SANDFIRE RESOURCES LIMITED — Investor Presentation 2012

Aug 5, 2012

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A new chapter Australia’s newest copper producer

Diggers & Dealers – August 2012

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.

• 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.

• 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.

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• Deliver superior returns to our owners from the premier highgrade DeGrussa VMS copper-gold mine

• Discover additional VMS deposits within the emerging Doolgunna mineral field

• Explore for, develop and mine key raw materials , in Australia and overseas

• Foster and develop long-term strategic relationships with raw material end-users and traders

• Maintain the highest standards of safety, integrity and quality at all times

• Develop a world-class mining company

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• :

• Discovery to production less than 3 years (2009 to 2012)

• Delivery of project milestones on time and on budget

• Open pit operations and DSO shipments underway

• Construction and development approaching completion: Q3 2012

• Plant commissioning : Q3 2012

• Exceptional life-of-mine grade +5% Cu with significant gold credits

• High-margin copper production to ramp-up by early 2013

• 77,000tpa copper , 36,000ozpa gold

• C1 cash costs in lowest cost quartile globally

• Production from oxide copper reserves by mid-2013

• Strong operating cash flows building from Q3/Q4 2012

• Ability to fund exploration , growth , shareholder returns

• A new growth chapter

• Cash flow, organic growth, business development opportunities

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Issued Capital	151.6M Shares,9.3M options
Market Capitalisation	~$1 billion
Key Projects	DeGrussa(Doolgunna)
Product Customers	POSCO, Yunnan Copper, MRI (DSO)

Board	Derek La Ferla Non-executive Chairman
	Karl Simich Managing Director / CEO
	W. John Evans Executive Technical Director
	Soocheol Shin Non-executive Director
	Robert Scott Non-executive Director
Management	Matt Fitzgerald Chief Financial Officer
	Martin Reed Project Manager – DeGrussa
	Rob Klug Commercial Manager

	OZ Minerals 19.8% Posco 15.8% Institutions 22.8% Founders/Board 8.0% Others 33.6%

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• DeGrussa Project

• 77ktpa Cu, 36ozpa Au

• Strong cash flows building from Q3/Q4 2012

• Targeting additional VMS deposits/ lenses

• +30km mine corridor

• 400km[2] landholding

• Zinc-lead: NT

• IOCG Cu-Au: QLD, Gawler Craton (SA)

• • Porphyry Cu-Au: NSW

• Iron ore: NT

• Copper-gold exploration in Chile, Peru

• Quality, long-life mineral assets

• Targeting quality assets which can add genuine value

• Cu, Cu-Au, PbZn-Ag, others

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• DeGrussa Project • Targeting additional • Zinc-lead: NT • Copper-gold • Targeting quality

• • VMS deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 77ktpa Cu, lenses Gawler Craton (SA) Peru add genuine value

• 36ozpa Au • +30km mine corridor • • •

• • Porphyry Cu-Au: Quality, long-life Cu, Cu-Au, Pb- Strong cash flows • 400km[2] landholding NSW mineral assets Zn-Ag, others

• commencing 2012 building from • Iron ore: NT

• Q3/Q4 2012

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DeGrussa Project – Key Facts
Mining operation taking shape
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Mining: Open pit + underground Mine Life: +7 years Processing: +1.5Mtpa on-site concentrator 10.72Mt @ 5% Cu, 1.7g/t Au Production: 541kt Cu, 599koz Au Open pit DSO 38kt Cu (25.6%), 12koz Au (2.5g/t) contained Ore Reserve 300,000tpa grading 27% Cu (FY2013-2015) Concentrate 200,000tpa grading 27% Cu (FY2016 onwards)

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• April 2011

Underground and open pit mine development commenced

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• June 2011

Definitive Feasibility Study delivered

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• September 2011

$390M Project Loan Facility

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• November 2011

First DSO sales contract signed

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• February 2012

First DSO and underground ore mined

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• May 2012 First shipment of DSO

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• July 2012

First copper concentrate sales contract signed

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DeGrussa – hitting the milestones
Discovery to production in three years…
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• September 2012 Concentrator commissioning

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DeGrussa – Growth Potential
Targeting first production from Oxide Copper Ore Reserves by mid-CY 2013
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• Maiden Oxide Copper Ore Reserve (Proved + Probable) for DeGrussa open pit

• 1.04Mt @ 2.3% Cu (23kt contained copper)

• Suitable processing route developed

• Design studies and approvals underway for oxide processing plant

• Estimated $15-17M capital cost

• Production planned to commence mid-CY 2013

• Total open pit Ore Reserve

• 1.63Mt @ 4.9% Cu, 1.2g/t Au (79kt contained copper, 64koz contained gold)

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Sandfire – the Strategy
A multi-pronged approach to building a leading diversified mining company
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• DeGrussa Project • Targeting additional repeat • Zinc-lead: NT • Copper-gold • Targeting quality • VMS lenses deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 77ktpa Cu, • 30km mine corridor lenses Gawler Craton (SA) Peru add genuine value

