Sabina Silver Corporation
TSX VENTURE : SBB

Sabina Silver Corporation

March 11, 2009 08:30 ET

Sabina Silver Announces New Hackett River Mineral Resource Update

Increases of 3% Silver, 10% Zinc and 34% Copper Open Pit Portion Increases by 40% with No Significant Grade Change Resource tonnes increase by 7% results in increase in contained metal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2009) - Sabina Silver Corporation (TSX VENTURE:SBB) announced today an updated mineral resource for its 100% owned Hackett River silver-zinc project in Nunavut, Canada.

HACKETT RIVER

Hackett River is one of the largest undeveloped Volcanic Massive Sulphide ("VMS") camps of its type in the world and exhibits many similarities to the long producing prolific VMS camps such as Flin Flon and Noranda. After the release of a positive preliminary economic assessment ("PEA") on the Hackett River project in March of 2007, Sabina Silver engaged AMEC Americas Ltd. ("AMEC") to conduct a Pre-feasibility Study ("PFS") on the project. As part of the study, a new mineral resource estimate has been prepared and the subsequent results are increasingly positive.

"We are very encouraged with the results of the updated mineral resource at Hackett River," said Tony Walsh, Sabina's President and CEO. "What is exciting is the substantial increase in open pit material with sustained grades. The new modelling not only indicates that the existing resource is more robust than originally interpreted, but also confirms our assessment that there is significant potential to add higher value mineralization to the resource base. From an economics perspective, the opportunity to open pit mine the higher grade mineralization first could have substantial impacts on the project reducing mining costs as well as the initial capital payback period. Also, the bulk of the existing resource is within the first 400 meters of surface, providing the opportunity to open pit all deposits, and perhaps allowing the project to defer or eliminate any underground capital required."

The net results are:

- Open pit portion of the resource increases 40% from 29.0M tonnes to 40.6M tonnes as improved geological model provides for expanded open pit portion while maintaining overall resource grades.

- Indicated resource tonnes have increased by 2% with grades for silver and zinc remaining in line with expectations. Overall Inferred resources have increased by 30% in tonnes, 18% in zinc grade, and 15% in copper grade with a 4% decrease in silver grade.

- All contained metals, silver, zinc, copper, lead and gold have increased, including an additional 7.1M ounces of silver, an additional 448,000 tonnes of zinc, an additional 57,000 tonnes of copper, an additional 12,000 tonnes of lead and an additional 24,000 ounces of gold.

- Detailed geological modelling has identified two mineralized zones within the Main Deposit (Main East and Main West) previously interpreted to be one zone. The Main West Zone is a high grade lens with grades significantly higher in zinc, silver and copper than the Main East Zone, and offers opportunities to recover the more economic high value mineralization at the beginning of any mining operation.

- New resource modelling has identified a significant portion of material which with closer spaced drilling could potentially be added to the resource at a future date. Also significant high grade intercepts at the Jo deposit are not included in the current mineral resource and further drilling may bring this deposit into the overall mineral resource.

- Detailed modeling of all the deposits has identified metal zoning and "hot spots" that point to exploration targets that have better potential to add higher value mineralization. These will be tested in the winter drill program expected to start in early April.

HACKETT RIVER MINERAL RESOURCES - FEB 2009

The mineral resource estimate was prepared by Mr. Albert Chong, P. Geo., Senior Geologist of AMEC Americas Limited, for Sabina Silver Corp. as part of an ongoing pre-feasibility study on the Hackett River project. Based on current drill spacing the resources at Hackett have been classified as Indicated and Inferred based on CIM Definition Standards (2005). Significant additional mineralization has been identified but due to wide drill spacing the material has not been included in this mineral resource estimate. The mineral resources have been constrained in order to demonstrate reasonable prospects for economic extraction as described by National Instrument 43-101 including assumptions pertaining to mining methods, metallurgical recoveries, metal prices, mining costs and processing costs. Details are outlined in footnotes with the Mineral Resource Tables. As required by NI 43-101 regulations, the resource estimate technical report will be filed on SEDAR in its entirety within 45 days following the date of this press release.



Summary Tabulation - Sabina Silver Hackett River Mineral Resource Estimate

-------------------------------------------------------------
Zinc Ag Ag
Category Tonnes Zn% Tonnes g/t Ounces Cu%
--------------------------------------------------------------------------
Indicated 7,740,000 4.88 378,000 167 41,510,000 0.25
East Cleaver -------------------------------------------------------------
Inferred 2,060,000 4.27 88,000 147 9,710,000 0.15
--------------------------------------------------------------------------

-------------------------------------------------------------
Zinc Ag Ag
Category Tonnes Zn% Tonnes g/t Ounces Cu%
--------------------------------------------------------------------------
Indicated 17,370,000 4.72 820,000 164 91,620,000 0.32
Boot Zone -------------------------------------------------------------
Inferred 7,250,000 4.84 351,000 158 36,810,000 0.26
--------------------------------------------------------------------------

