SABRE RESOURCES LIMITED — Interim / Quarterly Report 2014

Mar 12, 2014

SABRE RESOURCES LTD AND CONTROLLED ENTITIES

(ACN 008 982 474 )

Interim Financial Report for the Six Month Period Ended 31 December 2013

SABRE RESOURCES LTD AND CONTROLLED ENTITIES

CONTENTS

Directors’ Report	3
Auditor’s Independence Declaration	8
Consolidated Statement of Profit or Loss and Other Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Cash Flow Statement	12
Notes to the Financial Statements	13
Directors’ Declaration	17
Independent Auditor’s Review Report To The Members	18

SABRE RESOURCES LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT

Your Directors present their report on consolidated group of Sabre Resources Ltd and controlled entities (the “Group”) for the half year ended 31 December 2013.

1. DIRECTORS

The names of Directors in office during the half year and up to the date of this report:

Jonathan Downes Michael Scivolo David Zukerman (retired 25 February 2014) Paul Mazzoni (appointed 25 February 2014)

2. REVIEW OF OPERATIONS

Financial Result

The Group incurred a loss after income tax of $379,340 for the half year period (2012: Loss of $344,129). As at 31 December 2013 the Group had cash funds of $4,104,394 (30 June 2013 $6,109,567).

3. EXPLORATION ACTIVITIES

Otavi Mountain Land copper and base metal project, Namibia

Sabre’s focus is the exploration and development of the Otavi Mountain Land (OML) copper and base metal project in northern Namibia. The project is located in the world-class Otavi Mountain Land metallogenic province, historically a globally important source of copper, lead, zinc and vanadium. 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 the Tsumeb base metal smelter complex, one of only five operating copper smelters in Africa. The province is presently undergoing a renaissance with the work of Sabre and others in the region.

Drilling continued throughout the half-year at the Guchab Mining Centre. Here, drilling is aimed at producing a future JORC resource, with most effort expended at the Guchab Canyon copper-silver deposit. Other drilling was undertaken at the Schlangental and Iron Hat copper prospects during the last six months, and studies of the mining centre and the region as a whole continued.

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

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The Guchab Mining Centre, showing some of the copper a nd silver interc e pts from Sabr e ’s drilling prog r ams.
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a) Guchab Mining Centre – Guchab Canyon copper-silver deposit

Guchab Canyon is a breccia-hosted epither m al copper- s ilver deposit. It is very similar in st y le to the historic Kombat c o pper mine 10km to the east. Sabre disc o vered sig n ificant copper-silver minerali s ation bene a th historic w orkings in A u gust 2012 w hen drilling commence d at the prospect.

The main zone of n e ar-surface m ineralisati o n has now b een define d over 150 m etres of stri k e, is 3040 met r es wide n e ar surface, broadening to over 8 0 metres wide further southward a t depth. Minerali s ation is co n tinuous to o v er 90 metr e s below sur f ace, and is open to the s outhwest, s outh and southea s t.

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Highway Railway Diagra m showing a fir s t-pass implicit m odel of the G u chab Canyon c opper-silver de p osit, looking s o uthwest. The d eposit is o pen to the southwest, south, a nd southeast. G rade shell of 0 .25% Cu show n .

