SANDFIRE RESOURCES LIMITED — Major Shareholding Notification 2006

Aug 29, 2006

30.Aus. 2006 14:31

BAKER & MOKENZIE

No. 2102 $P - 1/3$

Facsimile Transmission

Baker & McKenzie

Level 27 AMP Centre 50 Bridge Street Sydney, NSW 2000, Australia ABN 32 266 778 912

Postal Address: P.O. Box R126 Royal Exchange NSW 1223. Australia

Date	30 August 2006	Fax
To	ASX Company Announcements	1900
From	Loren Suntup
Ref #	451339-v1\LS1
Pages (w/cover)	3 (including cover)
Re	Notice of initial substantial holder

00 999 279

Tel: +61 2 9225 0200 Fax: +61 2 9225 1595 DX: 218 SYDNEY www.bakernet.com

Please see attached ASIC Form 603 - Notice of initial substantial holder.

Please could you upload this Form onto the Company Announcements page for Sandfire Resources NL.

Yours faithfully, BAKER & M^çKENZIE

Lluntige

Loren Suntup Associate +61 2 8922 5252 loren.suntup@bakernet.com

Privacy and Confidentiality Notice

The information contained in this facsimile is intended for the named recipients only. It may contain privileged and confidential information and if you are not an intended recipient, you must not copy, distribute or take any action in reliance on it. If you have received this facsimile in error, please notify us immediately by collect telephone call to +61 2 9225 0200 and return the original to the sender by mail. We will reimburge you for the postage.

Baker & McKenzie, an Australian Partnership is a member of Baker & McKenzie International a Swiss Verein

450984-VISYDDMS\LS)

Form 603

Corporations Act 2001 Section 671B Notice of initial substantial holder

To Company Name/Scheme	Sandfire Resources NL
ACN/ARSN	105 154 185
Details of substantial holder (1) 1.
Name	Evolution Master Fund Ltd. SPC, Segregated Portfolio M.
ACN (if applicable)	Not applicable

25/08/2006 The holder became a substantial holder on

$\overline{z}$ Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

----- Class of securities $(4)$	Number of securitics	Persons' votes(5)	Voting power $(6)$
$-1$	4,169,332	4, 169, 332	7.71%
Placement Shares	$-1.5.5$		--------

Details of relevant interests $\overline{3}$ .

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest	Nature of relevant interest (7)	Class and number of securities
Evolution Master Fund Ltd. SPC, Segregated Portfolio M	N/A	Placement Shares 4.169.332

Details of present registered holders $\mathbf{4}$

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant interest	Registered bolder of	Person entitled to be	Class and number of
	securitics	registered as holder (8)	securities
Evolution Master Fund Ltd. SPC. Segregated	Evolution Master Fund Ltd.	Evolution Master Fund Ltd.	Placement Shares
Portfolio M	1 SPC, Segregated Portforio M	SPC, Segregated Portfolio M	4.169.332

Consideration 5.

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the 4 months prior to the day that the substantial holder became a substantial holder is as follows:

Flolder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
		Cash	Non-cash
Evolution Master Fund Ltd. SPC. Segregated Portfolio M	25/08/2006 $\overline{\phantom{a}}$	\$2,223,570.97		Placement Shares 4.169,332

450984-v1\SYDDMS\LS1

$\ddot{\mathbf{0}}$ Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

_	_________
Name and ACN/ARSN (if	Nature of association
applicable)	---------------------------------------
N/A	N/A
.	.

$7.$ Addresses

The addresses of persons named in this form are as follows:

Name	Address
Sandfire Resources NL	I Ventnor Avenue,
	West Perth.
	Western Australia, 6005
Evolution Master Fund Ltd. SPC, Segregated Portfolio M	Walker House, Mary Street, PO Box 908GT, George Town, Grand Cayman, Cayman Islands

Signature

Michael Lerch orint name	capacity Director
H/ sign here	29/08/2006 date the company's former of the company's first that .