Black Butte Copper Project Update

Black Butte Copper Project Update

WHITE SULPHUR SPRINGS, Mont., June 05, 2020 -- Sandfire Resources America Inc. (“Sandfire America” or the

“Company” TSX.V: SFR and OTCQB: SRAFF ) provides the following update on its Black Butte Copper underground mining

project in Montana, USA.

Stage One Bonding Level Issued

The Company is pleased to announce that on May 19, 2020, the Montana Department of Environmental Quality (MT DEQ)

issued a Phase I bonding number establishing a bond of $4.65 million for the Black Butte Copper Project. The Company must

secure this bond before commencing surface construction at the mine site.

The initial bond increment covers only Phase 1 surface construction of the mine site. A second bond increment must be

calculated by the DEQ to cover Phase 2 development which includes further underground development, mill construction, and

any activities involving beneficial water use. 

Commencement of Stage One Surface Earthworks

The Company is currently finalizing a construction contract for the commencement of surface earthworks which are scheduled

to commence this summer after the Company secures the Phase I bond amount.

Commenting on the achievement of this milestone, Sandfire America’s CEO and VP of Project Development, Rob Scargill,

said: “We are proud to be part of the economic engine which will help us recover from the impacts and hardships we have all

felt from the COVID-19 pandemic. Strength in the natural resources sector will help drive recovery across the economy,

creating employment and opportunities for the people of Montana. 

“This sets a clear path toward completing the Black Butte Feasibility Study and, subject to progressing project funding and

making a positive Final Investment Decision, building a showcase mine that will combine local input and expertise with state-of

-the-art technology.”

Sandfire America Senior Vice President, Jerry Zieg, stated, “We’re very pleased and look forward to being part of the solution

to Montana’s economic revival by providing new jobs and new opportunities. Together with our stakeholders and community we

have achieved a permit that protects our waterways and the environment which we all cherish and look forward to providing an

important economic driver for our community and for Montana in these challenging times.”

Legal Challenge

A legal challenge to the MT DEQ’s Record of Decision was lodged in the 14 th Judicial Court in Meagher County, Montana

against the MT DEQ and Tintina Montana Inc., a wholly owned subsidiary by Sandfire America, by a number of groups who

oppose resource development in Montana on June 4, 2020.  The Company will review the challenge and will seek to work with

the MT DEQ to defend this litigation vigorously.

Rob Scargill said, “We are disappointed that this litigation has been filed. No major natural resource project in Montana seems

to go unchallenged despite our strict regulations and processes enshrined in Montana law.  Montana DEQ, under Governor

Bullock, did an extremely thorough job of evaluating and reviewing the permit application during the past four and a half years,

adopting changes to even further strengthen the permit, making it, in the words of the Montana DEQ, “the most protective

permit the department has ever issued”. The Montana DEQ conclusively and independently found that all environmental issues

have been addressed and that this permit can be granted knowing that the environment which we all value and care for is

protected.”

QUALIFIED PERSON

Jerry Zieg, Vice President of Exploration for the Company, is a Qualified Person for the purposes of NI 43-101 and has

reviewed, verified, and approved the data disclosed and information of a scientific or technical nature contained in this news

release.

Contact Information:

Sandfire Resources America Inc.

Nancy Schlepp, VP of Communications

Mobile: 406-224-8180

Office: 406-547-3466

Email: [email protected]

CAUTIONARY NOTE

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this document constitute “forward looking

information” within the meaning of Canadian securities legislation, including statements regarding  the Company’s plans for

advancing the Black Butte Copper Project  including  commencement of contracted surface work and expected outcomes. In

making these forward-looking statements, the Company has applied certain factors and assumptions that the Company

believes are reasonable, including that the Company will receive required regulatory approvals, that the Company will continue

to be able to access sufficient funding to execute its plans,  that the Company's exploration and development activities on the

Black Butte Copper Project will not be materially affected by actions of environmental activists or other special interest

groups, and that the results of exploration and development activities are consistent with management’s expectations, and

assumptions regarding the impact  of the global health and financial crisis caused by COVID-19 on the Company. However,

the forward-looking statements in this document are subject to numerous risks, uncertainties and other factors, including

factors relating to the Company’s operation as a mineral exploration and development company and the Black Butte Copper

Project, that may cause future results to differ materially from those expressed or implied in such forward-looking statements,

including that results of exploration and development activities will not be consistent with management’s expectations, delays

in obtaining or inability to obtain required government or other regulatory approvals or financing,  interference with the

Company's exploration or development activities by environmental activists or other special interest groups,  the  risk that the

Company  will be materially and adversely impacted by the global health and financial crisis caused by COVID-19, failure of

plant, equipment or processes to operate as anticipated, the risk of accidents, labor disputes, inclement or hazardous

weather conditions, unusual or unexpected geological conditions, ground control problems, earthquakes, flooding and all of

the other risks generally associated with the development of mining facilities. There can be no assurance that such

statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in

such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not

intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a

result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.