SABRE RESOURCES LIMITED — Interim / Quarterly Report 2017

Apr 27, 2017

ASX ANNOUNCEMENT 28 APRIL 2017

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2017

Figure 1 - View of the Otavi Mountain Land, approaching from the southwest on the highway from Windhoek

• EPL 3542 finally renewed, which will enable exploration to recommence at key Zn-Pb prospects, including Border and Toggenburg, and the highly prospective Kaskara Cu-V-Zn-Ag prospect.
• Preparation for forthcoming mining licence applications continued during the quarter
• Detailed interrogation and interpretation of historical datasets continued during the quarter.

EPL 3542 ZINC-LEAD-SILVER PROJECTS

The renewal of EPL 3542 allows for the continuation of exploration and evaluation of the significant zinc-lead potential of Sabre's Otavi Mountain Land project. Sabre has defined two major trends with stratabound zinc-lead sulphide mineralisation within EPL 3542 which contain the following resources and projects:

• The Border Zn-Pb deposit (16Mt @1.53%Zn, 0.59% Pb and 4.76 Ag):
• The Toggenburg and Southridge Zn-Pb prospects;
• The Driehoek Zn-Pb deposit:
• The Kaskara Cu-V and Ag prospect;
• The Auros Zn-Pb-Ag prospect;

together with a number of other prospects.

Border

Sabre's Border Zn-Pb project has a JORC 2012 Inferred Resource of 16.0Mt @ 1.53% Zn, 0.59% Pb and 4.76g/t Ag. and is located within a 25km significant regional zinc-lead anomalous corridor (Figure 2), which hosts a number of known occurrences, including Border, Toggenburg and South Ridge to the East, and Harasib to the west (Figure 5).

Metallurgical sighter testwork on a bulk sample conducted for that study shows that the mineralisation responds very favourably to Heavy Media Separation ('HMS'). Border mineralisation upgrades with HMS, before grinding and flotation, to a product of $12.5%$ Zn + 6.3% Pb, with recoveries of 86% and 92.5% respectively.

Toggenburg

Toggenburg is located along strike from Border, and is interpreted to be controlled by the same structures (Figure 2).

Anomalies defined at Toggenburg measure over 2.8 km long and up to 250 m wide, and are open to the east and west. The anomalies 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.

Maximum combined zinc and lead values identified in shallow geochemical drilling at Toggenburg are in excess of 2.9%. Four targets have been selected for reverse circulation drilling. It is expected that, like the Border Zn-Pb deposit to the west, mineralisation will dip to the north-northwest, parallel to the host dolomite sequence.

Figure 2 - Sabre's Border and Toggenburg Zn-Pb projects are located along the Border-Toggenburg Corridor which hosts anomalous zinc and lead mineralisation over 25km.

Auros

Sabre's regional soil sampling programs have identified significant zinc-lead anomalism in the Auros-Nageib-Wolkenhauben area (Figure 3) which is the possible western limit of a regional zinc-lead anomalous corridor extending east about 20km to Sabre's Driehoek prospect. Over 1087 samples were collected resulting in the definition of the Auros zinc-lead anomaly which covers over 300 hectares, measuring over 2.5 km by 5.0 km (Figure 3).

The Auros anomaly has been defined using a 0.1% Zn+Pb cutoff (as at Toggenburg) and contains a peak value of 8.25 % Zn+Pb (6.30 % Zn and 1.95 % Pb - determined by portable XRF) near the historic Nageib workings. Numerous percentage-grade results were obtained in areas with no known 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. Auros mineralisation appears to show similarities to zinc-lead mineralisation at Driehoek, which is located along strike around 20 km to the east. Auros however is much larger in extent than the Driehoek group of deposits, prospects, and occurrences.

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

Kaskara

EPL 3542 also contains the Kaskara copper-lead-zinc-vanadium prospect. This prospect, with its potential for a large Tsumeb style deposit, continues to intrigue Sabre personnel. It was historically mined for vanadium and has shown very high grades of Cu. Pb. Zn and $V_2O_5$ in underground channel samples and RC drilling.