• 36ozpa Au

• • •• +30km mine corridor 400km[2] landholding • Porphyry Cu-Au: • Quality, long-life • Cu, Cu-Au, PbStrong cash flows • 400km[2] landholding NSW mineral assets Zn-Ag, others

• building from • Iron ore: NT

• Q3/Q4 2012

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DeGrussa – “Corridor of Riches”
Minimal exploration conducted along +30km prospective corridor
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• VMS mineralising environment confirmed over +30km long, 1.2km wide corridor

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

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

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DeGrussa Exploration
Focus on discovering additional high-value VMS copper-gold deposits at Doolgunna
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• +$20M exploration budget over next 12 months

• Systematic and scientific approach

• Extensive regional drilling to define prospective VMS sequences

• Re-logging and spectral scanning to define alteration systems

• Systematic drilling of regional targets: +150,000m completed

• Near-mine exploration

• Developing robust structural model

• Leveraging off detailed geological understanding to identify DeGrussa genetic signature

• Innovative new techniques

• Establishing baseline data over known deposits

• If successful, survey to be extended along Mine Corridor to discover next generation of VMS deposits

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Sandfire – the Strategy
A multi-pronged approach to building a leading diversified mining company
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• DeGrussa Project

• 77ktpa Cu, 36ozpa Au

• Strong cash flows

building from Q3/Q4 2012

• Targeting additional VMS deposits/ lenses

• +30km mine corridor

• 400km[2] landholding

• Zinc-lead: NT

• Targeting quality assets which can add genuine value

** Zinc-lead: NT • Copper-gold • IOCG Cu-Au: QLD, exploration in Chile, Gawler Craton (SA)** Peru

• Porphyry Cu-Au: NSW

• •

• Quality, long-life Cu, Cu-Au, Pbmineral assets Zn-Ag, others

• Iron ore: NT

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Australian Regional Exploration
Extensive portfolio with a focus on discovering Tier One deposits
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• Reviewing high-quality, asset-driven exploration opportunities in Australia

• Focus outside Doolgunna is on IOCG copper-gold , porphyry-style copper-gold and lead-zinc-silver

• $5-10M annual exploration budget Australia-wide

• Current activities

• Kennedy Highway JV (Queensland) – drilling underway for structurally controlled IOCG copper-gold

• Bland Creek JV (NSW) – targeting porphyry copper-gold

• Borroloola – targeting Pb-Zn-Ag, iron ore

• Gawler Craton (SA) – targeting Prominent Hill-style copper-gold

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• DeGrussa Project

• 77ktpa Cu,

• 36ozpa Au

• Strong cash flows

• building from Q3/Q4 2012

• Targeting additional VMS deposits/ lenses

• +30km mine corridor

• 400km[2] landholding

• Zinc-lead: NT

• IOCG Cu-Au: QLD, Gawler Craton (SA)

• Porphyry Cu-Au: NSW

• Iron ore: NT

• Targeting quality assets which can add genuine value

• Copper-gold exploration in Chile, Peru

• •

• Quality, long-life Cu, Cu-Au, Pbmineral assets Zn-Ag, others

• Targeting high quality, asset-driven opportunities

• Projects with genuine potential to add value

• Strong focus in South America

• Copper-gold, gold, base metals

• In-house Business Development Team

• Overseen by Technical Director: John Evans

• Exploration & Business Development Manager: Bruce Hooper

• Business Analyst supported by strong technical team

• Ability to target, identify, assess and evaluate high-quality opportunities in selected regions

• Objective to establish multiple asset growth horizons

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• DeGrussa development nearing completion: Q3 2012

• Concentrator commissioning: Q3 2012

• High-margin production profile

• Exceptional cash flow

• Exploration to establish a VMS copper-gold camp

• Quality project pipeline + ability to secure new quality projects

• Strong and supportive major shareholders

• Experienced Board and Management

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A new chapter Australia’s newest copper producer

Diggers & Dealers – August 2012

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.

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.

Competent Person’s Statement – Underground Ore Reserves

• The information in this report that relates to Underground 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.

Competent Person’s Statement – Open Pit Ore Reserves

• The information in this report that relates to Open Pit Ore Reserves is based on information compiled by Quinton de Klerk of Cube Consulting, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr de Klerk has sufficient experience which is relevant 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 de Klerk 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

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

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.

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Table 1: DeGrussa Copper-Gold Project – Mineral Resource Statement as at 31 March 2012

Zone - in situ	Resource Category	Tonnes (mt)	Copper (%)	Gold (g/t)	Contained Copper (t)	Contained Gold (oz)	Competent Person
Au Laterite	Measured	0.04	0.00	1.17	-	2,000	1
Copper Oxides	Measured Indicated	0.23 1.06	0.8 1.6	0.1 0.5	2,000 17,000	1,000 16,000	1 1
Supergene Chalcocite	Indicated Inferred	0.23 0.19	17.9 4.4	2.6 1.2	42,000 8,000	19,000 7,000	2 1
Primary Massive	Indicated	7.84	5.8	2.0	456,000	502,000	1
Sulphides	Inferred	2.31	4.4	2.0	102,000	146,000	1
	Total	11.91	5.3	1.8	627,000	693,000

