SOURCE: Sabina Silver Corporation

April 03, 2007 08:30 ET

Sabina Silver Successfully Closes $30 Million Bought-Deal Financing, Resumes Drilling at Hackett River

VANCOUVER, BC -- (MARKET WIRE) -- April 3, 2007 -- SABINA SILVER CORPORATION (TSX-V: SBB) ("Sabina") is pleased to announce that it has successfully closed the previously announced bought-deal private placement of 5 million units (each, a "Unit") at a price of $3.00 per Unit for gross proceeds of $15 million. Each Unit is comprised of one common share of Sabina (each a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"), with each full Warrant entitling the holder thereof to purchase one Common Share at a price of $3.60 for a period of 36 months following the closing of the offering. The financing was substantially oversubscribed, and the underwriting syndicate led by Research Capital Corporation, which included BMO Nesbitt Burns Inc., and Pacific International Securities Inc. (the "Underwriters"), exercised their option to increase the size of the financing by 5 million Units at the same issue price per Unit for additional gross proceeds of $15 million. In total, 10 million Units were issued for gross proceeds of $30 million.

The Underwriters received as compensation a 5% cash commission and 500,000 broker warrants. Each broker warrant entitles the holder to purchase one Common Share at an exercise price of $3.00 per share until April 2, 2009.

All the Units issued pursuant to the private placement are subject to a four-month hold period expiring August 3, 2007.

The net proceeds from the private placement will be used to further advance Sabina's Hackett River Project towards permitting, feasibility and ultimately production, all subject to rigorous and ongoing engineering and environmental review, and for general corporate purposes. Abraham Drost, President and Director of Sabina states, "The successful conclusion of this bought-deal financing involving strong financial partners and a variety of new shareholders constitutes a significant step forward in advancing the Hackett River Project to the bankable feasibility assessment stage."

In related corporate news, Sabina announces that drilling has resumed at Hackett River. The 2007 work plan includes additional definition and exploration drilling, geotechnical drilling and testing, further metallurgical testing and optimization, geophysical surveys of additional exploration target areas and initiation of a formal environmental impact assessment process. The information expected to be obtained from the 2007 work plan will supplement the existing database and move the Hackett River Project towards a NI43-101 compliant pre-feasibility study later in the season.

Sabina Silver Corporation is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District, and several exploration projects in Ontario in the Red Lake gold camp and Thunder Bay Mining District.


Abraham P. Drost, M.Sc., P.Geo,
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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.

All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.


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