SABRE RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

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Q U AR T ER L Y A CTI V ITIE S R E PORT

FO R THE P ERIOD ENDE D 30 J U NE 2 0 12

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‘Shattuckite’ (copper carbonate)
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‘Shattuckite’ (copper carbonate) m ineralisation fr o m Guchab, Kombat Copper Tr end.

HI G HLIG H TS

Sabre h a s acquired a second s t rategic tenement (EPL 3 540) in the Otavi Moun t ain Land in northern Namibia and has id e ntified four significant m ineralised Base Metal Trends wit h in the proje c t area – namely the Pavian, Lucas Post, the Hoek and Kombat Trends . E xploration i s focused o n moving towards developme n t on key prospect areas :

Kombat Trend (Cu-Ag)  A cquisition o f the Otavi Valley licen s e (EPL 35 4 0), hosting the >40km long Komb a t Copper T rend.  U ndergroun d sampling a t the Guch a b mining c e ntre (Rodg e rberg) at t h e eastern end of the K ombat Co p per Trend h a s returned a number of high grade results, inclu d ing: RUUG 0005 13 metres @ 5.32% Copper & 192 gpt Silver Pavian Trend (Zn-Pb-Ag)  P reliminary drill testing of the Sou t h Ridge Zn-Pb-Ag pro s pect, at th e eastern e n d of the P avian Tren d , has been completed, w ith results including: SRRC0013 7 metres @ 3.11% Zn+Pb & 3.5 gpt Silver from 35 metres Hoek Trend (Zn-Pb-Ag)  R esource drilling of the D riehoek ce n tral zone h a s been com p leted, with r esults inclu d ing: DKDD 0005 18 metres @ 6.24% Zn+Pb & 8.75 gpt Silver from 0 metres Expl o re Extend E x tract

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Introd u ction

Sabre’s focus is the exploration a nd development of the Otavi Mountain Land (O M L) copper a nd base metal p r oject in northern Namibia. Work during the qua r ter focused on samplin g and drill pr e paration at Guch a b and drilli n g at both S o uth Ridge a n d Driehoek.

The O M L has a lo n g mining hi s tory dating back to th e late 1800s and conse q uently has excellent infrastru c ture, inclu d ing roads, power, wat e r, rail to p o rt and is h o me to the Tsumeb base metal smelter complex. T h e province, historicall y a globally important s o urce of copper, lead, zinc and vanadiu m , is presen t ly undergoi n g a renaiss a nce due to e xploration b y Sabre an d others in t h e region.

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Sout h Ridge (Zn-Pb--Ag)
Exploration Target – Trenchiing incl
23m @ 7.6% Zn+Pb & 32 gppt Ag
Border (Zn - Pb-Ag)
Inferred JORC – 16.2 Mt @ 2.12% Zn+Pb & 4.8 gpt Ag
Low strip ratios, with low mining & processing costs.
Nosib H (Zn-Pb- A g)
Exploration Target – Trenching
and Sampling In Progress
Harasib II (Zn-Pb-Ag)
Exploration Target – Trenching incl
22m @ 21.2% Zn+Pb & 37 gpt Ag
K askara (Cu-P b -V)
Exploration Target – Drill Results incl
22m @ 1.8% V2O5, 4.2% Pb & 0.3% Cu (4.8% CuEQ)
Drieho e k (Zn-Pb-Ag)
Exploration Target Guchab ((Cu-Ag)
5-7 Mt @ 3-5% Zn+Pb & 8-16 gpt Ag Channeel incl
13m @ 5.3% Cuu & 192 gpt Ag
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Figure 1 – Sabre has identified four significant base metal trends w ithin its Onga v a project area; the Pavian, L ucas Post, Hoek & K o mbat Trends, e ach hosting si g nificant copper and other bas e metal mineralisation.

The potenti_ _a l quantity and grad_ _e of the Driehoek zin_ _c -lead deposit is co_ _n ceptual in nature, a_ _s Sabre has determi_ _n ed that insufficient wwork has been unde_ _r taken to define a mineral res_ _o urce and it is unc_ _e rtain if further exploration will result in_ _th e determination of a mineral resource. The “exploration tarrget” size was based upon deposit calculations undertaken by Goldfi_ _e* lds Namibia Ltd.

Sabre acquired a s e cond tene m ent area, a djacent to t h e Ongava t enement ( E PL 3542) during the quarter. This southe r n tenement area, the O t avi Valley ( E PL 3540), includes the Kombat copper trend and brin g s the Com p any’s tene m ent holding in the Otavi Mountain L a nd to over 8 00 km[2] .

Sabre’s developme n t programme will focus on the two c opper rich trends ident i fied by the company within the Otavi Mountain Land p roject area ( see Figure 1 ). These trends include:

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 the Lucas Post Copper Trend; and

 the Kombat Copper Trend.

These t w o copper tr e nds each c o ver more t h an 25 kilometres of rec o gnised strik e and host s ignificant copper m ineralisation, ranging from geoche m ical anomalies to resource delineat i on. In addition Sabre is pres e ntly buildin g its resour c e inventory of the Zn- P b-Ag rich P avian Tren d in the no r th of the project a rea.

