Mr. Rob Pease reports

SABINA GOLD & SILVER ANNOUNCES 2013 YEAR END FINANCIAL RESULTS

Sabina Gold & Silver Corp. is releasing its financial results for the year ended Dec. 31, 2013.

Two thousand thirteen was a year of continued growth and change for Sabina. Highlights of the year include:

• The company had cash and cash equivalents, and short-term investments, of $58.3-million at Dec. 31, 2013.
• During the year, the company had a total of up to eight drill rigs operating on its Back River project and completed over 82,000 metres of drilling. The program was focused on a combination of infill, extension, geo-technical and geo-mechanical drilling and investigation of highly prospective greenfield targets.
• At the same time, the company expanded its camp infrastructure at Back River by installing additional bulk fuel storage and constructing an all-weather airstrip. The field program in 2013 was one of the largest and most productive completed to date, and was successfully completed with a high standard of safety and environmental compliance. There was more than 350,000 man-hours deployed at site with no lost-time or significant environmental incidents.
• In June, 2013, the company further added to its treasury by completing flow-through equity financing to raise gross proceeds of approximately $20-million.
• In October, 2013, the company announced the results of the preliminary feasibility study (PFS) on the Back River project, which contemplated a project with average annual production of approximately 300,000 ounces of gold over an eight-plus-year mine life, initial capital of $605-million and total LOM cash costs of $685 per ounce, including royalties, shipping and refining. Based on the results of the PFS, the company determined to move the project forward to a feasibility study.
• Subsequent to the year-end, early in 2014, the company filed its draft environmental impact statement (DEIS) with the Nunavut Impact Review Board (NIRB), and was advised that the Back River DEIS conforms to the environmental assessment guideline requirements and that the technical review process has begun.
• Also subsequent to year-end, the company announced an updated mineral resource estimate on the Back River project, incorporating the results of the significant 2013 drill program. This new estimate consists of a measured mineral resource of 10.4 million tonnes grading 5.2 g/t for a contained 1,761,000 ounces Au, an indicated mineral resource of 17.9 million tonnes grading 6.1 g/t for a contained 3,536,000 ounces Au and an inferred mineral resource of 8.2 million tonnes grading 7.3 g/t for a contained 1,927,000 ounces Au.

"The exploration program in 2013 was the largest and most complex we have ever executed at Back River with results falling very much in line with our objectives," said Rob Pease, president and chief executive officer. "A major focus was to upgrade confidence in our resources with the objective of ultimately increasing reserves and results have delivered a significant increase in measured resources, with a large component coming from our open-pit resources at Umwelt and Llama. Additionally, since completion of the PFS in October, 2013, we have also been working on optimization studies for the project, including metallurgical testing, mining methods and scheduling among others. These studies are progressing well and we look forward to announcing their results in the coming months."

Financial results

For the year ended Dec. 31, 2013, the company reported a net loss of $9.5-million, compared with a net loss of $14.1-million in 2012. The decrease of $4.6-million was primarily due to a reduction recorded in 2012, in carrying value for the Cook Lake mineral property of $3.8-million.

Operating expenses in 2013 were $7.7-million, compared with $11.9-million in 2012. As noted above, in the fourth quarter of 2012, following a review of exploration results at Cook Lake, the company determined that it would not continue with its option on the property and, consequently, all deferred exploration costs were written off. Share-based compensation payments decreased in 2013, by $600,000 due to primarily to a decrease in the option value. For the year ended Dec. 31, 2013, the company had granted 3.7 million options, compared with 3.1 million options granted in 2012.

Interest income in 2013 was $1.5-million, compared with $2.4-million in 2012; the decrease was due to the reduced average cash and short-term investment balances in 2013, compared with 2012.

The total flow-through premium income recognized in 2013 was $1.5-million, compared with $4.1-million in 2012. In addition to timing differences related to amortization of the flow-through premium, the company had a lower premium in 2013, both in terms of gross premium amount and percentage of share price. Deferred income tax expense was $4.8-million in 2013, compared with $8.7-million in 2012; the difference was primarily the result of less flow-through financing completed in the period.

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 2013, total deferred expenditures were $73.4-million, compared with $66.8-million in 2012. The increase of $6.6-million resulted from increased drilling, as well as environmental and economic assessment activities on the Back River project in 2013, compared with 2012.

For the full Dec. 31, 2013, financial statements, and management's discussion and analysis, please see the company website.

Quality assurance

Angus Campbell, PGeo, and vice-president, exploration, of Sabina Gold & Silver, is a qualified person under the terms of NI 43-101, and has reviewed the technical content of this news release and approved its dissemination.

The mineral resource estimates for the Back River deposits were estimated by AMC Mining Consultants (Canada) Ltd. The qualified persons are Dinara Nussipakynova, PGeo, and Andrew Fowler, MAusIMM, CP (Geo), both of AMC Mining Consultants (Canada).

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