Sandfire Resources NL ABN 55 105 154 185 Level 1, 31 Ventnor Ave, West Perth Western Australia 6005 Email: [email protected] Web: www.sandfire.com.au

ASX/Media Release 15 October 2015

DOOLGUNNA PROJECT - MONTY EXPLORATION UPDATE

Thick zone of bornite-bearing massive sulphides intersected in Lower Zone

Highlights:

• Three horizons of massive sulphides intersected in step-out hole TLDD0026, 45m along strike from recently reported hole TLDD0021 (7.3 metres of massive sulphides from 286.2m), including a significant intercept of:

  o 19.9 metres of massive sulphides from 340.2m down-hole (true width not known at this time, top of intercept is ~286m vertically below surface)

  
  

• The primary mineralisation in TLDD0026 is similar to previous holes in the Lower Zone but also contains variable amounts of bornite, a copper mineral which has not previously been encountered in any significant quantities at Doolgunna. Bornite typically has a copper content of ~63% by mass.

  
  

• Drilling continuing to define the extents of the mineralisation at Monty and to target other prospective areas both in the immediate vicinity and further afield.

  
  

  
  

  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).

  
  

  Thick zone of massive sulphides intersected in Lower Zone

  
  

  Diamond hole TLDD0026, which was drilled approximately 45 metres along strike from recently reported hole TLDD0021 (which returned 7.3 metres of massive sulphides from 286.2m down-hole) and 46 metres up- dip from the halo mineralisation intersected in TLDD0014 (see Figures 2 and 3), has intersected three horizons of massive sulphides within the host sequence of the Lower Zone:

  
  

  • 3.0 metres of massive sulphides from 325.6m to 328.6m down-hole (true width not known at this time, top of intercept is approximately 275m metres vertically below surface);

  • 2.4 metres of massive sulphides from 330.5m to 332.9m down-hole (true width not known at this time, top of intercept is approximately 279m metres vertically below surface); and

  • 19.9 metres of massive sulphides from 340.2m to 360.1m down-hole (true width not known at this time, top of intercept is approximately 286 metres vertically below surface).

    
    

    The 19.9 metre intersection of massive sulphides in TLDD0026 is interpreted to be a continuation of the 7.3m (down-hole width) primary mineralisation previously reported from TLDD0021 in the ASX announcement on 2 October 2015 (Figures 3 and 4). The mineralisation in the upper two intersections in TLDD0026 appears to be consistent with that of the higher level, subordinate mineralisation zones intersected in TLDD0021 (Figure 4).

    Based on field observations, the mineralogy of the 19.9 metre intercept in TLDD0026 differs from that observed in the previously reported intersections of the primary mineralisation in TLDD0004A, TLDD0005, TLDD0009, TLDD0010, and TLDD0021. The massive sulphides intersected in these earlier holes comprises variable amounts of chalcopyrite (main copper-bearing sulphide mineral), pyrite and pyrrhotite, minor sphalerite and galena, along with silicate and talc gangue minerals (with gold and silver).

    
    

    The primary mineralisation in TLDD0026 has a similar composition to that of the earlier holes but also contains variable amounts of bornite (a copper-bearing sulphide). Both the bornite and other sulphide minerals are deformed and exhibit features consistent with re-crystallisation, which suggests that modification of the massive sulphide may have occurred during deformation.

    
    

    Bornite is an important copper mineral and commonly occurs in VMS deposits globally, along with the more common chalcopyrite. Bornite, in isolation, typically has a copper content of approximately 63 per cent by mass.

    
    

    Further work is required to put the presence of bornite in TLDD0026 into further context and determine its significance in the exploration campaign at Monty and further afield at Doolgunna. Diamond core from TLDD0026 will be despatched for analysis.

    
    

    
    

    Plate 1. Cross section through NQ2 core showing bornite disseminated in the matrix of the sulphides (359.3 metres down hole).

    
    

    
    

    Plate 2. NQ2 core showing bornite in foliation (right) and rimming pyrite and pyrrhotite (left) (351m down-hole).

    Photographs of the drill core from the mineralised intervals in TLDD0026 are provided in Appendix 1 to this release.

    
    

    Additional Lower Zone Drilling Results

    
    

    Diamond hole TLDD0024, which was drilled approximately 66 metres down-dip of previously reported hole TLDD0010 (which returned intercepts including 10.5m at 18.9% Cu and 3.1g/t Au from 359.7m down-hole and 4.7m at 12.8% Cu and 2.5/t Au from 373.6m down-hole), intersected a single horizon of massive sulphides within the Lower Zone host sequence:

    
    

• 1.8 metres of massive sulphides from 445.6m to 447.3m down-hole (true width not known at this time, top of intercept is approximately 381 metres vertically below surface).

