Sabina Gold & Silver Announces Financial Results for the Quarter Ended June 30, 2017

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 10, 2017) - Sabina Gold & Silver Corp. ("Sabina") or (the "Company") (TSX:SBB) reports the financial results for the quarter ended June 30, 2017.

"Much was accomplished during the second quarter as we continued to advance the Back River Project through basic engineering, optimization studies and our environmental assessment efforts. We are pleased that our final public hearings in Cambridge Bay in late May resulted in a positive recommendation for the Project from the Nunavut Impact Review Board on July 18^th. This is a milestone de-risking event for the Company and the Project. We are now awaiting a decision from the Minister of Indigenous and Northern Affairs Canada," said Bruce McLeod, President & CEO. "In addition, the exploration success we had at the Goose Project this spring has provided opportunities to extend the mine life of the project. In particular, grades at the Vault Zone are more than double the average grade of the Back River resource and could offer opportunities to positively impact Project economics. We have commenced our summer drilling campaign with a focus on the Vault Zone and look forward to the results."

Q2, 2017 Highlights:

• The Company had cash and cash equivalents and short-term investments of $36.6 million at June 30, 2017.
• Subsequent to the quarter, on July 18, 2017, the Nunavut Impact Review Board recommended to the Minister of Indigenous and Northern Affairs Canada that development of the Company's Back River gold project should proceed to the licensing phase.
• During the quarter, the Company completed its first phase exploration drilling program at the Goose property. Positive results from this program included the expansion of mineralization on both the Umwelt and Llama deposits. Drill hole 17GSE511B at the Umwelt "Vault" zone returned 16.86 g/t Au over 13.5 m from 734.00 m to 747.5 m, including 27.11 g/t Au over 7.95 m from 736.75 to 744.70 m. Drill hole 17GSE513 at Llama returned 6.52 g/t Au over 8.3m.
• Subsequent to the quarter, following the positive results from the first phase of the exploration program, the Company announced an expanded summer drilling program with a focus on the Unwelt Vault Zone.
• On June 29, 2017, the Company engaged Cutfield Freeman & Co as its financial advisor for project financing of the construction of the Back River Project.
• Subsequent to the quarter, on July 28, 2017, the Company announced a non-brokered private placement flow-through financing of 2,105,265 flow-through common shares at a price of $2.85 per share for total gross proceeds of approximately $6.0 million. The financing is scheduled to close in two tranches, one on August 15, 2017 and the second on or about September 10, 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 December 31, 2018.
• For the quarter ended Jun 30, 2017, the Company reported net loss of $0.6 million or $0.00 per share.

Financial Results

For the three months ended June 30, 2017, the Company reported a net loss of $0.6 million or $0.00 per share, in comparison to a net income of $0.2 million or $0.00 per share in the corresponding period of 2016. The difference quarter over quarter was primarily the result of lower sales of Pure Gold Mining Inc. ("Pure Gold") shares in 2017 compared to 2016.

For the six months ended June 30, 2017, the Company reported a net loss of $2.0 million, unfavourable by $1.6 million compared to the same period of 2016. The increase in loss period over period was mainly due to a timing difference in the granting of stock options and a higher net gain realized on the sale of Pure Gold shares in the six-month period ended June 30, 2016.

For the full June 30, 2017 interim financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com or on SEDAR.

SABINA GOLD & SILVER CORP.

Sabina Gold & Silver Corp. 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.

In September, 2015, Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% 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 is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.

All news releases and further information can be found on the Company's website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com. All technical reports have been filed on www.sedar.com.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws (the "forward-looking statements"), including our belief as to the extent, results and timing of exploration programs and various studies including the FS, and exploration results, reserves estimates, potential production from and viability of the Company's properties, production and operating costs and permitting submission, timing and receipt of necessary permits and project approvals for future operations and access to project funding. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licences and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2016 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws. This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Bruce McLeod, President & CEO
375-555 Burrard Street, Two Bentall Centre
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com