Sabina Gold & Silver announces financial results for the year ended 2017

Sabina Gold & Silver Corp. reports the financial results for the quarter and year ended December 31, 2017. “2017 was an exceptional year for Sabina,” said Bruce McLeod, the Company’s President& CEO. “The receipt of a positive NIRB recommendation and concurring Minister’s decision result in the receipt of our Project Certificate for Back River in December last year.This marks the end of the environmental assessment phase and five years of rigorous review.We have now submitted or are in the process of submitting our other license and work authorization applications to move the Project forward. Additionally, we had further success in 2017 with our drilling programs and have continued to demonstrate the potential for adding mine life and enhancing project economics at the Goose Property.We also announced a new significant shareholder in December as Zhaojin International Mining invested approximately $66.1 million into the Company.All of these events were major catalysts for the Company in 2017, and set us up to continue to advance the project in 2018.Camps are open, and we have commenced pre-construction infrastructure works and exploration programs at site.We look forward to reporting on our accomplishments as we move through 2018.” 

2017 Highlights: 

• The Company had cash and cash equivalents and short-term investments of $32.4 million at December 31, 2017;

• On December 5, 2017, the Minister of Indigenous and Northern Affairs Canada accepted the Nunavut Impact Review Board’s (“NIRB”) recommendation (received in July 2017) that the Back River Project (“Back River” or the “Project”) should proceed to the regulatory and licensing phases.The Company subsequently received the final Project Certificate from the NIRB on December 20, 2017 enabling the Company to move the Project forward to the licensing phase;

• On December 11, 2017, the Nunavut Water Boardcommenced public review of the Type A and Type B water license applications of the Company related to the initial mine development, mine construction and operation of the Project;

• On December 19, 2017, the Company announced an investment by Zhaojin International Mining Co., Ltd (“Zhaojin”) to purchase 24,930,000 common shares of the Company at a price of $2.65 per share for a total investment of $66.1million. The financing was completed on January 19, 2018, whereby the Company received net proceeds of $62.1 million after financing costs of $4.0 million;

• On October 18, 2017, the Company jointly announced with the Kitikmeot Inuit Associationcompletion of a binding term sheet for land tenure and Inuit benefits for the Back River Project.The term sheet sets out the principle terms that are to be included in a definitive framework agreement, which includes several agreements containing obligations as defined by the Nunavut Agreement on land claims, including an Inuit impact and benefits agreement.The framework agreement and other underlying agreements are expected to be completed in the first half of 2018;

• During the year, the Company also completed two flow-through equity financings for total gross proceeds of $12.2 million.The total gross proceeds from these financings must be used to incur Canadian exploration expenditures as defined by the Income Tax Aca (Canada) by December 31, 2018;

• During the year the Company completed a phased exploration program on the Back River Project.Initially planned as a 7,000-meter spring drill program, positive results from the program resulted in an expanded second program for a total of 12,603 meters in 22 holes in 2017.The results of this drilling successfully demonstrated the potential for growth of the existing deposits and the discovery of a new significant mineralization target, the deep iron formation or “DIF” horizon;

• For the year ended December 31, 2017, the Company reported a net loss of $3.8 million or $0.02 per share.