SABRE RESOURCES LIMITED — Interim / Quarterly Report 2009

Jul 28, 2009

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QUARTERLY ACTIVITIES REPORT for the period ended 30 June 2009

WORLD-CLASS POTENTIAL AT ONGAVA

• Sabre discovers a 15 km long base-metal lineament (the „Pavian Trend‟) which has world class potential for zinc, lead, and copper deposits.

• The Pavian Trend contains up to 7.7% zinc+lead & 500ppm copper in soil samples along strike from the Border deposit.

• Soil samples correlate with extensive lead-zinc-copper mineralisation outcropping at surface.

• Nosib H prospect (on the Pavian Trend) shows more than 2,000 metres of consistent, elevated copper anomalism.

• Several prospects on the Pavian Trend each show a similarly sized footprint to the giant Mount Isa lead-zinc-silver orebodies (Australia).

• Work has commenced on the 9 km long Lucas Post Trend , 16km southwest of the Border deposit on the Pavian Trend.

• The Lucas Post Trend contains: ► up to 3.5% zinc+lead & 2,320ppm copper in soil samples. ► the historic Harasib III copper, lead, zinc, & vanadium mine. ► several recognised copper-lead-zinc-vanadium prospects.

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ONGAVA POLY-METALLIC PROJECT, NAMIBIA

During the second quarter of 2009, Sabre Resources discovered the Pavian Trend , a 15 kilometre long zinc, lead and copper lineament with world-class potential on the Ongava Project, northern Namibia (Figure 1). Sabre‟s exploration licence (Figure 2) lies at the heart of the highly prospective Otavi Mountain Land, a historic world-renowned mining region.

The Pavian Trend (Figures 2 & 3) incorporates the Border deposit, the Irvington, Nosib H and South Ridge prospects, and the newly discovered „Pavian‟ prospect. The trend was discovered through implementation of a soil sampling programme to the west of the Border deposit earlier this year. The sampling was designed to infill gaps in Sabre‟s extensive regional geochemical database. Intense copper, zinc and lead in soils corresponds to extensive outcropping lead sulphides and zinc and copper carbonates.

Figure 1 – Location of the Ongava Project, Namibia

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Figure 2 – The Ongava Poly-Metallic Project area (EPL 3542). Major mines and prospects are labelled. Other prospects are represented by yellow dots (20km grid). The Pavian and Lucas Post Trends are shown in green.

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Figure 3 – The Pavian Trend

The Pavian Trend is over 15 km long in total. Over 13 kilometres of the Trend lies within Sabre‟s EPL3542 exploration licence (Figure 3). The Pavian Trend comprises, from west to east:

• Over 5,300 metres from west of Nosib H to Border, comprising strong Zn+Pb anomalism on hills and intervening flats.

• Around 6,000 metres from Border to west of South Ridge, comprising subdued Zn+Pb anomalism on the Toggenburg Plains.

• Over 3,200 metres from west of South Ridge eastward, comprising strong Zn+Pb anomalism on hills and intervening flats.

On outcropping parts of the Pavian Trend (South Ridge, Border-Nosib H ridge; Figure 4), recognised prospects or deposits occur every 900 to 1500 metres . Such regularity should continue beneath the soils of the Toggenburg Plains. The width of the plains is such that another 4 to 6 prospects may be located beneath the soils. This is considered to be a worstcase scenario. However, Sabre‟s analysis of the Pavian Trend indicates that extensive massive sulphide zinc, lead and copper mineralisation is likely to be located beneath the Toggenburg Plains to the east of the Border deposit. The change from ridge to plains, combined with subdued (but strong for soil plains) anomalism, is interpreted to represent alteration and mineralisation of the host rock sequence.

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Nosib H copper, zinc and lead anomaly

Nosib H is a distinct zinc, lead and copper anomaly on the Pavian Trend identified by Sabre through comprehensive soil sampling. In outcrop, the Nosib H anomaly coincides with outcropping base metal minerals including galena (lead sulphide), malachite (copper carbonate) and smithsonite (zinc carbonate).

Copper values at Nosib H are consistent along more than 2,000 metres of strike (Figure 5), with peak values of around 500 ppm copper. Elsewhere in the Otavi Mountain Land, values of 500 ppm copper in soils coincide with historic copper mines and known copper prospects . The strong association of anomalous copper values with high lead and zinc soil geochemistry values (Figure 6) marks Nosib H as a high-priority exploration target similar in style to the giant Tsumeb Cu-Zn-Pb orebody 40 km to the north.

