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SABRE RESOURCES LIMITED Interim / Quarterly Report 2014

Apr 29, 2014

65750_rns_2014-04-29_26392c2c-eaeb-4a3e-9eab-54e4dde202df.pdf

Interim / Quarterly Report

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30 April 2014

QU UARTE ERLY A ACTIVI ITIES R REPO RT

FOR R THE Q UARTER R ENDED D 31 MA ARCH 20 014

Sabre's metal pr Guchab focus is the roject in nort Mining Cent exploration a thern Namib tre but was d and develop ia. Exploratio disrupted by s ment of the on during th seasonal sto Otavi Mount he quarter fo orm events a ain Land (OM cused on di nd drill rig br ML) copper a iamond drillin reakdowns. and base ng at the

1 GU CHAB CAN NYON, KO MBAT COP PPER TREN ND

The drill through little prog with a th ling program to the High V gress was m hird in progre m at Guchab Valley. Durin made in drilli ss. b continues, ng the quarte ng out the G and takes i er, an intens Guchab Can in the area e wet seaso nyon deposit from south n and rig bre . Two drillho of the Easte eakdowns m oles were co ern Adits meant that ompleted,

Figure 1 – O appr has Oblique view o roximate locatio intercepted visu of the Guchab on of recent dril ual copper mine b Canyon depo lling (blue). Dri eralisation. osit model, loo llhole GCDD00 oking NNE and 61 is presently d showing the y underway and e Two holes were drilled to the southwest of drillholes GCDD0025, GCDD0045 and GCDD0046 which both recorded high grade intercepts. The pertinent intercepts of these holes, which have all been reported previously, were:

GCDD0025 58.62 metres @ 1.38% Copper & 28.27 g/t Silver from 65.38 metres*
Including 8.00 metres @ 3.04% Copper & 59.08 g/t Silver from 116.00 metres*
GCDD0045 21.86 metres @ 2.22% Copper & 44.59 g/t Silver from 183.00 metres
GCDD0046 26.40 metres @ 2.44% Copper & 43.61 g/t Silver from 95.60 metresIncluding 10.50 metres @ 3.58% Copper & 67.46 g/t Silver from 111.50 metres

* - Intercept incomplete, drillhole ended in mineralisation

The two new drillholes were designed to test continuity of the mineralisation in the southwest direction. Neither of these drillholes (GCDD0059 and GCDD0060, Figure 1, see Appendix I) contained significant intercepts, indicating that the mineralisation continues either further southward, further westward, or more steeply. The current drillhole (GCDD0061, see drill trace on Figure 1) is drilling northward from the same drill pad as holes 59 and 60, and has begun intercepting significant visual copper mineralisation. Forthcoming holes will continue to focus on this southwesterly extension of the deposit.

Rig breakdowns of both the Sabre and the contractor rigs severely curtailed progress. Sabre's rig did not drill at Guchab due to technical issues. Despite some issues, the contractor's rig performed all drilling at Guchab during the quarter.

A strong wet season also slowed progress. Whilst access is not affected by rain, intense electrical storms this summer in the Otavi Mountain Land, which has one of the highest rates of lightning strike in Namibia, required cessation of all drilling on many occasions. Sabre has a strict HSE (health, safety, and environment) policy of rig shutdown at the first sign of lightning or thunder, as a rig with rods in the ground makes a very effective lightning rod. The wet season continues, but appears to be abating.

Figure 2 - Other areas presently being investigated (yellow) in the Otavi Mountain Land. Sabre's main focus remains the Kombat East area between the Kombat mining licence excision and the Guchab Mining Centre. Grid is 10km.

2 ONGOING REGIONAL INVESTIGATIONS

Sabre continues to investigate the potential of the Otavi Mountain Land, with regional field programs underway at several locations. These programs are an ongoing part of the Company's assessment of the region, which continues to focus on the Kombat East area between the Kombat Mine and the historic Guchab Mining Centre. Sabre's aim is to delineate a substantial resource inventory in the Otavi Mountain Land.

