Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES Q1 FINANCIAL RESULTS AND CORPORATE UPDATE

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

"It has been a busy year to date for the company," said Bruce McLeod, president and chief executive officer. "We are anticipating the imminent release of the Back River feasibility study. We have completed a field program at Goose to support our final environmental impact statement; we have implemented significant cost-cutting measures within the company to minimize impacts on our existing treasury, and we are gearing up for our annual general meeting of shareholders to be held in early June. We are very much looking forward to announcing the results of a detailed feasibility study on Back River, as well as providing updates on other studies and permitting through the remainder of the year.

"We recognize that projects are not just about economics, they have to be financeable for companies like Sabina in these weak capital markets without being overly dilutive to the shareholders. One of the unique features of the Back River project is the multitude of high-grade, open-pit and underground deposits. This offers the opportunity to selectively mine and process higher-grade zones through utilization of a higher cut-off grade. With this in mind, in addition to work for the feasibility study, the company is evaluating opportunities for a smaller start-up, less capital-intensive mine at the Goose property, as contemplated in the feasibility study. The results of this evaluation will enable Sabina to consider two opportunities: a feasibility study on a 5,000-tonne-per-day-plus operation at Back River, and a potentially smaller-tonnage, lower-capital-expenditure scenario that may be more easily financeable by Sabina in this capital markets environment," said Mr. McLeod.

First quarter highlights:

• The company had cash and cash equivalents, and short-term investments of $27.9-million at March 31, 2015;
• In February, 2015, the company appointed Mr. McLeod as president and CEO, effective Feb. 16, 2015, following the retirement of Rob Pease;
• In January, 2015, the company received the prehearing conference decision document from Nunavut Impact Review Board (NIRB) regarding the technical review of the Back River draft environmental impact statement. The NIRB report summarizes the collaboration and discussion with all participants on subjects such as caribou, marine/shipping, socio-economic effects, tailing storage, among others, and the commitments made by the company to incorporate further data, reasonable mitigation measures and preferred processes into the project and its final environmental impact statement (FEIS). The company has started work on its FEIS, and expects it to be completed and submitted before fourth quarter 2015;
• In March, 2015, the company opened its camp at Back River in order to complete an approximately six-week field program at the Goose property. The program, completed at the end of April, primarily consisted of geotechnical drilling and environmental baseline work to support the FEIS;
• During the quarter, the company continued to advance the Back River feasibility study; work focused on:
  • 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 per cent in the prefeasibility study to an anticipated 93.9 per cent);
  • More efficient tailings and waste rock management facilities;
  • Increasing throughput by approximately 20 per cent from the 5,000 tonnes per day in the prefeasibility study;
  • 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.
• In March, 2015, the company initiated a scoping-level study on Back River to consider alternative mining and milling scenarios, which could significantly decrease construction capital requirements by increasing cut-off grade and decreasing annual production rate, while maintaining or improving return on investment;
• In the quarter, the company focused on a number of cost-saving initiatives, including staff reductions and a 50-per-cent reduction of director fees.

Financial results

For the quarter ended March 31, 2015, the company reported a net loss of $1.5-million, favourable by $100,000 compared with first quarter 2014. Operating expenses in first quarter 2015 were $2-million, lower than the comparable period in 2014 by $100,000 (discussed below). Deferred income tax recovery was $400,000 in first quarter 2015, favourable by $100,000 compared with first quarter 2014, largely due to higher net tax loss in the period. Offsetting interest income was $100,000, lower by $100,000 due to lower cash balances.

The decrease in operating expenses in first quarter 2015 resulted from the reduction of share-based payments due to a decrease in option value, reduced travel activity, reduced financial advisory and human resources-related services, reduced director fees, share listing and filing fees, and attendance at investor conferences.

Partially offsetting and included in salaries and severances in the period was severance of $500,000, incurred for termination benefits in first quarter 2015, compared with severance of $100,000 in first quarter 2014. Excluding severances, salaries were lower in first quarter 2015 than in the comparable period in 2014 by $87,000 due to staffing reductions.

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 first quarter 2015, total deferred exploration and evaluation expenditures were $5.1-million compared with $3.9-million in 2014. The increase of $1.2-million was primarily the result of significantly increased economic assessment at Back River in 2015 compared with 2014. In first quarter 2015, the company worked to complete the feasibility study on Back River; in the comparable period of 2014, the economic assessment activities were focused on various optimization studies in preparation for commencing the FEIS in third quarter 2014.

For the full March 31, 2014, year-end financial statements, and management's discussion and analysis, please see the company website or retrieve them from SEDAR.

Budget for 2015

Management and the board have been focused on developing a fit for purpose organization that enables the company to achieve its current initiatives and preserve its treasury as much as possible during these challenging markets. Already significant cost-cutting measures have been made, including staff reductions of approximately 30 per cent and the board of directors implementing a 50-per-cent reduction in director fees, while the board undergoes a composition and compensation evaluation.

The 2015 budget delivers:

1. Completion of feasibility and trade-off studies;
2. Completion of a technical review of the draft EIS and submission of an FEIS;
3. Modest field programs in winter and summer at Back River;
4. Continued community relations efforts;
5. Marketing, and general and administrative expenses.

The company anticipates spending approximately $17-million in 2015 and expects to end the year with $16-million.

The company's annual general meeting of shareholders will be held at 10 a.m. Pacific Time on June 11, 2015, at the company's offices at 930 West First St., unit 202, North Vancouver, B.C.

We seek Safe Harbor.