SABRE RESOURCES LIMITED — Interim / Quarterly Report 2012

Oct 30, 2012

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 30 SEPTEMBER 2012

'Malachite' (copper carbonate) & iron oxide mineralisation in GCDD0006 from Guchab, Kombat Copper Trend.

HIGHLIGHTS

Sabre has now begun drill testing of its two primary target areas, namely the Guchab copper mining centre and the Kaskara copper prospect.

Kombat Trend (Cu-Aq)

• Reconnaissance diamond drilling at Guchab has intersected significant copper mineralisation in a number of locations across the prospect area.
• Drilling on the Eastern Adits (Pad 1) at Guchab has included intercepts of:

GCDD0001 107.75 m @ 1.15% Copper & 6.93 gpt Silver from 0.60 metres Including 2.35 m @ 13.24% Copper & 70.84 gpt Silver from 17.90 metres 8.95 m @ 3.03% Copper & 8.18 gpt Silver from 36.05 metres.

GCDD0005 22.20 m @ 3.45% Copper & 29.67 gpt Silver from surface Including 2.15 m @ 17.60% Copper & 247.70 gpt Silver from 20.05 metres

Drilling on the Western Workings (Pad 2) at Guchab has included intercepts of:

GCDD0006 14.10 m @ 1.31% Copper & 10.50 gpt Silver from 0.90 metres Including 2.65 m @ 5.10% Copper & 50.94 gpt Silver from 7.00 metres

Lucas Post Trend - Kaskara (Cu-Pb-V)

• RC drilling has commenced at the Kaskara prospect on the Lucas Post Trend with two holes now successfully completed.
• Initial metallurgical test work has commenced on the near surface, Kaskara oxide mineralisation and shows it to be 'simple', composed of descloizite (Pb-V-Cu) & hematite (Fe).

Hoek Trend (Zn-Pb)

Maiden inferred JORC resources for both Driehoek Central & East

Introduction

Sabre's focus is the exploration and development of the Otavi Mountain Land (OML) copper and base metal project in northern Namibia. Work during the quarter focused on reconnaissance drilling at Guchab and preparations for RC drilling at Kaskara. In addition Sabre has commenced metallurgical test work on the Kaskara mineralisation.

The OML has a long mining history dating back to the late 1800s and consequently has excellent infrastructure, including roads, power, water, rail to port and is home to the Tsumeb base metal smelter complex, one of only five operating copper smelters in Africa. The province, historically a globally important source of copper, lead, zinc and vanadium, is presently undergoing a renaissance due to exploration by Sabre in the region.

1. KOMBAT COPPER TREND (Cu-Ag)

Sabre acquired the Otavi Valley tenement in June 2012, which covers much of the Kombat Copper Trend. The Kombat Trend is a regional scale fault structure more than 50 kilometres long, which hosts a number of mines and prospects, including the Kombat Copper Mine* and the current focus of Sabre's exploration programme at the Guchab Mining Centre.

*The Kombat Copper Mine & Concentrator are not assets of Sabre Resources.

Figure 1 - Oblique view east from the Kombat copper mine (foreground, excised area shaded) along strike to Sabre's series of copper targets (yellow) at Nehlen and Rendezvous in the Kombat Ost copper target area, and Guchab in the Guchab mining centre - the licence boundary is shown in yellow.

1.1 The Guchab Mining Centre

The Guchab mining centre is located on the eastern portion of the Kombat Copper Trend, 10 kilometres east of the Kombat mine. It is composed of a series of copper mines that were exploited in the early 20th century. Metamorphic copper mineralisation has formed vein and breccia style deposits throughout the centre, and can be traced over more than 4,000 metres of strike, with copper-in-soil anomalies in excess of 10,000 ppm.

Following the acquisition of the Otavi Valley tenement in June 2012. Sabre commenced a programme of reconnaissance drilling to test the extent of mineralisation at various mine works at Guchab. The programme is being undertaken utilising a 'man-portable' diamond drill rig due to the comparatively rugged nature of the terrain in this part of the Otavi Valley.