Outside of the Guchab area, the areas investigated this quarter include the Kombat North area on the northern boundary of the Kombat mining lease (owned by Kombat Copper Ltd) and the Gauss-Wolkenhauben area, a copper-bearing area around 10 kilometres north of Kombat (Figure 2). Work is continuing in both areas.

TARGETING THE MINERAL ENDOWMENT OF THE OML $\mathbf{z}$

In parallel with the Guchab drilling and the ongoing regional investigations. Sabre is taking a fresh view of the region as part of its ongoing assessment of mineralisation in the Otavi Mountain Land. Our exploration methodology and rationale are detailed here and will be complementary to the ongoing exploration east of Kombat.

The Otavi Mountain Land (OML) is a terrane that the Company considers highly likely to host significantly more copper, zinc, lead and silver deposits than have been discovered and mined to date. It is part of the Damaran Mobile Belt which also contains the enormous copper deposits of the Katangan and Zambian Copper Belts (DRC and Zambia), as well as the Kalahari Copper Belt in Botswana and Namibia

Recent in-depth geological analysis by the Company suggests that the Otavi Mountain Land has the potential to host several Kombat-sized (~10Mt @ 3-4% Cu) deposits and several Tsumeb-sized (~25Mt @ 5-6% Cu) deposits. These hypothetical deposits, if they exist, are most likely to be hidden beneath soil cover or in areas of poor exposure which, surprisingly, covers over 70% of the region (hills and mountains are relatively restricted). Historically, almost none of the soil-covered areas have been explored, with all of the 700-800 mineral occurrences, prospects, deposits, and mines of the region located in outcropping areas. In other words, all historic mines, prospects and occurrences were found where mineralisation outcropped at surface.

With this in mind, Sabre is attempting to quantify the region's mineral endowment, which is defined as the inherently-contained mineral wealth of a region. The undiscovered and unmined endowment is now considered to be substantial, and with Sabre's experience, novel deposit control concepts, and extensive ground holding, we are in a unique position to hunt for these deposits.

To do this, Sabre is using in interpreting all available data, including geophysical, geochemical, hyperspectral and other data sets, to identify particular areas that require greater exploration focus. These areas are being assessed in detail to generate numerous target sites. This will lead to onground assessment of particular sites to determine appropriate exploration techniques, followed by rapid cycling of high-level testing of sites (such as test auger or RC drilling, follow-up detailed geophysics etc.) to determine suitability for more concentrated exploration. This methodology will allow for quick determination of the potential for numerous sites throughout the region, quick rejection of less-prospective targets, and homing in on the sites most likely to contain large hidden deposits.

Sabre's renewed focus on regional assessment will be ongoing, and will assist in the direction of the Company's future exploits in the Otavi Mountain Land.

CORPORATE $\mathbf{A}$

During the quarter, the Company announced the appointment of Mr Paul Mazzoni to the Board following the retirement of Mr David Zukerman. Mr Mazzoni is an accomplished geologist who will bring considerable technical expertise to the Board.

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 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 2012 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.

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 program 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 - Guchab Diamond Drilling

* Copper (Cu) & Silver (Ag) values were determined at the accredited 'Bureau Veritas' Laboratory in Swakopmund, Namibia.

