Sabina Silver Corporation

Sabina Silver Corporation

November 19, 2008 18:35 ET

Sabina Silver Announces Q3 Financial Results

$32.8 million at September 30, 2008 in cash and short-term investments

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2008) - Sabina Silver Corporation (the "Company") (TSX VENTURE:SBB) announced today the financial results for the period ended September 30, 2008.

In the first three quarters of 2008, the Company added to its management team, completed work to advance studies on the Hackett River project and continues to evaluate other projects and companies for merger and acquisition opportunities.

During the quarter, the Company's work focused on the Hackett River Project which is one of the largest undeveloped deposits of its type and is the Company's flag ship project in Nunavut Canada, one of the world's most appealing mining jurisdictions.

"Work on the Hackett River studies required for the pre-feasibility study continued to push forward during the quarter," said Anthony Walsh, President & CEO. "However, we are still experiencing delays with the metallurgical and rock characterization work which is delaying the updated mineable resource calculation. AMEC, the Company's engineering consultants, have advised management that the updated Hackett River Resource should be completed by year end 2008."

With the addition of new management, a fresh review was done of the exploration potential at Hackett River. As a result of this review, management believes the Hackett River deposit offers significant potential to add resources through extension of existing deposits and discoveries of new near surface resources. Recently the Company announced a non-brokered flow through financing of approximately $4 million which it intends to use for exploration work on its Hackett River project. The flow through will also be used to fund a small work program on the Company's Red Lake gold properties. An exploration program for 2009 is currently being defined.

Financial Results

For the three months ended September 30, 2008, the Company reported a net loss of $0.9 million which is comparable to the same period in 2007. Operating expenses for the three month period were $0.8 million as compared with $1.2 million in the same period of 2007 due primarily to lower stock based compensation and investor relations expenses partially offset by higher administrative costs. Interest income was lower by $0.3 million in the third quarter of 2008 compared to the same period in 2007 due to lower a cash balance and a lower realized interest rate on investments. The Company had cash and short-term investments of $32.8 million at September 30, 2008 compared to $43.8 million at December 31, 2007. In addition, the Company holds Canadian securities with an estimated market value of approximately $6.2 million.

As discussed above, subsequent to the quarter, the Company announced that it had arranged for a non-brokered private placement to place approximately 6,200,000 flow-through common shares for proceeds of $4,030,000. The proceeds of this financing will be used for exploration purposes at Hackett River and in Red Lake Ontario. Insiders will participate for additional flow-through shares on the same terms.

Also, subsequent to the quarter, the Company determined that it would not continue with its option on the Rockstone property in Thunder Bay and has elected to terminate the option agreement.

For the full September 30, 2008 financial statements and Management's Discussion and Analysis, please see the Company website at

Restatement of 2007 Quarterly Financials

The financial statements and management's discussion and analysis for the quarters of December 31, 2006, March 31, 2007, June 30, 2007 and September 30, 2007 have been restated to align the interim statements with the annual audited 2007 financial statements. The interim statements have been amended for the transition adjustment on adoption of new accounting policies for financial instruments and the calculation of associated future income taxes and the allocation of stock based compensation expense. While these interim statements have been amended and restated, the annual audited 2007 financial statements as originally filed do not require any adjustments and include the appropriate disclosure of these items. The restatement of these interim periods has been made in order to ensure that the Company's disclosure is consistent with a high standard of reporting.

Subsequent to the end of the quarter, the Company granted 50,000 stock options at a strike price of $0.38 for a period of five years.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp.

Forward Looking Statements

Statements relating to permitting, feasibility and exploration work at the Hackett 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 and information concerning mineral resource estimates 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 gold 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; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; 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, 2007.

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, change.

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

Tony Walsh, President and CEO

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