SABRE RESOURCES LIMITED

$(ACN 003-043-570)$

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

25th February 2005

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

Gnamma Dam Nickel Project

The Directors are pleased to announce they have agreed to purchase The Gnamma Dam Nickel Project comprising 14 granted prospecting licences located 26kms east of Kalgoorlie, Western Australia.

The consideration for the acquisition from Coniston Pty Ltd is the issue of 1.5 million fully paid ordinary shares, the issue of 3.5 million options exercisable at 10 cents each on or before 30 June 2006 and a cash payment of $15,000.

The Gnamma Dam Project is located approximately 26 kilometres to the east of Kalgoorlie. The Project consists of fourteen prospecting licences (P25/1766 to P25/1775 and P25/1783 to P25/1786) that straddle the Bulong Road and include the Hampton Hill Homestead (see Location Plan). A compilation of historical geological mapping and aeromagnetic interpretations indicates that the tenements overlie a sequence of ultramafic, mafic and volcanogenic sediments (Figure 1).

The ultramafic stratigraphy is mapped as a komatiitic sequence and is interpreted to be the same stratigraphy that hosts the Duplex Hill and Blair nickel sulphide mines to the south. The tenements cover over seven kilometres of strike of this komatiitic sequence, and the limited historical exploration data shows elevated surface nickel geochemistry.

A review of the historical open file data shows that the project area has only had cursory exploration for nickel. In the 1970's and early 1980's various groups, including Seltrust Mining Corporation and WMC Resources, conducted geological mapping & reconnaissance sampling.

WMC Resources also undertook a program of shallow drilling on its 'Virgin Dam' project, which overlapped the northeastern corner of the current project area. This drilling intersected a number of anomalous zones of mineralisation within the regolith, with grades up to 0.74% nickel.

A number of groups, including Archaean Gold and Asian Mining, explored the project area in the late 1980's through to the 2002, with the focus of their work being gold and volcanogenic massive sulphide (VMS) mineralisation (namely copper, zinc & lead); this exploration data has been digitally compiled to assist in the future exploration of the project.

Asian Mining NL undertook wide spaced, multi-element soil sampling in 1994 as part of their gold exploration program and while this sampling program did not cover the basal ultramafic stratigraphy within the project area, the results did record elevated nickel values of up to 800 ppm nickel on the eastern side of the project area.

Initial field work by Sabre Resources Ltd will include an infill and extensional soil sampling program to further test the project area for its nickel potential, followed by geophysical surveys and drill testing of any targets delineated.

Yours faithfully

D N Zukerman Director