SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 28, 2021

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June 2021 Quarterly Report Presentation

Karl Simich, Managing Director & CEO 29 July 2021

Access the live webcast of this presentation commencing at 10.00am (WST) / 12.00pm (AEDT) at the link below:

SANDFIRE WEBCAST

S A N D F I R E R E S O U R C E S - C R E A T I N G V A L U E T H R O U G H O P O R T U N I T Y

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Important Information and Disclaimer

This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport to be all inclusive or complete. The Company is not responsible for providing updated information and assumes no responsibility to do so. 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 and 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, its related bodies corporate, and each of their officers, employees, agents and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no 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. Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified. All figures are expressed in Australian dollars unless otherwise stated.

This presentation should be read in conjunction with the Company’s Quarterly Report released today.

This presentation is authorised for market release by Sandfire’s Managing Director and CEO, Mr Karl Simich.

Forward-Looking Statements

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. There is continuing uncertainty as to the full impact of COVID-19 on Sandfire’s business, the Australian economy, share markets and the economies in which Sandfire conducts business. Given the high degree of uncertainty surrounding the extent and duration of the COVID-19 pandemic, it is not currently possible to assess the full impact of COVID-19 on Sandfire’s business or the price of Sandfire securities. 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 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.

The Expansion Case to 5.2Mtpa referred to in this presentation, where it relates to A4 and other prospects, is based on resource drilling, technical and economic assessments. Study work at A4 is currently insufficient to support estimation of Ore Reserves or to provide assurance of an economic Expansion Case for the Motheo Production Hub.

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Execute delivery

Strategy

Creating value through opportunity

Sustainable production Accelerate discovery Align and empower our people

Optimise capital structure

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• DeGrussa copper production: 18,252t of contained copper (FY21: 70,845t) and 9,016oz of contained gold (FY21: 39,459oz) at C1 US$0.93/lb (FY21 US$0.82/lb); pleasing safety performance:

• FY2022 guidance: 64-68kt Cu and 30-33koz Au; C1 costs ~US$1.00-$1.10/lb

Highlights

June 2021 Quarter

• Resource drilling at Old Highway Gold Prospect well-advanced – studies continue on transition to gold production at DeGrussa, leveraging existing infrastructure

• 5.2Mtpa Motheo Production Hub concept rapidly advancing:

• Mining Licence for the Motheo Copper Mine granted by the Government of Botswana

• Mining contract for the T3 Open Pit awarded to African Mining Services (AMS), a subsidiary of Perenti Global Ltd (ASX: PRN)

• Updated Indicated and Inferred Mineral Resource Estimate delivered for the satellite A4 copper-silver deposit, 8km west of the Motheo, subsequent Quarter-end:

• 9.8Mt at 1.4% Cu and 21g/t Ag for 134,000t of contained copper and 6.6Moz of contained silver (using a 0.5% Cu cut-off). Ninety-three percent of contained copper is within Indicated MRE and available for conversion to Ore Reserves.

• Black Butte Copper Project, USA – Feasibility Study enhancement underway; new near-resource exploration drilling completed, with assay results pending

• Strong $574M cash holding and no debt at Year-end (excluding lease liabilities)

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HSEC

The health and well-being of our people is of paramount importance to us

Safety, health and well-being

• Total Recordable Injury Frequency Rate (TRIFR) of 4.0 at Quarterend (4.7 at March 2021 Quarterend)

• Continued focus on employee and contractor health and well-being during the COVID-19 global pandemic and response.

• DeGrussa employees volunteered with Teach Learn Grow at their biannual mentoring trip to Meekatharra District High School. Sandfire, along with 22 other members of the CME donated to RFDS Response Ready COVID relief fundraiser enabling them to purchase a new Pilatus PC-12 aeromedical aircraft.