  
  

  Diamond hole TLDD0028, which was drilled approximately 37 metres along strike from previously reported hole TLDD0021 (7.3 metres of massive sulphides from 286.2m down-hole) and 46 metres from the mineralisation intersected in TLDD0020 (1.2 metres of massive sulphides from 272.6m down-hole), intersected the prospective horizon with weak haematite, jasper, and minor disseminated sulphides logged in the core. No massive sulphides were encountered and further drilling will be undertaken down-dip to help define the extents of the mineralisation in this area.

  
  

  Assay results have also been received for previously reported drill-hole TLDD0014, which was completed 45 metres along strike of TLDD0026 (see Figures 2 and 3). TLDD0014 intersected:

  
  

• 0.5 metres at 3.6% Cu and 0.1g/t Au from 334.2m to 334.7m down-hole (corresponding to the stratigraphic position of the main mineralised zone); and

• 3.4 metres at 3.5% Cu and 0.8g/t Au from 359.4m to 362.8m down-hole (true widths for both intersections not known at this time).

  
  

  Diamond hole TLDD0011, which was drilled along strike of TLDD0010 (see Figures 2 and 3), returned an intersection of:

  
  

• 0.4 metres at 1.2% Cu and 1.3g/t Au from 370.9m to 371.3m down-hole (true width not known at this time).

Upper Zone Drilling

Reverse Circulation holes TLRC0015, TLRC0016 and TLRC0017 were drilled up-dip of, and at the opposite orientation to, previously reported holes TLRC0004, TLRC0008 and TLRC0009 to test for potential mineralisation (Figure 2 and 3).

No visible mineralisation was observed and the mineralised zone is therefore interpreted to not reach the surface (see Figure 3). The spatial position of the host horizon intersected in TLRC0016 and TLRC0017 indicates that the host horizon in the near-surface portion of the Upper Zone may be locally overturned and dip at approximately 75°to the south-east.

As the earlier drill-holes that intersected mineralisation in the Upper Zone (TLRC0004, TLRC0008 and TLRC0009) were drilled at a dip of 60 - 62°to the south-east, the true widths of mineralisation in these holes is anticipated to be significantly lower than the down-hole widths (as previously announced). Additional diamond holes are planned to be drilled below TLRC0004, TLRC0008 and TLRC0009 in order to test for down-dip mineralisation as well as to provide information to accurately constrain the dip of the Upper Zone.

Assay results have been received for drillhole TLRC0009, which returned an intersection of:

• 12.0 metres at 5.7% Cu and 1.8g/t Au from 133m - 145m down-hole (true width unknown but anticipated to be significantly less than down-hole widths).

Management Comment

Sandfire's Managing Director, Mr Karl Simich, said the latest results from the ongoing drilling program at Monty were exciting and demonstrated that the Company's geological understanding of the discovery was continuing to evolve rapidly.

'The thick massive sulphide intersection seen in TLDD0026 is an exciting breakthrough for our team and provides further evidence that we have a strongly mineralised copper-gold system on our hands. The presence of bornite in the drill core, not seen before at Doolgunna in significant quantities, is a significant development although more work is needed to understand its context.

'In the meantime, drilling is continuing to provide valuable information on the overall orientation and extents of the mineralisation in both the Lower Zone and Upper Zone,' he said. 'As I've said before, this is an unfolding story for Sandfire as we continue drilling both to accurately define what we have at Monty and to begin to step further afield, with the objective of finding the next lenses or clusters of lenses of VMS mineralisation.'

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 all relevant drill collars are provided below:

Table 2 - Significant Drill-hole Assay Intersections, Springfield Project

Details of all relevant intersections are provided below:

Note: Calculation is based on a 0.5% cut-off, no more than 3m of internal dilution and a minimum composite grade of 1%. Intersection length, Cu (%), Au (ppm), Ag (ppm) and Zn (%) are rounded to 1 decimal point.

ASX/Media Release 15 October 2015

Appendix 1 - TLDD00026 Core Tray Pictures

7

Figure 1 - Sandfire's Greater Doolgunna Project, showing the Springfield Project (farm-in) and location of the Monty mineralisation and Homer prospect

Figure 2 - Monty Prospect showing drill-hole collar locations and interpreted schematic geology

ASX/Media Release 15 October 2015

Figure 3 - 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.

10

Figure 4 - Interpretive cross-section of the Monty mineralisation (Lower Zone)

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 mineralisation 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 Ore 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