SABRE RESOURCES LIMITED — Capital/Financing Update 2015

Feb 10, 2015

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ASX ANNOUNCEMENT 11 February 2015

ZINC-LEAD MINERALISATION DISCOVERED BENEATH COVER AT TOGGENBURG

HI G HLIG H TS

• Shallow geochemical RC drilling program identifies visible sphalerite and galena mineralisation beneath thin cover at Toggenburg.

• Strong and extensive zinc-lead anomalies defined at Toggenburg and are supported by other indicator metals.

  • Values up to 2.33% Zn+Pb in the near-surface depleted zone.

  • ► Coherent anomalism defined in excess of 1.8 km strike length.

  • Strongest anomalism still open to the east.

  • Overburden is shallow, usually less than 5 m deep.

  • ► Anomalism is present both in bedrock and overburden.

• Mineralisation follows the interpreted position of the reactivated T4/T5 contact which controls mineralisation at the Border deposit 4 km to the west.

• Zinc and lead geochemical results at Toggenburg are higher than equivalently shallow samples from the Border deposit.

• Extension to the shallow drilling program to start after the wet season.

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Figure 1 – Th e Toggenburg d rill program, l o oking southwe s t, showing the collar location s of 64 recently completed dril l holes (circles). Drill s pacing is 200 x 50m. Also sho w n is the T4/T5 contact (black l ine) and the lo c ation of the Bo r der zinc-lead d eposit (red).

Zinc an d lead sulphide miner a lisation has been disc o vered ben e ath shallo w soil cover over an extensi v e area at T o ggenburg, t o the east o f the Border zinc-lead deposit (Figur e 1). The To g genburg discove r y is an exte n sion of Sabre’s Pavian T rend of out c ropping an d buried zinc - lead miner a lisation.

Metal d istributions at Tog g enburg

Metal di s tributions, b oth within t h e regolith a nd the upp e rmost bedr o ck, were pl o tted for To g genburg, East B o rder, and B order. Coh e rent anom a lism is pre s ent for at l e ast 1,800 m strike length in the Toggen b urg target a rea, with Z n +Pb value s at percent a ge grades a t several l o cations. No t ably, the zinc+le a d response over Togg e nburg is significantly s tronger th a n in the u p permost b e drock at Border.

These r esults vali d ate Sabre’ s exploratio n model fo r zinc and lead and c onfirm the regional metallo g enic significance of the Pavian Zin c -Lead Tren d , on which b oth Border and Togge n burg are located.

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Figure 2 – Targets (red) for the first phase of the regional geochemical RC drilling program are a l l located bene a th surface c over. All targets on the Komb a t Trend are co p per targets an d both targets o n the Pavian T rend are zinc-l e ad targets. K nown outcrop p ing prospects, occurrences, d e posits and mi n es are shown a s black crosse s .

Geoch e mical RC drilling p r ogram

Drilling a t Toggenb u rg was und e rtaken as p art of Sabr e ’s geochemical RC drill i ng program which is currentl y underway i n the Otavi M ountain La n d.

The pro g ram is testi n g 12 high p riority copp e r targets on the Kombat Copper Tre n d and 2 hi g h priority zinc-lea d targets on the Pavian Zinc-Lead T rend. Thes e high-priori t y undercov e r targets h a ve been delimite d using pro p rietary mod e ls defined f r om numer o us geologic a l, geophysi c al, and ge o chemical

datasets. The targets are considered to represent likely areas for the discovery of shallowly concealed, significant copper and zinc-lead deposits.

The first phase of drilling at Toggenburg comprised shallow reverse circulation (RC) drilling on a regular 200 x 50 m grid through overlying sand and silt and into the uppermost bedrock. In total, 64 holes were drilled. Drilling typically penetrated around 2 m into bedrock, providing samples from the overlying regolith and the oxidised depletion zone in the dolomite.

Rationale

The rationale behind drilling the Toggenburg target is as follows:

• Toggenburg is directly along strike from the Border Zn-Pb deposit.

• Elevated soil geochemical anomalism is present over much of the target area.

• Detailed tracking of the faulted T4/T5 contact using Sabre’s regional magnetics defined its approximate location beneath the plains.

• The lowlands of the Toggenburg Plains represent a topographic anomaly on the Pavian Trend, which is predominantly a prominent ridge line that runs for around 20 km.

In addition to these points, the Toggenburg area has never been explored previously. These features, amongst others, highlighted the prospectivity of the area in light of the Company’s models for zinc-lead mineralisation in the OML.

