SABRE RESOURCES LIMITED — Interim / Quarterly Report 2003

Jan 28, 2004

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Sabre Resources Ltd

ABN

68 003 043 570

Quarter ended ("current quarter") December 31 2003

Year to date

Current quarter

Consolidated statement of cash flows

Cash flows related to operating activities

	Cash flows related to operating activities	$A'000	$(6$ months)$A'000
1.1	Receipts from product sales and related debtors
1.2	explorationPayments forand(a)evaluation(d) development(e) production(d) administration	(5)(39)	(10)(67)
1.3	Dividends received
1.4	Interest and other items of a similar naturereceived
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(44)	(77)
1.81.9	Cash flows related to investing activitiesPayment for purchases of: (a)prospects(b)equityinvestmentsfixed(c)otherassetsProceeds from sale of:(a)prospects(b)equityinvestments		54
	$(c)$ otherfixed
1.101.111.12	assetsLoans to other entitiesLoans repaid by other entitiesOther (provide details if material)
	Net investing cash flows		54
1.13	Total operating and investing cash flows(carried forward)	(44)	(23)

+ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows(carried forward)	(44)	(23)
1.141.151.161.171.181.19	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowingsDividends paidOther (provide details if material)
	Net financing cash flows
	Net increase (decrease) in cash held	(44)	(23)
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	76	55
1.22	Cash at end of quarter	32	32

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

DIRECTORS FEES & PROFESSIONAL SERVICES

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$+$ See chapter 19 for defined terms.

Financing facilities availableAdd notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
-3.1	Loan facilities
-3.2	Credit standby arrangements

Estimated cash outflows for next quarter

4.1	Exploration and evaluation
4.2	Development
	Total

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A'000	Previous quarterSA'000
5.1	Cash on hand and at bank	32	76.
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	32	76

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed
6.2	Interests in miningtenements acquired orincreased

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per	Amount paid up per
				security (see note	security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preferencei securities(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,redemptions
7.3	+ Ordinary	15,094,851	15,094,851
	securities
7.4	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returnsof capital, buy-
	backs
7.5	+ Convertible
	debt securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreasesthrough
	securities
	matured,
	converted
7.7	Options			Exercise price	Expiry date
	(description and	7,500,000		10 CENTS	JUNE 30 2006
	conversion
	factor)
7.8	Issued duringquarter
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

$+$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here:
	(Director/Company secretary)

Print name: D N ZUKERMAN

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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+ See chapter 19 for defined terms.