SABRE RESOURCES LIMITED - Capital/Financing Update 2012

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ASX ANNOUNCEMENT 26 September 2012

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EXPLORATION UPDATE - GUCHAB DRILLING

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Figure 1 – D iamond drill o p erational on P a d 2 (GCDD00 0 8), targeting th e ‘Western Adit s ’ at Guchab.

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KEY P OINTS

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The diamond drilling from Pad 2 at Guchab continues to intersect copper mineralisation;
Drilling has slowed due to logistical issues with the rig, which is now some 200 metres above the valley floor;
Two holes have been completed (GCDD0006 & 0007) with drill hole GCDD0008 now in progress;
Visible copper mineralisation has been intersected over widths of around 15 metres from surface;
The reconnaissance drill programme is being extended to a fourth drill pad at the High Valley workings, centre of the early 20[th] century mining operations;
Drilling is now being planned for a resource ‘drill out’ of the mineralisation intercepted from Pad 1 on the ‘Eastern Workings’.

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GUCH A B RECO N NAISSAN C E DRILLI N G PROG R AMME

Sabre’s reconnaiss a nce drilling p rogramme a t Guchab i s the first ex p loration to b e undertak e n on the Otavi V a lley lease ( EPL 3540) since acqui s ition by Sabre in June 2012. Dia m ond drilling is being underta k en from a number of sit e s across th e Guchab mine area utilising ‘fans’ o f drill holes a t varying dips an d azimuths t o test the de p th extents o f the outcro p ping coppe r mineralisat i on.

The main aim of the reconnaiss a nce drilling programme is to define specific copper targets w ithin the Guchab mining area. These will b e tested in a forthcomi n g resource d rillout progr a mme.

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Figure 2 – Drill pad loca t ions at Gucha b .
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A. W estern A dits, Pad 2

Drill i ng on Pad 2 (Figure 1) continues t o intersect copper mineralisation fro m surface. D rilling is, however, progr e ssing at a s lower rate t han it did at Pad 1 du e to the loc a tion of the r ig at the pro s pect and th e nature of t h e host rock s . The drill r i g is located on the Wes t ern Adits at Guchab, some 500 metr e s to the w e st of the P a d 1 locatio n , with the rig around 2 0 0 metres a bove the vall e y floor (Fig u res 2 & 3).

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Drill Pad 2 – ‘Western Adits’
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Figure 3 – V iew of the Guc h ab area from t h e Otavi Valley , looking east, s howing the loc a tion of Drill Pa d 2.

The ‘production’ rate of the d iamond drill has slowe d due to a n u mber of fa c tors includi n g drilling the highly silici f ied (very h a rd) alterati o n zone on the Western Adits. T h is has been further compounded by the issue o f getting wat e r to the rig (to lubricate the cutting b it) given its height of 200 metres abo v e the valle y floor. A 50 mm pipelin e has now been emplac e d to suppl y water to the r ig through the Guchab a rea. Water is stored in 10,000 litre tanks at vall e y level an d pumped up t o a smaller s torage tank near the rig.

The copper min e ralisation on the West e rn Adits oc c urs as vein s and fractu r e infilling, w ith some bre c cia fill. Alth o ugh minera l isation is vi s ible in both completed d rill holes, G CDD0006 & 0007, it app e ars that th e drill locatio n is close to the boundi n g fault structure, with th e host rocks showing stro n g silicic al t eration. Th e holes con t ain visible copper min e ralisation t o a depth o f around 15 m etres belo w surface, wi t h assays p e nding for both complete d drill holes. Drill hole G C DD0008 is c u rrently und e rway.

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Figure 4 – Out c ropping high-grade copper mineralisation, comprising chalc o cite (grey) and malachite (gre e n) with hematit e (red-brown), w ithin the uppe r ‘box-cut’ of the ‘High Valley’.

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B. Extension to the re c onnaissa n ce drill p r ogramme – High V a lley, Pad 4

In r e cent days a detailed e v aluation of the ‘High Valley’ target area has b e en undertaken. The ‘Hig h Valley’ appears to be where much of the historical copp e r productio n from the e arly 20[th] cen t ury mining o peration wa s sourced.

The technical t eam have discovered , mapped, and evaluated a number of sur f ace and und e rground mine workings over a hor i zontal distance of mor e than 200 m etres and a vertical dist a nce of about 50 metre s . These w o rkings amount to at le a st three p r oduction le v els, with extensive copper sulphide a n d oxide mi n eralisation v isible in out c rop as well as in the su r face and und e rground workings (Figu r e 4).