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DeGrussa

Strong foundations in Western Australia

DeGrussa Operations, WA

• DeGrussa Copper-Gold Mine - Monty Copper-Gold Mine

Exploration

• Greater Doolgunna Province, WA

• East Coast Portfolio (NSW, Qld)

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PROCESSING SALES

MINING

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DeGrussa Operations June Quarter Physicals

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__ __
23.6
404,421
22.0
375,298
C1
US$0.93/lb
293,579
June 2021
Quarter:
18,252t Cu
9,016oz Au
contained
110,842
8.3
FY2021
Sales:
Production:
13,682t Cu
70,854t Cu
6,867oz
77,286
4.7 4.8 62,160 39,459oz Au
contained
3.63 C1 US$0.82
3.4 3.44
1.38 1.37 1.37 1.43
DeGrussa Monty Total Mining Mill Throughput Concentrate Sales
Tonnes
Au(g/t)
Grade
Cu (%)
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PROCESSING

MINING

SALES

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FY2021 Full Year Physicals

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1,563,757
1,537,887
C1
23.6 23.4 US$0.82/lb
1,112,808
Annual
production:
70,845t Cu
39,459oz Au
contained
Sales:
425,079
65,689t Cu
7.2 37,394oz Au
300,447
contained
4.7 4.8
4.30
3.8 4.00
1.59 1.55 1.58 1.61 65,689
DeGrussa Monty Total Mining Mill Throughput Concentrate Sales
Tonnes
Au(g/t)
Grade
Cu (%)
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DeGrussa Operations | Operating cost and capital

Unit operating costs	Q4 FY2021 (US$/lb)	FY2021 (US$/lb)	• Q4 FY2021 C1 operating costs of US$0.93/lb Cu which was better than plan driven by higher grades, better than
Mining	0.45	0.50	forecast recovery and a higher gold price which translated
Processing	0.32	0.30	to higher by-product credits.
Business services	0.13	0.12	• Q4 FY2021 DeGrussa mine development $10M, FY2021
Transport Costs	0.33	0.27	total $39M; FY22 guidance $41M
Treatment and refining	0.15	0.15	• Q4 FY2021 Monty mine development $1M, FY2021 total
C1 cost (pre by-product credit)	1.39	1.35	$9M; FY22 guidance $6M
By-product credit	(0.46)	(0.53)	• 24,800t of copper concentrate holding at Quarter-end
C1 cost	0.93	0.82	• The strong cost performance for the quarter resulted in
Royalties	0.26	0.22	FY21 C1 costs of $0.82/lb Cu, at the lower end of the reduced US$0.80-$0.85/lb Cu guidance range.
Production cost	1.18	1.03
Depreciation and amortisation	0.89	0.86
Total production cost	2.07	1.89

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PROCESSING

MINING

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FY2022 Guidance

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Full Year
Physicals
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1,600,000
1,575,000
24.0 FY2022
Guidance:
1,200,000 64kt – 68kt Cu
30koz – 34koz Au
contained
Operating cost
Guidance:
C1 US$1.00 -
$1.10/lb
400,000
6.3
275,000
4.6 4.6
3.9 3.70
1.40 1.45 1.40 1.40
DeGrussa Monty Total Mining Mill Throughput Concentrate
Tonnes
)
Au(g/t)
Grade
Cu (%)
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FY21 v FY22 C1 Guidance Midpoint

Cash cost Payable Cu (US$/lb)

		FY22
Cash Cost Payable Cu (US$/lb)	FY21 (US$/lb)	GUIDANCE MID-POINT	Commentary
		(US$/lb)
Mining	0.50	0.48	Lower copper production
Processing	0.30	0.33	Higher power costs due to diesel price and lower Cu production
Operations Services	0.12	0.15	Labour and diesel cost increase YoY, lower Cu production
			Increase YoY due to Overseas
Total Transport	0.27	0.33	Shipping and Demurrage, lower Cu
			production
Total Treatment and Refining	0.15	0.20	Longer term benchmark, lower Cu production
C1 Cash Cost before By-Product Credits	1.34	1.48
Total By-Product Credits	(0.52)	(0.42)	Lower Au production
C1 Cash Cost US/lb	0.82	1.05

Note: Operating cost are rounded to the nearest US$0.01. Errors may occur due to rounding. Production statistics are subject to change following reconciliation and finalisation subsequent to the end of the Quarter.

