SOURCE: Sabina Silver Corporation

December 15, 2006 09:00 ET

Sabina Announces $12,870,000 Private Placement With Silver Wheaton

THUNDER BAY, ON -- (MARKET WIRE) -- December 15, 2006 -- SABINA SILVER CORPORATION (TSX-V: SBB) ("Sabina") is pleased to announce a non-brokered private placement financing whereby Silver Wheaton Corp. ("Silver Wheaton"), a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange, has agreed to purchase up to 7,800,000 Units (the "Units") of the Company at a price of C$1.65 per Unit, for gross proceeds of up to $12,870,000. Each Unit consists of one (1) common share and one-half (1/2) of a non-transferable share purchase warrant. Each whole warrant entitles Silver Wheaton to purchase one (1) common share of the Company at a price of $2.75 per share for a period of forty-eight (48) months from the closing date, providing that if the closing price of the common share is above C$5.00 for 15 consecutive trading days, Sabina may accelerate the expiry of the warrants. As part of this investment, Sabina has granted the right to Silver Wheaton, under certain conditions, to maintain its pro rata interest in Sabina in the event that Sabina issues additional equity securities in the future.

As a result of this transaction, Silver Wheaton will own 7,800,000 common shares of Sabina and 3,900,000 share purchase warrants of Sabina representing approximately 14.2% of the outstanding shares of Sabina on an undiluted basis, and 19.9% after giving effect to the exercise of the share purchase warrants held by Silver Wheaton. Silver Wheaton shall acquire a right of first refusal over any silver stream sale by Sabina from its existing projects going forward. Closing of this offering is subject to receipt of all regulatory and third party approvals and consents, including the approval of the TSX Venture Exchange.

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. The proceeds from the private placement will be used to further advance Sabina's Hackett River Project towards permitting, feasibility and ultimately production, all subject to rigorous and ongoing engineering and environmental review, and for general corporate purposes.

Silver Wheaton Corp. is the only public mining company with 100% of its operating revenue from silver production. They expect to have annual silver sales of approximately 16 million ounces in 2007, increasing to 20 million ounces by 2009 and thereafter.



Per: Abraham Drost
     President & Director

401-1113 Jade Court
Thunder Bay, Ontario
Ph: (807) 766-1799
The securities of Sabina Silver Corporation have not been, nor are there any current plans to register said securities under the United States Securities Act of 1933, as amended, and these securities may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful.

Sabina Silver Corporation does have a Moody's/Mergent Manual ("Blue Sky") exemption allowing distribution without registration in 39 states for secondary trading transactions only. Always consult a Registered Investment Advisor.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may," "will," "plan," "expect," "anticipate," "estimate," "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Sabina Silver Corporation does have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.

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