Wit h the succes s of the cur r ent drill pro g ramme an d the potenti a l for the Hi g h Valley w o rkings to hos t significant copper mi n eralisation, the Gucha b reconnais s ance drill p rogramme is being extended. Drill P ad 4 is cu r rently being sited and p repared in t he High Valley for drilling in the coming weeks ( F igure 2). T h is drill pad w ill allow th e diamond rig to be set b ack from t h e known min e ralisation, a llowing a m ore compr e hensive a s sessment o f the host structures than was pos s ible from P a ds 1 and 2.

C. Resource Drilling – E astern W o rkings

An initial analy s is of the dr i ll core and data from P ad 1 has a dvanced th e prospect a rea to a posi t ion where r e source drilling is now b e ing planne d .

Det a iled site sel e ction and preparation i s in progres s along the slope and th e north-sout h oriented gull y hosting the Eastern W orkings. A nalysis of d rill core fr o m Pad 1 i s also underway to det e rmine contr o ls on mineralisation an d the orientations of faul t s and mine r alised zone s , so that an o ptimal drill o rientation is defined.

The forthcomin g resource d rilling programme will allow systematic drill t e sting of the known min e ralisation a l ong the line of historic m ine workin g s and map p ed outcrop p ing mineralisation in the Eastern W o rkings area. The aim o f the progr a mme will b e to establish a maid e n JORC res o urce at Guc h ab that will be supplem e nted by drilling at other targeted ar e as.

GUCH A B EXPLO R ATION 2 0 12-13

Reconn a issance di a mond drilli n g will conti n ue at Guc h ab through o ut Septem b er and into October 2012. I n addition, a programme of detailed geophysics , including Electro-Magnetics (EM), is being pl a nned across the Guchab area and i s scheduled to commen c e in the co m ing weeks.

Site wo r ks are also in progress to enable d r illing to continue through the comi n g wet seas o n (which normall y extends fr o m Decemb e r through to March). S abre looks f orward to u pdating inv e stors as results o f the drilling programme become av a ilable.

THE G U CHAB C O PPER MI N ING CEN T RE

The Gu c hab mining centre was d iscovered i n the early 1 9 00s and operated for a short time, p roducing high-grade copper ores (up to 33%) b e fore the di s covery of s ignificant, n ear surfac e copper minerali s ation at Ko m bat, some 1 0 kilometre s to the wes t .

Sabre’s work at G uchab enc o mpasses t h ree histori c mining c e ntres (Gu c hab, Rodg e rberg & Schlang e ntal) cover i ng more th a n 4,000 m e tres of strik e , defined b y historical w orkings an d surface geoche m istry of up to 10,000 pp m , or 1%, C o pper in soil s .

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The C o mpany’s e x ploration a n d structur a l analysis shows that Guchab h o sts ‘Kombat-style’ metamorphic copper mineralisation, as v e in and bre c cia style deposits, with high-grade coppersilver rich zones w hich are surrounded by moderate g r ade vein networks. Maj o r copper minerals at surface i nclude mal a chite, chalc o cite, and di o ptase.

In addition to the e x cellent drill and chann e l sampling r esults, infr a structure at and aroun d Guchab make it a very attractive coppe r target. Gu c hab is loca t ed within 1 km of an a c tive railway line and sealed h ighway, an d is located around 10 k m east of t he Kombat Copper Mi n e and Con c entration plant (p r esently bei n g rejuvenated). It is a lso approxi m ately 50 k m south of the Tsume b Copper Smelter Complex, to which it is connected b y rail.

Guchab , which is p a rt of the 45 k m long Ko m bat Coppe r Trend, was acquired b y Sabre in J u ne 2012. Detailed evaluation s by the Co m pany have defined a n u mber of target areas a l ong the 10 kilometre long mi n eralised c o rridor betw e en Komba t and Guc h ab, including the Nehl e n and Re n dezvous prospec t s. These ta r gets are no w being eval u ated for lat e r drill testin g .

Tim P u tt Chief Executive Officer Sabre R esource s Ltd

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

Mr Timothy Putt Chief E x ecutive Offi c er Phone (08) 9481 7 8 33

Dr M atthew Pai n ter Ge n eral Manag e r – Explora t ion Phone (08) 94 8 1 7833

Or consult our website:

www.sabr e sources.co m

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SABR E ’S OTAVI MOUNTAIN LAN D COPPE R PROJE C T

The Ot a vi Mountai n Land Cop p er Project ( ‘OML’) is l o cated in n o rthern Na m ibia, lying w ithin the triangle c reated by t h e mining to w ns of Tsu m eb, Otavi a n d Grootfont e in.