Drilling h as been u n dertaken, o r has recently commen c ed, at a n u mber of pr o spects incl u ding the Guchab copper mi n ing centre, the South Ridge zinc-lead-silver prospect, an d the Driehoek zinclead-sil v er deposits.

1. KO M BAT COP P ER TREND (Cu-Ag)

Sabre’s programme now includ e s the Komb a t Copper T r end followi n g its acquis i tion at the e nd of the quarter. In particula r , exploration will focus on the Guchab mining centre. Th e Kombat T r end is a regional scale fault s tructure m o re than 50 kilometres long , which hosts a nu m ber of hist o ric mine working s and prosp e cts, includi n g the now c losed Kom b at Copper M ine (8.7 M illion tonne s @ 3.1% Copper & 26 gpt Sil v er produce d* .)

The Kom_ _b at Copper Mine and Concent_ _r ator are not Sabre assets and are held by TS_ _X .V listed Kom_ _b* at Copper.

1.1 The Guc h ab Minin g Centre

Th e Guchab m ining cent r e is a his t oric series of copper mines to t h e east of Kombat. Me t amorphic copper mine r alisation ha s formed v e in and brec c ia style de p osits throu g hout the ce n tre. Major c o pper mine r als at surfa c e include m alachite, chalcocite, an d dioptase w ithin the copper gossans that extend over more than 4 km of strike . Copp e r-rich and s ilver-rich str a tigraphy hi g hlights ex t ensive an d very intense copper-in-soil ge o chemical anomalies (ex t remely high with values in soils com m only exce e ding 10,000 ppm or 1% Cu).

Th e Guchab mining area is centred on t he Guchab deposit. Hig h -grade zon e s are surro u nded by mo r e moderat e grade vein networks outcroppin g over sev e ral areas, w ith the m a in zone me a suring approximately 1 ,000 x 15 0 m. Chann e l sampling of the hist o ric workin g s at the Gu c hab deposi t has returned some ver y high-grade intercepts, i n cluding:

G C TR 001 17m @ 5.86% Cu & 29 gpt A g G C TR 002 16m @ 10.16% Cu & 64 gpt A g G C TR 021 14m @ 6.40% Cu & 62 gpt A g G C TR 023 25m @ 6.70% Cu & 59 gpt A g G C TR 026 22m @ 5.83% Cu & 48 gpt A g

As w ell as the G uchab dep o sit, the Guc h ab mining c entre also comprises th e Rodgerberg deposit an d the Schlangental prospect whic h are locat e d along s t rike from t h e Guchab deposit;

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Ro d gerberg in p articular was a substan t ial copper m ine during t h e 1920s. A s ampling pr o gramme wa s completed at Rodgerb e rg during th e quarter an d included:

R U UG 001 3m @ 10.88% Cu & 473 gpt A g R U UG 005 5m @ 6.96% Cu & 302 gpt A g R U UG 005 13m @ 5.32% Cu & 192 gpt A g

Tar g ets have been identifi e d for an initial pilot drilling program m e that will assist in de f ining the styl e of the mineralisation a t Guchab a n d the preferred orienta t ions of the c ontrolling s t ructures. Diamond drillin g has com m enced at t h e Guchab d eposit and Sabre loo k forward to updating inv e stors as re s ults are rec e ived from t h e program m e.

2. LUC A S POST C OPPER TREND (Cu - Pb-Zn-V)

The Lucas Post Tre n d contains the Kaskara Cu-Pb-Zn-V prospect, a Tsumeb-style deposit that has all the hall m arks of a major depo s it. During t he quarter, extensive g roundworks were undertaken in prepara t ion for the upcoming R C drilling pro g ramme. Th e programm e has two ai m s:

1. t o define a r e source in t h e near surf a ce lead-vanadium-rich m ineralisatio n

2. t o intersect a nd charact e rise mineral i sation at depth beneath the hill at K a skara.

Drilling d id not occur this quart e r because t h e new drill rig intended for Kaskar a experienc e d delays during it s constructi o n. Drilling is scheduled t o commenc e in the coming quarter.

3. PAVIAN ZINC-LEAD TR E ND (Zn-P b -Ag)

The Pa v ian Trend is a ‘provincial-scale’ stru c ture covering more than thirty kilometres of strike within Sabre’s project area. The trend h osts a num b er of recog n ised lead-zinc-silver pr o spects and deposits, includin g Sabre’s J O RC resourc e at Border : 16. 2 Million T onnes @ 2 .12% Zn+ P b & 4.76 gpt Ag (a t a 1.25% Z n+Pb cut-off)

A numb e r of other p rospects h a ve been id e ntified alon g the Trend including Ir v ington, To g genberg, Nosib H and South Ridge. The s e prospects all show si m ilar outcro p ping sulphi d e mineralis a tion and geoche m ical chara c teristics an d will be systematically tested a s a part of the ongoing drilling campai g n to build the resource inventory f o r the Pavia n Trend.