Methodology

RC drilling penetrated unconsolidated cover material and around 2 m of the underlying bedrock. RC chips were analysed using a portable x-ray fluorescence (portable XRF) analyser. Values obtained are directly comparable to one another, hence are a useful and cheap way to define metal distributions in regolith and bedrock for exploration purposes. However, these values are not as accurate as laboratory XRF analyses and, whilst indicative, may not define absolute values accurately. These pXRF results will not and can not be used to define any future resource at Toggenburg.

Results

Results from the shallow geochemical RC drilling show distinct, coherent anomalism in the regolith and the bedrock at Toggenburg (Figure 3Figure 4). Elevated Zn-Pb values extend the full 1800 m strike of the drill program and are open to the east and west. Anomalism is pronounced over a 200 m thickness, varying from 100 m to 300 m, along most of its strike length.

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Figure 3 – Zn + Pb anomalis m for bedrock a t Toggenburg. Z n+Pb values a re highest at t he eastern end of the program, where further d rilling is requ i red. White da s hed lines de m arcate the approx i mate position o f the Zn-Pb mi n eralisation

Bedrock anomalies

Values o btained by portable X R F analyses of bedrock chips show summed zi n c and lead totals as high as 2.3 % (Figu r e 3). Such v alues are s ignificant b e cause metal values obt a ined near the top of the bed r ock are lik e ly to be d e pleted by o xidation an d weatherin g , as is se e n at Borde r deposit. Results s how a mar k ed increase in zinc and lead values towards the eastern end of the surv e y (Figure 3).

Importa n tly, peak zi n c and lead values in b e drock from Toggenbur g are higher than those values in the same depletion zone over t h e Border deposit. That the equivalent results f rom Togge n burg are stronge r than those at Border is highly en c ouraging. I t is expecte d that, as at Border, g r ades will increas e with depth b elow a nea r -surface de p letion zone .

Similar p atterns are exhibited for copper an d mangane s e, which ar e useful tra c er elements for zinclead mi n eralisation. Vanadium s hows a str o ng concen t ration in th e east, unli k e anywhere else yet detecte d on the t r end. This may indica t e the pre s ence of l a te-stage o v erprinting v anadium minerali s ation in the subsurface t hat is not e v ident elsew h ere on the P avian Tren d .

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Figure 4 – Zn+Pb anomalis m for base of re g olith (top) and m aximum in re g olith (bottom) a t Toggenburg. Note t he similarities in the distributi o ns and with th o se in bedrock (Figure 3). Zn+ P b values are highest at the easter n end of the pr o gram, where f u rther drilling is required. White dashed lines dem a rcate the approximate position of the Zn-Pb m ineralisation

Regolith anomalies

Importa n tly, the reg o lith anomaly patterns m irror those of the bedr o ck (Figure 4). This is i mportant becaus e bedrock m e tal distributions can be q uite nuggety, as depict e d at Border to the west, whereas regolith values mor e likely depi c t the overal l metal distr i bution in th e bedrock (t h ough at si g nificantly lower le v els).

Furthe r work at T oggenbu r g

These e arly results at Toggen b urg suppo r t the Com p any’s belief that zinc-l e ad mineral i sation is present beneath th e Toggenbur g Plains to t he east of the Border deposit. This first phase o f drilling has par t ially demar c ated a zo n e of enriched zinc an d lead valu e s which is open to th e east in particul a r. Further s h allow geoc h emical drill i ng is required to track t he anomali s m further eastwards and to delimit its ext e nt to the w e st and to th e north and s outh on so m e lines. 77 shallow drill h oles are propose d to fully tes t anomalism beneath co v er at Toggenburg (Figu r e 5).

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Figure 5 – Proposed e x tension to the Toggenburg shallow geochemical RC drilling p rogram.

Extensi o ns to the s h allow drillin g program w ill need to w ait until th e end of the wet seaso n (around March or April) due to access difficulties on the black s o il plains wh e n wet. Ext e nsion of the program to the e a st will occ u r after harv e sting of th e crops curr e ntly growin g in the are a . This is li k ely to be around M ay.

Deeper d rilling is re q uired at To g genburg to test the str e ngth and d e pth extent o f the miner a lisation.. The det a ils of this p rogram will be finalised after the remaining sh a llow drilling has been c o mpleted and all t h e results a r e assessed. It will comp r ise a series deeper drill h oles to det e rmine the e x tent and orientati o n of zinc-l e ad mineral i sation in the subsurface. Such a p rogram, if s uccessful, will be a precurs o r to a resou r ce drillout program.

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

Dr Matthew Painter – General Manager – Exploration Paul Mazzoni – Technical Director

Phone (08) 9481 7833

Or consult our website: www.sabresources.com

Competent Person Declaration

The information in this report that relates to Exploration Results is based on information compiled by Dr Matthew Painter who is a full-time employee of Sabre Resources Ltd, and 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 Metals Australia 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 Metals Australia 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.