-------------------------------------------------------------
Zinc Ag Ag
Category Tonnes Zn% Tonnes g/t Ounces Cu%
--------------------------------------------------------------------------
Indicated 18,230,000 4.49 818,000 115 67,350,000 0.58
Main Zone -------------------------------------------------------------
Inferred 5,310,000 4.01 213,000 103 17,500,000 0.45
--------------------------------------------------------------------------

-------------------------------------------------------------
Zinc Ag Ag
Category Tonnes Zn% Tonnes g/t Ounces Cu%
--------------------------------------------------------------------------
Indicated 43,340,000 4.65 2,016,000 144 200,480,000 0.42
Total
Resources -------------------------------------------------------------
Inferred 14,620,000 4.46 652,000 136 64,020,000 0.31
--------------------------------------------------------------------------

-------------------------------------------------------
Cu Pb Au Au
Category Tonnes Pb% Tonnes g/t Ounces
--------------------------------------------------------------------
Indicated 19,000 0.83 64,000 0.33 81,000
East Cleaver -------------------------------------------------------
Inferred 3,000 0.73 15,000 0.30 20,000
--------------------------------------------------------------------

-------------------------------------------------------
Cu Pb Au Au
Category Tonnes Pb% Tonnes g/t Ounces
--------------------------------------------------------------------
Indicated 56,000 0.68 118,000 0.27 153,000
Boot Zone -------------------------------------------------------
Inferred 19,000 0.59 43,000 0.34 80,000
--------------------------------------------------------------------

-------------------------------------------------------
Cu Pb Au Au
Category Tonnes Pb% Tonnes g/t Ounces
--------------------------------------------------------------------
Indicated 105,000 0.53 96,000 0.32 185,000
Main Zone -------------------------------------------------------
Inferred 24,000 0.49 26,000 0.26 44,000
--------------------------------------------------------------------

-------------------------------------------------------
Cu Pb Au Au
Category Tonnes Pb% Tonnes g/t Ounces
--------------------------------------------------------------------
Indicated 180,000 0.64 278,000 0.30 419,000
Total
Resources -------------------------------------------------------
Inferred 46,000 0.57 84,000 0.31 144,000
--------------------------------------------------------------------
NOTE: The above table contains summary data, please refer to the attached
Appendix 1 for complete resource information.

Footnotes:

This mineral resource estimate has been prepared by Mr. Albert Chong,
P.Geo., Senior Geologist of AMEC Americas Limited. Mr. Chong is a qualified
person as defined by National Instrument 43-101. CIM Definition Standards
(2005) have been used in defining the mineral resource categories.

The mineral resources have been constrained in order to demonstrate
reasonable prospects for economic extraction as described by National
Instrument 43-101. The assumptions of amenability to the assumed mining
methods have been provided by Ms. Margaret Podhorski-Thomas, P.Eng., Senior
Engineer of AMEC Americas Limited who is a qualified person as defined by
National Instrument 43-101. Assumed metallurgical recoveries for each
deposit have been derived from metallurgical test work. The metallurgical
test work to date is based on using a flotation process to produce saleable
concentrates containing the metals in the resource estimate in varying
proportions.

The effective date of the resource estimate is February 26, 2009.
An NSR cut-off has been used to establish reasonable prospects for economic
extraction. Mineral resources amenable to open pit mining methods have an
NSR cut-off of CAD$20/tonne. Mineral resources below the conceptual open
pits have an underground NSR cut-off of CAD$60/tonne.

Long-term metal price assumptions used are US$0.80/lb zinc, US$12.00/oz
silver, US$1.90/lb copper, US$0.55/lb lead, US$800/oz gold, and exchange
rate of $1.00 CAD equals $0.85 US. Metal recoveries used to calculate NSR
values are: Boot Zone- zinc- 86.1%, silver- 77.7%, copper- 73.0%,
lead- 76.0%, gold- 50.0%, Main Zone - zinc-86.2%, silver- 75.2%,
copper- 86.0%, lead- 74.0%, gold- 50.0%, East Cleaver - zinc- 86.4%,
silver- 78.0%, copper- 60.0%, lead- 82.0%, gold- 50.0%. Metal Pay factors
used for all resources are: zinc- 64%, silver- 89%, copper- 64%, lead- 55%,
gold- 95%. A 2% NSR Royalty has been applied.

The contained metal figures shown are insitu. No assurance can be given
that the estimated quantities will be produced. Silver grades have been
reported as integers due to analytical precision. Summations within the
tables may not agree due to rounding.


RESOURCE COMPARISONS

The following table illustrates the overall comparisons between the PEA and the AMEC Mineral Resource Estimate.