3.1 RC Drilli n g at Sout h Ridge (Zn-Pb-Ag)

An intial progr a mme of Re v erse Circu l ation (RC) d rilling has b een compl e ted at Sou t h Ridge, 6 k m east of and along stri k e from the B order depo s it. An initial programme of 17 holes h as been co m pleted at S o uth Ridge, w ith better r e sults including:

SRRC 013	21 me tres @ 1.5 3% Zn+Pb & 2.12 gp t Ag	from 31m etres
Includin g	7 met res @ 3.11 % Zn+Pb& 3.50 gpt Ag	from 35m etres
SRRC 016	23 me tres @ 1.0 7% Zn+Pb & 1.00 gp t Ag	from 76m etres

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Thi s programm e was designed to conf i rm key attri b utes of the zinc-lead-silver mineralisation at So u th Ridge, i n particular its orientati o n and min e ralogy, in preparation f o r a potenti a lly more ext e nsive drillin g programm e later in th e year for the estimation o f a JORC r e source.

Resour c e drilling will be extended to other prospects a long the P a vian Trend, such as N o sib H & Irvingto n , as results a re received from additi o nal surface sampling pr o grammes.

4. HO E K ZINC-L E AD TREN D (Zn-Pb- A g)

The Ho e k Trend c o vers over 20 kilometre s of strike i n the south e rn Ongava tenement a r ea (EPL 3542), f r om the Drie h oek deposi t s in the we s t through to Hoba Ost in the east. E x ploration is still at an early st a ge on this t rend, howe v er previou s workings have already outlined an exploration target at Driehoe k :

5–7 Milli o n Tonnes @ 3-5% Z n +Pb & 8-16 gpt Ag*

The potential qu_ _a ntity and grade of t_ _h e Driehoek zinc-le_ _a d deposit is conceptual in nature, as Sa_ _b re has determined thhat insufficient work has been undert_ _a ken to define a mi_ _n eral resource and_ _it is uncertain if furt_ _h er exploration will_ _r esult in the determinination of a mineral resource. The “ex_ _p loration target” size was based upon de_ _p osit calculations u_ _n* dertaken by Goldfields Namibia Ltd.

4.1 Drilling at Driehoe k (Zn-Pb-A g )

Res ource drillin g	commence d atDrieho ek Central	in May, with the aim ofv alidating the existing
data for the dep osit and all owing thee stimation of		a JORC res ource. Am an-portable diamond
drill ing rig wasu sed to unde rtake an initi al programm e of 7 drillh oles. Results included:
DKDD 000 3	21 met res @ 3.39 % Zn+Pb	& 3.40 gpt Ag from 0 me tres
Including	4 met res @ 4.99 % Zn+Pb	& 3.75 gpt Ag from 11m etres
DKDD 000 4	10 met res @ 4.01 % Zn+Pb	& 0.80 gpt Ag from 14m etres
DKDD 000 5	18 met res @ 6.24 % Zn+Pb	& 8.80 gpt Ag from 0 me tres
Including	14 met res @ 7.29 % Zn+Pb	& 11.10 gp t Ag from 11m etres

Drilling at Driehoek East an d Central is now sufficie n t to allow t h e estimatio n of resourc e s in both loc a tions; this w ill be unde r taken in th e coming w e eks. Resource drilling w ill be undertaken at Dri e hoek North later in the y ear, subject to rig availability.

Sabre R esources lo o ks forward to updating shareholde r s as the ex p loration pr o gramme in t he Otavi Mountai n Land continues, in par t icular as th e results of t h e diamond d rilling prog ra mme at G u chab are receive d and RC drilling progra m me comme n ces at Kas k ara, on the L ucas Post T rend.

For further information please contact: Dr Matt h ew Painter, General Manager - Expl o ration Phone (08) 94 8 1 7833

Or consult our website:

http://ww w .sabresour c es.com/

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Competent Persons Declarations

The inform a tion in this report that relates to Ex p loration Results is based on infor m ation compiled by Dr Matthew Painter of Sabre Re s ources Ltd, who is a m e mber of The Aus t ralian Institute of Geoscientists. Dr Painter has suffi c ient experience t h at is relevant to tthe style of miner a lisation and type of dep o sit under consid e ration and to the activity that he is undertaking to qualify as a Competent Person as deffined in the 2004 Edition of the “Austral i an Code for Rep o rting of Explorati o n Results, Miner a l Resource and O re Reserves”. Dr Painter consentss to the inclusion i n the report of the matt e rs based on his i n formation in the form and context in which it appear s .

Forward-Looking Statements

This docum e nt may include f o rward-looking st a tements. Forwar d -looking statem e nts include, but are not limited to, sstatements conce r ning Sabre Resources L td’s planned exploration program m e and other stat e ments that are n o t historical facts. When used in thiss document, the w ords such as "could," " plan," "estimate," "expect," "intend , " "may”, "potenti a l," "should," and s imilar expressions are forward-lookking statements. A lthough Sabre Res o urces Ltd believe s that its expectations reflected in t h ese forward-loo k ing statements a r e reasonable, succh statements involve risks and uncert a inties and no ass u rance can be gi v en that actual re s ults will be consi s tent with these forward-looking stattements.

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