Sabina Completes $97.5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sabina Gold & Silver Corp. (the "Company") (TSX:SBB) announced today the completion of the previously announced underwritten public offering qualified by short form prospectus of 9,091,000 common shares of the Company (the "Common Shares") at $5.50 per Common Share and 6,061,000 flow-through common shares (the "Flow-Through Common Shares") at $6.60 per Flow-Through Common Share (the "Bought Deal Offering").

In addition, the over-allotment option granted to the syndicate of underwriters led by BMO Capital Markets and including Dundee Securities Ltd., Paradigm Capital Inc., RBC Dominion Securities Inc., Cormark Securities Inc., and Desjardins Securities Inc. (collectively, the "Underwriters") for 1,363,650 Common Shares at $5.50 per Common Share was exercised in full bringing the total proceeds of the Bought Deal Offering to approximately $97.5 million.

The Bought Deal Offering was underwritten by the Underwriters who received a cash commission of 5.0% on the gross proceeds thereof.

In addition to the Bought Deal Offering, the Company has also sold, on a non-brokered basis and on the same terms as the Bought Deal Offering, 188,515 Flow-Through Shares at $6.60 per Flow-Through Share and 19,825 Common Shares at a price of $5.50 per Common Share for gross proceeds of approximately $1.4 million (the "Non-Brokered Offering").

"This financing provides the Company with options for moving our Back River and Hackett River projects forward," said Tony Walsh, President & CEO "Drilling has commenced at Back River as we gear up for our largest exploration campaign yet. We are also continuing with our initiative to find a strategic partner for Hackett River as we believe that this is the best opportunity to accelerate the project and increase shareholder value. This financing allows us the option to continue de-risking the project ourselves should we so choose, in order to obtain the most value for Hackett from a potential partner, particularly in light of increasingly strong metals prices."

All the shares issued pursuant to the Non-Brokered Offering are subject to a four month hold period expiring August 2, 2011. The gross proceeds from the sale of the Flow-Through Common Shares will be used to incur Canadian Exploration Expenditures as defined by the Income Tax Act (Canada) by December 31, 2012.

This news release shall 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 in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

SABINA GOLD & SILVER CORP. is a Canadian public mineral exploration and development company. Key assets include the Hackett River silver project, the Back River gold project and the Wishbone grassroots exploration project all in Nunavut. Additionally, the Company has several projects in the Red Lake gold camp and an option on the Cook Lake North & South properties directly adjacent to the recently discovered Lalor deposit in Manitoba.

Forward Looking Statements

Statements relating to exploration, pre-feasibility work and future operations at the Company's Nunavut Projects 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 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 short form prospectus dated February 22, 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.

Elaine Bennett, Vice President & CFO