webpack.config.js

const ExtractTextPlugin = require("extract-text-webpack-plugin");

module.exports = {
    entry : __dirname + '/app/index.js',
    module : {
        rules: [
            {
                test: /\.js$/,
                exclude: /node_modules/,
                loader: 'babel-loader'
            },
            {
               test: /\.s?css$/,
               use: ['style-loader', 'css-loader', 'sass-loader'],
            }
        ]
    },
    output: {
        filename : 'bundled.js',
        path : __dirname + '/build'
    },
    watch: true,
    watchOptions: {
        aggregateTimeout: 300,
        poll: 200
    },
    plugins: [
        new ExtractTextPlugin("styles.css")
    ]
};

//ERROR
ERROR in /home/vagrant/Projects/com_oauth_manager/media/com_oauth_manager/sass/layout/_layout.sass
Module parse failed: /home/vagrant/Projects/com_oauth_manager/media/com_oauth_manager/sass/layout/_layout.sass Unexpected character '@' (1:0)
You may need an appropriate loader to handle this file type.
| @import '../bourbon/bourbon';
| @import '../base/base';
|
@ ./app/component/App.js 5:0-47
@ ./app/index.js