EGM Request - Denied

Dear shareholder,

As you maybe aware a shareholder group with in excess of 5% of the issued capital in Sabre Resources recently request an EGM concerned about the overall performance of the company and its poor share price, despite its compelling exploration potential. These concerns include the need for greater transparency of the company's financials and operations, the need for greater independence of the Board of directors and concern about the apparent confidentiality of, and indeed requirement for, the current Management Agreement between Sabre Resources and Kalgoorlie Mine Management (KMM) to be disclosed. Sabre Resources has since formally advised the Shareholder group that it is declining the request for an extraordinary general Meeting.This advice was communicated by a solicitor acting for Sabre.

The shareholder Group has contacted ASIC in regards to the company's rejection of the EGM request. Without going into legal detail it appears that it is not clear cut case and as a result we are seeking legal advice.

Our concern is that the confidentiality of the current management arrangement makes it extremely difficult for shareholders to determine whether this agreement is providing best value for money to shareholders and whether it is the most effective and equitable way of providing the contracted services to the company. It is our position that, in keeping with both ASX and ASIC guidelines and requirements for transparency and avoidance of any potential conflicts of interest, that these matters should be able to be openly evaluated and discussed by shareholders and are best put to a vote by shareholders to determine if the majority of shareholders are happy with the "status quo" or would like to see a number of changes to ensure that the company is managed for the overall benefit of all shareholders.

In the absence of the company's current management refusing the shareholder request for an Extraordinary general meeting to discuss these issues, we believe that it falls directly at the feet of the company's current Directors to act and ensure that a vote is put to shareholders, at the forthcoming AGM, concerning the issues raised by the Shareholder group, including the current Management Agreement.

As a result of current developments a new strategy will be acted upon in conjunction with pursuit of the EGM. We will provide more information on this strategy soon.

The upcoming AGM is an opportunity for shareholders to send a message to management if they are dissatisfied with the current performance of the company by voting NO to all resolutions. If shareholders do not band together and take the time to vote then nothing will change. It is up to us.

Pending the outcome of the forthcoming AGM, the shareholder group will continue to seek changes to the company with a view to both increasing the independence of the Board of Directors and ensuring that the company's financial and operational performance are enhanced. We will stay in contact with shareholders as these matters are progressed to both keep you informed and to seek your support for proposed actions. At the end of the day, our key goal is to see the company succeed and for all shareholders to be rewarded by seeing the company's share price significantly improve from its current position.

We will continue to provide updates on developments as they come to hand. If you have any expertise or feedback that may assist the shareholder group in achieving its aims please contact us at [email protected]. Thank you for your continued support.


Regards
Sabre Resources Shareholder Group