SABRE RESOURCES LIMITED — Capital/Financing Update 2005

Sep 18, 2005

SABRE RESOURCES LIMITED

(ACN 003-043-570)

1st Floor, Sterling House, 8 Parliament Place WEST PERTH WA 6005 Postal: PO Box 1618, WEST PERTH WA 6872 Phone: (08) 9481 7833 Fax: (08) 9481 7835 E-mail: sabre@sabresources.com Website: www.sabresources.com

19th September 2005

Australian Stock Exchange Companies Announcement Office 20 Bond Street SYDNEY NSW 2000

SABRE RESOURCES LTD ACQUIRES URANIUM PROJECTS IN TANZANIA

The Board of Sabre Resources Ltd is pleased to announce that the Company has entered into an agreement to acquire three Uranium prospective properties totalling 381km2 in the Lindi and Ruvuma Regions of Southern Tanzania. Two of the licences, PLR 3323/2005 and PLR 3324/2005, form the Mkunju group whilst the third licence PLR 3447/2005 represents the Madaba Project.

Project Details

The two Mkunju licences totalling 246km2 are located in southem Tanzania, some 460 kilometres southwest of Dar es Salaam, near the southern boundary of the Selous Game Reserve. The licences are proximal to the Mkuju River Project currently being explored by OmegaCorp Limited. Adjoining licence holders include Uranium Resources plc and Pan African Mining Corp.

The 135km2 Madaba licence is situated near the northern boundary of the Selous Game Reserve about 260km to the south of Dar es Salaam. The licence is located adjacent to those of Sterling Resources Limited.

The Mkunju and Madaba licence areas were part of the focused search area for uranium between 1978 and 1982 by a German company Uranerzbergbu GMBH (UEB). The exploration initiative commenced in 1976-1979 when the Government of Tanzania contracted Geosurvey International Company to carry out a systematic airborne survey of the whole country to illustrate the geology and uranium mineralisation potential. Total magnetic field and radiation intensity data were collected using spectrometry, EM and magnetics. From this work, UEB defined six areas of interest and staked large areas with prospecting licences, to field check the geophysical anomalies.

No detailed work was undertaken on the areas covered by the Mkunju and Madaba licences, however the licences are located adiacent to and proximal to areas of detailed exploration by UEB and their discovered uranium occurrences.

Uranium in the district is within a favourable geological setting, being associated with fine to medium grained sandstone and siltstones of the upper Carboniferous to lower Jurasic. Karoo system. By the end of 1979 a total of 78 airborne anomalies were investigated on the ground by UEB of which 16 areas contained visible mineralisation at the surface within an area of $10 \times 10$ km and over an elevation interval of 220 m. The uranium occurrences of southern Tanzania within the Karoo have been compared to the sandstone uranium deposits in the Colorado Plateau area of Western USA.

Exploration Strategy

An exploration programme will be established and supervised by our Technical Consultant, Klaus Eckhof, a senior exploration geologist who has world wide contacts and has been instrumental in locating successful projects in Australia, Africa, the Philippines, Russia and South America. He was a former Director of Spinifex Gold Ltd and Lavfavette Mining Ltd and is currently an executive director of Moto Goldmines Ltd and a Director of Tiger Resources Ltd.

Exploration will focus on a review of existing airborne radiometric data with the view to designing a detailed ground borne radiometric survey. Anomalous ground borne radiometric surveys would then be mapped and sampled by trenching in exposed areas and drilling where the favourable sequences are buried. The deeply dissected landscape is conducive to exploration as it provides large exposures of the prospective sequence.

Terms of Acquisition

Sabre Resources Ltd, through a wholly owned Tanzanian subsidiary, will acquire 100% ownership of the three prospecting licences for a purchase consideration comprising the payment of US$50,000 and the issue of 1,850,000 fully paid ordinary shares and 1,000,000 unlisted options exercisable at 10 cents on or before 30 June 2006 to unrelated parties.

Additionally, 330,000 ordinary shares will be issued to Kalgoorlie Mine Management Pty Ltd for sourcing and facilitating the acquisition.

The Company plans to review further acquisition opportunities for Uranium prospective areas in Africa.

Yours faithfully

D N Zukerman Director