Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

July 19, 2012 11:06 ET

Sabina Announces Continued Positive Drill Results From 2012 Drilling at the Back River Gold Project, Nunavut

Hole 12GSE191 at Umwelt Returns 9.73 g/t Au Over 5.70 m, Extending Deposit an Additional 125 m;

Hole 12GSE185 at Llama Returns 9.94 g/t Au Over 9.05 m;

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2012) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce new assay results from holes drilled as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.

Work at Back River in 2012 has focussed on infill, geotechnical and extension drilling at the Llama and Umwelt deposits, testing targets proximal to the existing deposits on the Goose property and testing regional targets for new deposits on the George and Boulder claim blocks.

On May 29, 2012 Sabina announced a positive Preliminary Economic Assessment ("PEA") of the Back River Gold Project and announced our intention to complete a Pre Feasibility Study by the first half of 2013. While work continues on extension drilling and regional exploration, as part of the work required to complete this study, drilling for the remainder of the 2012 campaign will prioritize on the conversion of a number of Inferred Resources to Indicated Resources as well as a number of geotechnical holes.

Umwelt Extension Drilling Program

Two deep drills are working at Umwelt targeting the extension of the G2 deposit down plunge. The G2 Zone, discovered in 2011, is the direct extension at depth of the wide mineralized zone that makes up the proposed open pit at Umwelt and appears to have a stronger gold tenor. Hole 12GSE191 returned 9.73 g/t Au over 5.70 m including 31.58 g/t Au over 0.95 m. This hole is at a vertical depth of 740 m and further extends the mineralized zone another 125 m beyond hole 12GSE173 reported in June 2012. Hole 12GSE191 is 325 m down plunge of the resources currently included in the June 2012 PEA. Results for holes wedged from this parent hole are still pending. The host iron formation unit continues to maintain good thicknesses in this area. While holes drilled in 2012 "in this section of the deposit" will likely not be included in the resource for the upcoming Pre-feasibility Study, drilling continues to demonstrate the potential for future mining at depth at Umwelt.

Umwelt Infill Drilling Program

Infill drilling to convert Inferred Resources to Indicated Resources is now underway at Umwelt targeting the proposed open pit and initial underground resources. Early results include hole 12GSE200 which targeted a 75 m gap in the East Zone between hole 10GE136 (6.98 g/t Au over 61.10 m) and hole 10GSE140B (18.95 g/t Au over 4.35 m) returning 2.13 g/t Au over 28.50 m including 5.41 g/t Au over 7.35 m. A 100 m gap in the West Zone was also intersected and returned 5.75 g/t Au over 4.00 m. These results are consistent with the geological interpretation of the mineralized zones.

Llama Infill Drilling Program

Infill drilling within the Llama pit shell continues to be particularly successful. Recent holes targeting the antiform closure within the pit include hole 12GSE185 which returned 9.94 g/t Au over 9.05 m including 39.09 g/t Au over 1.00 m. This intercept begins at a depth of 45 m in the 80 m gap between hole 12GSE153 which returned 21.58 g/t Au over 12.90 m and hole 12GSE144 which returned 1.86 g/t Au over 1.90 m.

Further south, hole 12GSE187 returned 1.51 g/t Au over 34.85 m including 7.92 g/t Au over 4.15 m. This hole is located in a 60 m gap between hole 11GSE007 which returned 1.61 g/t Au over 16.56 m and hole 10GSE041 which returned 4.06 g/t Au over 1.0 m and is at a vertical depth of 75 m.

The infill program within the Llama pit shell is now complete, and these results, in addition to the Llama results announced on April 26, 2012 and June 4, 2012, will form a new open-pittable Llama resource expected to be prepared in Q4 2012 and should provide strong grade early in the mine plan as envisaged in the PEA.

Llama Extension Drilling Program

One drill continues to work to the south and below the pit shell. Hole 12GSE193 targeting the antiform closure returned 3.10 g/t Au over 5.45 m. This hole is at a vertical depth of 200 m and is located in the 70 m gap between hole 11GSE011 which returned 1.99 g/t Au over 8.0 m and hole 11GSE046 which returned 3.57 g/t Au over 43.70 m. These holes and holes reported on June 4, 2012 are defining a continuous zone of mineralization down plunge of the open pit resource and in an area that has not yet been included in any resource calculation.

"We are pleased with the results coming in from this year's program to date," said Rob Pease, President & CEO. "The Umwelt deposit continues to show continuity down plunge and further infill work should help define and increase the existing resource there. Our Llama infill program is showing promise to enable us to optimize the mine plan and we expect there will be a positive impact on the project economics based on this work. Our property wide exploration continues to discover potential new deposits and the high-grade continuous nature of our deposits demonstrate the unique character and strength of the Back River project."

