Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES Q2 FINANCIAL RESULTS

Sabina Gold & Silver Corp. has released its financial results for the second quarter of 2015.

"The second quarter saw the accomplishment of some major milestones for the company and for Back River," said Bruce McLeod, president and chief executive officer. "Our Back River feasibility study technical report (6KFS) was filed in June with very positive economic results; we continued cost-cutting measures to ensure we are a fit-for-purpose organization; and we completed a brief field program at Back River, which resulted in the identification of a new style of gold mineralization at Back River which adds to the extensive exploration potential.

"Subsequent to the quarter, we also announced that we have commenced a feasibility study on a smaller start-up project at Back River. The initial project feasibility study (IPFS) will evaluate the potential of a project at 3,000 tpd [tonnes per day], generating approximately 250,000 ounces of gold per year over approximately 10 years, targeting a lower initial capital requirement and providing lower execution risk. The IPFS is expected to be completed in Q3 of this year," said Mr. McLeod.

Q2 highlights:

• The company had cash and cash equivalents, and short-term investments of $22.2-million at June 30, 2015.
• During the quarter, the company completed and announced positive results of the 6KFS on the Back River project. The study demonstrates the opportunity for significant high-grade gold production (approximately 350,000 ounces per year) at good margins, in a safe Canadian mining jurisdiction with a posttax internal rate of return of 21.7 per cent and a net present value (5 per cent) of $539-million, at $1,200 (U.S.) per ounce of gold and a U.S./Canadian dollar exchange rate of 0.87.
• Given the large initial capital of the 6KFS, subsequent to the quarter-end, the IPFS was commenced to assess the opportunity for a smaller start-up less-capital-intensive option at Back River.
• The company also completed a short six-week field program, focused on geotechnical drilling and environmental baseline data collection to support the environmental assessment process. During this program, two exploration holes were completed, identifying a new target type and gold mineralization style, which continues to demonstrate the project-wide gold endowment and potential for greenfield resource growth.
• On June 11, 2015, the company held its annual general meeting of shareholders at which all directors nominated for election were elected.
• During the quarter, the company continued to focus on a number of cost-saving measures, including additional staff reductions, a 50-per-cent reduction of directors' fees and a reduction of the number of board members.
• Subsequent to the quarter, Walter Segsworth joined the board as a director, bringing significant experience to guide the company's objectives and execution to become a significant gold producer.

Financial results

For the quarter ended June 30, 2015, the company reported a net loss of $2.5-million, unfavourable by $1.8-million compared with second quarter 2014. The difference quarter over quarter was largely the result of writedowns recognized in Q2 2015 (impairment loss on its equity investment in Pure Gold Mining Inc. and a writedown of $200,000 for deferred exploration costs on non-material mineral claims that the company elected to drop on its Wishbone property).

Excluding writedowns, operating expenses in Q2 2015 were $200,000, lower than in the comparable period in 2014. Offsetting were lower interest income and deferred tax recovery in Q2 2015 than in the comparable period in 2014. Interest income was lower by $100,000, due to reduced average cash balances; deferred income tax recovery was lower by $700,000, primarily due to impairment loss on investments.

The decrease in operating expenses in Q2 2015 resulted primarily from the reduction of share-based payments, salaries, travel activity, financial advisory and human-resource-related services, directors' fees, share listing and filing fees, and attendance at investor conferences. Partially offsetting were higher severances paid in 2015.

The primary costs incurred by the company are associated with exploration and evaluation of its mineral properties, and are deferred until the properties are placed into production, sold or abandoned. In Q2 2015, total deferred exploration and evaluation expenditures were $4.7-million compared with $10.0-million in the comparable period in 2014. The decrease of $3.8-million was primarily the result of decreased economic assessment costs in 2015 compared with 2014, primarily due to reduced drilling and site support activities.

The company had cash and cash equivalents, and short-term investments of $22.2-million at June 30, 2015, compared with cash and cash equivalents of $32.5-million at Dec. 31, 2014. The company expects to end 2015 with a cash balance of approximately $17-million.

For the full Q2 2015 financial statements, and management's discussion and analysis, please see the company website or retrieve them from SEDAR.

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