SABRE RESOURCES LIMITED — Capital/Financing Update 2012

Dec 10, 2012

ASX ANNOUNCEMENT

11 December 2012

EXPLORATION UPDATE - OTAVI MOUNTAIN LAND

Figure 1 - RC drilling in progress at Kaskara.

KEY POINTS

GUCHAB

• Ongoing issues with the diamond drill rig at Guchab continue to hamper exploration efforts,
• The first hole on Pad 4 successfully intersected copper mineralisation and includes:

GCDD0011 18.85 m @ 1.06% Copper & 15.05 gpt Silver from 42.22 m

Ground & down hole EM surveys are in progress at Guchab.

KASKARA

• Fifteen RC drill holes have been completed at Kaskara, with ten in the lab, or reported on, and the remaining holes being sampled or in transit to the lab.
• A number of mineralised zones have been intersected, with initial drill holes (on the margins of the system), returning results including:

KKRC0019 3.00 m @ 5.16% Pb, 2.21% V2O5 & 0.59% Cu from 12 m

RC drilling has proven an effective drilling method at Kaskara.

Sabre's exploration will continue through the 'wet season' in the Otavi Mountain Land due to the Company having undertaken significant upgrades to roads and drill sites in recent months in preparation for the change of weather conditions.

GUCHAB DIAMOND DRILLING

The diamond drill rig moved to Drill Pad 4 in November, with the first drill hole encountering mineralisation over a significant intercept:

GCDD0011 18.85 m @ 1.06% Copper & 15.05 gpt Silver from 42.22 m Including 3.63 m @ 4.08% Copper & 61.92 gpt Silver from 57.44 m

*A full list of drill holes and significant results is listed in Appendix 1.

The second hole on Drill Pad 4, GCDD0012, has not yet reached target depth and remains incomplete due to a mechanical & structural failure with the drill rig. This has yet to be rectified. Unfortunately the contractor being utilised has been plagued with mechanical and logistical issues, with Sabre currently working towards a suitable resolution.

The Company is in the final stages of its evaluation of a number of other drilling contractors as well as the possible purchase of its own diamond drill rig, to undertake the drilling programme in 2013.

GUCHAB GEOPHYSICAL SURVEY

Surface and downhole electromagnetic ('EM') surveys are presently underway at Guchab. The team has completed the first phase of the surface EM and is now moving to undertake the downhole EM.

The results and interpretation of the data is scheduled to be available early in 2013.

KASKARA RC DRILLING

The Reverse Circulation ('RC') drilling at Kaskara commenced in late October. A total of thirty two holes are planned across the outcropping mineralised zone, with fifteen holes drilled to date. Samples from ten of those holes are in the lab (results for three holes have been received) and the remaining holes are either in transit to the lab or are in the process of being sampled.

The drill holes completed to date have been on the lower slopes of the hill at Kaskara, on the margins of the mineralised system (see Figure 2). Of the results received to date, broad zones of low grade (<1%) lead, vanadate (V2O5) and copper (Cu) mineralisation were intersected, as expected.

Significant intercepts within these mineralised zones have included:

KKRC0019	8.00 m @ 2.15% Pb, 0.91% V2O5 & 0.24% Cu from 12 m
Including	3.00 m @ 5.16% Pb, 2.21% V2O5 & 0.59% Cu from 12 m
KKRC0020	6.00 m @ 1.17% Pb, 0.47% V2O5 & 0.18% Cu from Surface
And	2.00 m @ 1.32% Pb, 0.29% V2O5 & 0.11% Cu from 119 m

*A full list of drill holes and significant results is listed in Appendix 2.

Figure 2 – Plan of Kaskara hill with tracks, drill pad locations (yellow) and IP anomaly (pink).

RC is proving an effective technique to test the mineralisation at Kaskara, with the drilling programme ongoing. A number of sites are now being prepared to allow drill testing of the deeper geophysical (IP) anomaly, below the oxide zone.

