Sabre Resources : Agreements to Acquire Three Nickel Sulphide Projects in WA

13 December 2021

AGREEMENTS SIGNED TO ACQUIRE THREE NICKEL SULPHIDE PROJECTS IN WA

Sabre also acquiring two uranium and a copper-gold project in the Northern Territory

• Binding agreement executed to earn 80% of the Nepean South E15/1702, that covers a 12km corridor of ultramafic rocks south of the Nepean nickel sulphide mineand including previous nickel-copper RAB intersections.
• Sale agreement executed to purchase 80% of Chalco Resources Pty Ltd ("Chalco"), that has:
• 1. three exploration licences (applications) at Cave Hill, over a >50km strike length ofinterpreted extensions of the Nepean and Queen Victoria Rocks nickel sulphide belts,
  2. two uranium exploration licences(applications) in the Ngalia Basin of the Northern Territory along strike from existing uranium resources, and,
  3. the Carrara E32693, located at the junction of the Tennant East Copper-GoldBelt and the Lawn Hill Platform/Mt Isa Province in the Northern Territory.
• Binding agreement executed to earn an 80% interest in the Sherlock Pool E47/4345, covering immediate strike extensions to the northeast and southwest of the Company's
  Sherlock Bay nickel sulphide deposit.

Sabre Resources Ltd ("Sabre" or "the Company") is very pleased to announce the execution of three, separate, binding agreements to acquire 80% interests in predominantly nickel sulphide projects in Western Australia, as well as uranium and copper-gold projects in the Northern Territory, Australia:

1. Binding Farm-in Joint Venture Agreement with Metals Australia Ltd (ASX:MLS, "Metals") to earn an
   80% interest in the Nepean South E15/1702 ("Nepean South Agreement"), that covers a 12km corridor of mafic and ultramafic rocks south of the Nepean nickel sulphide mine near Coolgardie in the highly prospective Eastern Goldfields of WA (see Figure 1). The tenement includes previous nickel-copperRAB intersections such as NRB048: 6m @ 1.84% Ni and 0.02% Cu1 that indicate potential for nickel sulphides in fresh rock.
   Under the Nepean South Agreement, Sabre will pay $40,000 cash to Metals, then earn an 80% interest by spending $200,000 within 5 years of signing (including spending $40,000 within the first year). Upon Sabre earning 80%, Metals will hold 20% and an additional payment of $70,000 must be made to Metals before a contributing joint venture is formed (see detailed terms in Appendix 1a).

1. Agreement to purchase 80% of Chalco Resources Pty Ltd ("Chalco Sale Agreement"), that has:
2. 1. three exploration licence applications at Cave Hill, E15/1843, E15/1844 and E15/1845, covering an interpreted ~50km extension of the Nepean nickel sulphide belt, immediately south of Metals' Nepean South Project, and interpreted extensions of the Queen Victoria Rocks nickel sulphide belt (see Figures 2 and 3),
   2. two exploration licence applications located along strike from existing uranium resources in the highly prospective Ngalia Basin the Northern Territory, the Dingo EL32829 near the Bigrlyi uranium deposit and the Lake Lewis EL32864 along strike from the Napperby uranium deposit (see Ngalia Basin map, Figure 4 and Lake Lewis map, Figure 5), and,
   3. the Carrara granted EL32693, located at the eastern end of the Tennant East Belt in the
      Northern Territory, close to the junction with the Lawn Hill Platform and the Mt Isa Province (Figure 6).

The Chalco Sale Agreement terms provide for the issue of 342 million (M) Sabre Resources (SBR) shares to the Vendor, including a deposit of 35M SBR shares on signing the Chalco Sale Agreement. The remaining 307M SBR shares to be issued subject to shareholder approval at the Company's upcoming Annual General Meeting (AGM). Upon approval at the AGM a payment of $85,000 will be made to the Vendor. In addition, a further 125M shares may be issued to the Vendor on achievement of certain performance milestone(s) (see detailed terms in Appendix 1b).

1. Binding Farm-in Joint Venture Agreement with Jindalee Resources Ltd (ASX: JRL, "Jindalee") to earn an 80% interest in the Sherlock Pool E47/4345 ("Sherlock Pool Agreement") located immediately along strike to the northeast and southwest of the Company's Sherlock Bay nickel deposit in WA's
   Pilbara region (see Figure 7).
   Under the Sherlock Pool Agreement, Sabre will pay $7,500 cash and issue 3.5M SBR shares to Jindalee on signing; then earn an 80% interest by spending $250,000 within 5 years including $40,000 within the first year of term. Sabre will then free carry Jindalee to completion of a Bankable Feasibility Study (see detailed terms summarised in Appendix 1c).

Sabre Resources CEO, Jon Dugdale, commented: "The execution of these three agreements provides Sabre with access to an outstanding portfolio of tenements that are highly prospective for nickel sulphide discoveries, including: Sherlock Pool, which covers immediate strike extensions of the Company's Sherlock Bay nickel deposit; Nepean South, immediately along strike from the Nepean nickel mine and, through the Chalco acquisition, the Cave Hill Project, covering an over 50km strike length of highly prospective nickel sulphide belts south of the Nepean nickel sulphide deposit.