	Resource	Tonnes	Copper	Gold	Contained	Contained
Stockpile	Category	(mt)	(%)	(g/t)	Copper (t)	Gold (oz)
Laterite Gold	Measured	0.17	0.2	2.2	-	12,000
Copper Oxide	Measured	1.42	1.1	0.3	16,000	16,000
Supergene Chalcocite	Measured	0.01	34.2	2.7	2,000	-
Total	Measured	1.59	4.4	1.2	18,000	28,000

Note: Refer to the Competent Person’s Statements – Mineral Resources

1. Competent Person for these zones of resource was Diederik Speijers of McDonald Spielers

2. Competent Person for these zones of resource was David Slater of Coffey Mining

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Table 2: DeGrussa Copper-Gold Project – 31 March 2011 Ore Reserve Statement

Reserve	Treatment	Deposit	Tonnes	Copper	Gold	Contained	Contained
Classification	Destination	Material	(Mt)	(%)	(g/t)	Copper (t)	Gold (oz)
Proved	Ore Sale	Laterite Gold	0.10	-	3.0	-	9,000
Proved	Oxide Copper Processing/ Concentrator	Oxide Copper	0.52	2.0	0.7	10,000	11,000
Probable	Oxide Copper Processing/ Concentrator	Oxide Copper	0.52	2.5	0.4	13,000	7,000
Probable	Direct Sale Ore	Chalcocite	0.15	25.9	2.5	38,000	12,000
Probable	Massive Sulphide	Chalcocite	0.09	5.1	2.5	5,000	7,000
	Concentrator	Conductor 1 MS	0.14	3.8	1.9	5,000	9,000
		DeGrussa MS	0.11	7.5	2.4	8,000	8,000
	Massive Sulphide Concentrator Sub-Total:		0.34	5.3	2.2	18,000	25,000
Total Open Pit	Ore Reserve		1.63	4.9	1.2	79,000	64,000

Note *Ore Reserves contained in this table have been updated from the Ore Reserve Statement disclosed by the Company on 29 March 2011. Mining activities, including stockpiling, and sale of product have continued since 31 March 2012.

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Table 3: DeGrussa Copper-Gold Project – Ore Reserve Statement as at 31 March 2012

Deposit	Reserve Category	Mining Method	Tonnes (Mt)	Copper (%)	Gold (g/t)	Contained Copper (t)	Contained Gold (oz)
Laterite Gold	Proved	Open Pit	0.10	-	3.0	-	9,000
Copper Oxide	Proved	Open Pit	0.52	2.0	0.7	10,000	11,000
Copper Oxide	Probable	Open Pit	0.52	2.5	0.4	13,000	7,000
DeGrussa	Probable	Open Pit - DSO	0.15	25.9	2.5	38,000	12,000
DeGrussa/C1/ Chalcocite	Probable	Open Pit	0.34	5.3	2.2	18,000	25,000
DeGrussa	Probable	Underground	1.50	6.6	1.9	99,000	90,000
Conductor 1	Probable	Underground	5.70	4.9	1.8	281,000	333,000
Conductor 4	Probable	Underground	0.76	4.4	1.2	33,000	30,000
Total	Proved		0.62	1.7	1.0	10,000	20,000
Total	Probable		8.97	5.4	1.7	482,000	497,000
Total	Proved & Probable		9.59	5.1	1.7	492,000	517,000

Note *Ore Reserves contained in this table have been updated from the Ore Reserve Statement disclosed by the Company on 29 March 2011. Mining activities, including stockpiling, and sale of product have continued since 31 March 2012.

Note 1 A cut-off grade of 8.5% Cu is applied on the Chalcocite to provide a targeted 26% Cu direct sale product. All other material within the defined deposit boundaries has been included in the reporting of Ore Reserves with any sub-economic grade material being treated as internal dilutents. These Ore Reserves include an overall assumption of 2.5% mining dilution at nil grade for all grade categories along with an assumed 2.5% mining loss of ore tonnes when mined. Calculations rounded to the nearest 10,000 tonnes; 0.1% Cu grade, 0.1 g/t Au grade; 1,000 tonnes Cu metal and 1,000 ounces Au metal. Errors of rounding may occur. The in-situ Ore Reserves occur within an open pit design containing 14Mt of total material, resulting in a waste to ore strip ratio of 12:1. Low grade laterite gold stockpiles not included in reserve.

Note 2 A 1.0% Cu lower cut-off grade has been applied to the copper oxide open pit in-situ Ore Reserves. The reported copper oxide stockpiles only include existing stockpiles with an estimated average grade above 1.0 % Cu.

Note 3Mining 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; errors of rounding may occur; 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 Statements – Ore Reserves at the end of this release.

Note 4 These Ore Reserves are stated as at 31 March 2012.

• Mineral Resource zones still to be converted to Ore Reserve status:

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• 2.32Mt of Inferred Massive Sulphide resources @ 4.3% Cu, 2.0g/t Au (100kt contained copper, 149koz contained gold)

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