SABRE RESOURCES LIMITED — Capital/Financing Update 2010

Oct 19, 2010

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ASX ANNOUNCEMENT & MEDIA RELEASE

20 October 2010

DIAMOND DRILLING UNDERWAY AT KASKARA

Diamond drilling commenced late yesterday afternoon (Namibian time) at Sabre's Kaskara copper-lead-zinc prospect. Encouragingly, there are several occurrences of mottramite (copper-lead-zinc vanadate) within the first 3 metres of the strongly altered and brecciated drill core. The rig is positioned well above the gossans in order to intersect them at depth.

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The drill rig in position on the first drill pad at Kaskara.

Six diamond drillholes are planned to test the down-dip portions of the outcropping mineralised gossans on the hills. One drill pad is complete, with construction of the remaining two drill pads underway. Two holes are scheduled to be drilled from each pad, including a north angled hole to intercept the gossans at a shallow level, followed by a vertical hole to intercept the gossans or their equivalents at depth.

Difficulty with access to site, with the stabilisation of drill pads, and with winching and sledging of the rig up the irregular terrain has resulted in a slight delay to planned timing. Minor damage to the rig, which was incurred during the winching, was repaired before commencement of drilling.

Water has been sourced from a bore approximately 2km north of the site. The water is then trucked to a tank at the base of the hill and pumped up to the rig.

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Reverse circulation drilling at and around Kaskara on the flats at the base of the Kaskara hill is completed and has identified further highly anomalous zones, similar to those reported previously. These zones have been identified both to the east and the west of Kaskara, and also adjacent to Lucas Post. Data from these zones is still being accumulated and assessed.

We will update shareholders with the results of the diamond drilling as they come to hand.

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The drill rig (yellow, circled) in position on the hill at Kaskara (looking southwest) above some of the outcropping gossans (red dotted lines, positions approximate).

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Diagrammatic representation of the planned drill holes (black) on the 4300mE section. The drill holes are designed to intercept the down-dip extensions (pink and red arrows) of the outcropping gossans (red). The gossans occur within a broader weakly mineralised zone (yellow). Planned holes are to be 100m to 200m in length.

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For further information regarding the Company’s activities, please contact:

Dr Matthew Painter – General Manager – Exploration Phone (08) 9481 7833

Or consult our website:

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 Painter consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Sabre Resources Limited

Sabre Resources’ (“Sabre”) primary focus is the exploration and development of the Ongava Multi-Element Project in Namibia. Our licence contains more than 30 known copper, lead, zinc and vanadium occurrences, ranging from grass-roots prospects such as the Kaskara copperlead-zinc play, through unmined deposits such as the Border and Driehoek lead-zinc deposits, to historic mine sites such as Harasib Claims and Uitsab. Gallium, germanium, silver and gold, are also highly prospective.

Based in Perth, Australia, Sabre will build value for shareholders through the definition of JORC compliant resources in this metal-rich region. Extensive exploration, management and corporate experience are combined in a lean company structure that aims to provide maximum return to shareholders.

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