“We continue to be encouraged by results generated from our drilling at Back River,” said Sabina President and CEO Tony Walsh. “Our technical team continues to successfully utilize their exploration toolbox to advance these zones. As with all banded iron formation gold deposits, these units tend to be complex and interpretations of the deposits are evolving as more drilling is completed and data received. The significance of these new areas is very apparent, however, and we plan to aggressively continue to drill for the remainder of the season until time and supplies run out. With increased funding for work on Back River this year, we plan to continue to move this project forward.”

The target areas have all been identified using an exploration model based on geological and geophysical signatures used to identify areas with significant alteration and mineralization. Typically these areas display iron formation units where the magnetic expression has been “washed out,” or demagnetized by alteration and structural deformation.

Sabina continues to refine its exploration methodology to develop a disciplined strategic approach to identifying the numerous new targets at Back River and the adjoining Wishbone project. Targets are currently being evaluated for next year's drilling program.

Originally 20,000 meters at a cost of C$10 million was budgeted for the 2010 Back River program. Due to the new discoveries at Llama and Umwelt, the budget has increased. It is likely that by the end of the campaign, 41,000 meters of drilling will have been completed at Back River. Four drill rigs will continue to operate until September subject to adequate supplies.

While time and supplies are running short at camp, the company’s 2010 objectives are to complete a partial resource on the Llama and potentially Umwelt Lake areas and possibly Echo, and to complete drilling and internal studies for a conceptual open pit at the Goose Lake deposit. If all these objectives are accomplished and positive, the company can move forward to commence a preliminary economic assessment on the Back River project early next year. Subject to a positive preliminary economic assessment, permitting efforts could commence later in 2011.

The new Umwelt Lake area is situated about 1.3 kilometers, or 0.8 miles, to the south of the recently discovered Llama Lake Zone at Goose Lake, and was targeted based on its similar geophysical signature to both the Llama and Goose deposits. To date a total of 31 holes totaling 8,404 meters have been completed or are in progress on this target with assays reported for 9 holes.

Drilling at Umwelt has identified two gold mineralized zones, which appear to be an anti-form feature with an upper East and a lower West Zone. The fold hinge is interpreted to plunge to the south.

Hole 10GSE98 has been the most successful hole drilled to date at Umwelt, returning 10.52 g/t over 65.55 meters. This hole was drilled on the same section and above the discovery holes (10GSE66 and 10GSE69, which returned 11.32 g/t gold over 10.9 meters). Initial interpretations are that this hole appears to have cut the folded portion of the anti-form feature with true widths estimated to be at least 65 percent of the drill width. Complete assay results and further drilling in 2010 will be required to confirm this interpretation.

Results from the East Zone indicate that it is the stronger of the two returning some wide zones of moderate grade mineralization. Hole 10GSE81 drilled approximately 200 meters south of the discovery holes, returned 5.40 g/t over 44 meters, including 9.05 g/t over 11 meters. Although the West Zone tends to be narrower, it is well mineralized and displays good continuity. Hole 10GSE94 returned 4.10 g/t over 5 meters.

To date the continuity of mineralization in the Umwelt area has been established over a 300-metre strike length and has been encountered to a depth of 250 meters. Visible gold has been noted in many but not all of the holes drilled to date. The zone remains open both along strike and to depth and drilling continues.

On May 4, Sabina reported a potentially significant new gold discovery at Llama Lake about 8 kilometers, or 5 miles, to the north west of the Goose Lake deposit. Llama Lake also was initially targeted due to its similar geophysical and geological signature to that found at the Goose Lake deposit. To date a total of 53 holes have been completed or are in progress at Llama with assays being reported for 32 holes. Initial interpretations of Llama suggest that it is a fold structure consisting of both an upper and lower iron formation with an inter-bedded sediment core all of which have been intruded by a series of late stage felsic dykes. However, the geological interpretation of the area is still evolving and is largely based on visual interpretation of mineralization and structures in the core.

New results at Llama Lake include Hole 10GSE 53, returning 7.65 g/t over 7.2 meters. Drilling continues to extend the strike length at Llama and continuous mineralization can now be seen over 500 meters of strike length to a depth of 250 meters. Drilling continues to test south of Llama Lake.

Sabina also discovered the Echo Zone last summer about 2 kilometers, or 1.24 miles, to the southwest of the Goose Lake deposit. The Echo Zone was also targeted for its geological and geophysical similarity to the Goose deposit. A total of 3,782 meters were drilled in 15 holes in 2009 with significant assay results obtained from hole 09GSE08 and follow-up hole 09GSE09. The best results were obtained in hole 09GSE25, which returned 8.17 g/t over 15.15 meters. With a view to drilling the Echo Zone to a resource estimate in 2010, a total of 22 holes have been completed at Echo. After the discovery of Llama Lake, drills were re-directed from Echo to Llama.

Results from the 2010 Echo drilling have been reported in the updated Back River technical report filed on SEDAR July 26. The best intercept from that drilling was 20.65 g/t gold over 6.7 meters, including 119.7 g/t gold over 1.0 meter. It appears that values are strongest where the east-west striking-south dipping zone and the north-south striking east dipping zones intersect. Assay values drop off gradually as you move away from this intersection area. The geometry of the two mineralized zones creates a wedge-shaped zone that will require further drilling to complete resource calculations, but it is unsure if this drilling will be fully completed in 2010 due to the priority to evaluate the stronger mineralization encountered at Llama and Umwelt. Further target definition work and possibly drilling also will be undertaken to determine if and how the Echo Zone connects with the Goose Lake deposit.

Drilling also has started on the Goose deposit in order to generate a new resource that would be better suited to assess the possibility that the Goose mineralization could be mined as an open pit. Previous historical studies had assumed underground mining. Three holes have been completed in the “hinge area” above the shallow plunging iron formation. Mineralization has been noted in the holes and all assays are pending. Another 5-8 holes are planned for 2010.