SANDFIRE RESOURCES LIMITED — Investor Presentation 2011

Mar 8, 2011

DeGrussa: Approved for Development From concept to cash

Global Investor Presentation March 2011

==> picture [910 x 22] intentionally omitted <==

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.

==> picture [7 x 7] intentionally omitted <==

• 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.

==> picture [7 x 8] intentionally omitted <==

• 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.

==> picture [7 x 7] intentionally omitted <==

• 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.

==> picture [7 x 8] intentionally omitted <==

• 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.

==> picture [7 x 8] intentionally omitted <==

• Certain statements made during or in connection with this presentation 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.

==> picture [7 x 7] intentionally omitted <==

==> picture [30 x 541] intentionally omitted <==

2

==> picture [895 x 478] intentionally omitted <==

3

==> picture [166 x 181] intentionally omitted <==

Discovered: April 2009 Maiden resource: February 2010 Pre-Feasibility Study: March 2011 Maiden Ore Reserve : March 2011 Production: 60-70,000tpa payable copper 40-45,000oz pa payable gold C1 cash costs: US$0.90c-$1.00/lb Pre-tax operating cash flow: A$330-350M pa Construction to commence: June 2011 First production: Early 2012

==> picture [30 x 541] intentionally omitted <==

4

Our Vision

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 14] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [306 x 478] intentionally omitted <==

5

Corporate Summary

Issued Capital: Cash (March 2011):

148.167M ordinary shares 8.9M options A$114 million

Major Shareholders

Last Major Funding Current Price Market Capitalisation

A$6.60/A$7.00 (November 2010) A$7.24 (4 March 2011) A$1,072 million (4 March 2011)

6

Company Summary

==> picture [12 x 12] intentionally omitted <==

==> picture [7 x 8] intentionally omitted <==

==> picture [7 x 7] intentionally omitted <==

==> picture [7 x 8] intentionally omitted <==

March 2011: PFS completed, conditional development approval Q2 2011: DFS and project funding, award of key contracts Q2 2011: Commencement of open pit mining and construction

==> picture [12 x 13] intentionally omitted <==

==> picture [12 x 13] intentionally omitted <==

==> picture [12 x 13] intentionally omitted <==

==> picture [7 x 7] intentionally omitted <==

60-70,000tpa of payable copper, 40-45,000ozpa of gold @ US$0.90-1.00/lb C1 cash cost

==> picture [12 x 12] intentionally omitted <==

==> picture [12 x 12] intentionally omitted <==

==> picture [12 x 12] intentionally omitted <==

7

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

Located within 400km[2 ] Doolgunna Project, 900km NE of Perth Established WA mining district Discovered April 2009 $70M invested to date in resource development

Construction and development commencing mid-2011 On track to move from discovery to production within three years High-quality, high-margin operation

==> picture [622 x 478] intentionally omitted <==

8

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

Pre-Feasibility Study and maiden Ore Reserve complete

DFS due Q2 2011 Indigenous access agreements signed Approvals well advanced including grant of Mining Lease Award of key contracts imminent Key project development and operational personnel recruited Project funding discussions well advanced

==> picture [622 x 478] intentionally omitted <==

9

==> picture [30 x 541] intentionally omitted <==

10

==> picture [349 x 478] intentionally omitted <==

Life-of-mine extraction of a total of 10.68Mt of material grading 5.0% Cu, 1.7g/t Au – 531,000t of copper and 579,000oz of gold** :

==> picture [11 x 11] intentionally omitted <==

Item	PFS Fundamentals LOM
Mining method:	Open pit (2 years), underground (7+ years)
Construction time:	14months (commencing June 2011)
First production:	Open pit – Q1 CY 2012 Underground – Q3 CY 2012
Processing rate:	1.5Mtpa
Metallurgical recovery:	91%
Average annual concentrate production:	220-240,000tpa grading 27% Cu
Average annual payable metal output:	60-70,000tpa payable copper 40-45,000oz gold
	A$270M (plant and infrastructure)
Pre-production capital cost estimate:	A$130M (open pit / underground development)
	A$400M total (including contingencies)
C1 cash operating costs:	US$0.90–$1.00/lb (including gold credits)
Annual gross sales revenue (average):	A$550-600M
Annual pre-tax operating net cash flow (average):	A$330-$350M