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

Results received over the last six months include:	Results received over the last six months include:
GCDD0026	15.82 metres @ 2.80% Copper & 24.61 g/t Silver from 14.63 metres
and	7.92 metres @ 1.12% Copper & 12.14 g/t Silver from 50.50 metres
and	4.20 metres @ 1.90% Copper & 41.55 g/t Silver from 75.80 metres
GCDD0027	17.64 metres @ 1.24% Copper & 5.50 g/t Silver from Surface
GCDD0028	28.72 metres @ 0.64% Copper & 8.83 g/t Silver from 1.00 metre
including	2.56 metres @ 2.04% Copper & 14.45 g/t Silver from 5.90 metres
GCDD0029	24.00 metres @ 0.60% Copper & 6.66 g/t Silver from Surface
including	4.81 metres @ 1.10% Copper & 8.81 g/t Silver from Surface
GCDD0030	15.00 metres @ 0.81% Copper & 13.24 g/t Silver from Surface
including	7.28 metres @ 1.36% Copper & 19.16 g/t Silver from Surface
GCDD0031	10.52 metres @ 1.10% Copper & 11.29 g/t Silver from Surface
including	4.60 metres @ 1.93% Copper & 21.20 g/t Silver from Surface
GCDD0032	9.96 metres @ 1.85% Copper & 13.69 g/t Silver from 1.04 metres
GCDD0033	10.91 metres @ 1.38% Copper & 8.61 g/t Silver from Surface
GCDD0034	19.73 metres @ 1.49% Copper & 12.81 g/t Silver from surface
including	4.80 metres @ 2.80% Copper & 34.35 g/t Silver from 12.78 metres
GCDD0035	21.46 metres @ 0.46% Copper & 6.78 g/t Silver from 1.54 metres
GCDD0036	15.50 metres @ 0.59% Copper & 6.14 g/t Silver from surface
including	3.91 metres @ 1.25% Copper & 12.05 g/t Silver from 23.00 metres
GCDD0037	10.08 metres @ 1.54% Copper & 23.19 g/t Silver from 2.90 metres
including	4.80 metres @ 2.80% Copper & 34.35 g/t Silver from 12.78 metres
GCDD0038	9.50 metres @ 1.09% Copper & 7.79 g/t Silver from 3.50 metres
GCDD0039	23.15 metres @ 1.29% Copper & 4.50 g/t Silver from 2.95 metres
including	5.10 metres @ 2.83% Copper & 8.33 g/t Silver from 21.00 metres
GCDD0040	14.17 metres @ 1.35% Copper & 9.14 g/t Silver from 4.55 metres
including	2.38 metres @ 5.73% Copper & 26.37 g/t Silver from 8.31 metres
GCDD0041	5.87 metres @ 1.24% Copper & 6.29 g/t Silver from 22.13 metres
GCDD0045	6.81 metres @ 1.50% Copper & 1.47 g/t Silver from 25.00 metres
	4.70 metres @ 0.87% Copper & 1.99 g/t Silver from 114.30 metres
	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 metres
including	10.50 metres @ 3.58% Copper & 67.46 g/t Silver from 111.50 metres
GCDD0050	10.33 metres @ 3.18% Copper & 29.04 g/t Silver from 72.00 metres

Preliminary three-dimensional implicit modelling of the Guchab Canyon deposit shows a distinct southerly plunge to the mineralisation. Copper-silver mineralisation is open in several directions laterally and at depth. A full description of the model is provided in the Company’s most recent Quarterly Report.

b) Guchab Mining Centre – Schlangental copper prospect

The Schlangental prospect area is part of the Guchab Mining Centre. The prospect is located on the flats under cover around 1.2 km to the west of the Guchab Canyon deposit. Schlangental comprises of a series of shallow open-pits that were probably mined for high-grade (>5%) copper ores in the early 20th century, around the same time as mining first commenced at Kombat & Guchab.

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

Sabre has undertaken an exploratory program across the Schlangental area to assist in defining further targets for resource delineation. The exploration program has included channel sampling as well as percussion, RC & diamond drilling.

During the past 6 months, 8 RC holes and 1 diamond hole were completed, with results including:

SCRC0035 16.00 metres @ 0.88% Copper & 9.47 g/t Silver from 25.00 metres including 3.00 metres @ 4.24% Copper & 11.63 g/t Silver from 28.00 metres SCRC0042 8.00 metres @ 4.57% Copper & 55.88 g/t Silver from 50.00 metres including 2.00 metres @ 16.14% Copper & 195.25 g/t Silver from 52.00 metres SCDD0001 9.40 metres @ 1.03% Copper & 4.55 g/t Silver from 21.60 metres

Further work is required at Schlangental.

c) Guchab Mining Centre – Iron Hat (Eisernenhut) copper prospect

Reconnaissance drilling at the Iron Hat (Eisernenhut) was undertaken. Five drill holes in total were collared, with two of these failing to hit target depths due to poor ground conditions.