Further drill results are expected in the coming weeks as the laboratory in Namibia clears its current 'backlog' of samples from Kaskara.

CONCLUSION

Sabre's drilling programme will continue up until Christmas, when the field team will take a short break, before resuming the exploration programme in mid-January 2013.

The Company is in the final stages of selecting an alternative contractor to undertaking the diamond drilling at Guchab, which will most likely also include the purchase of its own diamond drill rig.

Sabre expects to further update investors in the coming weeks as results are received from the laboratory in Namibia.

Tim Putt Chief Executive Officer Sabre Resources Ltd

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

Mr Timothy Putt Dr Matthew Painter

Chief Executive Officer General Manager – Exploration Phone (08) 9481 7833 Phone (08) 9481 7833

Or consult our website: www.sabresources.com

SABRE'S OTAVI MOUNTAIN LAND COPPER PROJECT

The Otavi Mountain Land Copper Project ('OML') is located in northern Namibia, lying within the triangle created by the mining towns of Tsumeb, Otavi and Grootfontein.

The entire region is well served by sealed roads, high voltage power, telephone and water, rail to port and is close to major towns and mining processing facilities, including the Kombat copper concentrator and Tsumeb Smelter complex (one of only five operating smelters in Africa).

Sabre's OML project consists of two Exclusive Prospecting Licenses (EPL 3540 & 3542), which cover more than 800 km2 of highly prospective base metal stratigraphy. Sabre has identified two key copper trends within its project area, each covering more than 25 km of strike, defined by surface geochemistry and historical workings.These extensive copper trends, namely the Lucas Post and Kombat Trends, are the present focus of exploration.

The region hosts a number of world class Copper, Zinc, Lead, Silver and Vanadium mines, including the Tsumeb & Kombat Copper mines. The Otavi Valley tenement (EPL 3540) surrounds the Kombat Copper mine on all sides and covers the strike extensions of the mine stratigraphy. To date, the Kombat Mine has produced more than 8.7 Mt @ 3.1% Cu, 1.1 Pb and 26 gpt Ag.

Competent Persons Declarations

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 Australian 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 "Australian 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.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Sabre Resources Ltd's planned exploration programme and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should," and similar expressions are forward-looking statements. Although Sabre Resources Ltd believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Appendix 1 - Guchab Diamond Drilling

*Copper (Cu) & Silver (Ag) values were determined at the accredited 'Bureau Veritas' Laboratory in Swakopmund, Namibia.

PadNo	HoleNo	Nohintrg	Eaintsg	o)(Dip	oT()Azimhturue	Fr()omm	To()m	DoholeWidh()twnm	Grdea
1	GCDD0001	7818105	796081	40-	180	0.60	108.35	1057.7	1.15%Cu&6.93 gAgtp
					Including	17.90	20.25	2.35	Cu13.24%&70.84 gAgtp
					And	29.80	52.15	522.3	Cu&Ag2.08%10.11 gtp
					And	96.90	100.05	3.15	2.85%Cu&22.90 gAgtp
1	CDDG0002	7818105	796081	60-	180	1.42	27.98	526.6	Cu&5 gAg1.06%6.2tp
					Including	1.42	85.5	4.16	2.36%Cu&7.93 gAgtp
					And	8.19	12.76	4.57	Cu2.18%&21.44 gtAgp
1	GCDD0003	8181075	960817	80-	180	1.00	19.90	18.90	1.54%Cu&9.66 gAgtp
					Including	1.00	8.00	7.00	Cu2.52%&10.12 gAgtp
1	GCDD0004	8181075	960817	55-	224	0.00	24.05	24.05	1.29%Cu&10.91 gAgtp
					Including	7.18	9.54	2.36	Cu3.47%&35.34 gAgtp
					And	23.05	24.05	1.00	8.55%Cu&38.38 gAgtp
1	CGDD0005	7818105	796081	55-	160	0.00	22.2	22.20	Cu3.45%&29.67 gAgtp
					Including	20.05	22.2	2.15	160%Cu&240 gAg7.7.7tp
2	CGDD0006	795610	795610	45-	291	0.90	15.00	14.10	Cu1.31%&10.50 gAgtp
					Including	7.00	9.65	2.65	5.10%Cu&50.94 gAgtp
2	CGDD0007	795610	795610	60-	280	5.48	13.85	8.37	Cu0.54%&7.43 gAgtp
					Including	5.48	6.67	1.19	Cu&5.Ag1.41%240 gtp
2	CGDD0008	795610	795610	45-	350	NA	NA	NA	@HoleAbadod72.89 mnne
2	GCDD0009	795610	795610	70-	170	NA	NA	NA	@HoleAbadod163 m7.nne
2	CGDD0010	795610	795610	70-	170	NA	NA	NA	fCRedrill oGDD0009 -Abadodnne
4	GCDD0011					42.22	61.07	18.85	1.06%Cu&15.05 gAgtp
					Including	57.44	61.07	3.63	Cu4.08%&61.92 gAgtp
4	GCDD0012					NA	NA	NA	InProgress

