ASX Announcement 5 November 2015

DOOLGUNNA PROJECT - MONTY DRILLING UPDATE

Thick zone of bornite-bearing massive sulphides grading 34.4% copper

Highlights

• Outstanding thick high-grade copper intercept returned from recent step-out hole TLDD0026:

  • 7.3 metres grading 6.2% Cu and 2.8g/t Au from 325.6m down-hole (down-hole width, top of intercept is 275m vertically below surface)

  • 21.6 metres grading 34.4% Cu and 0.4g/t Au from 339.4m down-hole (down-hole width, top of intercept is 286m vertically below surface)

• Further high-grade assay results received from ongoing drilling, which continues to confirm the grade, tenor and continuity of the Lower Zone at Monty. New results include (all intercepts are down-hole widths):

o 1.5m grading 13.8% Cu and 1.1g/t Au from 272.3m down-hole (TLDD0020) o 3.4m grading 17.9% Cu and 3.9g/t Au from 239.0m down-hole (TLDD0021) o 8.0m grading 13.3% Cu and 1.8g/t Au from 286.2m down-hole (TLDD0021) o 2.6m grading 14.2% Cu and 1.1g/t Au from 445.6m down-hole (TLDD0024)

• Drilling is continuing to define the extents of the mineralisation at Monty with initial in- fill drilling of the known mineralisation envelope also now underway.

Sandfire Resources NL (ASX: SFR; 'Sandfire') is pleased to report further encouraging results from ongoing drilling being undertaken at the Monty copper-gold discovery located 10km east of the DeGrussa Copper-Gold Mine on the Springfield Project, part of its farm-in with Talisman Mining Limited (ASX: TLM; 'Talisman') (see Figures 1 and 2).

Assay results have been received for additional step-out Diamond drill-holes targeting the Lower Zone mineralisation including the recently reported zone of bornite-bearing massive sulphides intersected in step-out hole TLDD0026.

Assay Results for TLDD0026

Diamond hole TLDD0026, which was drilled approximately 45 metres along strike from recently reported hole TLDD0021 and 46 metres from the halo mineralisation intersected in TLDD0014 (see Figures 1 and 2), has returned exceptional assay grades of:

• 7.3 metres grading 6.2% Cu and 2.8g/t Au from 325.6m down-hole (down-hole width, top of intercept is 275m vertically below surface); and

  
  

• 21.6 metres grading 34.4% Cu and 0.4g/t Au from 339.4m down-hole (down-hole width, top of intercept is 286m vertically below surface).

This 21.6 metre intersection of massive sulphides is interpreted to correlate to existing mineralisation in the lower zone previously described in the ASX Announcement of 2 October 2015. The mineralisation in TLDD0026 is open up-dip with follow-up drilling planned.

Additional Lower Zone Results

In addition to the exceptional result from TLDD0026, assays have been received for previously completed holes TLDD0011, TLDD0014, TLDD0016, TLDD0020, TLDD0021 and TLDD0024 (full

assays are shown in Table 2). Better results include:

These latest results assist in confirming the continuity and grade of the mineralisation at Monty.

In line with Sandfire's growing understanding of the variable orientations of the mineralisation at Monty, the Company has included true width estimates for the mineralisation for the first time. As noted in prior releases, the estimated true widths for the Upper Zone mineralisation are significantly thinner than the down-hole widths as shown in Table 2 below.

Drilling at Monty is continuing to define the extents of mineralisation and initial in-fill drilling of the known mineralisation envelope has commenced.

Management Comment

Sandfire's Managing Director, Mr Karl Simich, said exploration of the Monty discovery was continuing to gather momentum with the exceptional results for step-out hole TLDD0026 marking another significant milestone for the ongoing program.

'An intersection of this magnitude is without doubt an exciting breakthrough,' he said. 'While we don't yet fully understand the significance of this bornite-rich zone, it is pleasing to note that it correlates with the lower zone of mineralisation intersected in previous drilling and remains open up- dip with further drilling planned.

'We are currently in the process of stepping up our drilling capacity at Monty with a program of in-fill drilling commencing recently within the known mineralised envelope. This will continue through the quarter with the data to be used to underpin a maiden Mineral Resource estimate, which is planned for the first quarter of next year.

'We are also actively testing for additional accumulations of mineralisation along the entire 5km long Monty trend, which remains extremely prospective for further discoveries. Together with planned drilling at Homer, 4km east of DeGrussa, this is an exciting time for our exploration team at DeGrussa as we continue to unlock the potential of the province.'

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)

Figure 1: Monty Prospect showing drill-hole collar locations and interpreted schematic geology

Figure 2: Vertical Longitudinal Projection and initial interpretation of the Monty Prospect showing drill-hole piercepoints at the top of the primary intercept shown in bold. All intercepts are down-hole widths. A significant intersection is defined here as any intersection ≥ 3m estimated true width that has a grade of ≥ 2.0 % Cu, inclusive of non-mineralised material. To determine whether intersections that are 2.0% Cu, with the non-mineralised material included, then the intersection is considered significant. New intersections (not previously reported) are highlighted in yellow.