SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2022

Jan 19, 2022

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December 2021 Quarterly Report Presentation

Karl Simich, Managing Director & CEO 20 January 2022

Access the live webcast of this presentation commencing at 10.00am (AWST) / 1.00pm (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 December 2021 Quarterly Report released today, 20 January 2022.

This presentation is authorised for 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.

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Execute Delivery

Strategy

Our Purpose ‘Creating value through opportunity’

Build a Sustainable Production Pipeline

Accelerate Discovery Align and Empower Our People Optimise Capital Strategy and Engagement

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● DeGrussa Operations: 18,675t of contained copper and 8,739oz of contained gold at C1 US$1.07/lb:

• FY2022 production guidance maintained: 64-68kt Cu and 30-34koz Au

• FY2022 C1 cost guidance increased to: ~US$1.10-$1.20/lb

• Maiden Indicated Mineral Resource estimate complete for the Old Highway Gold Deposit

• 2.8Mt @ 2.5g/t Au for 223,000oz of contained gold

Highlights

December 2021 Quarter

● Motheo Production Copper Mine construction progressing on schedule:

• Construction activities continued to ramp up with 750 personnel on site

• Over 1,000m[3] of structural concrete was placed during the quarter

• Mining equipment has arrived on site and is being assembled

• Definitive Feasibility Study (DFS) for the 5.2Mtpa Motheo expansion is on track to be completed in the June 2022 Quarter.

• Significantly expanded exploration activity both within the Motheo Expansion Project and high priority exploration targets in regional areas.

● Transformational acquisition of MATSA:

• Spanish Foreign Investment Authority and Competition Authority approvals received satisfying the outstanding conditions precedent to the MATSA Sale and Purchase Agreement (SPA). The transaction is now unconditional and will proceed toward completion on or around 31 January 2022.

● $1,654 million (US$1,202 million) cash holding at 31 December 2021.

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HSEC

The safety, health and wellbeing of our people is integral to our success

Safety, health and wellbeing

• Total Recordable Injury Frequency Rate (TRIFR) of 6.9 at Quarterend (5.6 at September 2021 Quarter-end).

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

• Sandfire Beekeeping Capacity Building Initiative hosted local primary school children for practical training on how to inspect and harvest beehives. The program is aimed at imparting learners with skills to enable them to start their own projects.

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Qasa the beekeeper explaining the formation of the bee comb to students

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Students taking the lead during bee-hive inspection

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Doolgunna

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

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MINING

PROCESSING

SALES

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__ __
23.60
448,828 23.20
439,959
C1:
DeGrussa US$1.07/lb
Operations
325,922
Production:
December Quarter
18,675t Cu
Physicals 8,739z Au
contained
FY2021
Sales:
Production:
17,074t Cu
70,854t Cu
122,906 7,467oz
39,459oz Au
contained
5.55 79,157 C1 US$0.82
4.71 73,522
4.40 4.49
3.48
3.16
1.57 1.35 1.51 1.35
DeGrussa Monty Total Mining Mill Throughput Concentrate Sales
Tonnes
Grade
Au(g/t) / Cu (%)
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DeGrussa Operations | Operating costs and capital

Unit operating costs	Q2 FY2022 (US$/lb)
Mining	0.47
Processing	0.29
Business services	0.12
Transport Costs	0.40
Treatment and refining	0.19
C1 cost (pre by-product credit)	1.47
By-product credit	(0.40)
C1 cost	1.07
Royalties	0.25
Production cost	1.32
Depreciation and amortisation	0.96
Total production cost	2.28

• December Quarter C1 operating costs of US$1.07/lb remain marginally above budget driven by higher power costs due to diesel price and higher shipping and demurrage aligned with higher market rates.

• December Quarter DeGrussa Mine development $10M; FY2022 guidance $41M.

• December Quarter Monty Mine development $2M; FY2022 guidance $6M.

• 26,376t of copper concentrate holding at Quarter-end.

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Doolgunna | Old Highway Gold Deposit Maiden Resource

Maiden Indicated Mineral Resource

• 2.8Mt at 2.5g/t for 223,000oz of contained gold

• 20km WSW of DeGrussa Copper-Gold Mine

• Drilling continues at Central Deeps with potential to extend underground positions

• Study work continuing to evaluate development options

Area	Resource Category	Cut-off grade (g/t Au)	Tonnes (Mt)	Au (g/t)	Au (koz)
Non-Central Area (Open Pit)	Indicated	0.6	2.3	1.5	113
Central Area (Open Pit)	Indicated	0.6	0.1	2.9	7
Central Area (Underground)	Indicated	2.0	0.3	9.5	102
Grand Total	Indicated		2.8	2.5	223

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Doolgunna | Old Highway Central Deeps exploration drilling

Resource extension drilling underway

• 24 hole ~9,100m diamond drill program commenced, focused on extending the high-grade mineralisation in ‘Central Deeps’.

• The deepest holes from this program will test ~200m below the currently defined extent of the mineralisation.

• Eight holes (~3,200m) of this program have been completed to date, the majority of which have intersected quartz veins in the expected position down-dip of the known mineralisation.

• Assay results for these holes are

• awaited.

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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 Exploration 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 Exploration Pipeline
Cheroona VMS In-fill drilling
Copper Exploration 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

• Motheo Expansion Project

• Extensive Kalahari exploration portfolio (Botswana and Namibia)

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Motheo Copper Mine Development Timeline

Mining License Approval & Land Titles
Accommodation Village 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

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Motheo Copper Mine

Key progress

• Development is proceeding on schedule and on budget.

• AMS (Perenti) has mobilised to site and recently delivered mining equipment is being assembled.

