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DOOLGUNNA PROJECT - EXPLORATION UPDATE

Sandfire Resources NL (ASX: SFR; "Sandfire") is pleased to advise that diamond drilling at the Springfield Project, part of its joint venture with Talisman Mining Limited (ASX: TLM; "Talisman"), has intersected a zone of massive sulphides approximately 10km east of its 100%-owned DeGrussa Copper Mine.

Diamond drill hole TLDD004A intersected 14 metres of massive sulphides from 411m down-hole to

425m (for hole details see Table 1 below). Based on field observations, the interval contains visible chalcopyrite and is similar to the massive sulphides seen at DeGrussa. Drilling is continuing with the hole currently in fragmental siltstone and basalt with trace chalcopyrite and pyrrhotite to 427m down-hole. Note, all widths are down hole as true widths are not currently known.

TLDD004A was drilled as a follow-up hole to TLDD002A, completed last month, which intersected a sedimentary package that closely resembles the exhalative VMS sequence observed in proximity to the massive sulphide mineralisation at the Conductor 5 deposit.

TLDD004A was designed to intersect an off-hole EM response identified from DHEM surveys on the original Talisman drill-hole SPD021 and refined by Sandfire in subsequent DHEM surveys. Diamond drill core from TLDD004A will be dispatched for priority assaying, with results expected in the coming weeks.

Sandfire is very encouraged by the intercepted massive sulphide in TLDD004A, which represents the first significant accumulation of massive sulphides to be intersected within its Greater Doolgunna Project outside of the four known lenses of VMS mineralisation at DeGrussa. Follow-up diamond drilling will be undertaken as a priority.

Sandfire is earning a 70% interest in the Talisman Mining's Doolgunna Project, which forms part of its Greater Doolgunna Project comprising a 1,700 square kilometre package of contiguous tenements surrounding the DeGrussa Copper Mine.

ENDS

For further information contact:

Sandfire Resources NL

Karl Simich - Managing Director/CEO

Office: +61 8 6430 3800

Read Corporate

Mobile: +61 419 929 046 (Nicholas Read) Mobile: +61 421 619 084 (Paul Armstrong)

Table 1 - Drill-hole Information Summary, Springfield Project

Details and coordinates of the historical drill-hole SPD021 and recent drill holes completed by Sandfire at the Springfield

Project, TLDD0001, TLDD0002A, TLDD0003, TLD0004 and TLDD0004A, are provided below:

Figure 1 - Sandfire's Greater Doolgunna Project, showing the Springfield Project and the location of drill hole TLDD0004A (in progress)

Figure 2 - Location of recent drilling relative to the DeGrussa Copper Mine

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Competent Person's Statement - Exploration Results

The information in this report that relates to Exploration Results is based on information compiled by Mr. Shannan Bamforth who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bamforth is a permanent employee of Sandfire Resources and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bamforth consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration and Resource Targets

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

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.

JORC Compliance Statement

A summary of the information used in this release is as follows.
The DeGrussa VHMS (volcanic-hosted massive sulphide) copper-gold deposit is located 900 kilometres north of Perth and 150 kilometres north of Meekatharra in the Peak Hill Mineral Field. The system is hosted within a sequence of metasediments and mafic intrusions situated in the Bryah Basin that have been metamorphosed and structurally disrupted.
The sulphide mineralisation consists of massive sulphide and semi-massive sulphide mineralisation. Primary sulphide minerals present are pyrite, chalcopyrite, pyrrhotite and sphalerite, together with magnetite. The sulphide mineralisation is interpreted to be derived from volcanic activity. The deposit shares characteristics with numerous VHMS deposits worldwide.
Sandfire Resources are currently exploring the defined prospective sequence in its 100% held tenements and within the Talisman Mining earn in and joint Venture agreement.

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JORC 2012 TABLE 1 - EXPLORATION RESULTS Section 1: Sampling Techniques and Data

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Section 2: Reporting of Exploration Results

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