The Iron Hat is a copper-rich gossan located on a prominent ridgeline around 550 m east of the Guchab Canyon deposit. In outcrop, the gossan is ovoid in shape and measures approximately 100m by 50m. Initial drilling has intercepted several limited zones of mineralisation, including:

IHDD0004 2.74 metres @ 3.05% Copper and 52.9 g/t Silver from 0 m IHDD0005 2.26 metres @ 4.85% Copper and 171.2 g/t Silver from 89.44m

Copper distributions in the subsurface do not match those observed in outcrop. Preliminary analysis suggests that these mineralized zones represent feeders from an underlying copper sulphide body to the outcropping gossan. In-depth analysis of the drill core is currently underway to get a better understanding of the area before further work is undertaken.

d) Other work

Our regional assessment of the prospects of the Otavi Mountain Land Project continues with several sites investigated during the latter half of 2013. The Company is presently focusing on the Kombat Copper Trend, particularly in the 10 km between the Kombat copper mine and the Guchab Mining Centre. A regional study is also underway in order to better understand the nature and context of copper mineralisation along the Kombat Copper Trend. This study is aimed at targeting further copper deposits in the mountain land.

e) Tenement schedule

Country	State/Region	Project	Tenement ID	Area (km _2) _	Grant date	Interest
Namibia	Otjozondjupa	Otavi Mountain Land base metals	EPL3540	222.5	30/10/2006	80%
Namibia	Otjozondjupa	Otavi Mountain Land basemetals	EPL3542	475.5	30/10/2006	70%

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

Competent Person Declaration

The inform a tion in this report that relates to E x ploration Results is based on info r mation compiled by Dr Matthew Paainter of Sabre R e sources Ltd, who is a m e mber of The Aus t ralian Institute of Geoscientists. D r Painter has sufficient experience t hat is relevant to the style of mine r alisation and type of dep o sit under consid e ration and to th e activity that he i s undertaking to q ualify as a Com p etent Person as defined in the 2 0 12 Edition of the “Austral i an Code for Rep o rting of Exploration Results, Mine r al Resource and Ore Reserves”. D r Painter consentts to the inclusio n in the report of the matt e rs based on his i n formation in the form and context in which it appear s .

The inform a tion in this repor t that relates to M ineral Resource s or Ore Reserves is based on information compiledd by Luke Marshall of Golden Deeps Limi t ed, who is a me m ber of The Aust r alian Institute of G eoscientists. Mr Marshall has sufficient experiencee that is relevant to the style of mineralisati o n and type of de p osit under consi d eration and to th e activity that he is undertaking to q ualify as a Comppetent Person as d efined in the 2012 Editio n of the “Austral a sian Code for R e porting of Explor a tion Results, Mi n eral Resource a n d Ore Reserves””. Mr Marshall consents to the inclusion in the report of the m atters based on his information in the form and context in which it appears

Forward-Looking Statements

This document may include f orward-looking statements. Forwa r d-looking statem e nts include, but a re not limited to,, statements con c erning Sabre Resources L td’s planned ex p loration program and other state m ents that are not historical facts. W hen used in this document, the w ords such as "could," "pl a n," "estimate," "e x pect," "intend," "may”, "potential," "should," and si m ilar expressions a re forward-lookinng statements. Al t hough Sabre Resources Ltd believes that its expectations reflected in thes e forward-looking statements are reasonable, suc h statements involve risks and uncertaintie s and no assuran c e can be given t h at actual results w ill be consistent with these forward-looking statemeents.

4. EVENTS SUBSEQUENT TO THE REPORTING DATE

No othe r matters or circumstanc e s have arisen since th e end of the h alf year wh i ch significa n tly affect or may s ignificantly a ffect the o p erations of t he Compan y , the result s of those o p erations, or the state of affair s of the Company.

5. AUDITOR’S INDEPENDENCE DECLARATION

A copy o f the audito r ’s independ e nce declar a tion as req u ired under section 307C of the Corp o rations Act 200 1 is set out on Page 8.

