Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES 2019 BUDGET TO FOCUS ON DE-RISKING ACTIVITIES AND EXPLORATION ON THE BACK RIVER GOLD PROJECT IN NUNAVUT

Sabina Gold & Silver Corp. has released its budget plans and activities for 2019.

Sabina is advancing its high-grade, permitted project toward a production decision with measured initiatives within the company's financial resources. The 2019 budget enables the company to continue its two-pronged approach: completing project development activities that continue to reduce execution risk as well as continuing high-value exploration. The 2019 budget totals approximately $41-million in expenditures, including certain discretionary expenditures of $6-8-million for earthworks programs at Goose. The discretionary spending will be assessed during the year and, depending on prevailing market sentiment, could be deferred, resulting in a larger cash balance at the end of 2019.

The 2019 budget delivers:

1. Additional derisking of mine construction by completion of:
   1. Construction of a winter ice road and haulage of materials to the Goose site from the port facility at Bathurst Inlet;
   2. Detailed selection of process plant equipment and the major vendors/suppliers;
   3. Development of an engineering, procurement and construction (EPC) contract for the process plant, including fixed pricing and performance guarantee. The EPC contract provides greater certainty of costs and schedule than the method of delivery proposed in the feasibility study;
   4. Goose site construction, including earthworks to prepare the process plant site, pads and access roads;
   5. Detailed engineering to support initial mine development, bulk earthworks, process plant and tailings storage facility construction, and completion of issued-for-construction drawings;
   6. Procurement of the process plant's major equipment certified drawings and approximately one million litres of fuel for 2019, as well as some initial 2020 activities;
   7. A sea lift of construction equipment to be delivered to the port facility in the summer of 2019;
2. An exploration program of approximately 8,000 metres commencing in the spring, which will be focused on Nuvuyak, Hook and other targets primarily at Goose;
3. Advancement of remaining minor licences and authorizations.

"Two thousand nineteen will be another significant year for the company as our work programs continue to advance Back River towards a production decision and focus on high-value exploration targets at the Goose property," commented Bruce McLeod, president and chief executive officer. "Through our project development activities, we continue to demonstrate the constructability and improve the logistics and infrastructure of the project, while delivering better confidence in capital costs through the delivery of an EPC contract. Additionally, we will continue to focus on drill targets at the Goose property that present opportunities for extended mine life and/or improved project economics. This work continues to unlock a much larger picture in terms of resource and district potential and the potential of Back River to be a multigenerational mining district.

"With regard to project financing, the company has advanced negotiations for a debt package for the project and believes that the debt component could be completed on favourable terms. Equity is not currently available on acceptable terms, as it would result in unacceptable dilution of the value of the project to our shareholders. Without equity funding in place, the company will continue to move forward within our existing financial resources and first gold production will be delayed to Q4 2022. Ultimately, we believe that the derisking and other activities planned for 2019 will reduce execution risk, which will result in a better financing package for the project."

Exploration drilling

During 2019, Sabina will continue to conduct multistage exploration and target initiatives at Back River that will consist of drilling of approximately 8,000 metres, geologic mapping and rock sampling across a number of target areas, till and soil sampling, and geophysics surveys.

The drilling strategy will continue to focus at the Goose project in the key areas of resource growth and optimization in high-grade zones, as well as advancement of new target concepts. The top priorities for drilling will be: (i) to continue to grow the Nuvuyak discovery; (ii) definition of a prospective zone of shallower-level, high-grade Hook zone mineralization; and (iii) further targeting in the high-grade portions of the Llama extension and northern Vault area. With additional confirmatory drilling, the three high-grade discoveries made since the 2015 feasibility represent opportunities to extend the mine life and/or improve the already robust economics of the Back River project.

Goose camp is expected to open in mid-March, 2019, with drilling beginning in April. If warranted, additional drilling would be planned in the summer months to follow up on results from the spring program.

About Sabina Gold & Silver Corp.

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

Sabina 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.

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