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Old Highway Resource Definition

Remaining resource definition drilling programs to commence in Q1:

Central Deeps (Q1 – Q3):

• 25m x 25m diamond drill pattern planned for extension drilling of Old Highway Deeps

• Multiple high-grade intercepts showing good continuity of mineralisation at depth

• Planned total of 23 diamond drill holes totalling 7,630m

Central-East Links (Q1 – Q2):

• 25m x 25m RC pattern planned over the heritage area within the strike of the current resource

• Planned total of 56 RC holes totalling 6,780m

Central-East Links Drilling

Central Deeps

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Doolgunna Dual-track exploration strategy

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Gold Processing Pipeline
East Shed Well, Cow Hole Bore
and SE Robinson Range
Red Bore
Copper Pipeline Data integration and
First-pass exploration of tenure DHEM
south of Horseshoe Lights
Gold Processing Pipeline
In-fill drilling at Cuba
Gold Processing Pipeline
Morck Well Gold
High Priority Near Mine Targets:
Near Mine Exploration
Extant Rift and Transform Faults
Geochemical Targeting Vectors
DG Lithostratigraphic Model
Copper Pipeline
Cheroona VMS In-fill drilling
Copper Pipeline
proximal to Orient Gossan.
Yerrida Mapping Completion
and First-Pass Soils
Copper Exploration Pipeline Gold Processing Pipeline
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Kalahari

Expanding horizons in Botswana and Namibia

Kalahari (Botswana and Namibia)

• Motheo Copper Mine

• A4 Expansion Project

• Extensive Kalahari exploration portfolio (Botswana and Namibia)

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Kalahari
Copper Belt
Extensive
exploration ground
in Botswana and
Namibia
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MOTHEO EXPANSION PROJECT
A4
MOTHEO COPPER MINE
A4 Resource
9.8 Mt @ 1.36% Cu
& 21g/t Ag
T20 PROJECT
T3 – Open Pit Resource
53.3Mt @ 0.90% Cu
& 12.7g/t Ag
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Motheo Production Hub

3.2Mtpa base case with visibility to 5.2Mtpa expansion case

• Motheo Copper Mine 3.2Mtpa full-scale construction commenced

• Resource update for A4 - study work continues in support of satellite operation

• Clear visibility to rapidly expand production to 5.2Mtpa through the addition of the A4 deposit

• Significant potential to extend mine life through drilling at further targets including A1, T1, T2W & T2E, A27 and A13 – all located within ~30km radius of processing plant

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T3
(Construction)
A4
A1
(Feasibility
(Target)
Study)
MOTHEO MINE
T1
(Target)
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T3-Motheo Development Timeline

Mining License Approval & Land Titles
Camp EMP
Process Plant Engineering & Pre-Construction Works
Accommodation Facility
132KV Powerline & Substations Design & Construction
Process Plant Construction
Mining Contractor Mobilisation & Establishment
Mining Prestrip
Process Plant Commissioning
Process Plant Concentrate Ramp Up & Production
Financial Year	2021	2022	2023	2024

S A N D F I R E R E S O U R C E S - C R E A T I N G V A L U E T H R O U G H O P P O R T U N I T Y

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Motheo Production Hub Key Progress

• T3 Mining Licence granted

• T3 Mining Contract awarded to AMS (Perenti)

• County Head of Botswana and GM operations appointed

• Project debt funding final term sheets underway

• A4 Mineral Resource update supports Feasibility and Engineering Studies

• Detailed engineering design of the process plant by Lycopodium 78.5% complete and will be finished in October 2021

• TSF design complete, issued for tender to construction contractors

• Contracts awarded for Access Road, 750 person Permanent Accommodation facility (Design and Construct), High Voltage Substation and Switching station (Design and Construct)

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Motheo Production Hub – A4 resource update

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• A4 Copper-Silver Deposit, located 8km west of the Motheo Copper Mine in Botswana:

• Indicated and Inferred Mineral Resource: 9.8Mt at 1.4% Cu and 21g/t Ag for 134,000t of contained copper and 6.6Moz of contained silver (using a 0.5% Cu cutoff):

• Updated MRE delivers a 34 per cent increase in total contained copper with 93 per cent of contained copper now reported in the higher confidence Indicated Mineral Resource category and available for inclusion in Ore Reserves:

• A4 Deposit continuing to emerge as a key potential source of satellite ore feed for the Motheo Copper Mine:

• Feasibility Study program continuing, maiden Ore Reserve on track for December 2021 Quarter and .