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Figure 5 – Soil geochemistry results for copper at the Nosib H prospect on the Pavian Trend. Values peak at around 500 ppm at the centre of the anomaly. The thick black line represents the 804,400 mE section along which values are compared in Figure 3 below.

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----- Start of picture text -----

Section across the Nosib H Cu-Pb-Zn anomaly
1000 12500
800 10000
Figure 6 – A profile
600 7500
along the
804,400 mE section
400 5000 for copper (blue) and
Zn+Pb (red) values.
Note that the peak
200 2500 copper values
coincide with the
Zn+Pb highs.
0 0
7841750 7842000 7842250 7842500 7842750
Northing (mN)
Cu (ppm) Pb+Zn (ppm)
Cu (ppm)
Pb+Zn (ppm)
----- End of picture text -----

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Border-Irvington deposit

The exploration target for the Border-Irvington system remains as previously stated, as:

12-15 Mt @ 5-6% Lead + Zinc[1] .

This represents a conservative tonnage that is substantially lower than estimates published by the Namibian Mines Department.

Three-dimensional modelling of the Border-Irvington system has confirmed continuity of mineralisation (Figure 7). However, taking a conservative approach, Sabre has deemed that insufficient drilling may have been performed along the short section lines to fully meet the JORC criteria. A second phase of drilling to extend and infill the section lines will provide the necessary density of data to satisfy Sabre‟s conservatism. Sabre‟s analysis of the drill core also shows that, by following the recognised dip and plunge of mineralisation, further drilling may intercept thicker and higher-grade intercepts.

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Figure 7 – Oblique view of the 3-dimensional model for the Border deposit, looking west, showing mineralisation (pink) dipping steeply northward. Mineralisation throughout the Border-Irvington system is parallel to and near to the siliceous fault zones (white).

1 At this stage, the potential quantity and grade of the Border zinc-lead deposit is conceptual in nature, as Sabre has determined that insufficient work has been undertaken to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The „exploration target‟ size was based upon deposit calculations undertaken by Etosha Petroleum Ltd (Border).

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World-class potential

The 15 kilometre long Pavian Trend is a zinc, lead and copper trend of „world-class‟ potential. Globally, strong base metal trends of this size are a rarity.

It is useful to compare the dimensions of Sabre‟s newly discovered soil anomalism to the footprint of one of the world‟s great lead-zinc-silver deposits – Mount Isa in northern Australia (Figure 8). The total calculated metal endowment of the Mount Isa deposits is 150 Mt @ 7.0% Zn, 6.0% Pb and 150ppm Ag (Huston et al. 2006). The Mount Isa orebodies have an irregular surface footprint of about 3,000 x 600 m.

There are clear differences between the styles of mineralisation at Border and Mount Isa, but superposition of the Mount Isa orebody footprint over the Pavian Trend (Figure 9) serves to illustrate that the dimensions of a world-class orebody are consistent with the size and distribution of the soil geochemistry anomalies discovered in the Otavi Mountain Land. Figure 5 shows that the Mount Isa footprint is almost identical in size to the Nosib H anomaly Figure 8 – Footprint of the Mount Isa Pb(Figure 6). Equally, the soil covered Toggenburg Zn-Ag deposits, northern Australia. Plains between Border and South Ridge, as well as the South Ridge anomaly (Figure 6) provide ample space and high prospectivity for a substantial deposit.

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Figure 9 – Superposition of the Mount Isa footprint (red dashed line) on several anomalies along the Pavian Trend.

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Upcoming work

Field assessment of the Nosib H and Pavian prospects will continue in the coming quarter, as will investigation of the Toggenburg Plains.

Work has commenced on the Lucas Post Trend (Figure 10) around 16 kilometres southwest of Border. The Lucas Post Trend is a copper, zinc and lead trend around 9 kilometres long that incorporates the Tigerschlught, Uitsabpad and Lucas Post prospects, and the Harasib Claims / Harasib III copper-zinc-lead-vanadium mine (Figure 11). Copper values in soils are as high as 2,320 ppm, and zinc + lead values are as high as 3.5%. Soil geochemistry data will be collected from Tigerschlught through to Harasib III, and assessment of known prospects will be undertaken. The Lucas Post trend is yet another extensive soil geochemistry trend that illustrates the high prospectivity of the Otavi Mountain Land.

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Figure 10 – The Lucas Post Trend showing historic copper soil geochemistry values.

