Sabina Gold & Silver Files NI 43-101 Technical Report for Feasibility Study on Back River Gold Project

June 23, 2015

Vancouver, Canada — Sabina Gold & Silver Corp. (TSX:SBB) (“SBB” or the “Company”) announces that, it has filed its National Instrument 43-101 Technical Report entitled “43-101 Feasibility Study Technical Report for the Back River Gold Property, Nunavut” dated June 22, 2015 on SEDAR at http://www.sedar.com. The report has also been posted on the Company’s website at www.sabinagoldsilver.com.

On May 20, 2015, the Company announced the positive results of a Feasibility Study (“FS’) on the Back River gold project in Nunavut, Canada.

The FS uses a gold price of US$1200/oz Au and an exchange rate of 0.87 (US$:C$).

Highlights include a scenario that could:

• Generate a post-tax internal rate of return (“IRR”) of 21.7% and net present value (“NPV”) (at a 5% discount rate) of $539 million;
• Generate Life Of Mine (“LOM”) post-tax net cash flow of $914 million on gross revenues of $4.5 billion with a post-tax payback period of 2.2 years (from start of operations);
• Process at a rate of 6,000 tonnes per day could produce an average of ~346,000 oz Au per year (post commencement of commercial production);
• Generate average production of 413,000 oz Au in years 1 through 4;
• Provide an initial capital estimate of $695 million and sustaining capital estimate of $529 million (including closure);
• Generate a total LOM cash cost estimate of US$535/oz Au (including third party royalties, refining and transport). LOM all-in sustaining cash cost estimate of US$648/oz Au LOM (including sustaining capital);
• See LOM average metallurgical recoveries of 93%.

“The FS demonstrates the opportunity for Back River to become a significant gold producer using conservative assumptions, generating robust economics in one of the better mining jurisdictions in the world,” said Bruce McLeod, President & CEO “The high grade nature of the deposits provide scaleable opportunities that could enable us to develop the project in a manner that works in the current challenging capital markets environment and we are continuing to assess these options. Meanwhile, we are also de-risking Back River by moving the project forward through the environmental assessment process and aim to have our final environmental impact statement filed by the fourth quarter this year. The Back River FS was undertaken by a team with extensive Arctic experience and we believe the study to be a realistic representation of how to build and operate a mine in Nunavut.”

The following table simplifies and restates information previously presented in the May 20, 2015 news release.

Project Life of Mine Unit Operating Costs:

In previous disclosure, All-In Sustaining Cash Costs (“AISC”) were stated to include closure costs. In accordance with the World Gold Council’s definition, Back River’s AISC should be calculated to include:

This brings the Back River AISC to US$648/oz which is different to US$671/oz stated previously.

Closure capital costs are C$89.0M rather than $85.5M reported in the previous press release. The correct value was carried in the FS project cash flow and therefore this typo has no effect on other project economic values stated.

AUTHORS AND QUALIFIED PERSONS STATEMENT

The FS was prepared under the direction of JDS Energy & Mining Inc. by leading independent industry consultants, all Qualified Persons (QP) under National Instrument 43-101. The QPs have reviewed and approved the content of this news release. The following consultants and QPs participated in the FS:

The Qualified Person under NI 43-101 for Sabina Gold & Silver Corp. is Wes Carson, P.Eng Vice-President, Project Development, who has reviewed the content of this news release and approved its dissemination.

SABINA GOLD & SILVER CORP

Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.

Sabina has recently released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~350,000 ounces a year for ~10 years with a rapid payback of 2.2 years. At a US$1,200 gold price and a 0.87 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 22% with an initial CAPEX of $695 million.

In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.

The Company expects to end the year with $16 million in cash and equivalents.
For further information please contact:

Nicole Hoeller, Vice-President, Communications:
1 888 648-4218
nhoeller@sabinagoldsilver.com

NT3