Sandfire Resources America Inc. (TSX-V: SFR) (ASX:SFR) further to its news release dated May 27, 2021, is pleased to report final comprehensive drill results of the winter 2021 exploration core drilling program, with four of the nine exploration holes returning intercepts of greater than 1.2% copper. The Company has also entered into a contract with American Drilling commencing in August 2021 to complete 14,000m of diamond drilling over the Lowry deposit which has a reported Inferred Mineral Resource of 8.3 million tonnes of 2.4% copper (See press release dated October 27, 2020).

The Exploration Program drilling, which completed in March 2021, focused on drilling new targets that could be accessed from the currently planned and fully permitted underground mine in the Johnny Lee area. The Exploration Program recovered 5,267m of core in eight drill holes in four different target areas. Any resource development in these areas, including the Inferred Mineral Resource at Lowry, will require a thorough environmental review as part of the permitting process administered by the Montana Department of Environmental Quality, as well as commercial studies, before the Company could make any decision to mine.

Highlights of the Exploration Program include (a full table of results is included at the end of this release):

• Hole SC21-256 – Lowry South extension in Lowry Lower Copper Zone – 12.45m of 3.4% copper and 6.5g/t silver (previously reported in the Company’s May 27, 2021 news release)
• Hole SC21-262 – Strawberry West Upper Copper Zone – 6.8m of 1.2% copper and 33.0g/t silver.
• Hole SC21-263 – Lowry North extension in Lowry Middle Copper Zone – 9.8m of 1.7% copper and 12.2g/t silver
• Hole SC21-263 – Lowry North extension in Lowry Lower Copper Zone – 7.1m of 1.4% copper and 6.5g/t silver.

Hole SC21-263 intercepted copper mineralization in both the Lowry Middle Copper Zone and Lowry Lower Copper Zone, and so extended both zones north and east of previous intercepts. Together with the intersection in SC21-256 (reported May 27, 2021) these results show positive potential for expansion of the Lowry Lower Copper Zone in areas of its higher grades.

Hole SC21-262 tested the Upper Sulfide Zone in the Strawberry West area, about 600m west of the Johnny Lee Upper Copper Zone. Results from this hole plus historic holes outline a Strawberry West Upper Copper Zone reachable by underground access from the future Johnny Lee mine area.

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/093e7b8e-ae66-4e1d-b727-77679b15cc13

Sandfire America is in the preparation stages for a fall-winter 2021-2022 drill program which will include 14,000m of infill drilling in the Lowry deposit to upgrade and expand the Middle Copper Zone and Lower Copper Zone resources. Approvals for the program have been received from the MT DEQ and a contract has been entered into with American Drilling to commence in August 2021 and work through to March/April 2022. The results of this drilling will support a Lowry Pre-Feasibility Study planned for completion in 2022. Additional work for the prefeasibility study will include hydrologic, metallurgical, mining, and geotechnical studies.

Sandfire America’s CEO Rob Scargill shared, “The successful winter drill program shows the potential of the Black Butte property to host economic copper mineralization within a mineable distance from the Johnny Lee mine infrastructure and processing facilities. The Lowry deposit has the potential to add significant value to the Black Butte project due to its size and grade. Its location could allow us to mine and treat the material with minimal impact on our already approved surface footprint which will protect the water resources and environment while providing benefits to all our stakeholders.”

Table 1. Black Butte Copper 2021 Winter Exploration Drilling Program.

*-Reported previously, See the Company’s news release dated May 27, 2021

Intercept calculations included a minimum of 2 samples above a 1% copper cutoff grade.

Drilling conducted by Timberline Drilling Inc. of Hayden Lake, Idaho. HQ3-sized core was collected. Drill holes were oriented with dips varying between -80 to -70 degrees in relatively variably dipping mineral zones. Intercepts may be slightly longer than true thickness.

After being logged and photographed in White Sulphur Springs, Montana, all mineralized zones were sampled by cutting half-core splits which were delivered to Bureau Veritas labs in Reno, Nevada for processing. Bureau Veritas crushed the entire sample to 85% passing 2mm then split off 1kg, which was ground to 85% passing 75 micron and wet-sieved the split to ensure grinding passed specifications and then assayed for gold by fire assay with AA finish. Base metals were analyzed using a 4-acid digestion and ICP-ES analysis. Various other trace and major elements were also analyzed utilizing ICP and XRF procedures. Sandfire America utilized a QA/QC protocol which included inserting Certified Reference Materials (CRM) on a minimum of 1 CRM in 20 samples insertion rate. Assays of duplicates, and blanks were also included as part of the QA/QC program.

Jerry Zieg, Sr. Vice President of Exploration for the Company, is a Qualified Person for the purposes of NI 43-101 and has also reviewed and approved the information of a scientific or technical nature contained in this news release. Mr. Zieg verified the data disclosed in this news release, including sampling, analytical, and test data underlying the information or opinions contained in this news release.