"In addition, Chalco holds two tenement applications in one of Australia's most prospective uranium areas, the Ngalia Basin of the Northern Territory, both of which are immediately along strike from existing uranium resources, as well as a copper-gold project east of Tennant Creek.

"Sabre is now well placed to become a key nickel sulphide player and take advantage of the demand for nickel as a key component of lithium-ion batteries for the EV industry. The Company also looks forward to exploring it's highly prospective uranium and base metals tenements in the Northern Territory."

Nepean South Nickel Project E15/1702:

The Nepean South Project is located directly south and along strike from the historical Nepean Nickel Mine (see Figure 1 below), owned by Auroch Minerals Limited (ASX: AOU). Nepean was the second producing nickel mine in Australia, producing 1,108,457t of ore between 1970 and 1987 for 32,202t of

nickel metal at an average recovered grade of 3.0% Ni1.

E15/1702

Figure 1: Nepean South Nickel Project interpreted geology

The Nepean South tenement, E15/1702, incorporates an approximately 10km strike length belt of greenstone lithologies, including Kambalda-style komatiites, flanked by granites, with significant nickel sulphide mineralisation potential. Komatiite hosted nickel deposits of the Kambalda style are generally associated with footwall embayments in channelised ultramafic flows where, if sulphur saturated, nickel sulphides accumulate and, in some cases, e.g. Nepean nickel deposit, form massive sulphide deposits.

Historical shallow RAB drilling in the Nepean South area was completed by Mincor Resources NL (Mincor) (E15/884, 2007-2012) with significant drilling results1 including (see Appendix 2, JORC Table 1):

1. NRB048: 6m @ 1.84% Ni and 0.02% Cu from 18m

1. NRB048: 12m @ 1.29% Ni from 15m

1. NRB067: 3m @ 0.78% Ni from 33m and 3m @ 0.76% Ni from 48m

1. NRB055: 9m @ 0.54% Ni from 21m

1. NRB077: 3m @ 0.69% Ni from 24m
   Note: additional information included in JORC Table 1 of this release.

The association of high nickel values with elevated copper, particularly in NRB048 (6m @ 1.84% Ni and 0.02% Cu1), indicates that the Nepean South Project is highly prospective for the discovery of massive nickel sulphides in primary lithologies.

RAB drilling was completed to only very shallow depths, on average only 42m from surface, with many holes drilled to even shallower depths. Deeper potential in the vicinity of the shallow RAB intersections will be targeted for the discovery of massive nickel sulphides.

To assist drill-targeting, an initial exploration program is planned at the Nepean South project comprising an EM and magnetics survey (airborne or ground-based) across the entire strike length of the prospective ultramafic sequence. Drilling will then follow, to test primary footwall embayments in the vicinity of identified komatiites, associated with elevated RAB geochemistry and/or EM anomalies to target nickel sulphides at depth.

Chalco Resources' Projects:

Cave Hill Nickel Project

The Cave Hill Project consists of three Exploration Licence applications (EL15/1843, EL 15/1844 and EL 15/1845) that include two structural/magnetic trends of interest for potential nickel sulphide deposits (see Figure 2):

• Two applications (E15/1843 and E15/1844) covering a 50km strike-length magnetic trend south of the historical Nepean Mine and Metals' Nepean South tenement E15/1702, and,
• One application (EL15/1845) south of the Queen Victoria Rocks nickel sulphide prospect, that covers a strong magnetic target.

All the magnetic targets are concealed by shallow cover. The primary targets within the tenement package are potentially sulphur-saturated ultramafic rocks hosting nickel sulphides, along strike from known nickel sulphide occurrences (e.g., Queen Victoria Rocks prospect, Nepean nickel deposit).

The magnetic features covered by E15/1843 and E15/1844 show a similar magnetic pattern to the outcropping Nepean South greenstone belt (see Figure 3, tenements on Total Magnetic Intensity (TMI) image). This magnetic pattern infers greenstone with magnetic zones (potentially ultramafics) and weaker magnetic zones (potentially mafics), with coincident gravity imagery also indicating subtle gravity highs that may be remnant greenstone.

Application E15/1845 is located southwest and on the western side of a regional dome from the Queen Victoria Rocks nickel sulphide occurrence (Figure 2). A strong northwest trending magnetic feature (see Figure 3) is the primary target for investigation for remnant greenstone/ultramafic and/or magnetic BIF horizons.

Figure 2: Cave Hill Nickel Project tenements with Nepean (AOU) and Nepean South (MLS) Projects

Based on examination of previous airborne magnetic and gravity data, historic exploration activity and neighbouring mineral resources, the application areas will primarily be targeted for buried nickel (Ni) sulphide mineralisation associated with channelised, high-MgO, ultramafics (Figure 3).

Review of historical exploration and GSWA airborne magnetic data within the tenement application areas suggests they remain insufficiently tested by previous explorers for remnant mafic/ultramafic greenstones.

The exploration program on these tenements will include detailed airborne and/or ground magnetics and gravity surveys to detail the anomalies and define targets for channelised, nickel-sulphide bearing ultramafics. This would be followed by soil /auger geochemical sampling and targeted aircore drilling of coincident magnetic/gravity features and anomalies. RC drilling to follow based on lithologies intersected and anomalous nickel +/- copper anomalism.