Assumptions used in the PFS:

* Contained metal

Life-of-mine copper price of US$7,673/tonne (US$3.48/lb) Life-of-mine gold price of US$1,300/oz Long-term exchange rate of A$1.00:US$0.86 Cost of extracting open pit copper oxide and gold material incurred as waste with no allowance for revenue benefit (process route design in progress to determine revenue stream)

11

==> picture [11 x 11] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 11] intentionally omitted <==

DeGrussa	Copper-Gold Project – March	Copper-Gold Project – March	2011 PFS Ore	Reserve Statement*	Reserve Statement*
Deposit	Reserve Category	Tonnes (Mt)	Copper (%)	Gold (g/t)	Contained Copper (tonnes)	Contained Gold (ounces)
DeGrussa	Probable	1.50	6.6	1.9	99,000	90,000
Conductor 1	Probable	5.76	4.9	1.8	283,000	337,000
Conductor 4	Probable	0.76	4.4	1.2	33,000	30,000
TOTAL	Probable	8.02	5.2	1.8	415,000	456,000

• Mining recovery factor of 95% applied to diluted stoping blocks, with cut-off grade of 1.5% Cu and minimum stope size of 2,000t. Calculations rounded to the nearest 1,000t, 0.1%, 0.1g/t and 1,000 ounces; assumes commodity prices of US$7,673/t for copper and US$1,300/oz for gold with a USD/AUD exchange rate of $0.86; assumes 91% metallurgical recovery rate. Note: Refer to the Competent Person’s Statement – Ore Reserves at the end of this release.

Maiden Ore Reserve of 8.02Mt @ 5.2% copper, 1.8g/t gold 415,000t of contained copper , 456,000oz of contained gold Reflects overall 93% conversion of contained copper metal from underground Indicated Resources (primary massive sulphide)

==> picture [349 x 478] intentionally omitted <==

12

Table 2: DeGrussa Copper-Gold Project – March 2011 JORC Resource Statement

Zone	Resource Category	Tonnes (Mt)	Copper (%)	Gold (g/t)	Contained Copper (t)	Contained Gold (oz)
Gold Laterite	Measured	0.14	-	1.5	-	7,000
Copper Oxides	Measured Indicated	2.17 1.41	1.1 1.4	0.5 0.4	24,000 20,000	37,000 19,000
Supergene Chalcocite	Indicated Inferred	0.25 0.19	17.6 4.4	2.6 1.2	43,000 8,000	20,000 7,000
Primary Massive Sulphides	Indicated Inferred	7.80 2.32	5.8 4.3	2.0 2.0	456,000 100,000	502,000 149,000
TOTAL		14.33	4.6	1.6	652,000	742,000
Table 3: DeGrussa Copper-Gold Project – Ore Reserve Conversion
		Tonnes (Mt)	Copper (%)	Gold (g/t)	Contained Copper (t)	Contained Gold (oz)
Total Indicated Resources of Primary	Massive Sulphide	7.80	5.8	2.0	456,000	502,000
Indicated Resources of Primary Massive Sulphides within the open cut shell		(0.14)	7.0	2.5	(11,000)	(12,000)
Indicated Resources of Primary Massive Sulphides within underground mine plan		7.66	5.8	2.0	445,000	490,000
Conversion (%)					93%	93%
Ore Reserve		8.02	5.2	1.8	415,000	456,000

Table 3: DeGrussa Copper-Gold Project – Ore Reserve Conversion

==> picture [30 x 541] intentionally omitted <==

13

==> picture [11 x 11] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 11] intentionally omitted <==