Figure 2 - Sateliite imagery of the Guchab area showing infrastructure, and an outline of the surface geochemistry with drill pad locations.

A. Eastern Adits (Drill Pad One)

Drilling in the Eastern Adits proved to be highly successful with all holes intersecting significant mineralisation. Intercepts included:

GCDD0001 107.75 m @ 1.15% Copper & 6.93 gpt Silver from 0.60 metres including 2.35 m @ 13.24% Copper & 70.84 gpt Silver from 17.90 metres 8.95 m @ 3.03% Copper & 8.18 apt Silver from 36.05 metres

GCDDD0002incluuding	26.56 m @ 11.06% Coppper & 6.25 ggpt Silver frrom 1.42 meetres4.57 m @ 2..18% Coppeer & 21.44 ggpt Silver frrom 8.19 meetres
GCDDD0003incluuding	18.90 m @ 11.54% Coppper & 9.66 ggpt Silver frrom 1.00 meetre7.00 m @ 2..52% Coppeer & 10.12 ggpt Silver frrom 1.00 meetre
GCDDD0004incluuding	24.05 m @ 11.29% Coppper & 10.91gpt Silver ffrom surfacce1.00 m @ 8..55% Coppeer & 38.38 ggpt Silver frrom 23.05 mmetres
GCDDD0005	22.20 m @ 33.45% Coppper & 29.67gpt Silver ffrom surfacce

Figure 3 – – Cross section o Off-section dr of drilling from Pa rillholes GCDD00 ad 1 showing dri 004 and 0005 are ill holes, interpret e superimposed ted geology and on the section a results of diamo as dashed lines ond drilling.

Drilling s Analysis zones) h at Pad O shows that s of the drill c have an east One was perp the minerali core indicate t-west, sub v pendicular to isation is ho es that most vertical, orien o the mineral osted by a c mineralised ntation. This isation. copper-rich structures (b indicates tha structural being veins & at the drilling breccia. & breccia direction

A progra program amme of re mme will follow esource drilli w the comple ing is now etion of the r being desig reconnaissan ned for the nce phase of Eastern Ad f drilling. dits. This

B. Western Workings (Drill Pad Two)

Diamond drilling on the Western workings has been hampered by ongoing logistical and mechanical problems. Three drill holes were completed at Pad Two, with two holes intersecting mineralisation and a third hole being abandoned prior to reaching target depth.

Holes GCDD0006 & 0007 intersected the 'Western Workings' mineralisation, with better results including:

GCDD0006 14.10 m @ 1.31% Copper & 10.50 gpt Silver from 0.90 metres 2.65 m @ 5.10% Copper & 50.94 gpt Silver from 7.00 metres including

GCDD0007 8.37 m @ 0.54% Copper & 7.43 gpt Silver from 5.48 metres including 1.19 m @ 1.41% Copper & 25.40 gpt Silver from 5.48 metres

Figure 4 - Diamond drill core from Pad Two (GCDD0006) showing strong copper mineralisation.

Drill hole GCDD0008 was drilled to the northwest but had to be abandoned due to ground conditions and mechanical issues with the drill rig. Holes GCDD0009 & 10, targeted to the southeast, could not be completed due to poor ground conditions.

Drilling has been postponed at Pad Three, which is located along strike from Pad Two, until further mapping and structural analysis of the West Workings can be completed to assist in targeting. The rig has been moved to Pad Four in the High Valley.

C. The High Valley (Drill Pad Four)

The copper mineralisation in the High Valley at Guchab is highlighted by an extensive high grade (>5000 ppm) copper in soil anomaly and mine workings. Recent mapping in the 'High Valley' shows:

• Extensive silicic & dolomitic alteration associated with copper mineralisation,
• Outcropping copper mineralisation extending through the 'High Valley', to the Eastern Adits and towards the Western Workings,
• An extensive system of mine workings, including pits, adits and drives on a number of levels.

