SANDFIRE RESOURCES LIMITED — Share Issue/Capital Change 2014

Oct 27, 2014

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28 October 2014

The Manager Company Announcements Office ASX Limited

EXERCISE OF UNLISTED OPTIONS - NOTICE IN ACCORDANCE WITH SECTION 708(A) OF THE CORPORATIONS ACT 2001 (Cth)

Sandfire Resources NL (ASX: SFR , or the Company ) advises that 200,000 new fully paid ordinary shares ( New Shares ) have been allotted and issued upon the exercise of unlisted options. A completed Appendix 3B in respect of the New Shares is attached.

Secondary Trading Exemption Notice

The Corporations Act 2001 (“Corporations Act”) restricts the on-sale of securities without disclosure, unless the sale is exempt under Section 708 or 708A of the Corporations Act. By Sandfire giving this notice, on-sale of the New Shares will fall within the exemption offered by Section 708A (5) of the Corporations Act.

Sandfire hereby notifies the ASX (as the operator of the prescribed financial market on which the New Shares are to be quoted) under Section 708A(5)(e) of the Act that:

1. The Company issued the New Shares without disclosure to investors under Part 6D.2 of the Corporations Act;

2. As at the date of this notice the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company, and with Section 674 of the Corporations Act; and,

3. As at the date of this notice there is no information that is excluded information for the purposes of sections 708A(7) and (8) of the Corporations Act.

Yours faithfully

Robert Klug Joint Company Secretary

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96. Origin: Appendix 5. Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity: SANDFIRE RESOURCES NL

ABN: 55 105 154 185

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

• 1 +Class of +securities issued or to be issued Ordinary fully paid shares. 2 Number of[+] securities issued or to be issued 200,000 (if known) or maximum number which may be issued

• 3 Principal terms of the[+] securities (eg, if Shares issued on the same terms as existing ordinary options, exercise price and expiry date; if fully paid shares. partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion).

• 4 Do the[+] securities rank equally in all respects Yes. from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• See chapter 19 for defined terms.

Appendix 3B Page 1

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Appendix 3B New issue announcement

5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h_in relation_ to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of securities issued under an exception in rule 7.2 6g If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. 6h If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.	200,000 at $4.66 per share.
	200,000 shares issued on conversion of options expiring 27 November 2014.
	No.
	N/A.
	N/A.
	N/A.
	N/A.
	N/A.
	N/A.
	N/A.
	N/A.
	23 October 2014.

• See chapter 19 for defined terms.

Appendix 3B Page 2

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Appendix 3B New issue announcement

Number ~~+~~Class 8 Number and+class of all+securities quoted on ASX (_including_the securities in clause 2 if applicable) 155,840,968 Ordinary fully paid shares (SFR). Number ~~+~~Class 9 Number and+class of all+securities not quoted on ASX (_including_the securities in clause 2 if applicable) 110,000 620,000 33,333 133,333 333,335 1,749,995 1,666,665 1,583,340 1,695,000 Options exercisable at $4.66 expiring 27 November 2014. Options exercisable in two equal tranches at $5.44 and $6.22 expiring 27 November 2014. Options exercisable at $3.80 expiring 15 June 2015. Options exercisable at $4.40 expiring 15 June 2015. Options exercisable at $5.00 expiring 15 June 2015. Options exercisable at $9.00 expiring 28 February 2016. Options exercisable at $10.30 expiring 28 February 2016. Options exercisable at $11.70 expiring 28 February 2016. Options exercisable in three equal tranches at $7.60; $8.80 and $10.00 expiring15 July2018. 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) The Company does not have a dividend policy. Part 2 - Bonus issue or pro rata issue 11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions	Number	~~+~~Class
	155,840,968	Ordinary fully paid shares (SFR).
	Number	~~+~~Class
	110,000 620,000 33,333 133,333 333,335 1,749,995 1,666,665 1,583,340 1,695,000	Options exercisable at $4.66 expiring 27 November 2014. Options exercisable in two equal tranches at $5.44 and $6.22 expiring 27 November 2014. Options exercisable at $3.80 expiring 15 June 2015. Options exercisable at $4.40 expiring 15 June 2015. Options exercisable at $5.00 expiring 15 June 2015. Options exercisable at $9.00 expiring 28 February 2016. Options exercisable at $10.30 expiring 28 February 2016. Options exercisable at $11.70 expiring 28 February 2016. Options exercisable in three equal tranches at $7.60; $8.80 and $10.00 expiring15 July2018.
	The Company does not have a dividend policy.

• See chapter 19 for defined terms.

Appendix 3B Page 3

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Appendix 3B New issue announcement

18	Names of countries in which the entity
	has security holders who will not be sent
	new offer documents
	Note: Security holders must be told how their entitlements
	are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of acceptances or
	renunciations
20	Names of any underwriters
21	Amount of any underwriting fee or
	commission
22	Names of any brokers to the issue
23	Fee or commission payable to the broker to
	the issue
24	Amount of any handling fee payable to
	brokers who lodge acceptances or
	renunciations on behalf of security
	holders
25	If the issue is contingent on security
	holders’ approval, the date of the meeting
26	Date entitlement and acceptance form and
	prospectus or Product Disclosure Statement
	will be sent to persons entitled
27	If the entity has issued options, and the terms
	entitle option holders to participate on
	exercise, the date on which notices will be
	sent to option holders
28	Date rights trading will begin (if applicable)
29	Date rights trading will end (if applicable)
30	How do security holders sell their
	entitlements_in full_through a broker?
31	How do security holders sell_part_of their
	entitlements through a broker and accept
	for the balance?
32	How do security holders dispose of their
	entitlements (except by sale through a
	broker)?

• See chapter 19 for defined terms.

Appendix 3B Page 4

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Appendix 3B New issue announcement

• 33 +Issue date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of[+] securities

• ( tick one )

• (a)  +Securities described in Part 1

• (b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35[If the ] +securities, and the number and percentage of additional[+][securities are ][+][equity securities, the names of the 20 largest holders of the additional ] +securities held by those holders

• 36[If the ][+][securities are ][+][equity securities, a distribution schedule of the additional ][+][securities ] setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37[A copy of any trust deed for the additional ][+][securities ]

Entities that have ticked box 34(b)

• 38 Number of[+] securities for which[+] quotation is sought

• 39 +Class of +securities for which quotation is sought

• 40 Do the[+] securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional[+] securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

• (if issued upon conversion of another +security, clearly identify that other +security)

Number +Class

• 42 Number and[+] class of all[+] securities quoted on ASX ( including the[+] securities in clause 38)

Quotation agreement

• 1[+] Quotation of our additional[+] securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the[+] securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Robert Klug

Date: 28 October 2014

Joint Company Secretary

• See chapter 19 for defined terms.

Appendix 3B Page 6

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