Sabre Resources : AC Drilling Completed and Deeper RC Drilling Planned

ASX ANNOUNCEMENT

19 January 2021

ASX code: SBR

Aircore Drilling Successfully Completed and Deeper

Reverse Circulation Drilling Planned

Highlights:

• Assay results for the Bonanza Aircore drilling program received
• There are indications of faulting in the form of variations in the basement lithologies, stringer quartz veins and pegmatite intrusions
• Best hole 4m at 1.27g/t Ag with deeper, closer-spaced RC drilling to now commence to test interpreted linear magnetic faults
• The priority structures are located near Aircore holes BZAC004, BZAC011 and BZAC042 with deeper RC to follow
• Deeper RC drilling program has been finalized
• Drilling contractor has been engaged and provisional start date agreed for February

Assay results for the shallow Aircore Drilling program at the Bonanza Gold Project have been received. The shallow drilling has not resolved the cause of the linear magnetic features, interpreted to be faults, and deeper RC drilling will be carried out. The best result obtained from the Aircore drilling was 4m at 1.27g/t Ag in hole BZAC0016.

The Aircore drilling was conducted on a very widely spaced 400m by 100m grid to test for supergene gold mineralization within the near surface regolith profile indicative of mineralization in fresh bedrock. The drill hole depth averaged 30m with holes intersecting oxidised clays and penetrating to partially weathered bedrock. There are indications of faulting in the form of variations in the basement lithologies, stringer quartz veins and pegmatite intrusions in the Aircore drilling.

The pegmatite rocks appear to have been intruded along some of the interpreted structures that represent lines of weakness in the bedrock. Lithium bearing pegmatites are recorded in the Penny West area, so selected samples of the pegmatite have been resubmitted for analysis for the lithium suite of elements.

The Aircore drill targets that were selected for the November 2020 Aircore drilling program were based on an interpretation of the detailed airborne magnetic survey completed in August 2020. Northeast and northwest trending linear magnetic lows were interpreted to be fault splays from the Youanmi Shear that hosts gold mineralization at Ramelius Resources Penny West Gold Mine ~800m to the east. Intersections from Penny North include:

6m @ 47.4g/t Au from 150m in SPWRC027,

4m @ 105g/t Au from 151m in SPWRC0221.

1 Ramelius Resources (ASX:RMS) announcement 10 February 2020 "Ramelius Makes Recommended T/O Offer for Spectrum Metals".

Sabre now intends to commence a Reverse Circulation (RC) drilling program to test the interpreted faults at greater depth with closer spaced holes. A RC drilling contractor has been secured and drilling is scheduled for February. The program will comprise holes of at least 100m in depth with 6 holes planned initially with potential to expand the number and depth of holes based on results as drilling progresses.

Traverses of RC holes will be drilled across the priority structures identified from the aeromagnetic data and the Aircore drilling. A senior geologist will be on site to log the holes as they are drilled to identify any indication of alteration or mineralization in the form of quartz veins, shearing and pyrite. Additional deeper holes of up to 250-300m will be drilled as a follow up if any visual indications of mineralization are intersected.

The priority structures are located near Aircore holes BZAC004, BZAC011 and BZAC042 (refer to Figure 1). BZAC004 intersected quartz veins at an interpreted contact. BZAC011 intersected a pegmatite intruded into an interpreted faulted contact and BZAC042 is located at a contact zone.

Background

Sabre Resources holds a 100% interest in the Bonanza Gold Project located in Western Australia and the contiguous Beacon Project.

The Bonanza Gold Project and the contiguous Beacon Project to the south cover a combined area of 33km2 and are located adjacent to the recently discovered Penny West Gold Project, owned by Ramelius Resources Limited (ASX: RMS), located in the Youanmi Gold Mining District, in Western Australia.

The Youanmi Gold Mining District has gained rapid investor attention with several companies including Rox Resources Limited (ASX: RXL) and Venus Metals Corporation Limited (ASX: VMC) reporting significant exploration success on gold projects located in the same area.

Figure 1: Aeromagnetic image (TMI-RTP) of the survey area on E57/1125 and interpretation by Newexco.

This announcement has been authorised for release by the Board of Directors.

ENDS

For further information contact:

Martin Stein

Company Secretary

P: [phone]

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Martin Bennett, a consultant to Sabre Resources Ltd, and a member of Australian Institute of Geoscientists. Mr. Bennett 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 "Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". Mr. Bennett consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.