Figure 5 - Dr Painter inspects a series of mine workings in the High Valley at Guchab.

The mineralised system being tested at Pad Four appears to be the northwestern extension of the Eastern Adits (Pad One) mineralisation and can be traced at surface between the two sites, over more than 400 metres of strike.

Drilling has now commenced in the High Valley and Sabre looks forward to updating investors as drilling progresses in the coming weeks.

Figure 6 - A view of the northern side of the Guchab hill, looking west from the 'Iron Cap'. The interpreted alteration/ mineralised zone is highlighted in yellow with the mine workings and drill pad locations shown in white.

1.2 Diamond Drilling in the OML

The diamond drilling programme at Guchab has proven problematic, with the current contractor encountering a number of issues which has delayed and hampered drilling. These problems range from lack of water to the rig to broken support trucks and drilling equipment. This has resulted in little production from the rig during the quarter, with few results being generated for the prospect and delaying the reconnaissance programme.

Sabre is currently assessing two options to improve drilling productivity from the site:

• New Contractor $-$ a Namibian-based company with a number of man-portable diamond drill rigs deployed throughout southern Africa. The group undertook a site inspection in the second half of October and are expected to provide a quotation for the supply of services shortly.
• Sabre Rig $-$ Sabre is currently assessing the viability of owning and operating its own diamond drilling rigs. A highly experienced drilling consultant, with over 7 years drilling experience in Africa, will be travelling to site in the first week of November to assess the project area and provide advice to management on the Company's potential requirements.

2. THE LUCAS POST COPPER TREND

The Lucas Post Trend is a 'provincial-scale' structure covering more than twenty five kilometres of strike within Sabre's project area. The trend is highlighted by strong copper anomalism at surface and follows a major fault zone.

2.1 Kaskara RC Drilling

A programme of 30 RC drill holes, varying in depth from 25 metres to >250 metres (~5,000 metres total) is planned. The drilling at Kaskara to designed with two objectives:

• Delineate the mineralised 'Fe-Pb-V pipe' in the oxide zone and to allow initial resource estimation in this zone,
• Test the delineated IP ('sulphide'?) target at depth >250 metres (Figure 7).

RC drilling is underway, and although encountering challenging conditions, it is performing considerably better than the previous diamond drilling, with two holes now successfully completed..

Figure 7 - A diagrammatic cross-section of the Kaskara deposit showing mineralisation styles and deeper IP target

2.2 Kaskara Metallurgical Test Work - Oxide Mineralisation

Preliminary test work has commenced on the near surface, high-grade oxide mineralisation from Kaskara (Figure 8). Four bulk samples, totalling over 100 kg, were collected from the underground workings at Kaskara. Preliminary test work was undertaken on one of the samples on site, with a sub-sample being screened and subjected to simple gravity separation.

Figure 8 - Brecciated Lead-Vanadate oxide mineralisation in the underground workings at Kaskara.

This initial test work shows that the mineralogy of the samples consists of two separate mineral species:

• Descloizite (Pb-V-Cu),
• Hematite (Fe).

There is the potential for the deposit to produce a high-grade descloizite (Pb-V-Cu) concentrate product, as well as small volumes of a high-grade hematite (>60% Fe) by-product - the volumes and economic viability of these products has yet to be assessed.

The bulk samples are now being prepared for transfer to ALS Metallurgy (formerly Ammtec) in Perth for further testing and analysis and potential flow sheet development.

3. HOE EK ZINC-LE EAD TREND D (Zn-Pb-A Ag)

The Hoe 3542), fr early sta deposits ek Trend co rom the Drieh age on this t s at Driehoek overs over 2 hoek deposit trend, howev k. 0 kilometres ts in the wes ver previous s of strike in st through to workers hav n the southe Hoba Ost in ve outlined a ern Ongava the east. Ex a number of tenement ar xploration is substantial rea (EPL still at an zinc-lead