• Feasibility Study due in the March 2022 Quarter This will provide a clear development pathway for the integration of A4 into the proposed 5.2Mtpa Motheo Production Hub .

		July 2021 A4 Mineral	July 2021 A4 Mineral	Resource update	Resource update
Mineral	Resource Category	Tonnes	Copper Grade (% Cu)	Silver Grade (g/t Ag)	Contained Cu (t)	Contained Ag (oz)
	Indicated	8,900,000	1.4	22.0	124,000	6,200,000
	Inferred	920,000	1.0	15.0	9,000	400,000
	TOTAL	9,820,000	1.4	21.0	134,000	6,600,000

Notes:

Calculations have been rounded to the nearest: 100kt; 0.01% Cu grade; and 1kt Cu metal and 0.1g/t Ag grade; and 100koz Ag metal. Differences may occur due to rounding. Full details of the A4 Mineral Resource update were provided in the Company’s ASX Announcement dated 21 July 2021

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• Vein-hosted mineralisation within the A4 Mineral Resource has delivered some outstanding intersections including a standout 35.7m at 7.1% Cu and 116g/t A4. There is potential for further high-grade vein-hosted mineralisation along the A4 Dome and in other targets within the Motheo Expansion Project

• Ngwako Pan Formation (NPF) contact mineralisation is more typical of sediment-hosted copper deposits globally and hosts the 60-65ktpa Zone 5 underground mine in the eastern part of the Kalahari Copper Belt

Motheo Production Hub – Expansion targets

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T1/T2 Zone
Diamond drilling, target
Zone 5 type sheared NPF
contact Cu deposits
A4 West
Diamond drilling, target
high grade vein hosted Cu A4 Dome
Diamond drilling, MLEM &
DHEM, testing NPF
contact
A4 A1 Dome
RESOURCE Diamond drilling, target
high grade vein hosted Cu
MOTHEO COPPER
MINE
A13 Anomaly A4/T3 Domes
Diamond drilling, target high Ground Magnetics and
grade vein hosted Cu Gravity surveys
Oblique view of AEM SCI slices with Aeromagnetic RTP
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Black Butte

Montana, USA

Black Butte Copper Project, Montana, USA (87%)

• Johnny Lee early works completed

• Enhanced Feasibility Study

• Mine Lease exploration drilling

C R E A T I N G V A L U E T H R O U G H O P O R T U N I T Y21

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Black Butte

Montana, USA

• Early project works complete

• Enhancement of Feasibility Study being progressed

• Exploration program within the Mining Lease targeting potential extensions and other near-mine opportunities

• Initial results for hole SC21-256 which intercepted 12.45m grading 3.4% copper and 6.5g/t silver in the Lowry Lower Zone, including 4.65m of 6.0% copper and 14.6g/t silver

• Confirms the presence and continuity of the higher grade-thicknesses in this area

• Continuing to respond to and deal with legal challenges to permitting

• Oral arguments presented and now being considered by presiding Judge

Full details of the assay results reported from Black Butte during the Quarter are available from Sandfire Resources America’s website, www.sandfireamerica.com.

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Key takeaways

June 2021 Quarter

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Global vision – our transformation into a diversified, international and sustainable mining company is underway

– Strong growth platform DeGrussa cash-flows, debt-free balance sheet and $570m in group cash

– New production hub construction of Motheo Copper Mine in Botswana underway

Strong pipeline – high-quality development opportunities and a global exploration portfolio in Tier-1 jurisdictions

Refreshed and focused – an international exploration, development and mining operations team strongly aligned with our growth objectives

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Thank you

Contact Details

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Level 2, 10 Kings Park Road, West Perth WA 6005 Australia PO BOX 1495, WEST PERTH WA 6872 AUSTRALIA +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au

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S A N D F I R E R E S O U R C E S - C R E A T I N G V A L U E T H R O U G H O P P O R T U N I T Y

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