SABRE RESOURCES LIMITED — Interim / Quarterly Report 2006

Jun 18, 2006

Rule 5.3

Appendix 5B

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

		Month ended ("current month")
May 31 2006

Consolidated statement of cash flows

Current month Year to date Cash flows related to operating activities $A'000 $(11$ months) $A'000 $1.1$ Receipts from product sales and related debtors $1.2$ Payments for $(a)$ exploration $(3)$ $(86)$ and evaluation (d) development (e) production (d) administration $(15)$ $(275)$ $1.3$ Dividends received $1.4$ Interest and other items of a similar nature received 3 $1.5$ Interest and other costs of finance paid 1.6 Income taxes paid $1.7$ Other (provide details if material) Net Operating Cash Flows $(18)$ $(358)$ Cash flows related to investing activities 1,8 Payment for purchases of: (a)prospects $(67)$ (b)equity investments fixed $(c)$ other assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities $1.11$ Loans repaid by other entities $1.12$ Other (provide details if material) Net investing cash flows $(67)$ $1.13$ Total operating and investing eash flows (carried forward) $(18)$ $(425)$

+ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows(carried forward)	(18)	(425)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.		500
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)		(15)
	Net financing eash flows		485
	Net increase (decrease) in cash held	(18)	60
1.20	Cash at beginning of quarter/year to date	212	134
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	194	194

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

PROFESSIONAL SERVICES + DIRECTORS FEES

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 available

Add 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_______________________________________

$\overline{\phantom{a}}$

Estimated cash outflows for next quarter

4,1	Exploration and evaluation	$A'000
4.2	Development	BALLARASSATTER FEBRUARIE
	Total

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as )shown in the consolidated statement of eash flows) tothe related items in the accounts is as follows.	Current quarter$A'000	Previous quarter$A'000
Cash on hand and at bank5.I		194	212
Deposits at call5.2
Bank overdraft5.3
Other (provide details)5.4
Total: cash at end of quarter (item 1.22)		194	212

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 persecurity (see note$3)$ (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference*securities(description)
7.2	Changes duringquarter(a) Increasesthrough issues
	(b) Decreasesthrough returnsof capital, buy-backs,
	redemptions
7.3	*Ordinarysecurities	28,434,851	26,934,851
7.4	Changes duringquarter(a) Increases
	through issues(b) Decreasesthrough returns
	of capital, buy-backs
7.5	*Convertibledebt securities(description)
7.6	Changes duringquarter(a) Increases
	through issues(b) Decreasesthrough
	securitiesmatured,converted
7.7	Options			Exercise price	Expiry date
	(description andconversionfactor)	20,000,0003,000,000		10 cents10 cents	June 30 2006December 31 2012
7.8	Issued during
7.9	quarterExercised duringquarter
7.10	Expired duringquarter
7,11	Debentures(totals only)
7.12	Unsecurednotes (totalsonly)

+ See chapter 19 for defined terms.

Compliance statement

• $\mathbbm{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to $\text{ASK}$ (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

• 1 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 4 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.