Mr. Rob Pease reports

SABINA GOLD & SILVER REPORTS GLENCORE XSTRATA DISCLOSES NEW HACKETT RIVER RESOURCE ESTIMATE

Glencore Xstrata has disclosed a new mineral resource estimate for Sabina Gold & Silver Corp.'s former Hackett River project. The company also is pleased to report approval from the Nunavut Impact Review Board to continue through the environmental assessment process on the port and road. The company also announced its financial results for the interim period ended March 31, 2013.

Hackett River project

Hackett River, located 45 kilometres west of the company's Back River gold project in Nunavut, is a silver-rich volcanogenic-massive-sulphide project and is one of the largest undeveloped projects of its type. In 2011, the company sold the project to Xstrata Zinc Canada Ltd., which is now part of the newly formed Glencore Xstrata PLC.

As consideration for the sale, the company received $50-million in cash and retains a significant silver royalty on the project. Under the terms of the agreement, Sabina would receive 22.5 per cent of silver production up to the first 190 million ounces produced and 12.5 per cent of all silver produced thereafter at Hackett River.

Since its acquisition of the project and its initial resource estimate on Hackett in 2011, Xstrata has been moving the project forward, including drilling over 50,000 metres in 2012.

On May 3, 2013, in its annual report of mineral resources and ore reserves as at Dec. 31, 2012, Xstrata provided a summary of the mineral resources and mineral reserves on its projects, including a new mineral resource estimate for Hackett River. Xstrata now reports measured and indicated resources of 25 million tonnes grading 4.2 per cent zinc and 130 grams per tonne silver and an additional inferred resource of 57 million tonnes grading 3 per cent zinc and 100 grams per tonne silver. The project also contains appreciable copper, lead and gold.

The entire Xstrata resource update can be found at the Glencore website. Xstrata disclosed that Aline Cote, project manager for Xstrata Zinc, served as the competent person for Xstrata in connection with this mineral resource estimate.

The new mineral resource is an increase of approximately (34 per cent) in all categories (measured, indicated and inferred) over Xstrata's previously published estimate in December, 2011.

"The Hackett royalty is a significant asset to Sabina," said Rob Pease, president and chief executive officer. "We are very encouraged by Xstrata's progress on the project and their current activities. The more work done to derisk and advance the project, the more the value of the royalty should materialize for our shareholders. We are also pleased to have NIRB approval to advance through the permitting process for BIPR. We view the port and road as infrastructure that will serve both industry and the regional communities of Nunavut. We have a good working rapport with what is now the Canadian zinc division of Glencore Xstrata and look forward to continuing our mutually beneficial relationship."

The company does not expect Xstrata will prepare a technical report in respect of the new Hackett River mineral resource estimate. Consequently, the company has not had an opportunity to fully review or assess the assumptions, parameters or methods used by Xstrata to make such estimate, although it has no reason to believe that such estimate is not reliable. Accordingly, the company is currently working to complete its own mineral resource estimate based upon Xstrata's fieldwork, as well as a technical report. The company expects that it will publish its new mineral resource estimate for Hackett River later this month.

Bathurst Inlet port and road project (BIPR)

The BIPR project has been in the planning stages in Nunavut for many years and contemplates building a deepwater port in Bathurst Inlet (approximately 80 kilometres to the east of Hackett River and 70 kilometres to the north of Back River) and an all-weather road connecting the port to existing ice roads that service the Ekati and Diavik mines from Yellowknife, NWT. Significant infrastructure as contemplated within the BIPR project necessary for the shipping of concentrates from the proposed Hackett River project could also be utilized to support operations at the company's proposed Back River gold project.

The company and Xstrata are joint proponents of BIPR and have been waiting for approval from the Nunavut Impact Review Board to be able to re-engage in the environmental assessment of the project. On May 8, 2013, the NIRB gave its approval to re-engage and provided an addendum to the existing guidelines for an environmental impact statement for the project. A draft environmental impact statement on the project is being prepared by Xstrata and will be filed with the NIRB later this year.

Consequently, Sabina and Xstrata are working to finalize a partnership agreement on BIPR that will outline terms of use and commitments going forward. This agreement will be announced once completed.

First-quarter financials

Highlights of the quarter include:

• On Feb. 15, 2013, the company announced an updated resource estimate for Back River. The new mineral resource is composed of measured and indicated resources of 24.2 million tonnes grading 6.0 grams per tonne for 4.7 million ounces of gold and inferred resources of 7.7 million tonnes grading 7.8 grams per tonne gold for 1.9 million ounces of gold, increasing confidence, grade and ounces.
• Also in February, the company announced its work program for Back River for approximately 45,000 metres to 50,000 metres of drilling. The Goose exploration camp opened in January, 2013, and drilling is continuing, with eight drill rigs operating on Goose and George.
• Work on the Back River gold prefeasibility study continues and is expected to be completed in third-quarter 2013.
• Cash of $104.2-million at March 31, 2013.

Financial results

For the quarter ended March 31, 2013, the company reported a net loss of $3.7-million compared with a loss of $4.2-million in 2012. The decrease of $500,000 was the net result of lower income tax expense and lower share-based payment expense, partially offset by increased salaries, decreased amortization of flow-through premium and decreased interest income.

The company had cash and cash equivalents and short-term investments of $104.2-million at March 31, 2013, compared with cash and cash equivalents of $116.4-million at Dec. 31, 2012.

For the full first-quarter 2013 interim financial statements and management's discussion and analysis, please see the company website.

Angus Campbell, PGeo, vice-president, exploration, of the company, is a qualified person under the terms of National Instrument 43-101 and has reviewed the technical content of this news release and approved its dissemination.

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