Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES 2017 BUDGET AND ACTIVITIES

Sabina Gold & Silver Corp. has set a base budget of approximately $8.5-million for 2017. The budget will be financed from treasury of approximately $40-million as at Dec. 31, 2016.

The 2017 base budget delivers:

• Completion of the environmental assessment process;
• Advancement of IIBA (Inuit impact and benefit agreements) negotiations with the Kitikmeot Inuit Association;
• Completion of basic engineering and a project execution plan;
• Completion of a mapping, rock and till sampling, and geophysical exploration field program.

"The 2017 base budget focuses on maintaining optionality to advance the Back River project towards production while preserving as much of our current treasury as possible while we continue through the environmental assessment process," said Bruce McLeod, president and chief executive officer. "In addition, we have developed discretionary activities that are based on certain milestones achieved during the process. These expenditures will be assessed, confirmed or revised at certain decision dates. All activities and expenditures focus on targeting first gold production at Back River in Q1 2021."

In 2017 discretionary activities could include completion of the water licence review process to final hearings, commencement of detailed engineering and commencement of project financing. Depending on the timing and success of advancing the permitting process, total expenditures could range up to a total of approximately $25-million for the year.

Exploration

Base-budget exploration work in 2017 focuses on continuing to define future high-value exploration targets, and includes a modest mapping and till sampling program to be completed at the Goose, George and Boulder properties. At Goose, a number of gold anomalies along the iron formation trend northwest of Umwelt merit follow-up with infill sampling to determine their potential for future drilling. At Boulder, approximately 16 kilometres northwest of Llama, detailed mapping and additional prospecting will be undertaken to constrain geometry and mineralization controls to further refine targets to drill-ready status. At George, follow-up detailed mapping would define the extent and significance of a previously identified area adjacent to the existing LCP North deposit.

Additionally, several high-impact exploration targets have been prioritized for drilling. These targets are focused around the existing Goose deposits, all of which are open, with a view to impacting additional mine life from existing areas. One such high-impact target is the Umwelt Vault target, where exceptionally high-grade intercepts peripheral to indicated resources within planned underground infrastructure merit follow-up. Other priority target areas include testing for extensions to the Llama and Echo deposits, and new discovery areas in and around the Convergence trend, and the Kogoyok-Echo trend. Drilling could potentially be undertaken later in the year for an additional budget of up to $5-million.

About Sabina Gold & Silver Corp.

Sabina recently released a feasibility study on its 100-per-cent-owned Back River gold project, which presents a project that has been designed on a fit-for-purpose basis, with the potential to produce approximately 200,000 ounces a year for approximately 11 years with a rapid payback of 2.9 years. At a $1,150 (U.S.) gold price and a 0.8 exchange rate, the study delivers a potential after-tax internal rate of return of approximately 24.2 per cent with an initial capex of $415-million.

In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River project. The silver royalty on Hackett River's silver production comprises 22.5 per cent of the first 190 million ounces produced and 12.5 per cent of all silver produced thereafter.

We seek Safe Harbor.