This rep o rt is made in accordan c e with a res o lution of th e Board of Directors.

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Michael Scivolo Director

Perth, 12 March 2014

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Level 1 10 Kings Park Road West Perth WA 6005

Correspondence to: PO Box 570 West Perth WA 6872

Auditor’s Independence Declaration

To The Directors of Sabre Resources Ltd

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Sabre Resources Ltd for the half-year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been:

• a No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b No contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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J W Vibert Partner - Audit & Assurance

Perth, 12 March 2014

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

SABRE RESOURCES LTD AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2013

Other Revenue Interest earned Cost recovery Insurance refunds Expenditure Change in fair value of investments Depreciation Exploration costs Key management personnel remuneration Management fees Occupancy costs Other operating costs (Loss) before income tax Income tax benefit (Loss) for the half year Other Comprehensive Income, net of tax Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign controlled entities Total comprehensive (loss) for the half year Basic and diluted profit/(loss) per share (cents)	Consolidated Half year 2013 $ 84,014 368,950 - 452,964 6,667 25,445 2,250 183,556 128,334 55,601 430,451 832,304 (379,340) - (379,340) (152,991) (532,331) (0.17)	Consolidated Half year 2012 $ 133,687 448,765 21,338
		603,790 (4,000) 28,132 - 163,493 124,748 98,605 575,603
		986,581 (382,791) 38,662
		(344,129) (258,466)
		(602,595)
		(0.16)

The accompanying notes form part of these financial statements

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON CURRENT ASSETS Financial assets Plant and equipment Exploration and evaluation expenditure TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Share option reserve Foreign currency translation reserve Accumulated losses TOTAL EQUITY	Consolidated 31 December 2013 30 June 2013 $ $ 4,104,394 6,109,567 346,931 296,430 4,451,325 6,405,997 6,667 13,333 197,232 213,746 23,993,087 22,613,937 24,196,986 22,841,016 28,648,311 29,247,013 170,476 238,897 33,600 31,550 204,076 270,447 204,076 270,447 28,444,235 28,976,566 51,936,045 51,936,045 262,500 262,500 (1,511,542) (1,358,551) (22,242,768) (21,863,428) 28,444,235 28,976,566	Consolidated 31 December 2013 30 June 2013 $ $ 4,104,394 6,109,567 346,931 296,430 4,451,325 6,405,997 6,667 13,333 197,232 213,746 23,993,087 22,613,937 24,196,986 22,841,016 28,648,311 29,247,013 170,476 238,897 33,600 31,550 204,076 270,447 204,076 270,447 28,444,235 28,976,566 51,936,045 51,936,045 262,500 262,500 (1,511,542) (1,358,551) (22,242,768) (21,863,428) 28,444,235 28,976,566
		6,405,997
		13,333 213,746 22,613,937
		22,841,016
		29,247,013
		238,897 31,550
		270,447
		270,447
		28,976,566
		51,936,045 262,500 (1,358,551) (21,863,428)
		28,976,566

The accompanying notes form part of these financial statements.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2013

BALANCE AT 1 JULY 2012 10,000,000 shares issued on exercise of options Transfer on exercise of options 30,769,231 shares issued during the period Share issue costs Loss attributable for the period Total other comprehensive income/(loss) for the period BALANCE AT 31 DECEMBER 2012 BALANCE AT 1 JULY 2013 Loss attributable for the period Total other comprehensive income/(loss) for the period BALANCE AT 31 DECEMBER 2013	Ordinary Issued Capital Share Option Reserve Foreign Currency Translation Reserve (Accumulated Losses) Total $ $ $ $ $ 41,463,620 652,716 (914,188) (20,930,464) 20,271,684 2,300,000 - - - 2,300,000 652,716 (652,716) - 8,000,000 - - - 8,000,000 (480,291) - - - (480,291) - - - (344,129) (344,129) - - (258,466) - (258,466)
	51,936,045 - (1,172,654) (21,274,593) 29,488,798
	Ordinary Issued Capital Share Option Reserve Foreign Currency Translation Reserve (Accumulated Losses) Total $ $ $ $ $ 51,936,045 262,500 (1,358,551) (21,863,428) 28,976,566 - - - (379,340) (379,340) - - (152,991) (152,991)
	51,936,045 262,500 (1,511,542) (22,242,768) 28,444,235

The accompanying notes form part of these financial statements.

