SABRE RESOURCES LIMITED — Interim / Quarterly Report 2015

Oct 29, 2015

ASX ANNOUNCEMENT & MEDIA RELEASE

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDED 30 SEPTEMBER 2015

Figure 1 – Drilling underway at the Toggenburg zinc project, looking west from the Tsumeb-Grootfontein Highway.

• Additional shallow RC drilling at Toggenburg zinc-lead prospect returned percentage-grade results in the upper 2 metres of bedrock.
  • ► The footprint of the Toggenburg geochemical anomaly is over 2.8 km long and up to 250 m wide, with several higher-grade zones.
  • ► The highest value in this new round of drilling was 1.10% Zn+Pb within a known highergrade zone, which compares well with the highest value at Toggenburg of 2.90 % Zn+Pb. These results are all in the near-surface depletion zone.
  • ► The zinc-lead anomaly remains open to the east and the west.
  • ► Toggenburg, which is on the same trend as the nearby Border deposit, has a geochemical footprint more than four times larger than that at Border (16.0 Mt @ 1.53 % Zn, 0.59 % Pb and 4.76 g/t Ag).
  • ► A series of collar locations have been determined for deeper, angled RC drillholes that are planned to test the down-dip extent of zinc and lead mineralisation at Toggenburg.
• Extensive zinc-lead anomalism in the Auros area has been identified as a result of the regional soil geochemistry program.
  • ► Strong anomalism is present over an irregular area measuring up to 2,500 m by 5,000 m.
  • ► Similarities to Driehoek zinc-lead-silver mineralisation which is located along strike 19 km to the east.
• Detailed surface mapping at the Guchab South copper prospect continues. Copper mineralisation in likely conduit structures has been identified around the periphery of the prospect.
• Detailed surface mapping at the Kaskara copper-lead-zinc-vanadium prospect is underway to determine detailed relationships.

ZINC-LEAD-SILVER PROJECTS

Toggenburg

During the quarter, further shallow reverse circulation (RC) drilling at Toggenburg (Figure 1) confirmed the high-grade zones identified by earlier drilling. An additional 51 drillholes averaging less than 5 m deep were drilled at 3 locations (western, central, and eastern, Figure 2) along the strike length of the prospect.

Figure 2 - Top of bedrock maximum zinc plus lead values over the Toggenburg project area. Orange lines outline the 0.10 % (1000 ppm) Zn+Pb contour, which at the Border deposit defines the distribution of zinc and lead sulphide mineralisation at depth. New drilling is highlighed by white bands and shows continuity of mineralisation in the subsurface. Note that the mineralisation is open to the east and west.

With near-surface oxidation effects expected to subdue responses, percentage-grade results within the top 2 metres of bedrock (generally within 5 metres of surface) continue to highlight the potential of Toggenburg. Values peaked at 1.10 % Zn+Pb (0.73 % Zn and 0.37 % Pb) in the newly collected samples. Several locations have been defined for deeper drilling that will test for the depth extents of the Toggenburg mineralisation.

High resolution geological mapping is also underway at and around Toggenburg. Although completely obscured by cover sediments, outcrops in the vicinity of Toggenburg are being analysed in detail in order to detect and define distal effects on country rocks by the mineralising event at Toggenburg. Work is continuing.

The Toggenburg prospect is located along strike from Sabre's Border zinc-lead-silver deposit and is interpreted to be controlled by the same structures as Border. The Toggenburg prospect measures over 2.8 km long and up to 250 m wide, with maximum combined zinc and lead values in excess of 2.9 %. The Toggenburg anomalies remain open to both the east and the west (Figure 2).

The anomalies defined at Toggenburg have an area more than four times the size of the equivalent anomaly at Border, where a 0.1% Zn+Pb cutoff in the near-surface approximates the footprint of zinc and lead sulphide mineralisation at depth. The JORC2012 Inferred Resource at Border is 16.0 Mt @ 1.53 % Zn, 0.59 % Pb and 4.76 g/t Ag.

Figure 3 – The Auros Zinc-Lead anomaly

Auros

Sabre's regional soil sampling programs have identified significant zinc-lead anomalism in the Auros-Nageib-Wolkenhauben area. By collecting over 5,000 samples throughout the mountainous area, the Auros zinc-lead anomaly has been defined and covers over 300 hectares, measuring over 2.5 km by 5.0 km (Figure 3).

Figure 4 – Outcropping disseminated galena (dark grey) and sphalerite (brown-grey) mineralisation with secondary zinc oxides (brown) in the Auros area.

The Auros anomaly, which is defined using a 0.1% Zn+Pb cutoff (as at Toggenburg and other prospects), contains numerous highs within its extent, with values commonly in the percentage range. Values peak at 8.25 % Zn+Pb (6.30 % Zn and 1.95 % Pb – determined by portable XRF) near the historic Nageib workings, but numerous percentage-grade results were retrieved from areas with no know historic mining activity. One such area, which recorded soil values up to 4.65 % Zn+Pb (3.20 % Zn and 1.45 % Pb), exhibits outcropping brecciate and disseminated sphalerite and galena mineralisation (Figure 4).

