Sabre Resources : Launches Key Nickel Sulphide Drilling Programs

For personal use only

ASX ANNOUNCEMENT	ASX code: SBR
21 July 2022

SABRE LAUNCHES DRILLING PROGRAMS AT NEPEAN SOUTH AND SHERLOCK

BAY NICKEL SULPHIDE PROJECTS

• Both drill-programs testing along strike from massive nickel sulphide deposits

Sabre Resources has launched aggressive nickel sulphide drilling and exploration programs at both the Nepean South Project in the Eastern Goldfields of WA and the Sherlock Bay Project in the Pilbara of northwest WA. Drill targeting at both projects is being guided by previous nickel and other pathfinder results (including copper) and detailed geophysical surveys - including magnetics, gravity and electromagnetics.

Nepean South:

• The ~2,600m reverse circulation (RC) drilling program has commenced testing priority nickel sulphide targets over a 10km-strike ultramafic corridor southwest of the Nepean Nickel Mine (past production 1.1 Mt @ >3% Ni2).
• Drilling is targeting zones beneath high-grade nickel with copper results in previous shallow RAB drilling including 6m @ 1.84% Ni, 0.02% Cu1.
• Recent field work has confirmed Nepean South represents a prime target for Kambalda- style nickel sulphide mineralisation.
• Detailed drone magnetics is being flown to define potentially nickel sulphide-bearing komatiites, along with electromagnetic (EM) surveys to identify massive-sulphide targets for further drilling.

Sherlock Bay:

• Access and site preparation completed for 2,400m diamond drilling3 program, targeting massive nickel (Cu, Co) sulphides down-plunge (below) the Sherlock Bay resources.
• A recently-completed detailed gravity survey has identified a strong gravity anomaly below and parallel to the Sherlock Bay nickel sulphide resources. The gravity anomaly is interpreted to represent the Sherlock Intrusive and indicates the mineralised horizon will intersect the targeted Sherlock Intrusive contact at depth.
• The diamond drilling target scenario at Sherlock Bay is analogous to other discoveries in WA such as the Nova Bollinger massive nickel sulphide deposit (ASX:IGO) and the nearby Andover nickel sulphide deposit (ASX:AZS), 70km to the west of Sherlock Bay.

For personal use only

Sabre Resources CEO, Jon Dugdale, said: "After identifying priority nickel sulphide targets at Nepean South and Sherlock Bay, we are delighted to now be in a position to launch aggressive new drilling and exploration programs at both projects to unlock their true potential."

"At Nepean South, we have already commenced the RC drilling program targeting priority nickel sulphide targets across a buried ultramafic footwall contact along strike from the Nepean massive- sulphide nickel mine.

"In addition, drill-site preparation is complete at Sherlock Bay and the diamond drilling rig will arrive shortly to test massive sulphide targets under the existing resource, where detailed gravity has confirmed the targeted Sherlock Intrusive lies at depth. The Sherlock Intrusive is identical to the intrusive unit that hosts the Andover massive nickel sulphide deposit along strike 70km to the west of Sherlock Bay.

"Significantly, both drilling programs are testing proven nickel sulphide bearing horizons along strike from massive-sulphide deposits, thus increasing our chances of success.

"These are exciting times for Sabre and we look forward to updating the market on the results from both Nepean South and Sherlock Bay as they come to hand."

Photo 1: The CEO pegging RC drilling sites at Nepean South

Sabre Resources Ltd (ASX: SBR) ("Sabre" or "the Company") is pleased to announce the Company is aggressively advancing drilling and nickel sulphide exploration programs at both its Nepean South and Sherlock Bay projects in Western Australia.

Nepean South:

Sabre has commenced a ~2,600m RC drilling program0 of up to 21 holes to test priority nickel sulphide targets at the Nepean South Project, 40km south of Coolgardie (Figures 1 and 3) in the in the world-class Eastern Goldfields. The Company is earning an 80% interest from Metals Australia Ltd (ASX:MLS)1.

