Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES Q3, 2016 FINANCIAL RESULTS

Sabina Gold & Silver Corp. has released its financial results for the third quarter of 2016.

"Since receiving the recommendation from the Nunavut Impact Review Board (NIRB) in mid-June, we have been working diligently to prepare for the next step of the environmental assessment process," said Bruce McLeod, Sabina's president and chief executive officer. "We have continued to work with the communities, the Kitikmeot Inuit Association, the governments of Nunavut and Northwest Territories, as well as the various regulatory agencies to finalize and strengthen commitments that we believe will address issues outlined in the NIRB recommendation report. We are well positioned to proceed on any of the three possible decisions from the Minister of Indigenous and Northern Affairs Canada, which we expect before the end of the year."

Q3 highlights:

• The company had cash and cash equivalents and short-term investments of $41.5-million at Sept. 30, 2016.
• On July 20, 2016, the company submitted a response to the NIRB report to the Minister of Indigenous and Northern Affairs detailing what the company believes are strong grounds for the minister to reject the NIRB recommendation or send it back to NIRB for further review. The company believes that the NIRB report does not fully consider the support of the project by the local communities and Inuit representatives in the region, or the evidence presented on the project.
• In July, 2016, the company completed a series of meetings in communities in the Kitikmeot region of Nunavut. Following these meeting, the company continued to receive broad positive support for the project from community members, hamlet councils, advisory committees and Inuit organizations. This support has been evidenced by numerous letters to the minister in favour of the advancement of the project and urging the minister to reject the NIRB recommendation. The letters of support are publicly available on the NIRB website.
• In July, 2016, the government of Canada requested feedback on the NIRB report from certain indigenous groups and territorial governments. On Aug. 30, 2016, the company reported that the Kitikmeot Inuit Association (KIA) and the government of Nunavut (GN) had asked the minister to send the Back River project back to the NIRB for further consideration. The KIA is the designated Inuit organization responsible for the lands and the people of the Kitikmeot region. In its letter to the minister, the KIA acknowledged that Sabina had proposed plans to conduct careful and comprehensive caribou monitoring and mitigation programs. And while the KIA is satisfied with these plans, the KIA noted that the final details of these plans were the subject of a joint submission by Sabina, the KIA and the government of Nunavut on the final day of the hearing. That meant the NIRB did not have the benefit of a full airing of these revised plans. Thus, the KIA further recommended that the minister instruct the NIRB to focus any further investigations on matters related to the project's impacts on caribou and the best approaches to mitigation of such impacts.
• During the quarter, the company completed an exploration program, which comprised geological mapping, rock and till sampling, prospecting, and review of select historical drill core. The fieldwork was complete at numerous areas at the Goose, George and Boulder properties. Results of the program have been received and are being used to update exploration models and advance priority targets and concept areas for future exploration.
• A long-term strategic review on the company's Wishbone property in Nunavut resulted in a writedown of $5.2-million for certain non-core mineral claims on the property. While the retained Wishbone claims remain as long-term exploration opportunities, the company's immediate focus is on the Back River deposits and exploration opportunities proximal to existing resources.
• For the three months ended Sept. 30, 2016, the company reported a net loss of $3.7-million or two cents per share.

Financial results

For the three-month period ended Sept. 30, 2016, the company reported a net loss of $3.7-million, unfavourable by $2.8-million compared with the same period of 2015. The difference quarter over quarter was largely the result of a $5.2-million writedown of the Wishbone properties, partially offset by a $1.4-million deferred income tax recovery. In Q3 2016, the company completed an assessment of long-term strategic exploration opportunities on its Wishbone property, which resulted in a writedown for certain non-core mineral claims which the company determined had lower exploration potential. In Q3 2016, the company realized a gain of $500,000 on the sale of a portion of its equity investment in in Pure Gold Mining Inc. In Q3 2015, the company recorded an impairment loss of $200,000 on its equity investment in Pure Gold.

For the nine-month period ended Sept. 30, 2016, the company recorded a net loss of $4.1-million, favourable by $800,000 compared with the same period of 2015.

For the nine-month period in 2016, operating expenses, excluding writedowns, were $2.3-million, compared with $3.6-million in the same period in 2015.

The company expects to end the year with approximately $38-million in cash.

For the full Sept. 30, 2016, interim financial statements and management's discussion and analysis, please see the company website or retrieve them from SEDAR.