SABRE RESOURCES LIMITED — Capital/Financing Update 2007

Aug 1, 2007

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• 2 August 2007

The Manager Company Announcements Office Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

MAJOR LEAD-ZINC PROJECT ACQUIRED IN NAMIBIA

Sabre Resources Ltd (‘Sabre’) is pleased to announce that it has entered into an agreement to purchase the Ongava Base Metal project in the northeast of Namibia.

KEY POINTS

• A strategic project area covering 800 km[2] of the Otavi Mountain Land including

• THREE insitu lead-zinc deposits and more than TWENTY TWO lead-zinccopper-vanadium prospects.

• The insitu Lead-Zinc deposits at Ongava represent an exploration target in excess of 16 million tonnes, grading at more than 4.5% combined Lead & Zinc.

• Significant opportunity to undertake exploration in a highly prospective base metal province, which has historically hosted a number of ‘world-class’ base metal ore bodies, including the Tsumeb & Abenab mines.

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The Ongava Base Metal project is located in the Otavi Mountain Land, in the northeast of Namibia (see left). The Otavi Mountain Land (OML) hosts a wealth of mineral deposits, including the renowned Tsumeb and Kombat copper mines, as well as the historic Berg Aukas (zinc), Guchab (copper) and Abenab (vanadium) mining operations (see Figure 1).

The Ongava project covers approximately 800 square kilometres of highly mineralised carbonate stratigraphy and hosts more than 22 known base metal prospects, as well as the lead-zinc deposits at Border, Driehoek and Harasib (see Figure 2).

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LEGEND
Recent Cover incl. Sand
TSUMEB MINING & SMELTING OPERATIONS
Tsumeb Sub-Group
30 Mt @ 10%Pb, 4.3% Cu, 3.5% Zn & 100 gpt Ag
-19.25 ° MINED & RESERVES -19.25 °
F
Recently refurbished by Weatherley ABENAB VANADIUM
Abenab Sub-Group !
1.85 t @ 17.04% V2O5
TSUMEB F
CONCENTRATE PROD
Swakop-Nosib Sub-Group
F Pb-Zn Dominant Deposits
F Cu Dominant Deposits
KHUSIB SPRINGS
500 000 t @ 10% Cu, 1.8% Pb & 584 gpt Ag
BORDER DEPOSIT F MINED
12 Mt+ @ 5-6% Pb+Zn
INSITU BERG AUKAS DEPOSIT
1.651 Mt @ 17% Zn, 5% Pb & 0.6% V2O5
HARASIB DEPOSITS INSITU
I
1 Mt+ @ >4% Pb+Zn I Zinc Concentrator being installed by Weatherley
-19.5 ° -19.5 °
EPL 3542 INSITU F
DRIEHOEK DEPOSITS
3-6 Mt @ >4% Pb+Zn
!
I INSITU GROOTFONTIEN
!
OTAVI
F OTAVI MOUNTAIN LAND
GROSS OTAVI MINING OPERATIONS
FIGURE 2.
157 000 t @ 1.54% Cu, 5.85% Pb & 15 gpt Ag KOMBAT MINING OPERATIONS TENEMENT AREA WITH
INSITU Date:27/7/2007
F 10 Mt+ @ 3.1% Cu, 1.1% Pb & 26 gpt Ag Author: TSP SIMPLIFIED OUTCROP GEOLOGY
MINED & INSITU Office: Perth MAJOR DEPOSITS &
-19.75 ° Drawing: TSPScale: 1:400000 Projection: Longitude / Latitude (Schwarzeck) MINING OPERATIONS -19.75 °
0 2.5 5 10
kilometres
18 °
17.5 ° 17.75 ° 18.25 °
17.5 ° 17.75 ° 18 ° 18.25 °
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A review of the public domain data available for the project indicates that exploration to date has been limited, with little drilling outside the main deposit and prospect areas. The project is highly prospective for ‘world-class’ strata-bound zinc, lead, copper and vanadium deposits.

LOCATION & LOGISTICS

Namibia is located in southwest Africa and is bounded by the Atlantic Ocean to the west and South Africa to the south. It is one of the most politically stable and well-developed countries in Africa, with excellent infrastructure and government policy designed to promote investment in mining and exploration. Namibia is currently rated amongst the top ten countries in the world in which to undertake both mining and exploration*.

