SABRE RESOURCES LIMITED — Capital/Financing Update 2020

Jul 15, 2020

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ASX ANNOUNCEMENT

16 July 2020 ASX code : SBR

Capital Raising to Fast Track Exploration in Youanmi Gold Mining District & Pilbara Regions in Western Australia

Sabre Resources Limited (Company or Sabre) is an ASX company focused on the exploration for gold in the Youanmi Gold Mining District, Western Australia, nickel-copper-cobalt at Sherlock Bay in the Pilbara, Western Australia, and copper and zinc-lead deposits in the Otavi Mountain Land, northern Namibia.

The Company is pleased to announce that Peak Asset Management ( Peak ) has acted as Corporate Adviser and Lead Manager in relation to a capital raising undertaken by the Company to raise a minimum of $982,313. Sabre has received a letter from Peak confirming that it has received binding commitments for a total raising of a minimum of $982,313, being the minimum amount proposed to be raised.

The Company will be able to utilise funds to accelerate exploration on the Bonanza and Beacon Gold Projects in the Youanmi Gold Mining District in Western Australia that Sabre has recently acquired. These projects are located in close proximity to the recent discovery at the Penny West Gold Project owned by Ramelius Resources Limited (ASX: RMS). The Youanmi Gold Mining District has gained rapid investor attention with several companies, including Rox Resources Limited (ASX: RXL) and Venus Metals Corporation Limited (ASX: VMC) reporting significant exploration success on their gold projects located in the same area.

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Figure 1: Location plan showing the Bonanza Gold Project (EL57/1125) and Beacon Gold Project (EL 57/1136) relative to Ramelius Resources Ltd’s Penny West Project

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A map above showing the project locations relative to Ramelius Resources Limited’s (ASX: RMS) Penny West Gold Project is presented below.

The capital raising will be made via a placement without a prospectus or other disclosure document to applicants meeting the exemption criteria of s.708 of the Corporations Act 2001 and will be undertaken via two tranches as follows.

1. Tranche 1. The issue of 180,929,251 fully paid ordinary shares with a 1:2 free attaching listed option (ASX:SBRO exercisable at $0.008 at any time up to 30 September 2022) at an issue price of $0.0025 per share.

2. Tranche 2. The issue of 212,000,000 fully paid ordinary shares with a 1:2 free attaching listed option (ASX:SBRO exercisable at $0.008 at any time up to 30 September 2022) at an issue price being the higher of $0.0025 and that of an 80% discount to the 5-day VWAP immediately prior to the date of issue.

The Tranche 1 shares are anticipated to be issued shortly, subject to the receipt of funds. 95,757,551 shares will be issued pursuant to the Company’s existing placement capacity under ASX LR7.1 and 85,171,700 pursuant to existing capacity under ASX LR7.1A. All options, as well as the Tranche 2 shares, will be issued immediately after, and subject to, receiving shareholder approval at the General Meeting to be held on 27 July 2020.

Upon successful completion of the entire placement, being Tranche 1 and Tranche 2, Peak shall receive 25 million SBRO (“broker options”). The issue of the broker options will be subject to receiving shareholder approval at the Company’s Annual General Meeting for the year ended 30 June 2020.

Commenting on the capital raising, Chairman of Sabre, Michael Scivolo, stated:

“We consider the capital raising to indicate confidence from investors in Sabre’s ground holding in the Youanmi District area, an area that is host to several exciting high-grade gold discoveries, including the recently discovered northern extension of the Penny West Gold Project, owned by Ramelius Resources Limited (ASX: RMS). This region has gained rapid investor attention with several companies reporting significant exploration success on their gold projects located in the same area. Through this capital raising, Sabre is now able to accelerate its exploration work in this rapidly expanding gold district.”

Sabre also holds interests in the following projects.

Sherlock Bay Nickel Project – Australia

The Sherlock Bay Nickel Project is in the Pilbara region of Western Australia and contains a JORC (2012) Measured, Indicated and Inferred Resource of 24.6Mt grading 0.4% nickel, 0.09% copper and 0.02% cobalt*. The project has contained nickel of 98,400 tonnes.

Otavi Mountain Land Copper, Lead-Zinc-Silver Projects - Namibia

• Sabre owns a highly prospective portfolio of advanced exploration assets, as well as a lead/zinc resource, located in the Otavi Mountain Land (OML) of Namibia.

• The copper potential of the OML tenement package is currently being reviewed and evaluated with previous drilling having intersected multiple zones of high-grade copper.

• The Company is planning further drilling programs for copper, vanadium and lead- zinc.

• Assets include:

  • High-Grade Vanadium Mineralisation: High grade near-surface vanadium mineralisation historically mined at the Baltika V-Zn-Pb Prospect and the Kaskara V-Cu Deposit.

  • Border Lead-Zinc Resource:** Border Contains a JORC (2012) Inferred resource of 16.0 Mt @ 1.53% Zn, 0.59% Pb and 4.76g/t Ag. Recent work has shown significant Zn-Pb geochemical anomalies along strike from the Border deposit at the Toggenburg Prospect with up to 2.90% Zn+Pb over 2.8 km strike length defined to date. Mineralisation has exceptional metallurgical characteristics and is amenable to beneficiation using heavy media separation methods. Potential exists to substantially increase the size of the resource by drilling along strike.

  • High-Grade Copper Mineralisation at Guchab*** : Extensive copper mineralisation intersected in drilling at the Guchab South Cu-Ag Prospect, where mineralisation occurs over an area at surface measuring over 850 metres by around 100 metres. Sabre has previously reported high grade copper mineralisation at Guchab including 22.2m at 3.45% Cu in hole GCD005. Geological modelling indicates that the mineralisation is open down plunge and drilling will be designed to test for extensions.

This announcement has been authorised for release by the Board of Directors.

ENDS

For further information contact:

Martin Stein Company Secretary P: +61 8 9481 7833

* Refer to ASX announcement dated 12 June 2018 and titled “Sherlock Bay resource estimate update”. The Company is not aware of any new information or data that materially effects the information included in this announcement. **Refer to ASX announcement dated 16 October 2014 and titled “Border Zinc Deposit Resource Update”. The Company is not aware of any new information or data that materially effects the information included in this announcement. ***Refer to ASX announcement dated 10 September 2012 and titled “High Grade Copper from Surface at Guchab”. The Company is not aware of any new information or data that materially effects the information included in this announcement.

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Martin Bennett, a consultant to Sabre Resources Ltd, and a member of Australian Institute of Geoscientists. Mr. Bennett 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 “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr. Bennett consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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Caution Regarding Forward-Looking Information

This document contains forward-looking statements concerning Sabre Resources. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of Sabre as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.