SABRE RESOURCES LIMITED — Capital/Financing Update 2009

Dec 22, 2009

22 December 2009

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NOTICE TO OPTION HOLDERS

We write to you as a registered holder of Sabre resources Ltd options (SBRO) as at today’s date. These options entitle you to acquire one ordinary fully paid share in Sabre Resources Ltd for every option you hold. The exercise price is 35 cents for each option.

You are formally advised that these options will expire at 5:00 pm Western Standard Time (WST) on Wednesday, 27 January 2010.

Your option holding may be exercised wholly or in part by completing the Application for Exercise of Options form enclosed with this notice, together with payment of 35 cents for each option exercised, by no later than 27 January 2010. If the Application for Exercise of Options form, together with the payment of the appropriate amount is not received by 5:00 pm WST on 27 January 2010, the option will not be exercised and will result in the forfeiture of any rights that you as an option holder would have had in relation to ordinary shares.

The Company provides the information contained in this notice Pursuant to Listing Rule 6.24, Appendix 6A of the Australian Securities Exchange (ASX).

The quotation of the convertible securities will end on 20 January 2010.

The latest available market price of the underlying securities was $0.415 on 21 December 2009, being the last trading day prior to the date of this notice.

During the three months preceding this notice:

• the highest market price on ASX was $0.65 on 1 December 2009, and

• • the lowest market price on ASX was $0.10 on 25 September 2009.

No underwriting agreement is in place in respect of these options.

An Application for Exercise of Options form is enclosed for your completion and return.

TO EXERCISE YOUR OPTIONS

Please complete the enclosed Application for Exercise of Options form and then forward it together with your cheque, which must be received by 5:00 pm WST on 27 January 2010 to:

Computershare Investor Services Pty Ltd, GPO Box D 182, Perth, WA, 6840.

Telephone: (08) 9323 2000

Payments must be in Australian Dollars only, and cheques should be made payable to Sabre Resources Ltd, drawn on an Australian bank and crossed “Not Negotiable.”

Yours faithfully,

………………… Norman Grafton Company Secretary Sabre Resources Ltd

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Po Box 1618 West Perth WA 6872

ABN 68 003 043 570

Sabre Resources Limited

Mr John Smith 123 Sample Street Sampleville 1234

X 1234567890

Application Form on Exercise of Options Expiring 27 January 2010

To the Directors, Sabre Resources Ltd

I/We hereby exercise option(s) and hand you herewith my/our cheque for being 35cents per share on application for ordinary shares in the capital of the Company.

I/We request that you allot me that number of shares and I/we agree to accept that number of shares on the terms below and the Constitution of the Company, and I/we authorise you to place my/our name on the register.

My/Our SRN/HIN (as shown on my/Issuer Sponsored holding statement or CHESS holdings statement) is

Sign Here – This section must be signed for your instructions to be executed

I/We authorise you to act in accordance with my/our instructions set out above.

Individual or Securityholder 1 Securityholder 2 Securityholder 3 Director Director/Company Secretary Sole Director and Sole Company Secretary Note: when signed under Power of Attorney, the attorney states that they have not received a Day/Date Month Year

Note: when signed under Power of Attorney, the attorney states that they have not received a notice of revocation. Computershare Investor Services Pty Limited needs to sight a certified copy of the Power of Attorney.

/ /

TERMS AND CONDITIONS OF OPTIONS EXPIRING 27 JANUARY 2010

(a) A certificate will be issued for the Options.

(b) The Options shall expire on 27 January 2010 (" Expiry Date ").

• (c) The Option is a right in favour of the option holder to subscribe for one fully paid ordinary share in the capital of the Company (" Share" ).

• (d) Shares allotted to option holders on exercise of the Options shall be issued at a price of 35 cents each (" Exercise Price ").

• (e) The Exercise Price of Shares the subject of the Options shall be payable in full on exercise of the Options.

(f) Options shall be exercisable by the delivery to the registered office of the Company of a notice in writing stating the intention of the option holder to: ( i ) exercise all or a specified number of the Options; and

• ( ii ) pay the subscription monies in full for the exercise of each Option.

(g) The notice must be accompanied by an Option certificate and a cheque payable to the Company for the subscription monies for the Shares. An exercise of only some Options shall not affect the rights of the option holder to the balance of the Options held by him.

• (h) The Company shall allot the resultant Shares and deliver the share certificate or holding statement within five business days of the exercise of the Option. (i) The Options shall be freely transferable.

(j) Shares allotted pursuant to an exercise of Options shall rank, from the date of allotment, equally with existing ordinary fully paid Shares of the Company in all respects.

• (k) The Company shall in accordance with the Listing Rules make application to have Shares allotted pursuant to an exercise of Options listed for official quotation.

• (l) The Options will not give any right to participate in dividends until Shares are allotted pursuant to the exercise of the relevant Options.

• (m) The Options do not give any right to participate in new issues unless the option holder exercises the Option.

LODGEMENT INSTRUCTIONS

Cheques shall be in Australian currency made payable to Sabre Resources Ltd and crossed “Not Negotiable”. The application for shares on exercise of the options with the appropriate remittance should be lodged at the Company’s Registry, Computershare Investor Services Pty Limited, GPO Box D182, Perth WA 6840.