Nepean South is located 12km southwest of, and in the same geological sequence as, the historical Nepean Nickel (sulphide) Mine (see Figure 3). Nepean produced 1.1 million tonnes of massive nickel sulphide ore grading 3.0% Ni (recovered) between 1970 and 19872.

2

For personal use only

The RC drilling at Nepean South will test five sections where previous Rotary Air Blast (RAB) drilling completed by Mincor Resources NL (E15/884, 2007-2012) intersected high nickel with copper grades in weathered ultramafic rocks.

The RAB drilling traverses broadly averaged ~1km spacings and focussed on north-south oriented magnetic anomalies previously interpreted by Metals Exploration in the 1980s to "most likely be caused by ultramafic rocks". Nepean South's ultramafics continue over a strike length of >10km (Figures 1 & 3).

The Mincor RAB results1 included:

• NRB048: 12m @ 1.29% Ni from 15m incl. 6m @ 1.84% Ni and 0.02% Cu from 18m
• NRB067: 3m @ 0.78% Ni from 33m and 3m @ 0.76% Ni from 48m
• NRB055: 9m @ 0.55% Ni from 21m
• NRB077: 3m @ 0.69% Ni from 24m

A plot of peak RAB drilling results on the interpreted magnetics (see Figure 1 below) shows that the highest-grade nickel with copper results are located close to the interpreted eastern, basal contact of the ultramafic corridor. The presence of copper with the high nickel grades in RAB drilling points to the presence of nickel sulphide-bearing komatiitic ultramafics in fresh bedrock below.

Figure 1: Nepean South ultramafic with peak Ni and Cu in RAB holes on TMI image with key targets

3

For personal use only

Field examination of the RAB drilling chips has confirmed that the high nickel with copper grades are associated with weathered talc-carbonate ultramafics, indicative of a high-MgO komatiitic lava channel. Shallow RAB hole NRB048, which intersected up to 6m @ 1.84% Ni and 0.02% Cu1, is located on the southern-most RAB traverse (Figure 1) and was drilled across the contact of the ultramafics and the footwall basalt (see Figure 2). The high nickel values in this hole are not explained by lateritic enrichment and it is likely that the source of the nickel with associated copper is nickel sulphides in bedrock.

This targeted setting for nickel sulphides to be associated with the base of a high-MgO komatiitic ultramafic is identical to the model for the Kambalda massive to disseminated nickel sulphide deposits (see model for Kambalda/Nepean style nickel sulphide deposits, Figure 2 below). The fertility of the belt is confirmed by the presence of the Nepean2 nickel sulphide deposit only 12 km along strike to the north (Figure 3).

Figure 2: Model for Kambalda-style nickel sulphide deposits in ultramafics, targeted at Nepean South

The RC drilling program is designed to test the basal ultramafic contact zone and across the high-MgO ultramafic under the peak nickel with copper RAB results identified to date. This initial RC drilling program will test five of the most highly nickel-copper anomalous sections (see Targets 1 to 3 on Figure 1) to determine the extent of nickel sulphide mineralisation in fresh bedrock below the weathered saprolitic zone that was tested by the previous shallow RAB drilling.

In parallel with the RC drilling, a detailed drone magnetics survey will be flown along the entire length of the Nepean South tenement to define the potentially channelised, nickel sulphide-bearing ultramafics and fine tune nickel-sulphide targets for further drilling.

Electromagnetic (EM) surveys will also test selected target areas to detect potential massive nickel sulphide zones for deeper RC and/or diamond drilling.

Drilling contractor Westdrill Pty Ltd has commenced RC drilling on the southern section near drillhole NRB048 (6m @ 1.84% Ni and 0.02% Cu1) and will work from east to west across the interpreted ultramafic channel. The drilling will then step 2.5km north to the next section (Figure 1).

4

For personal use only

Samples from the RC drilling will be immediately logged and despatched to the Kalgoorlie sample preparation facility of Intertek Laboratories to ensure as fast as possible turnaround before analyses are carried out at their Perth facility.

E15/1702

Figure 3: Nepean South Nickel Project location and interpreted geology with Ni occurrences

5