3.1 Resource e Estimatio on at Drieh hoek (Zn-P Pb-Ag)

A w a A programm with addition maiden infer as follows me of resourc nal resource rred JORC m ce drilling wa e drilling co mineral resou as completed mpleted at urce estimat d at Driehoe Driehoek E e for the Dri k Central in ast earlier i ehoek Centr the previous in the year. ral & East de s quarter, Sabre's eposits is

Drieehoek Centrral –	1,2110,000 tonnnes @ 2.38%% Zn+Pb & 22.32 gpt Ag
Drieehoek East --	447,000 tonness @ 4.42% ZZn+Pb & 5.339 gpt Ag

T g o The Driehoe galena (lead other sulphid ek deposits d) and sphale des are prese are modified erite (zinc) m ent in signific d Mississipp mineralisation cant quantitie i Valley-Type n within dolo es, and weat e (MVT) dep mitic host ro thering is alm posits that c ocks. No pyri most non-exi consist of te or any stent.

T 3 d The inferred 360 metres deposit was Pb+Zn cut-o d JORC reso of strike, an s interpolated off with a max ource at Drie nd is up to 1 d with Ordin ximum intern ehoek Cent 130 metres nary Kriging nal dilution of ral is largely wide and 30 within a wi f 2.5 metres y flat lying, c 0 metres thic ireframe mo and an SG o covers appro ck. The grad odel, utilising of 2.74. oximately de of the g a 0.5%

T a g w S The inferred approximate grade of th wireframe m SG of 2.83. JORC reso ely 95 metres e deposit w model, with a urce at Drie s in strike le was interpola 0.5% Pb+Zn ehoek East i ength, is up ated utilising n cut-off, a m s hosted by to 55 metres g Inverse D maximum inte a roughly el s wide and 8 Distance Squ ernal dilution longate 'brec 80 metres th uared (ID2 ) of 2.5 metre ccia pipe' hick. The within a es and an

t Resource es Resource dr the deposit is stimation is rilling at Drie s: now comple hoek North ete on two o is yet to be f the three r completed, h recognized d however the deposits at D exploration Driehoek. target for

2-3 Mil lion Tonnes s @ 2-5% Zn n+Pb & 1-4 g gpt Ag*

* The potential q insufficient work h a mineral resource quantity and grade o as been undertaken e. The "exploration ta of the Driehoek Nor to define a mineral r arget" size was based rth zinc-lead deposi resource and it is unc d upon deposit calcu it is conceptual in n certain if further expl ulations undertaken b nature, as Sabre ha oration will result in t by Goldfields Namibia as determined that the determination of a Ltd.

4. CORPORATE ACTIVITY

4.1 Capital Raising

The Company is now in a strong financial position due to a capital raising in late July 2012. The capital raising was undertaken on the back of a number of presentations to investors in Eastern Australia, as well as strong drilling results from Guchab.

The equity raising was undertaken by BBY & Octa Phillip and with further funds being raised through the exercise of options, as follows:

• Equity A$8.0 million was raised by placing 30,769,231 shares to both private clients and institutional investors.
• Option Exercise a further A$2.3 million was raised through the exercise of the 23,000,000 options at A$0.10 each.

The costs of the raising were approximately A$480,000. Sabre currently has no debt and has approximately A$8.9 million in cash at bank.

Sabre looks forward to updating shareholders as the exploration programme in the Otavi Mountain Land continues, in particular as the results of the diamond drilling from the High Valley at Guchab are received and RC drilling programme continues at Kaskara on the Lucas Post Trend.

For further information please contact:Mr Timothy Putt, Chief Executive Officer	Phone (08) 9481 7833
orDr Matthew Painter, General Manager - Exploration	Phone (08) 9481 7833
Or consult our website:	http://www.sabresources.com/

Competent Persons Declarations

The information in this report that relates to Exploration Results is based on information compiled by Dr Matthew Painter of Sabre Resources Ltd, who is a member of The Australian 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 "Australian 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.