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

Cash Flows from Operating Activities Payments to suppliers and employees Interest received Other income Net cash (used in) operating activities Cash Flows From Investing Activities Purchase of fixed assets Payment for exploration expenditure Net cash (used in) investing activities Cash Flows from Financing Activities Proceeds of share issue Share issue costs Proceeds from exercise of options Short term loans Net cash provided by financing activities Net increase/(decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Half Year Effect of exchange rates on cash holdings in foreign currencies Cash and Cash Equivalents at the End of Half Year	Consolidated Half year 2013 Half year 2012 $ $ (864,313) (1,735,874) 109,796 133,687 292,667 508,765 (461,850) (1,093,422) (3,690) (20,927) (1,541,769) (954,217) (1,545,459) (974,514) - 8,000,000 - (480,291) - 2,300,000 - (46,553) - 9,773,156 (2,007,309) 7,705,220 6,109,567 420,355 2,136 1,455 4,104,394 8,127,030	Consolidated Half year 2013 Half year 2012 $ $ (864,313) (1,735,874) 109,796 133,687 292,667 508,765 (461,850) (1,093,422) (3,690) (20,927) (1,541,769) (954,217) (1,545,459) (974,514) - 8,000,000 - (480,291) - 2,300,000 - (46,553) - 9,773,156 (2,007,309) 7,705,220 6,109,567 420,355 2,136 1,455 4,104,394 8,127,030
		(1,093,422) (20,927) (954,217)
		(974,514) 8,000,000 (480,291) 2,300,000 (46,553)
		9,773,156 7,705,220 420,355 1,455
		8,127,030

The accompanying notes form part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2013

1. BASIS OF PREPARATION OF HALF YEAR REPORT

Sabre Resources Ltd is a company domiciled in Australia.

This general purpose financial report for the interim half year reporting period ended 31 December 2013 has been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134 Interim Financial Reporting . Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Sabre Resources Ltd and its controlled entities (the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2013 together with any public announcements made during the half year.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements except for the adoption of the following new and revised Accounting Standards.

The interim financial statements have been approved and authorised for issue by the Board of Directors.

Accounting Standards not previously applied

New or revised Standards and Interpretations that are first effective in the current reporting period:

The Group has adopted the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current period.

Adoption of new and revised accounting standards

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application date for future reporting periods. In the half year ended 31 December 2013, the Company has reviewed all of the new and revised Accounting Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2013. It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and no change is necessary to the Company accounting policies.

2. DIVIDENDS

No dividends have been paid or proposed during the six month period ended 31 December 2013.

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3. CAPITAL AND LEASING COMMITMENTS AND CONTINGENCIES

There has been no material change in contingent liabilities and commitments since the end of the last annual reporting period.

4. FINANCIAL ASSETS (NON-CURRENT)

	December	2013	June 2013
	$		$
Investment in listed shares	6,667		13,333

The Company holds shares in a listed entity and these shares are classified as financial assets at fair value through profit and loss. Changes in fair value are included within profit or loss.

5. OPERATING SEGMENTS

Segment Information

Identification of reportable segments

The Group has identified its operating segments based on the internal management reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and determining the allocation of resources. As the Group is focused on mineral exploration, the Board monitors the Group based on actual exploration expenditure incurred by area of interest. The internal reporting framework is the most relevant to assist the executive management team with making decisions regarding the Group and its ongoing exploration activities, while also taking into consideration the results of exploration work that has been performed to date.

The executive management team has aggregated the performance of all segments as they maintain similar economic characteristics including the development and exploration of the Group’s mineral interests in Namibia.

