Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

June 21, 2010 08:30 ET

Sabina Gold & Silver Announce Another Exciting New Discovery at Umwelt Lake at Back River Project, Nunavut

Umwelt Target Sits Approximately 1.3 km South of New Llama Lake Discovery

Significant Results From Hole 10GSE69 Returns 11.32 g/t Gold Over 10.9 Metres Including 17.30 g/t Gold Over 6.5 Meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 21, 2010) - Sabina Gold & Silver Corp (TSX:SBB) is pleased to announce another significant new gold discovery, Umwelt Lake, south of the recently announced Llama Lake discovery at the Goose property on its 100% owned Back River project in Nunavut, Canada.

The Umwelt Lake target is situated approximately 1.3 kilometres to the south of the recently discovered Llama Lake Zone at Goose Lake and was selected based on its similar geophysical signature to both the Llama and Goose deposits. To date a total of four holes have been completed or are in progress on this target.

Hole 10GSE69 was collared 60 meters above hole 10GSE66 on the same section and intersected two mineralized zones which assayed 11.32 g/t gold over 10.9 metres including 17.30 g/t gold over 6.5 metres in the upper zone and 9.15 g/t gold over 5.3 metres in the lower zone.

The discovery hole, 10GSE66 intersected two mineralized intervals, with assays received for the lower interval grading 5.6 gm/t Au over 14.0 metres including 20.42 g/t Au over 3.0 metres. Assays from the upper zone are pending.

 Hole    Notes              From (m)      To (m)      Width (m)        Grade (g/t)
 10GSE66    Upper Zone                      Assays            Pending    
     Lower Zone 275.0 289.0 14.0 5.60
     including 276.0 279.0 3.0 20.42
 10GSE69    Upper Zone 76.0 86.9 10.9 11.32
     Lower Zone 227.3 232.6 5.3 9.15

Two stepout holes have been drilled. Hole 10GSE71 was collared 100 metres to the north and hole 10GSE73 (in progress) was collared 100 metres to the south. Both holes have encountered mineralized intervals consisting of quartz veining and sulphides within altered oxide facies iron formation and are similar in appearance to holes 66 and 69, with hole 71 to the north slightly less mineralized. Assay results are pending for holes 71 and 73.

To date the continuity of mineralization in the Umwelt area has been established over a 200 metre strike length and has been encountered to a depth of 200 metres. The zone remains open

both along strike and to depth. These holes effectively confirm the presence of a mineralized trend approximately 1.3 km along strike south of Llama Lake (which has a strike length of 425 metres and remains open). It is unclear at this time, however, if the Umwelt Lake trend is in the same stratigraphy as is seen at Llama Lake.

"This is the third new discovery at Goose Lake in five months of field work including two in the last eight weeks," said Tony Walsh, President & CEO. "It is a credit to the expertise of our exploration team as they have developed a successful exploration toolbox to identify targets on the property and demonstrate the quality of our Back River asset. With increased funding for work on Back River this year we hope to continue to push this project forward."

SABINA GOLD & SILVER CORP.

Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.

The properties consist of the Hackett River silver-zinc Project, the Back River Gold Project, both advanced exploration properties, as well as the Wishbone Claims, a vastly prospective grass roots project.

The combined holdings total approximately 3,000 square kilometres and cover the largely unexplored Wishbone Greenstone belt.

Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ("VMS") deposits in the world with indicated resources totalling 43.6 million tonnes with diluted (recovery) grades of 4.15% zinc, 129 g/t silver, 0.35% copper, 0.58% lead and 0.27 g/t gold. An additional inferred open resource totalling 16.0 million tonnes with diluted (recovery) grades of 3.53% zinc, 111 g/t silver, 0.24% copper, 0.46% lead and 0.25 g/t gold is also contained at Hackett River.

The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 3.4 million tonnes grading 10.9 g/t Au for 1.19 million ounces and inferred resources of 3.6 million tonnes grading 10.2 g/t Au for 1.16 million ounces of gold.

Quality Assurance

Mr. Doug Cater, P. Geo, and Project Manager, Back River Project of Sabina Gold & Silver Corp is a Qualified Person under the terms of NI43-101 and has reviewed the technical content of this press release and approved its dissemination.

Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are posted on www.sedar.com.

The mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc. CIM Definition Standards (2005) have been used in defining the mineral resource categories.

Project Management of the PEA study was conducted by Eric Harkonen, P.Eng. and Principal Project Manager/Mine Engineer of PEG Mining Consultants Inc. Both individuals are qualified persons as defined by NI43-101. The report can be found at www.sedar.com.

Diamond drill core was sent to TSL Laboratories in Saskatoon, Sask. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy. The protocols and procedures used in 2010 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted 43-101 compliant resource reports.

Forward Looking Statements

Statements relating to exploration, pre-feasibility work and future operations at the Back River Project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2009.

Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.

This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.

Tony Walsh, President & CEO

To view the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/2sbb621.pdf

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