Table 1: Significant assay results from this release:

Hole Id Area Section Easting Northing Depth From (m) To (m) Length (m) Au (g/t) Zone Name
12GSE185 LL 5025L 428853 7272246 78.0 36.45 45.50 9.05 9.94 Main East
including 39.10 40.10 1.00 39.09 Main East
including 44.00 45.00 1.00 25.79 Main East
52.35 55.35 3.00 2.29 Main East
60.00 61.00 1.00 2.09 Main East
12GSE187 LL 4950L 428941 7272213 170.0 75.50 110.35 34.85 1.51 Main West
including 75.50 79.65 4.15 7.92 Main East
130.00 131.00 1.00 1.78 Main West
12GSE191 UM 3750U 430946 7270384 959.9 401.00 401.80 0.80 1.75 East BIF
673.00 674.00 1.00 1.10 East BIF
681.00 681.80 0.80 1.78 East BIF
840.70 846.40 5.70 9.73 Main East
including 840.70 841.65 0.95 31.58 Main East
887.00 888.00 1.00 2.01 Main East
12GSE193 LL 4725L 429161 7272079 293.0 254.00 259.45 5.45 3.10 Main East
267.00 268.00 1.00 1.94 Main West
12GSE200 UM 4850U 429920 7270952 305.0 126.30 127.10 0.80 3.26 Main East
147.20 175.70 28.50 2.13 Main East
including 164.25 171.60 7.35 5.41 Main East
193.20 194.70 1.50 2.11 Gwky Core
229.65 230.15 0.50 1.01 Gwky Core
234.50 235.80 1.30 5.80 Gwky Core
244.00 248.00 4.00 5.75 Main West

The true width of the mineralized zone is estimated to be approximately 60-70% of the core length

Abbreviations: LL = Llama; UM = Umwelt;

Back River Current Exploration Activity

There are currently five drills operating at the Goose property based out of the Goose camp. At Llama, one drill is working on the down plunge extension of the Llama deposit and a second drill is completing geotechnical work. At Umwelt, one drill is completing resource conversion drilling and two drills are exploring the down dip and down plunge extension of the Umwelt G2 Zone. There are an additional three drills operating out of the George camp with one drill assigned to regional Wishbone drilling, one drill focussed on new targets at Boulder and one drill starting resource conversion drilling on the George deposits.

Positive PEA Study

On May 29th, the Company announced a positive PEA on the Back River Gold Project. According to the PEA, the base case scenario for the project generates a post-tax NPV of $650 million and an IRR of 25% at a $1250 gold price. The mine plan would feed 5,000 tonnes per day of mineralized material to the mill to produce approximately 300,000 ounces of gold per year for 12.3 years. Mine sequencing envisions initial production from a Llama open pit and the Umwelt and Goose underground resources; thereafter, open pits at Umwelt, Goose followed by underground mining at George. Total capital has been estimated at $838 million of which $450 million is required prior to the start of commercial production. Total cash costs are anticipated to be $542/oz LOM including royalties, refining and transport. Capital and operating costs were estimated using a combination of first principle calculations, experience and factored costs; experience includes actual results from comparable northern projects.

Quality Assurance

The Qualified Person under NI 43-101 is Peter Manojlovic PGeo, Vice President Exploration for Sabina Gold & Silver Corp., who has approved this release.

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 2012 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and have been deemed appropriate in the above noted 43-101 compliant resource reports.

SABINA GOLD & SILVER CORP.

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

Sabina's primary assets, all located in Nunavut, consist of: the Back River Gold Project, currently in the pre-feasibility and permitting phase; the Wishbone Claims, a vastly prospective grass roots project; and the Hackett River Silver Royalty, a silver production royalty on Xstrata Zinc's Hackett River project comprised of 22.5% of the first 190 million ounces produced and 12.5% of all the silver produced thereafter.

The Company had cash of $147.4 million at March 31, 2012 and added $34m to the treasury in June 2012 after completing a financing.

All news releases can be found on the Company's website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com.

Forward Looking Statements

Statements relating to mineral resource estimates at Llama, Umwelt, George and Goose and the expected impact of these mineral resources 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, 2011.

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 Gold & Silver Corp.

Rob Pease, President & CEO

Note: To view Figures 1 through 4 associated with this release, please click the following link: http://media3.marketwire.com/docs/sbb0719.pdf.

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