SABRE RESOURCES LIMITED — Capital/Financing Update 2018

Jun 27, 2018

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ASX ANNOUNCEMENT

28 June 2018

ASX Code: SBR

MINING STUDY UPDATE FOR THE SHERLOCK BAY NICKEL-COPPER-COBALT DEPOSIT

HIGHLIGHTS

• A review and update of the mining study for the Sherlock Bay nickel-copper-cobalt deposit has been initiated

• Key deliverables to include open pit and underground production schedules with updated costs and cash flows based on updated commodity prices, exchange rates, capital costs and operating costs

• Review and update of other existing feasibility work into processing and engineering studies related to the development of the deposit is continuing

The Directors of Sabre Resources Limited (ASX:SBR)(Sabre or the Company) are pleased to announce that the Company has commissioned AMC Consultants (AMC) to undertake a review and update of the mining study for the Sherlock Bay nickel-copper-cobalt deposit located on its Sherlock Bay Project in the Pilbara region of Western Australia (Figure 1).

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Figure 1: Location map of the Sherlock Bay Project in Western Australia

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SHERLOCK BAY PROJECT

The Sherlock Bay Project (the Project) is located in the Pilbara region of Western Australia, approximately 75 km to the east of the town of Karratha and 120 km southwest of Port Hedland. The Project comprises a mining lease and two exploration licenses (Figure 1) that collectively cover a total of 189 km[2] . The project is located in a region with excellent mining-related infrastructure and can readily be accessed via sealed highway and upgraded pastoral station tracks.

The Sherlock Bay nickel-copper-cobalt deposit has a total mineral resource estimate of 24.6 Mt grading 0.4% nickel, 0.09% copper and 0.02% cobalt ( see Appendix I , refer to Sabre Resources ASX announcement dated 12 June, 2018 ). A number of feasibility studies have previously been completed on the development of the Sherlock Bay deposit and there is extensive historical information available on the mining, metallurgy, processing and infrastructure requirements for the project.

MINING STUDY UPDATE

The company has commissioned AMC Consultants Pty Ltd (AMC) to undertake a review of the mining study for the Sherlock Bay deposit, updating a report that was originally completed by them in 2005[1] .

AMC’s updated study will utilise the re-stated JORC Code 2012 compliant resource estimate recently reported by the Company to create a new diluted mining model (with the application of appropriate dilution and ore loss factors and input of economic parameters). Using this model, open pit shells will be generated and validated against the pit design prepared in 2005.

Update of the underground mining study will involve using the same physical schedule and quantities for underground mining operations as detailed in the 2005 report. Updated contractor mining costs and capital costs (sourced by AMC) will be utilised in the study.

The deliverable results of the mining study update will be open pit and underground mine production schedules, with updated current costs and projected cash flows based on updated commodity prices, exchange rates, capital costs and operating costs.

The completed report is expected to be delivered to the company by the end of July, 2018. The mining study update results will give the Company confidence in the cost of mining the resource and feed into ongoing feasibility studies.

FEASIBILTY STUDIES

The Company is continuing to review and update the substantial feasibility study work that has previously been completed on the development of the Sherlock Bay deposit. The extensive information already available will allow the Company to rapidly advance the evaluation of the project to feasibility stage.

ENDS

For more information, please contact:

Lachlan Reynolds Exploration Manager

Graham Baldisseri Company Secretary

Phone: (08) 9481 7833

Or consult our website:

www.sabresources.com

1 AMC, 2005. Sherlock Bay Mining Study Report. AMC Report 205038, prepared for the Sherlock Bay Nickel Corporation Ltd.

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Competent Person Declaration

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves, as applicable, is based on information compiled by Mr Lachlan Reynolds who is a consultant to Sabre Resources Ltd, and who is a Member of The Australian Institute of Mining and Metallurgy. Mr Reynolds 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”. Mr Reynolds 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 program 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 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 I Sherlock Bay Resource Estimate

			Discovery Lode	Discovery Lode
	Tonnes Mt	Ni%	Cu%	Co%	Ni t	Cu t	Co t
Measured	3.90	0.33	0.10	0.025	12,900	4,100	1,000
Indicated	6.3	0.39	0.11	0.025	24,200	6,700	1,600
Inferred	2.3	0.43	0.11	0.026	9,900	2,500	600
Total	12.5	0.38	0.11	0.025	47,100	13,200	3,100
		Symond's High Grade Lode
	Tonnes Mt	Ni%	Cu%	Co%	Ni t	Cu t	Co t
Indicated	2.80	0.56	0.08	0.022	15,600	2,300	600
Inferred	1.2	0.58	0.07	0.019	7,000	800	200
Total	2.1	0.63	0.08	0.024	13,200	1,600	500
Indicated	6.1	0.59	0.08	0.022	35,700	4,700	1,300
		Symond's Low Grade Lode
	Tonnes Mt	Ni%	Cu%	Co%	Ni t	Cu t	Co t
Measured	2.50	0.26	0.08	0.019	6,500	2,000	500
Indicated	1.7	0.26	0.05	0.013	4,400	800	200
Inferred	1.9	0.29	0.04	0.012	5,400	800	200
Total	6.1	0.27	0.06	0.016	16,400	3,700	900
			Total Deposit
	Tonnes Mt	Ni%	Cu%	Co%	Ni t	Cu t	Co t
Measured	12.48	0.38	0.11	0.025	47,100	13,200	3,100
Indicated	6.1	0.59	0.08	0.022	35,700	4,700	1,300
Inferred	6.1	0.27	0.06	0.016	16,400	3,700	900
Total	24.6	0.40	0.09	0.022	99,200	21,700	5,400

(Note that rounding discrepancies may occur in summary tables)

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