Sabre Resources : Sherlock Bay High-Grade Nickel Sulphide Drilling to Start

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ASX ANNOUNCEMENT	ASX code: SBR
30 May 2022

DRILLING OF HIGH-GRADE NICKEL SULPHIDE TARGETS TO COMMENCE AT

SHERLOCK BAY

• Diamond drilling designed to upgrade JORC resources and enhance project economics
• • Program of Work (PoW) approved and drilling contract signed for early June kick-off for 2,400m diamond drilling1,2 program at Sherlock Bay nickel sulphide project in Western
    Australia's Pilbara region3,4.
  • Drilling will target additional higher-grade to massive sulphide resources down plunge of the Discovery and Symonds deposits4.
  • Latest exploration program designed to expand and upgrade existing nickel-copper-cobalt JORC resources, enhance scoping study economics and accelerate development studies.
  • WA Government co-funding of up to $220,0000 provided to test the concept that massive nickel sulphides occur at the intersection of the Sherlock Bay mineralised horizon and the "neck" of the sulphur-saturated Sherlock Intrusive - a position analogous with major deposits such as Nova-Bollinger.
  • The massive sulphides target concept is supported by a major EM conductor2 modelled beneath the current resources, which are increasing in grade with depth.

Sabre Resources Ltd (ASX: SBR) ("Sabre" or "the Company") is pleased to announce that a

~2,400m diamond drilling program0 is set to commence to test high-grade nickel sulphide

targets at the Sherlock Bay Nickel-Cobalt-Copper Project ("Sherlock Bay" or "the Project") in Western Australia's Pilbara region.

This follows the approval of a drilling Program of Work (PoW) by the WA Government and the signing of a drilling contract with Mount Magnet Drilling. The four-hole program will commence

as soon as access is established following recent rains at the site, which is expected to be early June.

The drilling program will test the potential for additional, high-grade nickel sulphide resources below both the Discovery and Symonds resource zones at Sherlock Bay, with the key objective of expanding and upgrading the existing JORC resources. This will in turn enable Sabre to update its Sherlock Bay scoping study and accelerate preferred project development options as global demand for battery metals such as nickel, copper and cobalt, continue to strengthen.

The exploration program will also include down-hole EM (DHEM) surveying to detect massive sulphides associated with either in-hole or off hole conductors - as successfully applied by Azure Minerals Ltd (ASX:AZS) at Andover nickel sulphide deposit, 60km west of Sherlock Bay3 (Figure 1).

The WA Government previously approved co-funding for this drilling program of up to 50% of the direct drilling costs and up to $10,000 mobilisation costs, capped at a total of $220,0000.

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Sabre Resources CEO, Jon Dugdale, said:

"We look forward with much anticipation to kicking off our new diamond drilling and down-hole EM program to test the high-grade nickel sulphide targets we have identified at Sherlock Bay.

"This is the first drilling program at Sherlock Bay since 2005 and we will be targeting high-grade nickel sulphide accumulations below the existing resource, in an analogous setting to the Nova- Bollinger massive sulphide deposits.

"Success in this program will be a key step in upgrading our existing JORC resources at Sherlock Bay and advancing development studies at a time of strong global demand for battery metals."

Background

The Sherlock Bay Project includes two nickel sulphide deposits, Symonds and Discovery, both of which are tabular and trend northeast-southwest within an overall 1.5km strike length mineralised horizon hosted by the regional Scholl Shear Zone corridor (Figure 1).

The Sherlock Bay nickel deposit is approximately 60km east of the Andover high-grade nickel sulphide discovery of Azure Minerals Ltd (ASX:AZR)3 (Figure 1), which is associated with a gabbroic intrusive body similar to the Sherlock Intrusive.

Figure 1: Sherlock Bay Nickel-Copper-Cobalt (sulphide) Project, regional geology and location plan

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The Project has an existing JORC 2012 Mineral Resource of 24.6Mt @ 0.40% Ni, 0.09% Cu, 0.02% Co,

containing 99,200t Ni, 21,700t Cu & 5,400t Co (Measured 12.48Mt @ 0.38% Ni, 0.11% Cu, 0.025% Co; Indicated 6.1Mt @ 0.59% Ni, 0.08% Cu, 0.022% Co & Inferred 6.1Mt @ 0.27% Ni, 0.06% Cu, 0.01% Co)4.

The recent Scoping Study5 on the Sherlock Bay Project indicated positive cash-flow potential at prevailing nickel prices (US$10/lb at time of release, now ~US$12/lb6), while also highlighting the positive financial impact of continued strength in nickel prices and the discovery of additional higher- grade resources at the Project.

The Company believes there is significant upside potential for additional, high-grade, nickel sulphide resources below both the Symonds and Discovery resource zones, with both deposits increasing in grade and open at relatively shallow depths (see longitudinal projection, Figure 2).

Figure 2: Sherlock Bay Longitudinal Projection with Discovery & Symonds nickel deposits, Ni% x m contours

Sabre's exploration model for Sherlock Bay is to target massive sulphides where the mineralised horizon projects to intersect the footwall of the Sherlock Intrusive, potentially representing the "neck" of the intrusive (see cross section, Figure 3). Massive sulphides occur in this position at analogous deposits such as the Nova-Bollinger nickel sulphide deposit, also in WA (IGO Ltd, ASX:IGO).

This exploration concept for massive sulphides to be located in this target zone is supported by the modelling of a major EM conductor2 (see EM Plate projected on Figure 2) at the projected intersection of the mineralised horizon with the base of the Sherlock gabbro/ultramafic intrusion at depth, below the disseminated nickel sulphide resources.

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The New Drilling Program

Four diamond holes totalling up to 2,400m will be drilled to test the two key target zones identified with potential for higher-grade to massive sulphides down plunge of both the Discovery and Symonds resources (see pierce points projected onto Figure 2) including:

1. Two holes to test for down plunge extensions of the Discovery nickel sulphide deposit (Figure 3, cross section 19,600mE), where higher-gradeintersections including: SBD077 - 50m @ 0.42% Ni from 227m incl. 22m @ 0.57% Ni & 4m @ 1.02% Ni1 indicate improving nickel grade down-plungeat relatively shallow depth to the southwest that remains open down plunge (see longitudinal projection, Figure 2).
2. Two holes to test for deeper extensions of the Symonds nickel sulphide deposit, where higher-gradeintersections at depth such as SBD065 - 43m @ 0.54% Ni from 508m incl. 17m @ 0.71% Ni and 3m @ 1.10% Ni1 (see cross section, Figure 4) indicate improving nickel grade with depth within a steep westerly-plungingzone that remains open down plunge (Figure 2).

Figure 3 - Sherlock Bay nickel deposit, cross section 19,600mE with Target Zone and drilling planned.

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Figure 4: Symonds Nickel Deposit, Cross Section 20,760mE. High-grade nickel sulphide target and drilling planned

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