SABRE RESOURCES LIMITED — Capital/Financing Update 2014

Oct 13, 2014

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ASX ANNOUNCEMENT

14 October 2014

SABRE RENEWS FOCUS ON ZINC EXPLORATION AND DEVELOPMENT IN THE OTAVI MOUNTAIN LAND

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• Sabre renews focus on zinc and lead exploration in the Otavi Mountain Land (OML) with commencement of drilling programs.

• Bedrock geochemical drilling to commence on high priority targets defined from recently completed regional targeting: ► Initial drill testing will commence with high priority targets at Toggenburg and East Border.

• ► Additional zinc exploration also budgeted for other priority targets. ► Zinc target generation continues in the western Pavian Trend.

 Exploration and development investigations recommence at Sabre’s Border Zinc Lead Deposit, resource revision close to completion.

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Sabre R esources is pleased to announce t h e renewal o f its focus o n the disco v ery of zinc deposits through o ut the Otav i Mountain Land (Figure 1). The co m pany is co m mencing pr o grams to e x plore for zinc an d for coppe r simultaneously utilisin g newly dev e loped expl o ration mod e ls for thes e deposit types. S abre has the existin g resources in-place i n Namibia to effectiv e ly explore for both commo d ities.

Sabre b elieves the long term fundametal s for zinc a nd lead a r e resurgen t and the C ompany anticipa t es a long term supply d e ficit sustai n ing higher prices for the s e metals. A s such the C ompany will rec o mmence exploration of the Pavian Z inc-Lead T rend this q u arter. Additionally, the C ompany will con t inue its ad v ancement o f the Bord e r zinc-lead deposit to detailed sc o ping and f e asibility, comme n cing with th e release of a revised Mi n eral Resource stateme n t for the de p osit.

A recent regional t a rgeting pr o gram has i d entified a series of zinc targets t hroughout t he Otavi Mountai n Land. Se v eral zinc prospects, su c h as Togg e nburg and East Borde r , have bee n defined using hi g h resolutio n data and w ill be a maj o r part of Sabre’s region a l target tes t ing progra m . Others, such as Rietfontein, Sinkhole a n d Uitsab, w ill require a d ditional det a iled data i n terpretation and field work be f ore reconn a issance drilling can be planned.

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Figure 1 – The Otavi Mo u ntain Land Pr o ject, Namibia, s howing Sabre’s main zinc pr o spects and de p osits (black cr o sses) amid t h e main deposits of the region (white cross e s). The dashe d black line is t h e Pavian Tren d of zinc-lead d eposits and g eochemical an o malism.

ZINC- L EAD-SILV E R TARG E T TESTIN G TO CO M MENCE

A serie s of work pr o grams hav e been desi g ned along the Pavian zinc-lead-sil v er minerali s ed zone and are due to com m ence in th e current qu a rter. These programs a r e aimed at d iscovery of new zinc and lea d deposits, either as e x tensions t o the Borde r system or as new d e posits. Further work progra m s planned i n the Border a rea will include:

• Reconnaissance drilling of the Toggenburg Plains to t e st concept u al and ge o chemical t argets defi n ed beneat h soil-cover e d areas b e tween Border and South Ridge ( F igure 2). T oggenburg represents a signific a nt size (+ 2 km long) Z n-Pb targ e t under c o ver with a nomalous s oil geoche m istry and a s ubdued top o graphic sig n ature.

• Infill drilling of Border . The main objective of the additio n al drilling w i ll be to up g rade key higher grad e portions of the minerali s ation to Ind i cated Reso u rce catego ry .

• Reconnaissance drilling east of Border along strike to test for extensi o ns to the deposit  Update the Scoping study assu m ptions and expand the study to in c lude logisti c s and a review of pl a nt design.

• Regional soil geochemistry is c u rrently und e rway over t he Sinkhol e target area, in the c entral west e rn part of t h e Pavian T r end (Figure 2). Like the Toggenbur g Plains, the Sinkhole a rea is und e r cover and may conceal buried zinc-lead miner a lisation.

A progr a m of scout d rilling at To g genburg Pl a ins and infill drilling at B order will c o mmence a s soon as logistical planning is completed a nd stakehol d er approval has been r e ceived.

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Figure 2 – The Pavian T rend, extendin g over 30 km a n d showing ma n y deposits and prospects. Soil geochemistry for Zn+Pb illustrates t h e extent of the trend, with warmer colours re p resenting high v alues.

BORD E R ZINC-L E AD-SILV E R RESOURCE BEING REVISED AND U P DATED T O JORC 2012 S TANDAR D

One fa c et of Sabre ’ s renewed zinc push i s the compl e tion of a r e view of th e Border de p osit and associated revision o f the resou r ce to the ne w JORC 20 1 2 standard. Since the r e lease of the previous resourc e (ASX rele a se 24 Janu a ry 2012), a d ditional de n sity informa t ion has be c ome availa b le, which is bein g incorpora t ed into th e model a n d a revised resource statement is near fi n alisation. Metallur g ical work c o nducted on the minera l isation at B o rder indicated it was a m enable to u pgrading via den s e media se p aration techniques and r esponded w ell to subse q uent flotati o n test work.

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Figure 3 – Oblique view of the res o urce block model for the Border Zn-Pb-Ag d e posit

The Bor d er Zn-Pb- A g deposit (Figure 3) is one of a seri e s of zinc-le a d deposits l o cated alon g Sabre’s 20 km l o ng Pavian Trend in n o rthern Na m ibia (Figur e 2). The r e vised Bord e r resource is a key compon e nt of a strategy of iden t ifying and d eveloping m ultiple Zn-Pb-Ag deposi t s feeding a centrally located p rocessing p lant on the P avian Tren d .

SUMMARY

High priority exploration targets at Toggenburg Plains, East Border and South Ridge on the 20km of the Pavian Trend together with the Border Deposit potentially constitute a camp of zinc-lead deposits which can be easily mined and treated through a centrally located mineral separation plant.

A resurgence in the prices of zinc and lead, combined with their long term demand fundamentals support the Company’s intention to advance its zinc projects in the Otavi Mountain Land.

The Otavi Mountain Land project area has available water, power and rail links to port within 50 km. The project area has established communications infrastructure (including roads, telephone, mobile broadband and mobile phone reception) and a highly competent team of geologists in place at Sabre’s nearby Kombat base camp to execute the program.

The excellent potential for discovery of multiple Border style Zn-Pb-Ag deposits along the Pavian Trend, together with their simple mining and processing characteristics, represents an excellent opportunity for the company to advance to feasibility and mining.

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

Paul Mazzoni - Technical Director Dr Matthew Painter - General Manager - Exploration Phone (08) 9481 7833

Or consult our website:

www.sabresources.com

Competent Persons Declarations

The information in this report that relates to Exploration Results 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 is a full time employee of Sabre Resources and 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 2012 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 Limited’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 Limited 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.