SABRE RESOURCES LIMITED — Capital/Financing Update 2008

Jan 16, 2008

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17 January 2008

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

DRILLING TO TEST EXTENSIVE BASE METAL MINERALISATION, ONGAVA PROJECT, NAMIBIA.

Sabre Resources Ltd (‘Sabre’) is pleased to announce that recent fieldwork has identified common base metal sulphide mineralisation and other strong indicators of mineralisation outside previously drilled areas. These will be investigated in upcoming drill programs.

KEY POINTS

• Base metal mineralisation identified in outcrop at least 600m west

of previous drilling at the Border deposit.

• Base metal mineralisation identified in outcrop extends up to 1.5km east, west and south of previous drilling programmes at the Driehoek deposit.

• Only a small portion (~10%) of the lead anomaly has been previously tested at the Driehoek deposit.

• Drilling to commence 4[th] February at the Border deposit.

• Drilling at the Border deposit will increase the tested strike length from 800m to 2200m.

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Recent fieldwork by Sabre Resources’ geological team has identified numerous indicators of base metal sulphide mineralisation outside previously drilled areas of the Ongava Base Metal project in Namibia (see right and below). In particular, indicators were identified as strike extensions 600m west of known mineralisation at the Border deposit, and up to 1.5km south and east of known mineralisation at the Driehoek deposit.

Some of the indicators identified at both deposits include numerous iron-stained (goethitic) dolomite horizons, abundant associated fine-grained silica, and primary base-metal sulphides. Galena (lead sulphide), sphalerite (zinc sulphide) and pyrite were observed beyond the extent of previous drilling programmes at Border and Driehoek.

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Ongava Project area, showing Border, Driehoek and Harasib deposits (10km grid)

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BORDER DEPOSIT

The Border Lead-Zinc deposit is located approximately 35km to the southeast of Weatherly’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 , first reported by Sabre on 2 August 2007. (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.)

At Border, oxidized strata become more common west of the limits of previous drilling (see below left). Less common is the presence of galena and sphalerite at surface, also observed to the west (see below right). The occurrence of mineralisation indicators becomes more common along strike to the west, for at least 600m west of the previous drilling. The western extent of these indicators falls outside the limits of the soil geochemistry dataset recently acquired by Sabre.

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Oxidised strata at Border, after sulphides

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Galena (grey) in outcrop at Border, west of drilled area

Border was so-named by the earlier licence holders due to its proximity to the former licence boundary. Examination of the geochemical dataset shows that sampling and drilling was limited by this former licence boundary. Consequently, no data exists for the western strike extent identified by Sabre’s geological team. Sabre controls the entire area, including both the former Border licence and the adjacent ground, so now no such restrictions exist.

Soil sampling along the northern foot of the hills up to 4km to the west of Border shows strongly anomalous values adjacent to the hills (see below). These values are for soils shedding off the range of hills, which have not been sampled. These hills may represent a previously unrecognised lateral continuation of mineralisation at Border (existing drilled area shown by black rectangle, below). This area is highly prospective and will be the focus for Sabre’s soil sampling programme commencing February 2008. The area will be sampled on a 200x50m spacing in order to determine the lateral extent of the Border soil anomaly.

Considering the distributions of these mineralisation indicators, it is expected that upcoming drilling will identify significant additional base metal mineralisation at Border, particularly to the west of previous drill programmes.

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Border
Anomalous Pb in
soils adjacent to hill
0 1 2km
?Possible lateral extent?
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Lead in soils around the Border deposit. Limit of colouring represents limit of soil sampling. See text for discussion.

DRIEHOEK DEPOSIT

The Driehoek Lead-Zinc deposits are located approximately 15 kilometres to the north of the Kombat copper mine and 18km 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 , first reported by Sabre on 2 August 2007. (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.)

At Driehoek, the soil geochemistry dataset shows that previous drilling was centred on a very large 3 x 1.5 km lead soil anomaly (see below). However, only a very small proportion of this anomaly (around 10%) has been drilled. Previous drilling was limited to hilltops near the centre of the soil anomaly, and many drillholes ended in sulphide mineralisation. Consequently, Driehoek is considered to be significantly underexplored.

Field reconnaissance by Sabre’s geological team has identified base metal sulphides in outcrop to the south, southwest and up to 1.5km east of previous drilling (see below). Dolomitic rocks were observed to contain fine- to coarse-grained galena and sphalerite, along with pyrite. Sulphides were observed in massive to layered dolomites and in fault rocks, both within and beyond the extents of previous drilling.

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Extents of
previous drilling
0 1 2km
0 1 2km
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Contoured Pb in soil geochemistry and Landsat imagery. Dashed areas represent approx. limits of previous drilling. White stars are sites of observed base-metal sulphides in outcrop

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Outcrops south (grey, bottom left foreground) and southwest (dark, middle distance) of the previously drilled area, where galena and sphalerite were identified.

Secondary sugary silica, commonly an indication of sulphides at depth, is also present in distinct exposures throughout the area (see below). Locally, preserved sulphides are associated with this silica.

These observations by Sabre’s geological team on site at Driehoek underline the inadequacy of previous drill programmes to fully explore the large lead soil anomaly. It is highly likely that extensions to mineralisation, both along strike and down dip, will be discovered in upcoming drilling.

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Sugary silica in limestone corresponds to a strong lead in soil anomaly 1.5km east of Driehoek.

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DRILLING

Sabre has designed first-pass drill programmes that will utilise knowledge of previous drilling, field observations, and new geological concepts to test the extent of mineralisation at Border and at Driehoek. Border is the first drill target.

Planned drilling of 40 reverse circulation drill holes at Border will expand the area explored by Etosha Minerals in the 1970s and Goldfields Namibia in the 1990s from a strike length of 800m to 2200m, in 12 lines each comprising 2 to 5 collars. This drilling will intercept steeply northward-dipping, stratabound base metal mineralisation. Drill density of 200 x 50m will allow a first-pass assessment of the Border deposit and provide a framework for future follow-up drilling. Spacing of drillholes at the eastern and western extremities of the programme is at 200x100m spacing.

Drilling will commence at Border on 4 February 2008, assuming that wet season rains allow safe access to site. Drilling at Driehoek is slated for the 2[nd] quarter of 2008.

Yours faithfully,

Norman Grafton Company Secretary Sabre Resources Ltd

For further information please contact:

Dr Matthew Painter – General Manager, Exploration or Phone (08) 9481 7833 Norman Grafton – Company Secretary

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 Dr Matthew Painter of Sabre Resources Ltd, who is a member of The Australasian Institute of Geoscientists. Dr. Painter 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”. Dr Matthew Painter 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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