• Sandfire to earn 80% interest in Kalkaroo through a two-stage earn-in structure
• Sandfire to invest A$105M upfront and a further A$105M upon completion of a new pre-feasibility study
• Sandfire to commit A$30M to regional exploration across a minimum 24-month period

Sandfire Resources Limited (ASX: SFR) and Havilah Resources Limited (ASX: HAV) have announced the execution of a binding term sheet to advance the Kalkaroo Copper-Gold Project and establish an exploration strategic alliance across the highly prospective Curnamona Province in northeastern South Australia. Under the term sheet, Sandfire may earn an 80% interest in Kalkaroo through a two-stage earn-in structure, comprising A$105M upfront consideration (70% scrip and 30% cash) and a further A$105M consideration upon completion of a new pre-feasibility study that will include a minimum 20,000m infill and extension drilling program. In parallel, Sandfire will commit A$30M to regional exploration across a minimum 24-month period under the exploration strategic alliance. The transaction will establish a rapid pathway to unlock one of Australia's largest undeveloped open pit copper-gold deposits by bringing together Sandfire's proven mine design, project development and operating capabilities with Havilah's deep geological knowledge of the Curnamona Province and track record of discoveries. The new pre-feasibility study will test the open extent of the Kalkaroo orebody along strike and at depth, de-risking the project within 18 to 24 months. The exploration strategic alliance will also unlock significant regional upside potential by targeting new discoveries within the broader Havilah exploration tenement package.

The funding under the exploration strategic alliance will allow Havilah to accelerate regional exploration in South Australia with the objective of transforming the highly prospective Curnamona Province into Australia's next major copper province, centred on the Kalkaroo project development.