Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

December 16, 2009 18:20 ET

Sabina Completes $8.1 Million Flow-Through Financing

Exploration Programs for Hackett River and Back River Planned for 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sabina Gold & Silver Corp. (TSX:SBB) announced today the completion of the previously announced bought deal private placement. The private placement was comprised of 5,750,000 flow-through common shares at a price of $1.27 per share for gross proceeds of approximately $7.3 million. The syndicate of underwriters was led by Dundee Securities Corporation and included BMO Nesbitt Burns Inc., Paradigm Capital Inc., Haywood Securities Inc., Desjardins Securities, RBC Dominion Securities and National Bank Financial Inc. In consideration for their services, the underwriters received a cash commission of 6.0% on the gross proceeds of this transaction.

In addition to the brokered private placement, the Company has also arranged to sell, on a non-brokered basis and on the same terms as the brokered placement, 635,563 flow-through shares at $1.27 per share for gross proceeds of approximately $0.8 million.

"We're planning to significantly increase our Nunavut exploration programs in 2010 to follow up on this year's successes and new discoveries at the Hackett River/Wishbone and Back River projects," said Tony Walsh, President & CEO. "This financing will provide a significant portion of the funding for next year's programs. We expect to end this year with approximately $45 million in cash and will be well positioned to execute our current plans."

All the common shares issued pursuant to the private placements are subject to a four month hold period expiring April 17, 2010. The total gross proceeds of approximately $8.1 million must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2010.

Exploration Programs for 2010

The Company is currently working on exploration programs for the Hackett River, Back River and Wishbone properties to follow up on the previously announced positive results of the 2009 programs. All three projects will see increased levels of drilling and exploration activity over 2009. The Company expects to drill about 20,000 meters at Hackett River and Wishbone combined and 20,000 meters at Back River with total spending of approximately $23 million. Additionally, the Company is currently assessing a drill program for its Newman-Madsen property in Red Lake, Ontario. The planned programs are subject to approval of Sabina's board of directors and are expected to be finalized early in the upcoming year.

SABINA GOLD & SILVER CORP. is a Canadian public mineral exploration and development company. Key assets include the Hackett River silver project, the Back River gold project and the Wishbone grassroots exploration project all in Nunavut. Additionally, the Company has several projects in the Red Lake gold camp.

This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Elaine Bennett, Vice President & CFO

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