The Ongava Base Metal project is located approximately 350 km to the northeast of the capital of Namibia, Windhoek. The project is accessed from Windhoek via the main sealed highway that runs north to the mining town of Tsumeb.

Logistically the project is very well situated, being close to Weatherley International’s recently refurbished base metal mining & smelting operations at Tsumeb, as well as reticulated power and rail services. The project occupies a strategic position in the Otavi Mountain Land and covers much of the ‘Tsumeb Triangle’, defined by the nearby mining towns of Tsumeb, Otavi & Grootfontein. (see Figure 1).

*See ‘Resource Stocks’ magazine, September 2006.

EXISTING BASE METAL DEPOSITS

The Ongava project hosts three major lead-zinc-silver deposits, namely Driehoek, Harasib and, most significantly, Border.

BORDER

The Border Lead-Zinc deposit is located approximately 35 kilometres to the southeast of Weatherley’s Tsumeb mining & smelting operations. A review of the public domain data has generated an exploration target at Border of more than

12 Million Tonnes grading at between 5 and 6% combined Lead & Zinc*

*The potential quantity and grade of the Border deposit is conceptual in nature as Sabre has determined that insufficient exploration has been undertaken to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The ‘exploration target’ size is based upon deposit calculations undertaken by Etosha Petroleum Ltd.

Etosha Petroleum Ltd (‘Etosha’) discovered the Border Lead-Zinc deposit during the late 1960’s as a result of regional soil sampling. A northeast trending lead-zinccopper soil anomaly, covering more than a kilometre of strike, was identified at Border coincident with weakly bedded and brecciated dolomite stratigraphy. The anomaly is masked by increasing cover to the north and remains open along its southern strike extent.

Diamond drilling identified three parallel lead-zinc lodes that extend over the entire strike length of the soil anomaly. These lodes can be traced to the surface, with the true width of the mineralised lodes varying between 2.4 metres and 21 metres. These lodes often contain higher-grade intercepts, which assay at over 10% combined lead & zinc . Drilling has resulted in intersections such as

B	002	18.90	metres @	11.18% Pb+Zn	from	80.47	metres
	Including	6.71	metres @	19.77% Pb+Zn	from	80.47	metres
B	016	11.00	metres @	15.92% Pb+Zn	from	87.17	metres

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LEGEND
Recent Cover incl. Sand
Tsumeb Sub-Group
Abenab Sub-Group
KHUSIB SPRINGS
500 000 t @ 10% Cu, 1.8% Pb & 584 gpt Ag
MINED
Swakop-Nosib Sub-Group
-19.4 ° -19.4 °
Pb-Zn Dominant Deposits
F
Dogleg
Cu Dominant Deposits F
F $
Pb-Zn Dominant Prospects Pick Axe Tiger Tunnel
$$
Cu Dominant Prospects South Ridge Olifantsfontein
BORDER DEPOSIT $
12 Mt+ @ 5-6% Pb+Zn $
HARASIB DEPOSITS
INSITU
1 Mt+ @ >4% Pb+Zn
INSITU I
I
-19.5 ° -19.5 °
Sinkhole
$
EPL 3542 Hornigs $
$
Teco
Z2
Harasib II $ $
$
Uitsab East
Uitsab Nth
Lucas Post
Harasib Claims $$$ Uitsab
Tigerschlught $
Uitsabpad $ Harasib III $$
$$$
DRIEHOEK DEPOSITS
3-6 Mt @ >4% Pb+Zn
I INSITU
-19.6 ° -19.6 °
Driehoek South $ OTAVI MOUNTAIN LAND
Auros
FIGURE 2.
$ Wolfenhauben TENEMENT AREA WITH
Date:27/7/2007
$
Nagelb Author: TSP SIMPLIFIED OUTCROP GEOLOGY,
hern Rhovers [$] Office: Perth WITH DEPOSIT AND PROSPECT
tral $$ Drawing: TSP LOCATIONS
$
Kupferberg $ Scale: 1:200000 Projection: Longitude / Latitude (Schwarzeck)
GROSS OTAVI MINING OPERATIONS 0 2 4 8
F 157 000 t @ 1.54% Cu, 5.85% Pb & 15 gpt AgINSITU Odin kilometres
Clubhead
KOMBAT MINING OPERATIONS
$ $ $
18 °
17.6 ° 17.7 ° 17.8 ° 17.9 °
17.6 ° 17.7 ° 17.8 ° 17.9 ° 18 °
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In the 1970’s it was standard practice to extract mineral deposits through underground mining methods. In the case of the Border deposit, Etosha planned its drilling and exploration around a ‘bulk underground mining’ scenario. A result of this style of mining is that much of the near surface mineralisation, from surface to around 50 metres depth, could not be mined and therefore mineralisation above this level was not included in the deposit tonnage calculations. Modern open pit mining techniques will allow this near surface material to be mined, and will immediately result in significant upgrades to the overall tonnage of the Border deposit.

