Mr. Bruce McLeod reports

SABINA GOLD & SILVER COMMENCES FEASIBILITY STUDY ASSESSING LOWER CAPEX INITIAL PROJECT OPTION AT BACK RIVER

Sabina Gold & Silver Corp. has begun work on the feasibility study for the initial project (previously called the low-capex case) on its 100-per-cent-owned Back River gold project, located in Nunavut, Canada.

Earlier this year, the company released a feasibility study on Back River that contemplated a 6,000-tonne-per-day operation, producing approximately 350,000 ounces of gold for approximately 10 years (large project; see news release dated May 20, 2015). The large project feasibility study indicated a very positive project generating an after-tax internal rate of return of 21.7 per cent and net present value of $540-million. The study was completed using $1,200 (U.S.) per ounce of gold and 87 cents.

"We are very pleased with the results of the recent feasibility study, and believe it indicates the potential for Back River to become a significant gold producer," said Bruce McLeod, president and chief executive officer. "However, raising the initial $695-million to build the large project would be challenging for a company the size of Sabina in the current market environment. Recognizing this, as part of the work completed for the large project feasibility study, a scenario that starts smaller targeting a lower initial capex at Back River was explored. We are happy to commence a full feasibility study on this initial project scenario, which we anticipate will be completed early this fall."

A unique feature of the Back River project is the combination of high-grade, open-pit and underground resources. These resources offer the optionality to selectively mine and process higher-grade zones through the utilization of a higher cut-off grade, while preserving considerable upside in the existing deposits for future development.

The initial project feasibility study will evaluate the potential of a project at 3,000 tonnes per day generating approximately 250,000 ounces of gold per year over approximately 10 years, targeting a lower initial capital requirement.

To complete the initial project feasibility study, Sabina has retained the same group of Arctic experts that completed the large project study. The feasibility study will be led by JDS Energy & Mining Inc., and contributed to by Hatch Ltd., SRK Consulting (Canada) Inc., AMC Mining Consultants (Canada) Ltd. and Knight Piesold Ltd.

The initial project feasibility study is scheduled for completion and release in late third quarter 2015.

The qualified person under National Instrument 43-101 for Sabina Gold & Silver is Wes Carson, PEng, vice-president, project development, who has reviewed the content of this news release and approved its dissemination.

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