Hole No Northing Collar coordinatesEasting RL Final Depth(m) Dip(o) Azimutho From(m) To (m) DownholeIntercept (m) Grade / Comment
GCDD0001 7818105 796081 1781 111.39 -40° (True)191° 0.60 108.35 107.75 1.15% Cu & 6.93 g/t Ag
incl 17.90 20.25 2.35 13.24% Cu & 70.84 g/t Ag
& 29.80 52.15 22.35 2.08% Cu & 10.11 g/t Ag
& 96.90 100.05 3.15 2.85% Cu & 22.90 g/t Ag
GCDD0002 7818105 796081 1781 101.13 -60° 182° 1.42 27.98 26.56 1.06% Cu & 6.25 g/t Ag
incl 1.42 5.58 4.16 2.36% Cu & 7.93 g/t Ag
& 8.19 12.76 4.57 2.18% Cu & 21.44 g/t Ag
GCDD0003 7818105 796081 1781 53.43 -80° 191° 1.00 19.90 18.90 1.54% Cu & 9.66 g/t Ag
incl 1.00 8.00 7.00 2.52% Cu & 10.12 g/t Ag
GCDD0004 7818105 796081 1781 60.63 -55° 224° 0.00 24.05 24.05 1.29% Cu & 10.91 g/t Ag
incl& 7.1823.05 9.5424.05 2.361.00 3.47% Cu & 35.34 g/t Ag8.55% Cu & 38.38 g/t Ag
GCDD0005 7818105 796081 1781 53.32 -55° 161° 0.00 22.20 22.20 3.45% Cu & 29.67 g/t Ag
incl 20.05 22.2 2.15 17.60% Cu & 247.70 g/t Ag
GCDD0006 795610 795610 1837 48.35 -45° 291° 0.90 15.00 14.10 1.31% Cu & 10.50 g/t Ag
incl 7.00 9.65 2.65 5.10% Cu & 50.94 g/t Ag
GCDD0007 795610 795610 1837 48.55 -60° 280° 5.48 13.85 8.37 0.54% Cu & 7.43 g/t Ag
incl 5.48 6.67 1.19 1.41% Cu & 25.40 g/t Ag
GCDD0008 795610 795610 1837 72.89 -45° 350° NA NA NA Hole abandoned @ 72.89 m
GCDD0009 795610 795610 1837 17.63 -70° 170° NA NA NA Hole abandoned @ 17.63 m
GCDD0010 795610 795610 1837 13.62 -70° 170° NA NA NA Redrill GCDD0009 -abandoned
GCDD0011 7818246 795918 1832 103.45 -42° 100° 42.22 61.07 18.85 1.06% Cu & 15.05 g/t Ag
incl 57.44 61.07 3.63 4.08% Cu & 61.92 g/t Ag
GCDD0012 7818246 795918 1832 115.73 -40° 131° NA NA NA Hole abandoned @ 115.73m
due to rig failure
GCDD0013 7818054 796066 1774 80.10 -40° 041° 0.00 31.50 31.50 0.29% Cu & 2.30 g/t Ag
incl 0.00 2.00 2.00 1.03% Cu & 5.40 g/t Ag
GCDD0014 7818054 796066 1774 86.89 -60° 041° 0.00 53.10 53.10 1.23% Cu & 11.20 g/t Ag
incl 0.00 6.55 6.55 2.17% Cu & 9.50 g/t Ag
GCDD0015 7818054 796066 1774 90.39 -80° 041° & 12.000.31 21.0052.16 9.0051.85 2.95% Cu & 19.10 g/t Ag1.35% Cu & 15.45 g/t Ag
incl 17.72 33.00 15.28 2.81% Cu & 28.66 g/t Ag
GCDD0016 7818054 796066 1774 110.96 -49° 165° 20.00 32.22 12.22 0.67% Cu & 5.87 g/t Ag
incl 25.75 26.87 1.12 2.14% Cu & 4.10 g/t Ag
57.37 86.64 29.27 0.80% Cu & 10.86 g/t Ag
incl 63.73 66.31 2.58 2.49% Cu & 27.03 g/t Ag
& 71.44 78.10 6.66 1.06% Cu & 15.09 g/t Ag
GCDD0017 7818054 796066 1774 159.36 -65° 161° 12.00 39.00 27.00 0.53% Cu & 6.77 g/t Ag
incl 24.00 29.12 5.12 1.58% Cu & 18.21 g/t Ag
50.00 78.40 28.40 0.61% Cu & 11.99 g/t Ag
incl 66.20 78.40 12.20 0.87% Cu & 15.77 g/t Ag
