483	23,420
	Crushed/Milled	332,487	6.3	2.5	20,791	26,404
	Copper production	84,230	19.5	3.8	16,392	10,179
Total
	Gold production					4,516
	Contained metal				16,392	14,695
	Copper and gold sales	89,539	25.1		22,454	13,184
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DSO	Mined 130,001 24.4 3.1 31,775 12,932
	Crushed 118,448 25.0 3.1 29,611 11,783
	DSO sales 101,227 27.5 2.9 27,875 9,498
Concentrator	Mined 47,335 5.0 1.8 17,337 19,832
	Milled 251,016 4.9 1.9 12,361 15,071
	Concentrate produced 36,578 21.8 3.3 7,962 3,938
	Concentrate sold 28,972 21.1 2.6 6,126 2,438
Oxide gold	Mined 3,559 - 0.8 - 94
	Milled (toll treatment) 53,320 - 3.7 - 6,388
	Gold production 5,690
	Gold sales 5,690
Total	Mined 480,895 10.2 2.1 49,112 32,858
	Crushed/Milled 22,784 9.9 2.4 41,972 33,242
	Copper production 155,026 24.2 3.2 37,573 15,721
	Gold production 5,690
	Contained metal 37,573 21,411
	Copper and gold sales 130,199 26.1 34,001 17,626

DSO	Mined 147,297 24.9 3.3 36,622 15,447
	Crushed 134,605 25.4 3.3 34,135 14,120
	DSO sales 107,717 28.0 3.0 30,123 10,373
Concentrator	Mined 76,467 5.0 1.7 8,679 20,827
	Milled 251,016 4.9 1.9 12,361 15,071
	Concentrate produced 36,578 21.8 3.3 7,962 3,938
	Concentrate sold 28,972 21.1 2.6 6,126 2,438
Oxide gold	Mined 278,603 0.2 1.8 463 16,446
	Milled (toll treatment) 61,870 - 3.7 - 7,373
	Gold production 6,655
	Gold sales 6,655
Total	Mined 802,367 6.9 2.0 55,764 52,720
	Crushed/Milled 447,491 10.4 2.5 46,496 36,564
	Copper production 171,183 24.6 3.3 42,097 18,058
	Gold production 6,655
	Contained metal 42,097 24,713
	Copper and gold sales 136,689 26.5 36,249 19,466