Resource Potential

The current exploration target at Border is already a major deposit but shows significant potential for increased tonnage both at depth and along strike. Etosha also noted that their drilling showed an increase in the lead-zinc grade of the deposit at depth, as well as the increased presence of copper mineralisation.

The deposit appears to be highly amenable to open pit mining, with mineralisation extending to the surface. The inclusion of the ore in this ‘near-surface’ environment, combined with drilling of the deposit along strike and at depth, indicates that the deposit has the potential to be far larger than the initial exploration target. Etosha postulated that an exploration target in excess of 30 million tonnes was potentially insitu at Border.

Exploration and resource definition remain at an early stage, with the potential for large increases in both tonnage and grade. The Border project will be the initial focus of the company’s exploration with a view to bringing the current exploration target into JORC compliance.

DRIEHOEK

The Driehoek Lead-Zinc deposits are located approximately 15 kilometres to the north of the Kombat copper mine and 18 kilometres to the southwest of the Border deposit. A review of the public domain data has generated an initial exploration target at Driehoek of

3-6 Million Tonnes grading at over 4% combined Lead & Zinc*

*The potential quantity and grade of the Driehoek deposits are conceptual in nature as Sabre has determined that insufficient exploration data is currently available to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The ‘exploration target’ size is based upon deposit calculations provided by Goldfields of Namibia Ltd.

Eland Exploration (‘Eland’) discovered Driehoek in the 1970’s as a result of regional soil sampling. Initial soil sampling delineated a number of lead-zinc, copper & manganese anomalies associated with a folded dolomitic unit, with some surface samples assaying at over 10% combined Lead & Zinc.

Goldfields of Namibia Ltd (‘Goldfields’) later delineated the Driehoek deposits in the 1990’s, concentrating on the North, East and South Zones of the prospect. Drilling has resulted in intersections such as

DDH 75-18 40.00 metres @ 8.57% Pb+Zn and 9.30 gpt Ag from 1.00 metres

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Resource Potential

Drilling by Eland & Goldfields has defined three near-surface deposits of base metal mineralisation. These deposits were reported in detail by Goldfields, but are currently considered to be ‘pre-JORC’.

The initial exploration target at the North & East Zones of Driehoek is reported as being in excess of 3 million tonnes, with a combined grade for lead and zinc of over 4%.

Goldfields included the internal waste blocks in their calculations, which has diluted the overall grade of the deposit while increasing its tonnage. An initial geostatistical evaluation of the Driehoek deposits indicates that if modern practice, in accordance with the JORC code, were to be followed increases in grade could be expected, with little effect on the overall tonnage of the deposits. Drilling and evaluation will be required to bring these deposits into JORC compliance.

Estimates of the size of the Driehoek deposits are limited by the depth of the existing drilling, which only extends to approximately 60 metres below surface. The mineralised lodes show good continuity from surface and remain open at depth. Surface soil sampling shows the anomalism extending along strike to the northeast into the ‘Gauss’ prospect, which is also in the project area, but remains untested by drilling.

An evaluation of the Driehoek deposits indicates that they are highly amenable to open pit mining. The ore system potentially has very low strip ratios and remains untested both at depth and along strike.

Preliminary analysis indicates that a targeted drilling programme has the potential to rapidly increase the mineralised inventory for the deposits to well over six million tonnes .

HARASIB

The Harasib prospects occur along the western strike extensions of the Border deposit. Harasib is composed of a number of small deposits, with a review of Goldfield’s exploration data generating an exploration target at Harasib of more than

1 Million Tonnes grading at over 4% combined Lead & Zinc*

*The potential quantity and grade of the Harasib deposits are conceptual in nature as Sabre has determined that insufficient exploration data is currently available to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The ‘exploration target’ size is based upon deposit calculations provided by Goldfields of Namibia Ltd.