incl 93.4493.44 131.0099.11 37.565.67 0.92% Cu & 12.43 g/t Ag2.28% Cu & 20.02 g/t Ag
126.00 131.00 5.00 1.82% Cu & 33.76 g/t Ag
GCDD0018 7818054 796066 1774 132.47 -80° 165° 15.00 23.59 8.59 1.00% Cu & 12.15 g/t Ag
36.40 50.50 14.10 0.89% Cu & 7.16 g/t Ag
incl 48.00 50.50 2.50 1.70% Cu & 7.74 g/t Ag
59.00 76.00 17.00 1.00% Cu & 23.70 g/t Ag
GCDD0019 7818054 796066 1774 153.21 -55° 180° 23.04 38.45 15.41 1.08% Cu & 5.24 g/t Ag
incl 37.37 38.45 1.08 6.45% Cu & 42.26 g/t Ag
58.35 104.00 45.65 1.04% Cu & 12.27 g/t Ag
incl 58.35 73.25 14.90 1.30% Cu & 16.20 g/t Ag
7818054 796066 1774 149.99 -45° 186° & 81.1029.00 104.0045.00 22.9016.00 1.22% Cu & 15.88 g/t Ag1.19% Cu & 8.26 g/t Ag
GCDD0020 78.00 82.55 4.55 0.53% Cu & 3.07 g/t Ag
GCDD0021 7818054 796066 1774 120.34 -60° 339° 0.00 47.27 47.27 0.64% Cu & 5.33 g/t Ag
incl 0.00 4.17 4.17 1.52% Cu & 11.52 g/t Ag
& 11.68 13.00 1.32 3.66% Cu & 20.41 g/t Ag
& 21.46 23.60 2.14 2.27% Cu & 19.03 g/t Ag
GCDD0022 7818054 796066 1774 120.09 -30° 339° 0.00 5.00 5.00 1.38% Cu & 7.82 g/t Ag
GCDD0023 7818054 796066 1774 120.39 -80° 339° 0.00 40.81 40.81 1.34% Cu & 11.63 g/t Ag
Collar coordinates Final Depth Azimuth From Downhole
Hole No Northing Easting RL (m) Dip(o) o(True) (m) To (m) Intercept (m) Grade / Comment
55.60 64.34 8.74 0.80% Cu & 21.65 g/t Ag
GCDD0024 7818054 796066 1774 59.09 -40° 210° NA NA NSR No Significant Results
GCDD0025 7818054 796066 1774 144.33 -60° 210° 36.00 39.10 3.10 3.04% Cu & 22.17 g/t Ag
65.38 124.00 58.62 1.38% Cu & 28.27 g/t Ag
incl 116.00 124.00 8.00 3.04% Cu & 59.08 g/t Ag
GCDD0026 7818054 796066 1774 129.45 -80° 210° 14.63 30.45 15.82 2.80% Cu & 24.61 g/t Ag
50.50 58.42 7.92 1.12% Cu & 12.14 g/t Ag
75.80 80.00 4.20 1.90% Cu & 41.55 g/t Ag
GCDD0027 7818107 796083 1781 38.64 -40° 120° 0.00 17.64 17.64 1.24% Cu & 5.50 g/t Ag
GCDD0028 7818110 796084 1781 50.84 -40° 060° 1.00 29.72 28.72 0.64% Cu & 8.83 g/t Ag
incl 5.90 8.46 2.56 2.04% Cu & 14.45 g/t Ag
GCDD0029 7818111 796082 1781 41.69 -40° 030° 0.00 24.00 24.00 0.60% Cu & 6.66 g/t Ag
incl 0.00 4.81 4.81 1.10% Cu & 8.81 g/t Ag
GCDD0030 7818112 796080 1781 44.79 -40° 000° 0.00 15.00 15.00 0.81% Cu & 13.24 g/t Ag
incl 0.00 7.28 7.28 1.36% Cu & 19.16 g/t Ag
GCDD0031 7818113 796077 1781 59.76 -40° 325° 0.00 10.52 10.52 1.10% Cu & 11.29 g/t Ag
incl 0.00 4.60 4.60 1.93% Cu & 21.20 g/t Ag
GCDD0032 7818110 796077 1781 62.93 -40° 303° 1.04 11.00 9.96 1.85% Cu & 13.69 g/t Ag
GCDD0033 7818107 796080 1781 30.45 -40° 240° 0.00 10.91 10.91 1.38% Cu & 8.61 g/t Ag
GCDD0034 7818110 796081 1781 80.84 -81° 071° 0.00 19.73 19.73 1.49% Cu & 12.81 g/t Ag
incl 12.78 17.58 4.80 2.80% Cu & 34.35 g/t Ag