Laterite gold – 140,000t @ 1.5g/t Au for 7,000oz gold Oxide copper – 3.6Mt @ 1.23% Cu, 0.5g/t Au (44,000t copper, 56,000oz gold) Supergene chalcocite – 250,000t @ 17.6% Cu, 2.6g/t Au (43,000t copper, 20,000oz gold)

Includes DSO – 151,000t @ 25.6% Cu, 2.6g/t Au Primary sulphide mineralisation – to be stockpiled for early mill feed

==> picture [670 x 478] intentionally omitted <==

14

==> picture [12 x 13] intentionally omitted <==

==> picture [12 x 13] intentionally omitted <==

==> picture [12 x 13] intentionally omitted <==

==> picture [12 x 13] intentionally omitted <==

Early extraction of Direct Shipping Ore (DSO): 151,000t @ 25.6% Cu, 2.6g/t Au, 21g/t Ag (~39,000t of copper)

Open pit will also extract initial sulphide copper ore for early production ramp-up to complement underground ore feed

Oxide copper resources to be extracted within the first year of mining and stockpiled for processing Open cut development targeted to commence Q2 2011 and production Q1 2012

==> picture [349 x 478] intentionally omitted <==

15

==> picture [30 x 541] intentionally omitted <==

16

==> picture [30 x 541] intentionally omitted <==

17

==> picture [30 x 541] intentionally omitted <==

18

==> picture [521 x 478] intentionally omitted <==

Strong increase in copper prices over past 12 months driven by strong Chinese demand and tight supply Market deficit of ~600,000t forecast for 2011 and ~380,000t for 2012 as supply falls short of demand

==> picture [13 x 14] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

Declining mine head grades and long lead-times on new projects constraining supply Price forecasts for 2011 recently upgraded to US$10,000-11,000/tonne Market rebalance expected post-2012

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

• Source: Goldman Sachs JB Were, February 2011: “Commodities, Copper: How High?

19

==> picture [939 x 478] intentionally omitted <==

20

==> picture [939 x 478] intentionally omitted <==

21

==> picture [939 x 478] intentionally omitted <==

----- Start of picture text -----

+10,000sq km tenement position in world-class
NT mineral province
Prospective for zinc-lead-silver deposits
(McArthur River-style), manganese (Groote
Eylandt-style), iron ore and uranium
Visible oxide copper mineralisation intersected at
Tawallah 1 prospect – further exploration
planned in 2011
Iron ore mineralisation confirmed adjacent to
Western Desert Resources’ (ASX: WDR) Roper
Bar Project
----- End of picture text -----

22

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 14] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

==> picture [13 x 13] intentionally omitted <==

DeGrussa Project approved for development On track to produce first copper next year: First ore from open pit due early 2012 First underground ore expected mid-2012 High-margin production profile – positioned to take advantage of strong copper market Regional exploration gathering momentum targeting potential VMS copper-gold camp Strong and supportive major shareholders Quality project pipeline Experienced Board & Management

==> picture [349 x 478] intentionally omitted <==

23

Competent Person’s Statement – Mineral Resources

The information in this report that relates to Mineral Resources (except the Indicated Resource of Supergene Chalcocite) is based on information compiled by Diederik Speijers who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Speijers is a permanent employee of McDonald Speijers and 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 Speijers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [7 x 8] intentionally omitted <==

Competent Person’s Statement – Mineral Resources

The information in this report that relates to the Indicated Resource of Supergene Chalcocite is based on information compiled by David Slater who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Slater is a permanent employee of Coffey Mining and 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 Slater consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [7 x 8] intentionally omitted <==

Competent Person’s Statement – Ore Reserves

The information in this report that relates to Ore Reserves is based on information compiled by Shane McLeay of Entech Pty Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McLeay 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 McLeay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [7 x 8] intentionally omitted <==

Exploration and Resource Targets

• Any discussion in relation to the potential quantity and grade of Exploration Targets for the DeGrussa Project 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 resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.

==> picture [7 x 8] intentionally omitted <==

==> picture [30 x 541] intentionally omitted <==

24

25