Goldfields investigated the Harasib deposits in the 1990’s and reported a number of shallow lead-zinc deposits occurring in close proximity. The Harasib deposits have only been drilled to approximately 50 metres depth.

The Harasib prospect requires detailed investigation, with all relevant data yet to be received from the Geological Survey of Namibia. Harasib appears to have been subjected to only limited exploration and has the potential to host significant deposits.

REGIONAL EXPLORATION POTENTIAL

A review of the exploration data available for the Ongava base metal project shows that it has received only limited exploration outside the main deposit areas. The exploration undertaken on the project area largely dates back to the 1970’s, aside from the limited programme carried out by Goldfields in the 1990’s.

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The stratigraphical and structural continuity shown by the various styles of mineralisation within the project area indicate that there is strong potential to expand the known deposits and for finding further significant economic mineralisation.

The Ongava project hosts two main styles of base metal mineralisation in more than 22 reported mineral occurrences:

Berg Aukas-Type Lead-Zinc Mineralisation

Lead-Zinc mineralisation is found throughout the carbonate stratigraphy of the Tsumeb Sub-Group within the Ongava project area. There have been a number of prospects defined to date that require further exploration, including Tunnel, Pick Axe, South Ridge, Sinkhole, Teco, Uitsabpad & Lucas Post.

Tsumeb-Type Copper-Lead-Zinc Mineralisation

Copper-Lead-Zinc mineralisation is found throughout the carbonate stratigraphy of the Abenab Sub-Group within the Ongava project area. There have been a number of prospects defined to date that require further exploration, including Wolkenhauben, Tigerschlught & Uitsab.

These targets are highly prospective but require detailed evaluation prior to commencement of the forthcoming exploration programme. Sabre is currently acquiring all of the public domain and historic exploration data, which will then be utilised for targeting and resource definition studies.

For further information on base metal mineralisation in Namibia see:

http://www.mme.gov.na/gsn/basemetals.htm

CORPORATE

Sabre Resources Ltd (‘Sabre’) has entered into an agreement to acquire all of the issued capital of Link National Pty Ltd (‘Link’), an Australian registered private company. Link holds an 80% interest in Gazania Investments Three (Pty) Ltd, a Namibian registered company, which is the holder of an 87.5% beneficial interest in Namibian exploration tenement EPL 3542, known as the Ongava Base Metal project. This gives Sabre an effective interest of 70% in the Ongava base metal project. The Independent Valuation of the Ongava project is A$90,000,000, with the 70% being acquired by Sabre valued at A$63,000,000.

Consideration for the Acquisition

In consideration for the acquisition, Sabre will issue 32,000,000 ordinary shares in the company to the vendors, together with a cash payment of $240,000 for reimbursement of previous expenditure.

The acquisition is conditional upon:

1. Sabre raising an amount of not less than $3,500,000 through the issue of new shares.

2. The obtaining of all necessary shareholder and regulatory approvals for the acquisition.

Share & Option Placement

In satisfaction of condition (1) above, the Directors have agreed to issue 14,000,000 shares at 25 cents each together with one free attached option for every share issued, exercisable at 35 cents each on or before 27 January 2010. The issue will be at the direction of the Directors and Westar Capital Ltd, the holder of an Australian Financial Services Licence. The issue will be pursuant to a disclosure document.

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Both the acquisition and placement of shares and options will be subject to shareholder approval at a meeting to be held in early September 2007.

Sabre has assembled an experienced exploration team in Namibia under the supervision of director Alex Clemen. Mr. Clemen has more than 20 years of mining & exploration experience, having worked for a number of international companies, both in Australia and Africa.

Sabre looks forward to updating shareholders as exploration progresses in the Ongava project area.

Yours faithfully,

Norman Grafton Company Secretary Sabre Resources Ltd

For further information please contact: Tim Putt - Exploration Consultant

Phone (08) 9481 7833

Or consult our website:

http://www.sabresources.com/

Competent Person Declaration

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Timothy Putt of Exploration and Mining Information Systems, who is a member of The Australasian Institute of Geoscientists. Mr. Putt has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Timothy Putt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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