SABRE RESOURCES LIMITED — Capital/Financing Update 2010

Aug 30, 2010

ASX ANNOUNCEMENT & MEDIA RELEASE

31 August 2010

EXPLORATION UPDATE: DRILLING AT KASKARA TO COMMENCE IN SEPTEMBER

• Site preparation and water bore drilling already underway at and around Kaskara.
• Drilling to commence at Kaskara in September.
• Awaiting assay results for Border drilling programme.
• Pavian Trend extended to 20 km length, with assessment of prospects underway.
• New licence application (EL4574) in the Otavi Mountain Land:
  • ► more than doubles Sabre's footprint in the area.
  • ► highly prospective for copper, lead, zinc, silver and vanadium.

ACTIVITIES AT KASKARA AND LUCAS POST

Sabre has commenced preparations for drilling at and around Kaskara and Lucas Post copper-lead-zinc prospects. Drilling is on schedule to commence in September.

Access is being cleared for drill pads and initial water bore drilling has commenced. Water bores are required to supply lubrication for diamond drilling, and a reliable supply must be defined before diamond drilling can commence. With its proximity to the regional divide, the altitude at and around Kaskara (up to 1,800 m above sea level) is significantly higher than other areas of the Otavi Mountain Land (e.g. 1,530 m above sea level at Border). As such, the water table is deep and water pressures are relatively low, so several attempts may be required to define a sustainable flow. Water bores must be drilled at several localities (at Kaskara, at Lucas Post, and to the east of Kaskara) to provide the necessary supply.

Sabre has defined a suite of drill targets over a strike length of approximately 2.8 km. Initial drilling will concentrate on the less prospective but more accessible "flats" targets. These targets are accessible by track-mounted rigs on the eluvial flats and slopes adjacent to the rugged hills. The more prospective but more difficult to access "hills" targets, which include the main mineralised zones at Kaskara, will be accessed with a specialised man-portable rig once the presence of mineralisation at depth is confirmed at the flats targets.

The initial drill programme will be to provide an initial assessment of the style and distribution of mineralisation in the Kaskara-Lucas Post corridor. It will be used to place constraints on the requirements for a potential resource drilling programme later in the year.

Complementary to the drill programme, work is continuing on a high-resolution rock chipping exercise across the outcropping areas of Kaskara. Identification of minerals such as willemite (zinc silicate), which is difficult to identify in hand specimen, necessitated the sampling to

better define the distribution of mineralisation, which may be more extensive than previously recognised. In conjunction with this, a detailed geological mapping programme is underway along the length of the mineralised corridor that will provide better controls on mineralisation and its distribution at Kaskara, Lucas Post, Ondjima and the other prospects of the area.

BORDER DEPOSIT AND THE PAVIAN TREND

Further results from the Border drilling programme are advancing through the laboratory's assay procedure. Assay results are expected for the 6 remaining

Border should be seen as the first stage of the exploration of the Pavian Trend. Recent work has suggested that the Pavian Trend can be extended another 5 km westward to the Harasib prospect. This means that the Pavian Trend is a 20 km long base metal trend of outcropping mineralisation, intense soil anomalism and intervening areas of cover that extends along the entire southern limb of the Olifantshoek Syncline.

Sabre aims to assess the entire Pavian Trend for the possible development of a string of hightonnage, moderate-grade lead, zinc, and possibly copper mines (Figure 1). The drilling of the

Figure 1 - Our vision for the Pavian Trend (western end, looking west) – a series of high-tonnage, moderate grade lead, zinc and copper mines extending the 20 km length of the trend.

Border deposit is only the first stage of a programme that will assess the other outcropping prospects along the trend, as well as conceptual targets beneath the Toggenburg Plains east of Border and elsewhere. Field assessment of the other prospects is already underway, with preliminary drill assessment slated for the fourth quarter.

NEW LICENCE APPLICATION EPL4574

Sabre has submitted an application for a new exploration licence to the northeast of EPL3542. The Company has been monitoring this area for some time as it contains one of our highest ranking conceptual exploration targets in the entire Otavi Mountainland.

The application underlines Sabre's confidence in this highly prospective region. Sabre considers the new licence to be particularly prospective for copper, lead, zinc, silver, and vanadium. Records show that there has been very little historical exploration within the new licence application area.

Figure 2 - Sabre's extended Ongava Polymetallic Project, covering EPL3542 and new application EPL4574. The total combined area will exceed 1,500 km2 . The extent of the Otavi Group, the rocks that host the base metal mineralisation of the region, are shown in blue, with the lighter solid blue representing areas of outcrop and the deeper transparent blue representing rocks obscured by thin soil cover. Yellow dots represent historic mines, historic workings, and documented prospects.

The new application has been received by the Namibian Ministry of Mines and Energy and assigned the number EPL4574. The new licence application covers more than 920 km2 of the Otavi Group rock sequence which lies under shallow soil cover (Figure 2). The area includes the eastward extensions of the rock sequences that host the Tsumeb copper-lead-zinc mine, the Abenab lead-zinc-vanadium mine and also the Pavian Trend lead-zinc-copper prospects.

Given the extensive backlog of licences being processed by the Ministry, both for granting and for renewal, we expect that there could be delays in confirming the application as a full exclusive prospecting licence (EPL).

Sabre is actively assessing other opportunities in the region.

REGIONAL MAGNETIC AND RADIOMETRIC SURVEY

Sabre recently commissioned the collection of regional high resolution magnetic and radiometric data from the entire Ongava licence area using low level (30 m height) helicopterborne sensors.

North-south lines were spaced at 100 m intervals over the entire 600 km2 licence area and its periphery. Sensor height was at 30 m above ground on a boom attached to the base of the helicopter. These parameters have provided some of the highest quality data commercially available (Figure 3).

This dataset will be instrumental in Sabre's ongoing exploration of the Ongava Polymetallic Project. As well as potentially assisting with exploration at and around Border and Kaskara, it will be used to evaluate other known deposits and prospects in the years to come, such as the Driehoek Zn-Pb deposit and the Rooikat Cu prospect. The data will also be used to generate additional targets for mineralisation throughout the Ongava Polymetallic Project area.

Figure 3 - Recently acquired magnetic intensity (analytical signal) data for the Ongava Polymetallic Project. In the main image, blue represents magnetic lows, grading up to pink which represent magnetic highs. Insert (top left) shows previous low-resolution magnetics for comparison (different scale).

Presently the data is being processed using a number of algorithms that will enhance the effectiveness of the data for ongoing analysis during exploration. Sabre anticipates that the data will form the basis for our exploration efforts over the coming years.

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 a 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.