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Luke Marshall of Kalgoorlie Mine Management, who is a member of The Australian Institute of Geoscientists. Mr Marshall 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". Mr Marshall 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 programme 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 Resources Ltd 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 1

SIGNIFICANT DIAMOND DRILL RESULTS, GUCHAB COPPER PROSPECT

Hole No	Northing	Easting	Dip(°)	Azimuth (° true)	From (m)	To(m)	Down hole Width (m)	Grade
GCDD0001	7818105	796081	$-40$	180	0.60	108.35	107.75	1.15% Cu & 6.93 gpt Ag
					17.90	20.25	2.35	13.24% Cu & 70.84 gpt Ag
					29.80	52.15	22.35	2.08% Cu & 10.11 gpt Ag
					96.90	100.05	3.15	2.85% Cu & 22.90 gpt Ag
GCDD0002	7818105	796081	$-60$	180	1.42	27.98	26.56	1.06% Cu & 6.25 gpt Ag
					1.42	5.58	4.16	2.36% Cu & 7.93 gpt Ag
					8.19	12.76	4.57	2.18% Cu & 21.44 gpt Ag
GCDD0003	7818105	796081	$-80$	180	1.00	19.90	18.90	1.54% Cu & 9.66 gpt Ag
					1.00	8.00	7.00	2.52% Cu & 10.12 gpt Ag
GCDD0004	7818105	796081	$-55$	224	0.00	24.05	24.05	1.29% Cu & 10.91 gpt Ag
					7.18	9.54	2.36	3.47% Cu & 35.34 gpt Ag
					23.05	24.05	1.00	8.55% Cu & 38.38 gpt Ag
GCDD0005	7818105	796081	$-55$	160	0.00	22.20	22.20	3.45% Cu & 29.67 gpt Ag
					20.05	22.20	2.15	17.60% Cu & 247.70 gpt Ag
GCDD0006	795610	795610	$-45$	291	0.90	15.00	14.10	1.31% Cu & 10.50 gpt Ag
					7.00	9.65	2.65	5.10% Cu & 50.94 gpt Ag
GCDD0007	795610	795610	$-60$	280	5.48	13.85	8.37	0.54% Cu & 7.43 gpt Ag
					5.48	6.67	1.19	1.41% Cu & 25.40 gpt Ag
								Abandoned @ 72.89
GCDD0008	795610	795610	$-45$	350			NA	metres
GCDD0009	795610	795610	$-70$	170			NA	Abandoned @ 17.63metres
								Redrill GCDD0009 -
GCDD0010	795611	795610	$-70$	170			NA	Abandoned

*Copper and silver values were determined at the accredited Bureau Veritas laboratory, Swakopmund, Namibia.

SABRE'S OTAVI MOUNTAIN LAND COPPER PROJECT

The Otavi Mountain Land Copper Project ('OML') is located in northern Namibia, lying within the triangle created by the mining towns of Tsumeb, Otavi and Grootfontein.

The entire region is well served by sealed roads, high voltage power, telephone and water, rail to port and is close to major towns and mining processing facilities, including the Kombat copper concentrator and Tsumeb Smelter complex (one of only five operating smelters in Africa).

Sabre's OML project consists of two Exclusive Prospecting Licenses (EPL 3540 & 3542), which cover more than 800 km2 of highly prospective base metal stratigraphy. Sabre has identified two key copper trends within its project area, each covering more than 25 km of strike, defined by surface geochemistry and historical workings. These extensive copper trends, namely the Lucas Post and Kombat Trends, are the present focus of exploration.

The region hosts a number of world class Copper, Zinc, Lead, Silver and Vanadium mines, including the Tsumeb & Kombat Copper mines. The Otavi Valley tenement (EPL 3540) surrounds the Kombat Copper mine on all sides and covers the strike extensions of the mine stratigraphy. To date, the Kombat Mine has produced more than 8.7 Mt @ 3.1% Cu, 1.1 Pb and 26 gpt Ag.

Sabre's focus is currently the Guchab Copper prospect in the Otavi Valley and the Kaskara Copper-Lead-Vanadate prospect in the central Otavi Mountain Land.