Mr. Bruce McLeod reports

SABINA GOLD & SILVER REPORTS MARINE LAYDOWN AREA (MLA) EARTHWORKS COMPLETED IN LINE WITH 2015 FEASIBILITY COSTS AND AHEAD OF SCHEDULE AND FIRST SEALIFT AT BACK RIVER RECEIVED

Predevelopment civil works at the Back River marine laydown area (MLA) have been completed and the first sealift supply was successfully received at Sabina Gold & Silver Corp.'s 100-per-cent-owned Back River gold project in Nunavut, Canada.

Marine laydown area (MLA)

The MLA is a critical infrastructure component to facilitate transportation of equipment and supplies to the Back River project by sealift and winter ice road. This mode of transportation provides more efficiency in supporting the company's exploration and future development activities than the current method of air transport alone.

In March, 2018, equipment and supplies were transported over the company's planned winter ice road route by a cat train 150 kilometres from the Goose camp to the MLA. The cat train not only validated the route but also provided information for improved future alignment.

Upon arrival at the MLA, a temporary camp was established and a 5,000-foot ice airstrip on Bathurst Inlet was constructed to facilitate a heavy-lift air campaign consisting of over 100 freight flights to bring construction equipment, camp, supplies and fuel to the MLA. Immediately following the airlift, a quarry was established and civil works proceeded from April to August, 2018.

To date at the MLA, a permanent 45-person camp, quarry, temporary fuel storage depot, permanent laydown storage pads, barge landings, connecting roads and permanent fuel tank pads have been completed, effectively completing all major MLA civil works contemplated in the project feasibility study. In addition, the size of the laydown and storage pads was increased by approximately 30 per cent and a 3,000-foot gravel airstrip was constructed, which now provides for year-round airlift access to the MLA. The cost to complete this work was approximately $24-million, compared with approximately $22.6-million in the feasibility (excluding contingency). The additional costs include costs for improved facilities (airstrip, larger laydown and storage pads) and the purchase of certain construction equipment, which, in the 3,000-tonne-per-day feasibility study (3KFS), was planned to be rented from contractors during construction period. The works were completed in five months (including working in harsh winter conditions) to receive a sealift delivering additional construction equipment and supplies.

The first of three sealifts was successfully received and unloaded at the MLA this summer on Aug. 13 and 14.

"We have significantly derisked the Back River project with this predevelopment work at the MLA and demonstrating a successful first sealift," said Bruce McLeod, president and chief executive officer. "Under Sabina's management, we were able to improve upon the feasibility execution and development plan and build additional infrastructure, which will greatly improve logistics at Back River. Additionally, the cat train also enabled us to test and validate the winter ice road route and has provided us with opportunities to enhance the route when we move our received freight to the Goose camp to complete future works. The infrastructure constructed at the MLA was completed in line with the estimated initial capex [capital expenditure] in the 2015 feasibility study for the project, and we are pleased to have this work under our belts. In addition, we continue with our two-pronged approach at Back River by continuing exploration and making a new discovery at Goose and continuing to derisk the project with prudent capital allocation. We also expect our Type A water licence by the end of this year."

Sealift

A first sealift comprising three barges loaded with procurement items staged and assembled at Hay River was successfully received and unloaded at the MLA on Aug. 13 and Aug. 14, 2018. These barges contained multiple large-capacity fuel tanks, which, when erected, will provide 15 million litres of capacity at each of the MLA and the Goose sites, along with consumables and additional construction and ancillary equipment.

Two other sealifts will be completed this year: an additional sealift from Hay River during the third week of September with fuel, construction equipment and winter road equipment; and one ship from Becancour with other supplies.

Equipment and supplies will now be stored at the MLA site in preparation for overland transportation by ice road to the Goose site.

Permitting

On Aug. 9, 2018, the company completed its final hearings with the Nunavut Water Board (NWB) and related intervenors. The NWB is expected to make a recommendation to Crown-Indigenous Relations & Northern Affairs Canada within 45 days from the end of the hearings (approximately Sept. 25, 2018).

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is well financed with approximately $62.4-million in cash and equivalents and is an emerging precious metal company with district-scale, advanced, high-grade gold assets in one of the world's newest, politically stable mining jurisdictions -- Nunavut, Canada.

In addition to its Back River project, 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.