• Bulk earthworks well advanced.

• Civils contractor mobilised to site and has poured over 1,000m[3 ] of concrete for SAG Mill, Primary Crusher and Reclaim Tunnel bases.

• Permanent accommodation facility (750 rooms) construction contractor mobilised to site. Stage 1 camp occupation is planned for late in the March 2022 Quarter.

• Mechanical and Electrical Equipment fabrication well advanced. All forecast equipment delivery dates are well ahead of required dates on site.

• 5.2Mtpa Feasibility Study is on track for completion in June 2022 Quarter.

• Project debt funding discussions progressing.

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Primary Crusher Vault
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Permanent accommodation
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Cat 785 dump truck assembly
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Kalahari Exploration – Priority Target Areas

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•
T14, T5, T45 Fleet increased to 10 drill rigs in
3 AEM and geochem targets November.
along >60km structural zone
1 drill rig testing T45 • Motheo Expansion Project
A1 Dome, T1 and T2E
T23, T4, T46 Follow up initial intersections remains a high priority targeting
Wide zones disseminated of vein hosted Cu and AEM high grade vein mineralisation
Cu and 8km AEM conductor targets – awaiting access
3 drill rigs testing for HG (A4 West, A1 Dome).
•
Drilling now underway at
A4 West regional targets:
Follow up: 45m @ 2.20% Cu
•
T4-T23 structural zone
and 42.6g/t Ag from 439m
3 drill rigs testing extensions ~80km south-west of Motheo
•
T5, T14 and T45 targets
T7 shear zone ~60km north of Motheo
Major shear zone
•
T7 ~50km south of the town
1 drill rig initial testing
of Ghanzi
New identified/acquired targets FY21
Previously identified Cu-Ag targets
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• Fleet increased to 10 drill rigs in November.

• Motheo Expansion Project remains a high priority targeting high grade vein mineralisation (A4 West, A1 Dome).

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Black Butte

Montana, USA

Black Butte Copper Project (Montana, USA)

• Johnny Lee Deposit

• • Lowry Deposit

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Black Butte

Montana, USA

• Enhancement of Feasibility Study being progressed.

• 14,000m resource definition core drilling program at the Lowry deposit.

• The Lowry deposit is not covered by the current Mine Operating Permit.

• Inferred Mineral Resource of 8.3 million tonnes at 2.4% Cu.

• Lowry Prefeasibility technical report to be completed in 2022.

• Continuing response to legal challenges to permitting.

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Key takeaways December 2021 Quarter

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Global vision – Spanish authority approval of transformational acquisition of MATSA

– Strong growth platform DeGrussa cash-flows, $1,654m cash at 31 December 2021

– New production hub construction of expanded 5.2Mtpa Motheo Copper Mine in Botswana progressing well

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

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

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Competent Person’s Statements

A4 Ore Reserve

The information in this presentation that relates to the A4 Open Pit Ore Reserve, is based on information compiled by Mr Jake Fitzsimons who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Fitzsimons is employed by Orelogy Consulting Pty Ltd and has sufficient experience that is relevant to the style of mineralisation 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 Fitzsimons consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Refer to ASX Announcement, dated 22 September 2021, titled ‘Maiden Ore Reserve for A4 Deposit and PFS confirms 5.2Mtpa Motheo Copper Project’.

T3 Ore Reserve

The information in this presentation that relates to the T3 Open Pit Ore Reserve, is based on information compiled by Mr Jake Fitzsimons who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Fitzsimons is employed by Orelogy Consulting Pty Ltd and has sufficient experience that is relevant to the style of mineralisation 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 Fitzsimons consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Refer to ASX Announcement, dated 1 December 2020, titled ‘Sandfire Approves Development of New Long-life Copper Mine in Botswana’.

T3 and A4 Mineral Resource

The information in this presentation that relates to the T3 Mineral Resource is based on information compiled by Mr Callum Browne who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Browne was a permanent employee of Sandfire and has sufficient experience that is relevant to the style of mineralisation 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 Browne consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Refer to ASX Announcement, dated 1 December 2020, titled ‘Sandfire Approves Development of New Long-life Copper Mine in Botswana’.

The information in this presentation that relates to the A4 Mineral Resource is based on and fairly represents information and supporting documentation prepared by Mr Mark Zammit who is a Member of the Australian Institute of Geoscientists. Mr Zammit is a full-time employee of Cube Consulting Pty Ltd. Mr Zammit has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. Mr Zammit consents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears. Refer to ASX Announcement, dated 21 July 2021, titled ‘Sandfire delivers 34% increase in contained copper at satellite A4 Copper-Silver Deposit at Motheo’.

Motheo Expansion Case

The Expansion Case to 5.2Mtpa referred to in this presentation, where it relates to A4 and other prospects, is based on the T3 Mineral Resource Estimate and Ore Reserve, the 3.2Mtpa Definitive Feasibility Study completed in December 2020, A4 Mineral Resource Estimate and Ore Reserve and the 5.2Mtpa Pre-Feasibility Study. The 5.2Mtpa Pre-Feasibility Study has been completed to an overall level of accuracy of ±15-25% and is based on material assumptions outlined elsewhere in the ASX announcement titled ‘Maiden Ore Reserve for A4 Deposit and PFS confirms 5.2Mtpa Motheo Copper Project’ dated 22 September 2021.

Exploration and Resource Targets

Any discussion in relation to the potential quantity and grade of Exploration and Resource Targets is only conceptual in nature. While Sandfire is continuing exploration programs aimed at reporting additional JORC compliant Mineral Resources, 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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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 O R T U N I T Y