Driehoek

Driehoek is a zinc-lead deposit outcropping on a series of prominent hills around 2.5 km south of Kaskara. Broad zones of moderate grade mineralisation enclose numerous high grades zones. Driehoek is comprised of four discrete bodies: Driehoek North, Driehoek Central, Driehoek East and Driehoek South.

Drilling and channel sampling at Driehoek East. North and Central validated historic drilling and exceeded grade expectations. Three diamond drillholes have returned excellent results, including:

DKDD0008 61.85m @ 4.21% Pb+Zn (2.96% Zn + 1.25% Pb) & 6.30g/t Ag from 12.4m including 2 m @ 12.09% Pb+Zn (10.07% Zn + 2.03% Pb) & 11.87g/t Ag from 18.9m and 3 m @ 13.78% Pb+Zn (7.90% Zn + 5.88% Pb) & 27g/t Ag from 54m DKDD0009 71m @ 3.62% Pb+Zn (2.63% Zn + 1.00% Pb) and 4.75g/t Ag from 10m including 4 m @ 11.43% Pb+Zn (7.26% Zn + 4.17% Pb) & 22.75g/t Ag from 18m and 9 m @ 7.61% Pb+Zn (5.71% Zn + 1.90% Pb) & 9.52g/t Ag from 28m DKDD0010 55.75m @ 2.04% Pb+Zn (1.67% Zn + 0.36% Pb) & 1.32g/t Ag from 16.25m including 20.75m @ 3.03% Pb+Zn (2.18% Zn + 0.84% Pb) & 3.7q/t Ag from 16.25m and 5m @ 3.52% Zn from 67m

The deposit is open in several directions that will be investigated at a later date.

FURTHER TARGETING FOR ZINC AND LEAD PROJECTS

Detailed interrogation and interpretation of historical datasets continued during the quarter.

COPPER PROJECTS

Proposed surveys at Guchab South remain on hold pending the renewal of EPL 3540.

LICENCE RENEWALS

Confirmation was received from the Namibian Ministry of Mines and Energy of the renewal of exploration licence EPL 3542. The licence has been renewed for two vears from 30 October 2016 to 29 October 2018. The application for the renewal was lodged in the September quarter of 2015 ahead of the due date and renewal has only just been received.

The Company continues to await the renewal of EPL 3540 which contains the Kombat copper trend and its Guchab project. Sabre is not aware of any issues that would preclude the renewal of this licence in a similar way to the renewal of EPL 3542. The Company is hopeful that the Namibian Ministry of mines will renew this tenement in the near future. Once this licence is renewed Sabre will recommence its copper exploration.

Figure 5 – Mines and remain cur – Proposed 50% Energy. Note t rrent until the re % reduction (yell that all areas an enewals are gra low) to the Com nd prospects of nted. mpany's EPL in interest have b the Otavi Moun een retained. T tain Land, as m he present licen mandated by the nce outlines (da e Ministry of ashed lines)

PREPA ARATION F OR MININ G LICENCE E APPLICA ATIONS

Sabre in renewal Border, extensiv and scop ntends to su period (i.e. Guchab, D ve documenta ping studies. ubmit applica prior to end Driehoek, Ba ation, includi . ations for a October, 20 altika and Ka ng detailed g number of M 017). Severa askara. The geological m Mining Licen al potential s application maps, environ nces within t sites have be process req nmental repo the forthcom een selected quires subm orts, resource ming EPL d, namely mission of e reports,

During t applicati the quarter, ons. further prog gress was m made on doc cumentation required fo or the mining g licence

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 holds a majority interest in a strategic land holding of about 700 km2 of granted exploration licences 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.
  • Tsumeb (OML) 24.9 Mt @ 5.5 % Cu, 11.5 % Pb, 4.0 % Zn & 172 g/t Ag, and $\circ$
  • Kipushi (DRC) historical production 60 Mt @ 10 % Cu and 11.03 % Zn and historical $\circ$ 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.

The Otavi Mountain Land region is well served by sealed roads, rail to port, high voltage power, telephonand water, 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).

For further information please contact:

Norman Grafton, Company Secretary 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 a 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.

	Country State/Region Project		TenementID	Area$(km^2)$	Grant date Interest
Namibia	Otiozondiupa	Otavi Mountain Land base metals	EPL3540	213.2	30/10/2006	80%
			EPL3542	237	30/10/2006	70%