Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT FLOW-THROUGH FINANCING TO RAISE ~$5.5 MILLION

Sabina Gold & Silver Corp. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity, and including Paradigm Capital Inc., Cormark Securities Inc., Haywood Securities Inc. and Echelon Wealth Partners Inc., under which the underwriters have agreed to place, on a bought deal basis, 3.15 million flow-through common shares at a price of $1.75 to raise gross proceeds of approximately $5,512,500. In addition, the company will grant the underwriters an overallotment option, at the offering price, to purchase up to an additional 290,000 flow-through common shares exercisable at least 48 hours prior to the closing date. The gross proceeds from the sale of the flow-through common shares will be used to explore and advance the company's Back River gold project.

"While the company has a well-provisioned treasury that enables us to advance the project through permitting and engineering studies, this modest flow-through financing enables us to drill test some high-value targets with the potential to demonstrate additional mine life at the proposed Goose project footprint as outlined our news release dated Feb. 7, 2017," said Bruce McLeod, president and chief executive officer of Sabina Gold & Silver. "While Back River has reached the critical mass of ounces to push the project towards production, we believe that there remains considerable upside both in new discovery and resource extension that could ultimately enhance project economics."

This financing is scheduled to close on or about Feb. 28, 2017, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The total gross proceeds from the financing must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by Dec. 31, 2018.

A 5-per-cent commission will be paid to the underwriters in relation to the financing.

2017 exploration targets

Key objectives for the 2017 program are focused on drill testing for new discoveries and demonstrating high-value potential mine life additions at the Goose property through extensional and step-out drilling at what could be high-impact targets at Umwelt, Llama, Echo, GNS and Kogoyok. This drilling, totalling approximately 6,000 metres, is planned to be completed in two separate five-week campaigns during late spring and summer of this year.

All of the targets have been assessed for their optionality to enhance project economics by adding or demonstrating additional mine life in the footprint of the proposed Goose project.

Umwelt/Vault

The Umwelt deposit hosts the only planned underground mine at the Goose project. Deposit continuity at Umwelt has been established to over 850 metres of vertical depth. The Vault target sits partially along, but outside of, the eastern margin of the planned Umwelt development area at approximately 600-metre depth and is marked along its eastern edge by exceptional high-grade intercepts from drilling completed in 2011 and 2012.

The Vault target has been targeted as an opportunity to extend the Umwelt deposit underground. Success in this program has the potential to extend the limits of the mineralized zone in the target area and demonstrate opportunities for extended mine life at the deposit. Further drilling on the Vault would be driven by success.

Llama extension

Both the Llama and the Umwelt deposits are hosted in consistently south-plunging iron formation stratigraphy. The continuity of the Llama underground resource (which is not included in the current development plan) has been established to approximately 450 metres of vertical depth but remains open with significant upside extension potential. The Llama extension target drilling will consist of a significant down plunge step-out test of the projected Llama stratigraphy at approximately 700-metre vertical depth.

Echo

The Echo deposit located approximately 2.5 kilometres west of the Goose deposit remains a significant resource growth option as well as an additional discovery opportunity for the Goose property. The area immediately surrounding the deposit resources (which is not included in the current development plan) has both extensional and brownfield target opportunities with increasingly favourable projections of thickened iron formation stratigraphy proximal to interpreted fold closures. Successful drill testing in multiple areas down plunge and potentially inboard of the current deposit could support rapid resource growth and value within the Echo resource.

GNS (formerly Goose Neck South)

The GNS target has been interpreted as a potential Echo analogue -- moderate size and relatively shallow gold mineralization with favourable mining geometry. Drilling has been planned at the GNS target to assess the extent of the highest-grade portion of the zone, down plunge from the best 2011 intercepts. Success in this program could allow consideration of resource development at GNS.

Kogoyok East

Kogoyok East is part of a largely undrilled iron formation trend that extends for two kilometres westward from the Echo deposit. Results from fieldwork and drilling completed in 2015 and 2016 demonstrate the favourable exploration potential with the presence of folded iron formation stratigraphy, felsic dikes and gold endowment. Initial drilling will target shallow, projected zones of anomalous gold mineralization at significant stepouts along this trend.

Qualified person

The company's qualified person (as defined by National Instrument 43-101) in respect of the Back River project is James Maxwell, PGeo, exploration manager, Back River, for the company, and he has approved the scientific and technical disclosure in this news release.

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is a well-financed, emerging precious metals company with district-scale, world-class undeveloped assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.

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.

In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River project.

The company had approximately $40-million in cash and equivalents at Dec. 31, 2016.

We seek Safe Harbor.