GCDD0035 7818110 796080 1781 50.00 -71° 010° 1.54 23.00 21.46 0.46% Cu & 6.78 g/t Ag
GCDD0036 7818109 796080 1781 93.39 -75° 311° 0.00 15.50 15.50 0.59% Cu & 6.14 g/t Ag
23.00 26.91 3.91 1.25% Cu & 12.05 g/t Ag
GCDD0037 7818222 795946 1839 62.75 -40° 071° 2.90 12.98 10.08 1.54% Cu & 23.19 g/t Ag
38.75 44.00 5.25 2.66% Cu & 11.78 g/t Ag
GCDD0038 7818221 795946 1839 81.42 -60° 060° 3.50 13.00 9.50 1.09%Cu & 7.79 g/t Ag
GCDD0039 7818189 795961 1839 106.99 -40° 060° incl 2.9521.00 26.1026.10 23.155.10 1.29% Cu & 4.50 g/t Ag2.83% Cu & 8.33 g/t Ag
GCDD0040 7818187 795959 1839 119.99 -60° 071° 4.55 18.72 14.17 1.35% Cu & 9.14 g/t Ag
incl 8.31 10.69 2.38 5.73% Cu & 26.37 g/t Ag
GCDD0041 7818140 796006 1830 109.79 -40° 060° 22.13 28.00 5.87 1.24% Cu & 6.29 g/t Ag
GCDD0042 7818139 796005 1830 140.09 -60° 060° NA NA NSR No Significant Results
GCDD0043 7817911 796095 1710 100.20 -45° 330° NA NA NA Hole collapsed
GCDD0044 7817911 796095 1710 81.40 -30° 341° NA NA NA Hole collapsed
GCDD0045 7818156 796053 1825 204.86 -40° 194° 25.00 31.81 6.81 1.50% Cu & 1.47 g/t Ag
114.30 119.00 4.70 0.87% Cu & 1.99 g/t Ag
183.00 204.86 21.86 2.22% Cu & 44.59 g/t Ag
GCDD0046 7817912 796094 1710 160.05 -15° 341° 95.60 122.00 26.40 2.44% Cu & 43.61 g/t Ag
GCDD0047 7817910 796096 1710 90.35 -65° 341° NA NA NSR No Significant Results
GCDD0048 7817910 796096 1710 90.20 -85° 341° NA NA NSR No Significant Results
GCDD0049 7817907 796097 1830 199.20 -75° 150° NA NA NSR No Significant Results
GCDD0050 7817939 796113 1708 129.30 -25° 330° 72.00 82.33 10.33 3.18% Cu & 29.04 g/t Ag
GCDD0051 7817938 796114 1708 142.80 -40° 330° 77.61 79.00 1.33 0.93% Cu & 8.26 g/t Ag
83.54 85.00 1.46 1.93% Cu & 15.24 g/t Ag
92.00 93.33 1.00 2.44% Cu & 29 g/t Ag
GCDD0052 7817937 796114 1708 66.50 -55° 330° NA NA NA Hole collapsed
GCDD0053 7818254 795906 1859 71.59 -40° 030° NA NA NSR No Significant Results
GCDD0054 7818252 795908 1859 44.47 -40° 060° NA NA NSR No Significant Results
GCDD0055 7818251 795908 1859 99.09 -60° 090° NA NA NSR No Significant Results
GCDD0056 7818252 795907 1863 160.00 -60° 071° NA NA NSR No Significant Results
GCDD0058 7817938 796114 1708 160.00 -50° 335° 89.80 91.00 1.20 1.57% Cu & 48.50 g/t Ag
GCDD0059 7817938 796039 1745 180.00 -75° 330° NA NA NSR No Significant Results
GCDD0060 7817938 796039 1745 149.91 -60° 335° NA NA NSR No Significant Results

Appendix 2 - Schedule of Mining and Exploration Tenements

Country State/Region Project Tenement ID Area (km2) Grant date Interest
Namibia Otjozondjupa Otavi Mountain Land base metals EPL3540EPL3542 213.2475.5 30/10/200630/10/2006 80%70%