SANDFIRE RESOURCES LIMITED — Share Issue/Capital Change 2008

Dec 14, 2008

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15 December 2008

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Dear Option Holder

YOUR OPTIONS TO ACQUIRE SANDFIRE RESOURCES SHARES AT $0.25 PER SHARE EXPIRE ON 31 DECEMBER 2008

We are writing to you as a registered holder of 31 December 2008 options in Sandfire Resources NL to remind you that the options will expire on 31 December 2008.

Your option holding may be exercised in whole or in part by payment of $0.25 for each option by no later than 31 December 2008. If payment is not received by 5.00 pm (WST) on 31 December 2008, the options will lapse and all rights under the options will cease at that time.

Some of the courses of action available to you as a holder of these soon to expire options are:

• a) Exercise the options on or before 31 December 2008.

• b) Do nothing, ie allow your options to expire. If you do not exercise your options they will expire on 31 December 2008 and your right to subscribe for ordinary shares in Sandfire Resources NL at $0.25 per share will lapse.

There is no obligation upon option holders to exercise their options.

The market sale price of ordinary shares in Sandfire Resources NL on ASX was $0.6 on 12 December 2008, being the last trading day in Perth prior to the date of this notice.

During the three months preceding the date of this notice:

• the highest market sale price of ordinary shares on ASX was $0.24 on 17 September 2008, and

• the lowest market sale price of ordinary shares on ASX was $0.05 on 24 November 2008.

If you wish to exercise your options then you must complete the “Notice of Exercise of Options” form attached to this notice and forward it together with payment of $0.25 per option exercised to be received no later than 5.00 pm (WST) on 31 December 2008 to the Company’s share registry, being:

Security Transfer Registrars Pty Ltd PO Box 535 APPLECROSS WA 6953 770 Canning Highway APPLECROSS WA 6953

Cheques should be made payable to “Sandfire Resources NL” in Australian dollars only and should be crossed “Not negotiable”. If you have any further questions please do not hesitate to contact our Registry on telephone (08) 9315 2333, facsimile (08) 9315 2233, or e-mail registrar@securitytransfer.com.au.

Yours sincerely

J Mathie

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COMPANY SECRETARY

SANDFIRE RESOURCES NL ABN 55 105 154 185

TERMS AND CONDITIONS OF OPTIONS EXPIRING 31 DECEMBER 2008 $0.25

• Each Option entitles the holder to one ordinary Share in the capital of the Company, deemed fully paid.

• The Options are exercisable at any time prior to 5:00 pm on 31 December 2008 by completing an Option Exercise Form and delivering it together with the payment for the number of Shares in respect of which the Options are exercised to the registered office of the Company.

• The exercise price of the Options is twenty-five cents ($0.25) per Option.

• All Shares issued upon exercise of Options will rank pari passu in all respects with the Company’s then issued Shares. The Company will apply for Official Quotation by ASX of all Shares issued upon exercise of Options.

• In the event of any reconstruction or reorganisation of capital (including consolidation, sub-division, reduction or return) of the issued capital of the Company prior to the Expiry Date, rights of the holders of the Options, the number of Options and/or the exercise price of the Options shall be changed to the extent necessary to comply with the Listing Rules applying to the reorganisation of capital at the time of the reorganisation.

NOTICE OF EXERCISE OF OPTIONS

Holder Number:___________ The Directors Share Registry Sandfire Resources NL Security Transfer Registrars Pty Ltd 1 Ventnor Avenue PO Box 535 West Perth WA 6005 APPLECROSS WA 6953 PH: 61 8 9315 0933 FAX: 61 8 9315 2233 Email: registrar@securitytransfer.com.au

I/We ________________________________________________________________________________

Of __________________________________________________________________________________

the registered holder(s) of the options, hereby exercise my/our options to apply for the below amount of ordinary shares

Number in words Number in figures I/We enclose application monies of $__________________________

And authorise you to register me/us as the holder of the shares to be allotted to me/us and I/we agree to accept such shares subject to the Rules of the Constitution of the Company.

Individual or Securityholder 1 Securityholder 2 Securityholder 3 Director Director/Secretary Sole Director/Sole Secretary Dated this ____________________ day of ___________________________ year ___________

This application, with application money in Australian Currency, should be lodged at the Company’s Share Registry on or before the Expiry Date.

NOTE : Cheque should be made payable to SANDFIRE RESOURCES NL and forwarded to Security Transfer Registrars