Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED 2016

Sabina Gold & Silver Corp. has released the financial results for the quarter and year ended Dec. 31, 2016.

"Much was accomplished in 2016," said Bruce McLeod, the company's president and chief executive officer. "Although we received a setback from the Nunavut Impact Review Board (NIRB), we understand and support the NIRB's desire for a high level of confidence in our proposals for the Back River project. We are happy to be back in the process and believe that our recently submitted final environmental impact statement (FEIS) addendum presents additional mitigation, information and plans that will address NIRB's concerns. In 2016, we also continued optimization and trade-off studies, which we believe could positively impact the project economics. On the exploration front, a new discovery at Convergence and the successes at our Hivogani and Kogoyok targets continued to demonstrate the opportunities for new discoveries and extended mine life at Back River. Other geological programs completed during the year enabled us to plan a high-impact drilling campaign for 2017 with our recently raised flow-through financing. [Two thousand seventeen] has started out positively and we look forward to continued support for the Back River project from all stakeholders as we work through the process."

2016 highlights

• The company had cash, cash equivalents and short-term investments of $39.9-million at Dec. 31, 2016.
• On June 15, 2016, the NIRB recommended to the minister that the Back River project not proceed to the next phase of permitting at this time. On July 20, 2016, the company submitted a detailed response to the NIRB report to the Minister of Indigenous and Northern Affairs Canada (INAC) requesting that the minister reject the NIRB recommendation or send the project back to NIRB for further review.
• In July, 2016, the company completed a series of meetings in communities in the Kitikmeot region of Nunavut. Following these meetings, the company continued to receive broad positive support for the project from community members, hamlet councils, advisory committees and Inuit organizations (including the Kitikmeot Inuit Association (KIA)).
• Subsequent to year-end, on Jan. 12, 2017, the INAC Minister, with the agreement of other responsible ministers, decided that the project should be returned to the NIRB for further consideration. On Jan. 24, 2017, the NIRB provided guidance to all parties on the scope and process of further review of the project. On Feb. 16, 2017, the company submitted its required FEIS addendum, and the NIRB provided confirmation of concordance with the guidelines and a schedule for the process on Feb. 23, 2017. The FEIS addendum is currently in the technical review process, and the NIRB has advised that it expects to issue its recommendation in July, 2017.
• During the year, the company completed approximately 2,700 metres of drilling on three targets at the Goose property: Kogoyok, Hivogani and Convergence. A new discovery was made at the Convergence target where assays of 3.84 grams per tonne gold over 3.70 metres were returned. Encouraging results also continued at the Kogoyok target, where gold mineralization was intersected in drilling with visible gold identified in multiple rock units over a broad area. Drilling at the Hivogani target continued to expand the host area and further characterized the new mineralization styles.
• On May 25, 2016, the company announced preliminary metallurgical optimization test results on its Back River gold project from a program to assess potential metallurgical improvements, including a coarser grind, long leach resonance time and flotation, followed by fine grinding of concentrates. The results from the first round of test work have been positive with recoveries for three of four composite samples from the main deposits showing a potential to increase gold recoveries. Initial desktop studies have indicated that changing to a flotation circuit could have positive impacts on both capital and operating expenditures. Further flotation test work on this opportunity is continuing.
• On May 20, 2016, the company completed a bought deal financing of 19,790,750 common shares at $1.63 per common share for total gross proceeds of approximately $32.3-million. The underwriters received a cash commission of 5.0 per cent of the gross proceeds of the financing.
• On March 31, 2016, Sabina announced the appointment of Anna Stylianides to the company's board of directors. Ms. Stylianides has 25 years of experience in the global capital markets and currently also serves as a director of Entree Gold Inc., Altius Minerals Corp. and Eco Oro Minerals.
• A long-term strategic review on the company's Wishbone property in Nunavut, resulted in a total writedown of $7.1-million for certain non-core mineral claims on the property ($5.2-million in the third quarter of 2016 and $1.9-million in the fourth quarter of 2016). While the core mineral claims on the Wishbone property remain long-term exploration opportunities, the company's immediate focus is on the Back River deposits and exploration opportunities proximal to existing resources.
• Subsequent to the year-end, on Feb. 28, 2017, the company completed a bought deal private placement flow-through financing of 3.47 million flow-through common shares at a price of $1.75 per share for total gross proceeds of approximately $6.1-million. 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. The underwriters received a cash commission of 5.0 per cent of the gross proceeds of the financing.
• For the year ended Dec. 31, 2016, the company reported a net loss of $6.1-million, or three cents per share.

Financial results

For the three-month period ended Dec. 31, 2016, the company reported a net loss of $2.0-million, favourable by $2.7-million compared with the same period of 2015. The difference quarter-over-quarter was largely the result lower stock-based payments and writedowns of mineral properties. In the fourth quarter of 2016, the company recorded a writedown of $1.9-million on its Wishbone mineral properties. In the fourth quarter of 2015, the company recorded a writedown of $4.0-million on certain non-core Wishbone mineral claims.

For the year ended Dec. 31, 2016, the company reported a net loss of $6.1-million, favourable by $3.5-million compared with the same period of 2015. The difference was largely the result of realized gains of $1.3-million on the sale of a portion of its investments in 2016 compared with an impairment loss of $2.0-million on its investments recorded in 2015.

For the full Dec. 31, 2016, year-end financial statements and management's discussion and analysis, please see the company's website or SEDAR.

About Sabina Gold & Silver Corp.

In addition to its 100-per-cent-owned Back River gold project, Sabina also owns a significant silver royalty on Glencore's Hackett River project.

The company had approximately $39.9-million at Dec. 31, 2016, and has budgeted $8.5-million as its base budget for 2017. Depending on the timing and success of its permitting process, total expenditures could range up to approximately $31-million in 2017.

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