------------------------------------------------------------------
GRADES

ALL DEPOSITS

Ag Au
Category Study Tonnes (g/t) Zn% Cu% Pb% (g/t)

INDICATED PEA 42,700,000 150 4.67 0.32 0.69 0.31
INDICATED AMEC 43,350,000 144 4.65 0.42 0.64 0.30
------------------------------------------------------------------
CHANGE 650,000 (6) (0.02) 0.09 (0.04) (0.01)
% CHANGE 2% (0%) (0%) 29% (6%) (3%)
------------------------------------------------------------------

Ag Au
Category Study Tonnes (g/t) Zn% Cu% Pb% (g/t)

INFERRED PEA 11,260,000 142 3.77 0.27 0.52 0.31
INFERRED AMEC 14,610,000 136 4.46 0.31 0.57 0.31
------------------------------------------------------------------
CHANGE 3,350,000 (6) 0.69 0.04 0.06 0.00
% CHANGE 30% (4%) 18% 15% 11% 0%
------------------------------------------------------------------
Table 2: Mineral Resource Comparison, Tonnes and Grade

Note: PEA equals Wardrop Preliminary Economic Assessment, effective
date December 31, 2006 and AMEC equals Mineral Resource Estimate
effective date 26-Feb-2009.


-------------------------------------------------------------------
PRODUCTS

ALL DEPOSITS

Ag Zn Cu Pb Au
Category Study oz Tonnes Tonnes Tonnes oz

INDICATED PEA 205,800,000 1,996,000 138,000 293,000 426,000
INDICATED AMEC 200,490,000 2,017,000 180,000 279,000 419,000
-------------------------------------------------------------------
CHANGE (5,310,000) 21,000 42,000 (14,000) (7,000)
% CHANGE (3%) 1% 30% (5%) (2%)
-------------------------------------------------------------------

Ag Zn Cu Pb Au
Category Study oz Tonnes Tonnes Tonnes oz

INFERRED PEA 51,540,000 425,000 31,000 58,000 113,000
INFERRED AMEC 64,000,000 652,000 46,000 84,000 144,000
-------------------------------------------------------------------
CHANGE 12,460,000 227,000 15,000 26,000 31,000
% CHANGE 24% 53% 48% 45% 27%
-------------------------------------------------------------------
Table 3. Mineral Resource Comparison, Contained Metal

Note: PEA equals Wardrop Preliminary Economic Assessment, effective
date December 31, 2006 and AMEC equals Mineral Resource Estimate
effective date 26-Feb-2009.


MAIN ZONE

The table below illustrates the significantly higher value mineralization contained in the Main West Zone. In previous models, the Main deposit was interpreted as one folded deposit. Reinterpretation indicates two separate lenses within the main zone deposit and is now the current interpretation (Main East and Main West). This is encouraging news as Sabina's resource models are standing up to a higher level of scrutiny resulting in higher grades as internal dilution is being better defined.

The Main Zone East is proximal to the previously identified high grade Jo Zone and 2009 drilling will test for indications that these two deposits are connected.


-------------------------------------------------------------------
Category Zone Silver Zinc Copper Lead Gold
-------------------------------------------------------------------
g/t % % % g/t

INDICATED Main Zone West 137 6.23 0.70 0.68 0.41
INFERRED Main Zone West 119 5.78 0.38 0.61 0.30

INDICATED Main Zone East 96 2.99 0.46 0.40 0.23
INFERRED Main Zone East 86 2.28 0.49 0.37 0.22
-------------------------------------------------------------------
NOTE: The above table contains summary data, please refer to the
attached Appendix2 for complete resource information.

Table 4. Mineral resource grade comparison between the West and East
components of the Main Zone (preliminary open pit portion only).
From ongoing AMEC pre-feasibility study.


EXPLORATION

The new geological model provides the exploration group with a useful tool to identify metal zoning areas and vector toward metal "hotspots" that are richer in higher value metals such as copper, silver and gold. These will be the high potential targets tested in this year's program. Current targets include the area between Jo and Main zone and the north-west extension of the higher grade West Lens at the Main Deposit.

As the new models indicate grades and opportunities that could dynamically change the project, these developments at Hackett River will need to be incorporated into any engineering studies going forward.

Quality Assurance

Mr. John Wakeford, P.Geo. and a Qualified Person in accordance with NI 43-101 has reviewed the resources referred to above and attached and has approved their dissemination.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in Nunavut and several projects in the Red Lake gold camp. The Company is well capitalized with approximately $40 million in cash and marketable securities at December 31, 2008. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of Hackett River Silver-Zinc project; and 2) Maintain strong balance sheet to acquire accretive precious metals assets.

Forward Looking Statements

Statements relating to exploration, pre-feasibility, development and production 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 Annual Report for the year ended December 31, 2007.

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 Silver Corporation

Tony Walsh, President & CEO

To view the appendix accompanying the release please click on the following link: http://media3.marketwire.com/docs/sbb_appendix.pdf.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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