SOURCE: Sabina Silver Corporation

December 22, 2006 12:08 ET

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

THUNDER BAY, ON -- (MARKET WIRE) -- December 22, 2006 -- SABINA SILVER CORPORATION (TSX-V: SBB) is pleased to announce that it has completed the non-brokered private placement financing announced on December 15, 2006, whereby Silver Wheaton Corp. ("Silver Wheaton"), a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange, purchased 7,800,000 Units (the "Units") of the Company at a price of C$1.65 per Unit, for gross proceeds of $12,870,000 to the Company. 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 twenty-four (24) months from the closing date, providing that the exercise price and expiry date of the Warrants are subject to adjustment in certain circumstances and 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 owns 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 has acquired a right of first refusal over any silver stream sale by Sabina from its existing projects going forward.


Per: Abraham Drost, P.Geo.
     President & Director

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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