ASX ANNOUNCEMENT 29 July 2016

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDED 30 JUNE 2016

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

• Border 2011 Scoping Study increase in the zinc price

  being reviewed in

  the light of the

  recent

• Preparation for forthcoming mining licence applications continued during the quarter

• Environmental Impact Assessments are 75% projects at Border and Driehoek

  complete

  for the

  Zn-Pb

• Review of

the historical Zn-Pb-V mine at Baltika and

other targeting

throughout the region continued in order to identify new further exploration and development

opportunities for

ZINC-LEAD-SILVER PROJECTS

Border

The significant upward trend in the zinc price during the quarter has accelerated the review the existing and new zinc and lead opportunities within the Otavi Mountain Land project.

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 is located within a 25km long significant regional zinc-lead anomalous corridor

(Figure 2), which hosts a number known occurrences including Border, Toggenburg and So to the East, and Harasib to the west (Figure 3).

th Ridge

In light of the increase in the zinc price a review of the commodity price, capital and operating cost

assumptions in 2011 Scoping Study completed at Border is underw

y. Metallurgical sighter testwork

on a bulk sample conducted for the 2011 study shows that the Border 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 Togge

burg are

in excess of 2.9%. Four targets have been selected for reverse circ

lation 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-Toggen burg Corridor which hosts anomalus zinc and lead mineralisation o er 25km.

FURTHER TARGETING FOR ZINC AND LEAD PROJECTS

Collation and review of data for the historical Baltika Zn-V2O5 mining centre commenced during the period. Baltika is located within and toward the west of Sabre's EPL 3540 and produced 5820t of concentrate grading 9% vanadium pentoxide between 1931 and 1942. Vanadium mineralisation is associated with east-west trending zinc and lead - bearing structures proximal to the contact which

hosts the Kombat

and Guchab Cu-Zn-Pb

mining centres to the east within

the Kombat Corridor

(Figure 3 and Sabre Otavi Mountain Land Copper and Zinc Project summary).

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

COPPER PROJECTS

Proposed surveys at Guchab South remain on hold pending the EPL renewals.

LICENCE RENEWALS

Renewal applications for both EPL-3540 and EPL-3542 were submitted in September 2015. The Company continues to await notification by the Ministry of Mining and Energy (MME) of their renewal. Several meetings and discussions were held with the MME during the quarter to expedite the renewal process.

Figure 3 - 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.

PREPARATION FOR MINING LICENCE APPLICATIONS

Sabre intends to submit applic

tions for a number of Mining Licences within

the forthcoming EPL

renewal period (i.e. prior to end October, 2017). Several potential sites have been selected, namely

Border,

Guchab, Driehoek, Baltika and Kaskara. The application process requires submission of

extensive documentation, including detailed geological maps, environmental reports, resource reports, and scoping studies.

During the quarter, further progress was made on the collection and collation

of data and mineral

resource information required fo the mining licence applications. Work also continued on preparation for the Environmental Impact Assessments required for mining licenc applications.

SABRE'S OTAVI MOUN

T

n

R

AIN LAND COPPER AND ZINC P

OJECT

Sabre Resources Ltd ("Sabre" or "the Company") is a Namibia-focused, Australia-based base-

metals exploration company

Sabre holds a majority i terest in a s rategic land holding of about

0

7 0 km2 of gra

n

o

c

ted explorati n licences and 350 km2 of exploration li ence 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 nd constitutes the world's richest sediment-hosted copper province.

n p

s

m

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

Sabre has defined copper mineralisation i

two major trends with pot ntial for Tsumeb, Kipushi nd

a

m

a

n

n

@

Kombat breccia-style massive sulphide pipes, and Tschudi -style stratiform mineralisation. Copper in geochemical drilling at Gu hab South has identified v sible chalcocite and malachite over a 600m

by 200m zone

long trend east of the Kombat Copper Mine.

Sabre has also defined two

A

ajor trends with stratabou d 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

g),

e

recent work has uncovered significant Zn-Pb geochemical anomalies at Toggenburg with up to

T ere is also a secondary focus throughout the region on Copperbelt-style stratiform Copper

d posits (e.g.

schudi in the OML). Exploration is mainly in the extensive areas of cover or poor

o tcrop which previous explorers largely ignored.