Appendix 2 - Kaskara RC Drilling

PadNo	HoleNo	Nohintrg	Eaintsg	o)Dip(	oTAzimh()turue	()Fromm	()Tom	()DoholeWidhtwnm	Grdea
F	KKRC0018	7834227	794348	75-	11	62.00	86.00	24.00	0.19%Pb,0.03%V2O5&0.03%Cu
					Including	0075.	9.007	4.00	0.37%Pb,0.05%V2O5&0.05%Cu
E3	KKRC0019	8342167	943007	75-	11	10.00	32.00	22.00	0.86%Pb,0.35%V2O5&0.10%Cu
					Including	12.00	1005.	3.00	5.16%Pb,2.21%V2O50.59%&
E	CKKR0020	7834227	794207	75-	360	0.00	20.00	20.00	Cu0.66%Pb,0.25%V2O5&0.10%
					Including	0.00	6.00	6.00	1.17%Pb,0.47%V2O50.18%&
					And	112.00	125.00	13.00	Cu0.44%Pb,0.08%V2O5&0.04%
					Including	119.00	121.00	2.00	1.32%Pb,0.29%V2O50.11%&

*Lead (Pb), Vanadium (V2O 5 ) & Copper (Cu) values were determined at the accredited 'Bureau Veritas' Laboratory in Swakopmund, Namibia.

					IncludingAndIncluding	0.00112.00119.00	6.00125.00121.00	6.0013.002.00	1.17%Pb,0.47%V2O5&0.18%CuCu0.44%Pb,0.08%V2O5&0.04%1.32%Pb,0.29%V2O50.11%Cu&
E2	KKRC0021	8342277	942675	75-	11				lesinboSaLaratmpory
A	KKRC0022	8342637	941197	75-	11				SalesinboLaratmpory
A	KKRC0023	8342637	941197	60-	11				SalesinboLaratmpory
D2	KKRC0024	8342077	942927	75-	11				SalesinLaboratmpory
D2	KKRC0025	8342277	943007	60-	11				lesboSainLaratmpory
D	CKKR0026	7834270	794245	60-	11				lesboSainLaratmpory
D	CKKR0027	7834260	794231	75-	11				lesboSainLaratmpory
D	CKKR0028	7834258	794231	90-	360				lesSainTritmpans
/CB	CKKR0029	7834259	794189	60-	360				lesSainTritmpans
/CB	CKKR0030	7834257	794190	75-	360				lesSainTritmpans
/CB	CKKR0031	7834257	794192	90-	360				lSaingInPrompgress
E	KKRC0032	7834221	794205	90-	360				lSaingInPrompgress
H	KKRC0033	7834189	794328	75-	350				llDriinginProgress

& 0.59% Cu