Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED 2014

Sabina Gold & Silver Corp. has released its financial results for the quarter and year ended Dec. 31, 2014.

"I believe that 2015 will be a transformational year for Sabina," said Bruce McLeod, the company's new president and chief executive officer. "We are on track to deliver a comprehensive feasibility study during the second quarter that we believe will demonstrate Back River's exceptional potential to become a compelling mid-tier gold producer. While the study will focus on a 5,000-plus-tonne-per-day scenario with significant gold production, we are also assessing start-up opportunities. We are looking at the flexibility offered by our high-grade open-pittable resources to pursue a smaller, less capital-intensive starter mine. In the existing capital markets environment, not only could this be attainable for a company Sabina's size, it could also constrain dilution and preserve shareholder value while ramping up to a larger-production scenario. We look forward to the results of this assessment and to sharing it with the market when available," he added. "We are fully funded while we derisk Back River by advancing through feasibility and towards a project certificate, but remain committed to conserving our treasury. The 2015 budget and work plans are currently being finalized and will be announced in the coming weeks."

2014 highlights:

• The company had cash, cash equivalents and short-term investments of $32.5-million at Dec. 31, 2014.
• In March, 2014, the company announced an update to its Back River mineral resource estimate, incorporating the results of the 2013 exploration drill program. The new mineral resource estimate includes a significant increase in gold ounces in the measured resource category and a significant increase in total contained gold ounces (see news release dated March 4, 2014, at the company's website).
• On April 22, 2014, the company announced results from continuing metallurgical testing on Back River. The tests indicated a substantial increase in overall recoveries from 88 per cent (which was assumed in the prefeasibility study) to an estimated 93.9 per cent. The improved recoveries, in combination with the increased mineral resource estimate, are planned to be incorporated into the feasibility study, which is expected to be completed in the first half of 2015.
• In July, 2014, the company launched a feasibility study on Back River. JDS Energy & Mining Inc. has been engaged as the lead feasibility study consultant responsible for mine engineering, logistics, infrastructure and project economics; Hatch Ltd. has been engaged for metallurgy, process and infrastructure design; and SRK Consulting has been engaged for waste and water management, geotechnical, and tailings design.
• During the year, the company completed 12,171 metres of drilling, including 7,523 metres of exploration drilling focused on the Goose property, as well as 3,869 metres of geomechanical drilling targeting additional data necessary for the feasibility study.
• In October, the company provided an update on progress of the feasibility study, discussing the potential opportunities to the project from improved metallurgical recoveries; increased measured and indicated resources; potential improvements to underground mining costs and efficiencies; an enhanced tailings management strategy that could reduce the environmental footprint of the project; and potential for improved mine scheduling, which could increase gold production by up to 20 per cent during open-pit operations. Detailed engineering on these concepts is continuing and project economics are not yet available.
• In the first quarter of 2014, the company submitted a draft environmental impact statement and associated water licence applications for the Back River gold project to the Nunavut Impact Review Board (NIRB) and the Nunavut Water Board (NWB), respectively. This information and other information were reviewed in a formal technical and prehearing conference in Cambridge Bay, Nunavut during November, 2014, the first stage of the public hearing process. All comments and information requests were anticipated, and the company, the intervenors and the communities participated in a very collaborative manner. The company is now working on its final environmental impact statement, which is expected to be filed in the fall of 2014.
• On April 28, 2014, the company and the Kitikmeot Inuit Association (KIA) jointly announced that they have finalized the agreements for development trust and capacity financing. These two important agreements will continue to foster and build a relationship of co-operation between the two organizations as the parties work together toward the responsible development of the Back River gold project.
• On June 24, 2014, the company completed the sale of its 100-per-cent-owned Newman-Madsen property to Pure Gold Mining Inc. (formerly Laurentian Goldfields Ltd.). As consideration, Sabina received 6.5 million shares of Pure Gold, representing approximately 6.3 per cent of its total issued and outstanding shares. The shares received had a fair value of 42 cents per share for total consideration of $2.7-million on the closing date.
• Subsequent to year-end, the company reported a change to its management team. In late 2014, Rob Pease advised the board of his desire to retire from his role as president and chief executive officer. In February, 2015, the company appointed Bruce McLeod as president and chief executive officer, effective Feb. 16, 2015.

Financial results

In the fourth quarter of 2014, the company reported a net loss of $2.3-million, compared with a net loss of $200,000 in the same period of 2013. The difference of $2.1-million quarter over quarter was the result of writedowns recognized in the fourth quarter of 2014 and lower net finance income. In the fourth quarter of 2014, the company wrote down the carrying values for its Nipigon mineral property ($1.5-million) and its equity investment in Mega Precious Metals ($200,000).

For the year ended Dec. 31, 2014, the company reported a net loss of $5.2-million, including a total of $2.6-million in losses as a result of impairment of investment and loss on disposition of mineral properties. As noted, the loss includes writedowns on a non-core mineral property ($1.5-million) and its equity investment. In addition, the loss includes a loss on disposition of mineral properties ($900,000) on the sale of the Newman-Madsen property to Pure Gold (as discussed above). Excluding these items, the loss in the year was $2.6-million, compared with a net loss of $9.5-million in the same period in 2013. The difference of $6.9-million was the result of lower operating expenses ($2.8-million) and deferred income tax recovery ($6.4-million), partially offset by lower net finance income ($2.2-million).

The company is still finalizing its work plans and budget for 2015, which it expects to announce in the coming weeks.

For the full Dec. 31, 2014, year-end financial statements and management discussion and analysis, please see the company's website.

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