DECEMBER 2011 QUARTERLY ACTIVITIES REPORT

Oxide copper extracted from the open pit

ASX Code:

SFR

Issued Capital:

Ordinary Shares 151M Options 9M

Major Shareholders:

OZ Minerals 19.8% POSCO 15.7%

Directors: Derek La Ferla

Non-Executive Chairman

Karl M. Simich

Managing Director and CEO

W. John Evans

Executive Technical Director

Jonghun Jong

Non-Executive Director

Robert Scott

Independent Non-Executive

Director

Management: Matthew Fitzgerald

CFO & Company Secretary

Martin Reed

Project Manager

Robert Klug

Commercial Manager - Legal

HIGHLIGHTS