Basis of Accounting for purposes of reporting by operating segments

Accounting Policies Adopted

All amounts reported to the Board of Directors with respect to operating segments are determined in accordance with accounting policies that are consistent with those adopted in the annual financial statements of the Group.

Unallocated items

Corporate costs are not considered core operations of any segment.

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6. ISSUED CAPITAL

	Details	Number of	Amount
		Shares	$
1 July 2012	Balance	172,702,997	41,463,620
August 2012	Shares issued on exercise of options	23,000,000	2,300,000
August 2012	Transfer on exercise of options	-	652,716
August 2012	Shares issued	30,769,231	8,000,000
31 December 2012	Balance	226,472,228	51,936,045
30 June 2013	Balance	226,472,228	51,936,045
31 December 2013	Balance	226,472,228	51,936,045

The Company’s capital consists of Ordinary Shares. The Company do not have a limited amount of authorised share capital. The Shares have no par value and are entitled to participate in dividends and the proceeds on any winding up of the Company in proportion to the number of Shares held.

At shareholders’ meetings each fully paid ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

7. SHARE OPTION RESERVE

Date	Details	Number of Options	Amount $
1 July 2012	Balance	23,000,000	652,716
August 2012	Exercised	23,000,000	(652,716)
31 December 2012	Balance	-	-
March 2013	Options granted	3,750,000	262,500
1July 2013	Balance	3,750,000	262,500
31 December 2013	Balance	3,750,000	262,500

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

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8. RELATED PARTY TRANSACTIONS

The Group’s related parties include its subsidiaries, key management personnel and others as described below. None of the transactions incorporate special items and conditions and no guarantees were received or given.

			Half Year	Half Year
Related Party	Relationship	Nature of Transaction	Ended 31 December 2013	Ended 31 December 2012
			$	$
Sabre Resources Namibia (Pty) Ltd	Subsidiary	Advances	259,406	640,000
Gazania Investments Nine (Pty) Ltd	Subsidiary	Advances	858,000	481,000
Metals Australia Ltd	Common Directors	Other Income	23,997	10,583
Golden Deeps Limited	Common Directors	Other Income	18,519	42,297
Blaze International Limited	Common Directors	Other Income	9,502	12,512
Power Resources Limited	Common Directors	Other Income	1,151	4,694
Prime Minerals Limited	Common Directors	Other Income	1,319	4,176
Clemen & Associates Pty Ltd	Associated with former director Alex Clemen	Payments to Directors	-	4,850

9. EVENTS SUBSEQUENT TO REPORTING DATE

No matters or circumstances have arisen since the end of the half year which significantly affect or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company.

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SABRE RESOURCES LTD AND CONTROLLED ENTITIES

_ _ __ _ ___ _ _ _ ___ _ _ _ ____ _

DIRECTORS' DECLARATION

In the o p inion of the Directors of Sabre Reso u rces Ltd:

• (a) the consolida t ed financial statements and notes, as set out on the acco m panying pages, are in a c cordance with the Corp o rations Act 2 001 including: (i) complying with Au s tralian Acc o unting Sta n dard, AAS B 134: Interi m Financial Reporting; and

• (ii) giving a true and f air view of its financial position as at 31 Dec e mber 2013 and of its perfor m ance for the half year e n ded on that date; and

• (b) there are rea s onable gro u nds to beli e ve that the Company w ill be able t o pay its debts as and w h en they be c ome due a n d payable.

Signed in accordan c e with a res o lution of th e Board of Directors.

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Michael Scivolo Director

Perth, dated this twelfth day of March 2014

Page 17

Correspondence to: PO Box 570 West Perth WA 6872

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Level 1 10 Kings Park Road West Perth WA 6005

Independent Auditor’s Review Report To the Members of Sabre Resources Ltd

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

We have reviewed the accompanying half-year financial report of Sabre Resources Ltd (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2013, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of Sabre Resources Ltd are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Sabre Resources Ltd consolidated entity’s financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Sabre Resources Ltd, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Sabre Resources Ltd is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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J W Vibert Partner - Audit & Assurance

Perth, 12 March 2014