Mr. Rob Pease reports

SABINA GOLD & SILVER REPORTS ON IMPORTANT BACK RIVER PERMITTING MILESTONE

Sabina Gold & Silver Corp. is providing an update on technical review, community round table and prehearing conference meetings on the company's 100-per-cent-owned Back River gold project, Nunavut, Canada.

Since initiating the permitting process in 2012, Sabina has worked diligently to engage with all communities and agencies involved in the assessment of the Back River project. Over this time the company has held 144 sessions reaching out to potentially affected communities and 195 meetings with all levels of federal and territorial governments. Open dialogue with all stakeholders is very important to Sabina to enable all parties to understand the project and to relay any concerns they may have.

In January, 2014, after completion of its prefeasibility study, the company submitted its draft environmental impact assessment (DEIS) to the Nunavut Impact Review Board (NIRB). During the months from January to October, 2014, a technical review period ensued during which the NIRB and all intervenors reviewed the document. Approximately 600 comments and questions were submitted to the company, to which Sabina has responded.

This information was reviewed in a formal technical and prehearing conference in Cambridge Bay, Nunavut, during November, 2014. This series of meetings was the first stage of the public hearing process. It allows for public technical discussion and comment, as well as enables Sabina to address concerns and potential mitigations in the Back River final environmental impact statement (FEIS). The FEIS will form the basis of a project recommendation from the NIRB.

"We are very encouraged with how the meetings proceeded and the support for responsible mine development in the region on all levels," said Rob Pease, president and chief executive officer. "The NIRB did an excellent job of facilitating the meetings and keeping things on track. All intervenors and community members expressed their comments and questions and listened to our responses in a very collaborative manner. Our team was very well prepared for the meetings and were not surprised by any of the comments or information requested. This is a milestone in the permitting process for us as the wealth of information and guidance we received during this conference is critical for us to complete a positive FEIS. We have an excellent understanding of what work needs to be done to enhance the final document. We look forward to completing and filing our FEIS in mid-2015."

In a letter dated Dec. 19, 2014, Ryan Barry, NIRB's executive director commented on the hearings: "The NIRB thanks Sabina and all parties for the co-operative and open dialogue to date which has allowed the NIRB's review process to unfold in an efficient and effective manner. The (NIRB) board looks forward to receiving Sabina's FEIS submission and proceeding through the remaining steps of the review process for the Back River project."

Through collaboration and productive discussion with intervenors on subjects such as caribou, marine/shipping, socio-economic effects, tailing storage, among others, Sabina has made commitments to incorporate further data, reasonable mitigation measures and preferred processes into the project and its FEIS. A summary of the NIRB's prehearing conference decision document can be found on the NIRB's FTP website.

The company plans to file the Back River FEIS in mid-2015, after which time, once NIRB completes a concordance test against previously established guidelines, a technical review period will ensue. Final hearings on the project are expected to occur in late fall of 2015, with a recommendation from NIRB to follow.

Work program and budget for 2015

The company anticipates it will end 2014 with cash of approximately $30-million.

Work in 2015 will focus on advancing and derisking Back River and will include a short winter program at Goose to complete geotechnical drilling and minor environmental baseline work to support the FEIS. Although no exploration drilling programs are planned for this winter program, exploration targeting and resource expansion modelling continue to highlight areas of high potential and opportunity for discovery.

Management is still finalizing the budget for 2015 which will be announced it once it has been approved by the board of directors in late January.

Feasibility study update

Work progresses on the FS and is focused on (for further details see news release dated Oct. 7, 2014):

• The impact of an increased resource on the project as it relates to mine life;
• The impact of significant conversion of inferred resources to measured and indicated, particularly in the underground resource as it relates to development efficiencies and cost reductions;
• The impact of increased recoveries (88.0 per cent in the PFS to and anticipated 93.9 per cent);
• More efficient tailings and waste rock management facilities;
• Increasing through put by approximately 20 per cent for the first half of the mine life from the 5,000 tonnes per day in the PFS;
• The impact of an improved understanding of how the less densely drilled deeper portion of the current inferred resource could provide opportunity for longer-term production and other opportunities.

Detailed engineering on these concepts is continuing and project economics are not yet available. Readers are cautioned that until the FS is completed, the implications of these concepts on the project, including on project economics, will not be fully understood. Results will be used to support the FS, which is expected to be completed in the first half of 2015.

Project financing

Management is currently informally exploring project financing alternatives and opportunities. While the project is expected to be substantively derisked by the end of 2015 (with the FS and environmental assessment completed), subject to the results of the FS and FEIS, the company would start construction of the Back River project at an appropriate time once financing is secured on satisfactory terms in a manner which is in the best interests of all shareholders.

Quality assurance

Matthew Pickard, BSc, MBA, PGeo, CRSP, EP, vice-president, environment and sustainability, for Sabina Gold & Silver, has reviewed the environmental/permitting content of this news release and has approved its dissemination.

Wes Carson, PEng, vice-president, project development, for Sabina Gold & Silver, a qualified person under the terms of National Instrument 43-101, has reviewed the technical content of this press and approved its dissemination.

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