The entire region is w ell served b y sealed r o ads, high v o ltage power, telephone a nd water, r a il to port and is close to majo r towns and m ining proc e ssing facilities, includin g the Komba t copper co n centrator and Tsumeb Smelte r complex (one of only fi v e operating smelters in A frica).

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Sabre’s OML projec t consists of two Exclusi v e Prospecting Licenses (EPL 3540 & 3542), which cover more th a n 800 km[2] o f highly pro s pective ba s e metal stratigraphy. Sabre has ide n tified two k e y copper trends w ithin its p r oject area, each cov e ring more than 25 k m of strike, defined b y surface geoche m istry and historical wo r kings.Thes e extensive c opper tren d s, namely t he Lucas Post and Kombat Trends, are the present focus of exploration.

The reg i on hosts a n umber of w orld class C opper, Zinc, Lead, Silver and Vana d ium mines, including the Tsumeb & Kombat Copper mines. The Otavi Valley tenement ( E PL 3540) s u rrounds the Kombat Copper mine on al l sides and covers the strike exten s ions of the mine strati g raphy. To date, the Kombat Mine has pr o duced mor e than 8.7 Mt @ 3.1% C u , 1.1 Pb an d 26 gpt Ag.

Competent Persons Declarations

The inform a tion in this report that relates to Exploration Res u lts, Mineral Re s ources or Ore R eserves is basedd on information compiled by Dr Matthew Painter of Sabre Resources Ltd, w ho is a membe r of The Australian Institute of Ge o scientists. Dr Paiinter has sufficie n t experience that is rele v ant to the style o f mineralisation and type of dep o sit under consid e ration and to th e activity that he is undertaking to qualify as a Competent Person as defin e d in the 2004 E dition of the “A u stralian Code for Reporting of E x ploration Resultss, Mineral Reso u rce and Ore Reserves”. D r Painter conse n ts to the inclusio n in the report of t h e matters based on his informatio n in the form and ccontext in which i t appears. Forward-Looking Statements This document may include f orward-looking statements. Forwa r d-looking statem e nts include, but a re not limited to, statements concerning Sabre Resources L td’s planned ex p loration program m e and other sta t ements that are n ot historical fact s . When used in tthis document, th e words such as "could," "plan," "estimate," "expect," "intend," "may”, "pote n tial," "should," a n d similar expres s ions are forward--looking stateme n ts. Although Sabre Res o urces Ltd believ e s that its expect a tions reflected i n these forward-l o oking statements are reasonable, such statements involve risks and uncer t ainties and no assurance can be given tha t actual results will be consis t ent with these forward-looking statements.

AI assistant

SABRE RESOURCES LIMITED Capital/Financing Update 2012

65750_rns_2012-09-25_31eba082-4c0f-4bf3-9a93-ecb4bd0eb72e.pdf

EXPLORATION UPDATE - GUCHAB DRILLING

KEY P OINTS

GUCH A B RECO N NAISSAN C E DRILLI N G PROG R AMME

A. W estern A dits, Pad 2

B. Extension to the re c onnaissa n ce drill p r ogramme – High V a lley, Pad 4

C. Resource Drilling – E astern W o rkings

GUCH A B EXPLO R ATION 2 0 12-13

THE G U CHAB C O PPER MI N ING CEN T RE

Tim P u tt Chief Executive Officer Sabre R esource s Ltd

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

Or consult our website:

SABR E ’S OTAVI MOUNTAIN LAN D COPPE R PROJE C T

AI assistant

SABRE RESOURCES LIMITED — Capital/Financing Update 2012

65750_rns_2012-09-25_31eba082-4c0f-4bf3-9a93-ecb4bd0eb72e.pdf

EXPLORATION UPDATE - GUCHAB DRILLING

KEY P OINTS

GUCH A B RECO N NAISSAN C E DRILLI N G PROG R AMME

A. W estern A dits, Pad 2

B. Extension to the re c onnaissa n ce drill p r ogramme – High V a lley, Pad 4

C. Resource Drilling – E astern W o rkings

GUCH A B EXPLO R ATION 2 0 12-13

THE G U CHAB C O PPER MI N ING CEN T RE

Tim P u tt Chief Executive Officer Sabre R esource s Ltd

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

Or consult our website:

SABR E ’S OTAVI MOUNTAIN LAN D COPPE R PROJE C T

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SABRE RESOURCES LIMITED Capital/Financing Update 2012