Detailed interpretation of high-resolution aeromagnetic data over the Auros area shows that bedding and its interaction with several important cross-cutting structures seem to control the distributions of intense zinc and lead anomalism throughout the area. Initial impressions from field work are that the Auros area mineralisation shows similarities to zinc-lead mineralisation at Driehoek, which is located along strike around 19 km to the east. However, Auros is much larger in extent than the Driehoek group of deposits, prospects, and occurrences.

More work will be required to fully assess this interesting new area.

COPPER PROJECTS

High resolution geological mapping continues at the Guchab South copper prospect, and is now underway at the Kaskara copper-lead-zinc-vanadium prospect.

At Guchab South, late-stage copper bearing structures have been identified in outcrop (Figure 5) that are considered to be the conduits (or their extensions) for copper mineralising fluids. These structures constitute a swarm of ENE-trending faults that dive under cover and beneath the shaledolomite contact.

In addition, preparations are being made and quotes being sought for highpowered EM surveys at each of these prospects.

Figure 5 – Copper and manganese staining on silicified dolomite within an ENE-trending shear zone on the northern margin of the Guchab South prospect.

HISTORIC REGIONAL DATA ARCHIVES

Sabre has reached an agreement with Weatherly plc to access historic archives at the Tsumeb mine site. The archives contain historic data and drill core generated during decades of exploration by Tsumeb Corporation Limited (TCL) throughout the 20th Century. TCL explored the entirety of the OML at various times and to varying degrees.

During the quarter, all data was retrieved and all relevant drill cores photographed and documented. Work is continuing to fully catalogue and synthesise all of the retrieved data.

LICENCE RENEWALS

Renewal applications for both EPL-3540 and EPL-3542 were submitted during the reporting period, ahead of the due date. In both cases, a 50% reduction has been applied in accordance with Ministry of Mines and Energy requirements, with all areas of interest to be retained. This includes all prospects that Sabre has worked on, including Guchab, Guchab South, Border, Toggenburg, Kaskara and many other. It also includes the majority of the mineralised trends defined by Sabre throughout the region. Areas relinquished have been largely discounted throught the Company's thorough regional soil sampling program and reconnaissance. The Company is not aware of any issues that would preclude renewal of each of the licences.

Figure 6 – Proposed 50% reductions (yellow) to the Company's EPLs in the Otavi Mountain Land, as mandated by the Ministry of Mines and Energy. Note that all areas and prospects of interest have been retained. The present licence outlines (dashed lines) remain current until the renewals are granted.

SABRE'S OTAVI MOUNTAIN LAND COPPER AND ZINC PROJECT

Sabre Resources Ltd ("Sabre" or "the Company") is a Namibia-focused, Australia-based basemetals exploration company. Sabre has a strategic land holding of about 700 km2 of granted exploration licences and 350 km2 of exploration licence applications in the Otavi Mountain Land ("OML") in northern Namibia. The OML is interpreted to be an extension of the Central African Copperbelt, which comprises the Zambian and Katangan (DRC) Copperbelts and constitutes the world's richest sediment-hosted copper province.

Sabre's Otavi Mountain Land copper and zinc project, in northern Namibia. Applications are subject to Ministerial approval.

Sabre has defined copper mineralisation in two major trends with potential for Tsumeb, Kipushi and Kombat breccia-style massive sulphide pipes, and Tschudi –style stratiform mineralisation. Copper in geochemical drilling at Guchab South has identified visible chalcocite and malachite over a 600m by 200m zone along trend east of the Kombat Copper Mine.

Sabre has also defined two major trends with stratabound zinc-lead sulphide mineralisation. As well as containing the Border zinc-lead deposit (16.0 Mt @ 1.53 % Zn, 0.59 % Pb and 4.76 g/t Ag), recent work has uncovered significant Zn-Pb geochemical anomalies at Toggenburg with up to 2.90 % Zn+Pb over 2.8 km strike length defined to date.

Strategically the Company is focusing on high-value deposit styles:

• High grade, copper-rich Tsumeb- and Kipushi-type deposits. Kombat-style epigenetic copper mineralisation is considered to be a subset of this type.
  • o Tsumeb (OML) 24.9 Mt @ 5.5 % Cu, 11.5 % Pb, 4.0 % Zn & 172 g/t Ag, and
  • o Kipushi (DRC) historical production 60 Mt @ 10 % Cu and 11.03 % Zn and historical resources of 26 Mt @ 2.18 % Cu and 19.05 % Zn.
• Stratabound epigenetic zinc-lead deposits with favourable metallurgical characteristics.

There is also a secondary focus throughout the region on Copperbelt-style stratiform Copper deposits (e.g. Tschudi in the OML). Exploration is mainly in the extensive areas of cover or poor outcrop which previous explorers largely ignored.

For further information please contact:

David Chapman, Managing Director 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 David Chapman who is Managing Director of Sabre Resources Ltd, and who is a Member of The Australian Institute of Mining and Metallurgy. Mr Chapman 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". Mr Chapman 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 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 – LICENCE SCHEDULE.

			Tenement	Area
Country	State/Region	Project	ID	(km2)	Grant date	Interest
Namibia	Otjozondjupa	Otavi Mountain Land base metals	EPL3540	213.2	30/10/2006	80%
			EPL3542	475.5	30/10/2006	70%