Sabina Resources Limited

September 26, 2005 11:19 ET

Sabina Cashes In, Retains Royalty Rights On Follansbee; Adopts New Silver Focus

THUNDER BAY, ONTARIO--(CCNMatthews - Sept. 26, 2005) - SABINA RESOURCES LIMITED (TSX VENTURE:SBB) is pleased to announce that it has negotiated the sale of its 60% owned Follansbee property to Wolfden Resources Inc. (TSX:WLF) in consideration of $2,000,000 cash and 4,000,000 shares of Wolfden. Valuing the Wolfden shares at current market value of $9,000,000, total consideration is $11,000,000.

Sabina will continue to participate in this exciting new Red Lake discovery through a significant ownership of Wolfden and through its right to purchase a 1% Net Smelter Return royalty. Sabina consequently turned an investment of approximately $2 million at Follansbee into $11 million and is now fully financed with over $15 million in working capital with no additional shareholder dilution.

Concurrent with this transaction, Sabina has applied to the TSX-Venture Exchange to change the name of the company to Sabina Silver Corporation. The company's new mandate will be to grow its silver portfolio. Currently, Sabina owns a 100% interest in the Hackett River Project that contains a NI 43-101-compliant Indicated Resource in access of 140 million ounces of silver, making it one of the largest silver deposits in the Western Hemisphere.

Sabina is currently negotiating the acquisition of an additional precious metal project to strengthen its silver holdings and will continue to advance Hackett River and its remaining four strategically located Red Lake gold projects. Sabina's objective is the addition of significant value through active exploration and project development to production.

In another corporate development, Sabina is very pleased to announce a new marketing partnership with Windward Agency of Charlotte, North Carolina. This new alliance underscores management's intention to establish the Sabina brand as a new force in mineral exploration and development going forward.

Shares Issued: 36,524,244

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and 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.

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 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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