Doolgunna Project - Regional Exploration

The Company has completed extensive regional airborne electromagnetic surveys (VTEM) over the prospective volcanic rock sequences within the Doolgunna Project areas, covering both potential VMS copper-gold targets and gold exploration targets.

The results of this VTEM survey are considered to be strategically important in determining the broader prospectivity of Sandfire’s tenements.

The mineralization style, chemistry and regional setting of the DeGrussa Project is consistent with a volcanogenic massive sulphide (VMS) deposit.

This type of mineralization typically occurs in clusters of deposits or occurrences. As a result of these surveys additional priority targets have been indentified to the south-west of DeGrussa within Sandfire’s extensive 400km2 tenement package at Doolgunna.

These include coincident TEM and gravity targets which include some of the strongest regional exploration targets developed by the company to date. Programs of work have been submitted for drilling programs in up to 14 areas with drilling expected to continue through the rest of 2010.