Sabina Gold & Silver Corp (TSX:SBB) (OTCQX:SGSVF) is pleased to announce an initial debt agreement for project financing for its Goose Mine on its 100%-owned Back River Gold Project in Nunavut, Canada

Project Financing Update

Sabina’s goal is to become a successful Canadian gold producer by advancing our 100% owned Back River Gold District in Nunavut, Canada.  We plan to achieve this goal with a methodical phased approach to development of this belt that creates long lasting value for all our stakeholders.  Our first mine on the district, the Goose Mine, is our current focus and we have worked hard to safely advance and de-risk the Project, while protecting our employees, the environment and the interests of the communities which are affected by our work.  The Goose Mine is fully permitted, has obtained social license and the support of our Inuit landowners and is advanced with detailed engineering largely completed.

Currently the Company is pursuing a significant project debt facility on reasonable terms to fund the Project. The Company has engaged in discussions with several streaming companies, which after due diligence have submitted stream proposals. The Company is considering a proposal which if completed would reduce the equity requirements of project financing.

In order to fund critical path activities while these other financing opportunities are being advanced, the Company has obtained a US$20 million senior secured credit facility (the “CF”). The CF is a one-year facility that will accrue interest at a fixed rate of 5.25% with the principal and capitalized interest due in full any time before or on the earlier of the maturity date (September 27, 2022) and the closing date of certain non-equity financings.  The CF has a minimum nine-months interest payable on termination.

“This initial US$20 million debt facility enables us to continue to fund our critical path activities while we pursue our full funding initiatives,” said Bruce McLeod, President & CEO.  “All of the work completed and planned so far provides the basis for a more executable project construction period.  We look forward to reporting progress on all fronts going forward.”

A variety of initiatives will be funded by the $20m CF including:

• Construction of 10 million litre bulk fuel storage tank and containment at Goose
• Procurement and delivery of bulk diesel fuel
• Construction of fuel transfer systems at the Goose and Port facility
• Continued earthworks activities at Goose site, including plant site rough grading
• Preparation for winter-ice-road construction and haulage in 2022

The project schedule has other critical path and long lead-time procurement items that would be required to maintain the timeline to production as contemplated in its Updated Feasibility Study. These items would require additional funding in the coming months. If this additional funding is not completed in Q4 2021, it is likely that these long lead time items would not be obtainable to meet the contemplated schedule.  While this could mean a delay in the Project, pre-development activities completed and planned for the remainder of the year will significantly de-risk the Project construction period.

Qualified Persons

Mr. Vincy Benjamin, P. Eng., and Director of Engineering for Sabina, is a Qualified Person pursuant to National Instrument 43-101 and has reviewed and approved of the technical content of this press release as it relates to the Back River Project.

Sabina Gold & Silver Corp.

Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in Nunavut, Canada.

Sabina recently filed an Updated Feasibility Study on its 100% owned Back River Gold Project which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, with a post-tax IRR of ~28% and NPV_5% of C$1.1B. See “National Instrument  43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.

The Project received its final major authorization on June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.

In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.