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Figure 11 – Mining activity at Harasib Claims / Harasib III from the 1930s, showing several levels of workings on the hillside (top left), an adit (top right) and a waste dump (bottom left).

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Yours faithfully, Norman Grafton Company Secretary Sabre Resources Ltd

For further information please contact:

Dr Matthew Painter, General Manager - Exploration

Phone (08) 9481 7833

Or consult our website:

http://www.sabresources.com/

Competent Person Declaration

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Matthew Painter, who is a member of The Australasian 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 “Australasian 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.

REFERENCE

Huston, D.L., Stevens, B., Southgate, P.N., Muhling, P., and Wyborn, L., 2006. Australian ZnPb-Ag ore-forming systems: a review and analysis. Economic Geology , v. 101, p. 1117-1157

APPENDIX

XRF analysis results for soils across the Nosib H Cu-Zn-Pb prospect along the 804,400 mE section. All assay values are in parts per million (ppm)

UTM East	UTM Nth	UTM Zone	Cu	Pb	Zn	Mn	V	Fe	Zr	Cr	Ti	Ca	Pb+Zn
804400	7841650	33S			125.61	2150.49	86.86	13304.2	107.05	96.5	1189.04	14996.71
804400	7841700	33S			67.32	1777.22	56.59	12605.97	136.15	96.84	1213.41	10733.21
804400	7841750	33S	136.93	30.27	169.82	1799.17	78.1	15699.59	141.9	100.53	1505.13	38469.44	200.09
804400	7841800	33S	81.52	32.56	84.75	2329.48	111.28	19114.69	149.34	99.52	1856.46	19252.66	117.31
804400	7841850	33S			101.33	1995.61	86.26	14751.88	123.84	78.89	1339.52	13693.81
804400	7841900	33S	65.92	22.62	101.29	2530.79	104.36	15996.18	120.92	96.51	1465.74	11321.98	123.91
804400	7841950	33S	164.23	76.86	152.51	2507.3	97.66	19583.38	185.51	124.89	1796.67	10030.73	229.37
804400	7842000	33S	167.38	119.27	455.68	2341.88	94.13	19525.97	127.99	83.1	1675.8	19911.66	574.95
804400	7842050	33S	60.83	386.66	607.12	1298.88	119.7	15178.23	122.79	105.63	1515.3	13445.23	993.78
804400	7842100	33S	174.46	470.14	700.06	1929.36	212.17	19838.2	138.69	109.35	1930.18	15625.31	1170.2
804400	7842150	33S	117.58	269.28	373.19	1599.49	72.24	14906.83	123.54	103.32	1575.57	8515.99	642.47
804400	7842200	33S	292.82	949.28	4613.27	1982.13	121.04	19284.81	124.04	72.47	1648.54	60553.53	5562.55
804400	7842250	33S	168.05	1425.6	3500.17	886.12	121.5	22445.85	147.28	121.6	2074.32	13520.62	4925.77
804400	7842300	33S	491.95	10183.63	15755.79	1354.51	71.94	13010.91	99.27	75.04	1112.39	30469.21	25939.42
804400	7842350	33S	118.19	3139.32	7751.79	788.5	81.61	12778.99	106.05	49.27	1007.17	29013.52	10891.11
804400	7842400	33S	283.76	3754.02	8069.76	516.91	116.46	12453.25	136.88	76.88	1230.35	11418.77	11823.78
804400	7842450	33S	242.46	8204.33	8871.37	1129.82	76.35	12873.11	158.28	78.69	1173.29	16334.75	17075.7
804400	7842500	33S	136.18	3020.45	3741.35	489.34	89.27	11155.7	115.41	87.05	1061.64	5784.8	6761.8
804400	7842550	33S	95.38	1798.08	2789.52	607.89	114.49	14975.11	124.26	108.11	1621.97	10125.18	4587.6
804400	7842600	33S		554.32	1229.13		70.4	9397.14	83.23	121.35	1173.35	84684.52	1783.45
804400	7842650	33S		201.62	492.86			8473.93	151.05	82.68	955.14	19282.79	694.48
804400	7842700	33S	90.19	364.17	669.09	943.31	108.69	10605.8	148.71	84.86	1262.35	81847.57	1033.26
804400	7842750	33S		70.49	209.25		74.08	9835.18	124.85	62.94	1218.18	11358.76	279.74
804400	7842800	33S		76.5	279.41	518.73	64.32	11585.29	129.16	80.55	1394.07	12136.41	355.91

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