Nunavut

GOLD – Sabina Gold & Silver Corp. April 7 outlined the objectives of the 2014 project development and exploration program for its Back River project in Nunavut. The 2014 Back River work program has been estimated to total approximately C$19 million and will include a modest drilling program; environmental and permitting activities; development studies; and property holding costs. Including corporate general and administrative and other project related costs, the total annual budget for 2014 is expected to be roughly C$24 million. In 2013, Sabina completed roughly 82,000 meters of drilling at Back River, primarily focused on upgrading and extending the resources for inclusion in the upcoming feasibility study. The results of this drilling were included in an updated Back River mineral resource estimate announced in March. Additionally, since the completion of a pre-feasibility October, studies have been ongoing to assess opportunities for project optimization prior to launching the feasibility study. These studies include metallurgical testing, mining methods, sequencing and costs as well as logistics alternatives. These studies are expected to be completed during the month of April. The studies, updated mineral resource estimate and 2014 drilling will also be included in the Back River FS. The priority for Sabina in the next 18 months is to advance Back River through feasibility and environmental assessment, de-risking the project while minimizing cash consumption. During the year, the market can look forward to updates on the project, drilling results from the Echo Zone and permitting progress. “We have a very good foundation of information with which to launch our (feasibility study),” said Sabina President and CEO Rob Pease. “Our objective was to accomplish most of the work to support the FS in 2013 and early 2014 and we believe we are well positioned to advance the project through the FS and final permitting phases. One of the opportunities identified last year was a new high grade resource at the Echo zone which we believe could have a positive impact on early mine life economics. We have decided to launch a focused drill campaign at the Echo deposit to upgrade and possibly increase the resources for inclusion in the FS. While we are there and the camp is mobilized, we will take the opportunity to test some interesting targets around the Echo and Goose Main zones. We believe these could all be value add targets in the early mine life of the project. We are excited about the next phase of advancement for the project and look forward to launching our FS.” The Echo zone, located about 1,500 meters southwest of the Goose Main deposit and strategically located near planned mine infrastructure was initially discovered in 2009. With the subsequent discovery of the Llama and Umwelt deposits the Echo zone was not fully advanced as an exploration target. Based on its proximity to other Goose deposits and its high- grade nature, re-interpretation of prior drilling results led to a renewed exploration and resource definition program that was successful in defining a mineral resource at Echo. The zone is open to depth and laterally to the north. The 6,000-meter drill program planned for 2014 is designed to upgrade a portion of the inferred resources at Echo to the indicated category as well as explore deposit extensions. In addition to the Echo drilling, an exploration drilling program of some 2,500 meters is planned to test two to three high-priority targets located in and around the existing Goose deposits. Positive attributes of the targets have been defined using the results from ongoing geologic modeling in combination with geophysical data sets and the results of previous drilling programs. Sabina plans to have three drills are up and running on the project by April 20. The company expects to end 2014 with a cash balance of approximately C$34 million. In 2015, it is anticipated that another C$11 million will be required to fully engineer and permit the project (including corporate general and administration costs, but assuming no exploration).