Subscribes for C$13M by Way of Private Placement

Sabina Gold & Silver Corp (TSX:SBB) (OTCQX:SGSVF), has announced that Zhaojin International Mining Co., Ltd. has elected to exercise its participation right under its Shareholder Agreement with the Company in connection with the Company’s US$95 million (C$120 million) private placement with Orion Mine Finance and Wheaton Precious Metals,

To maintain its 9.9% ownership of the Company, Zhaojin will purchase approximately 10.1 million common shares of the Company  at $1.30 per share by way of a private placement which would raise an additional C$13 million.

“We are very pleased that Zhaojin continues to invest in the Company and the Back River Project. We look forward to continuing to work with them during this exciting time as we transition into a gold miner,” said Bruce McLeod, President & CEO.

The remainder of the Offering and the Zhaojin PP will close in two further tranches with C$39 million closing later in February, 2022 (the second tranche) subject to TSX approval and C$18 million closing in Q2, 2022 subject to TSX and shareholder approval.

The shares and proceeds related to the Zhaojin PP are additional to the Offering and will off-set future equity requirements. The net proceeds of the Offering and the Zhaojin PP will be used to advance development of the Company’s Back River Gold Project and for working capital and general corporate purposes.

Sabina Gold & Silver Corp.

Sabina Gold & Silver Corp. is an emerging gold mining that 100% owns the district scale, advanced, high grade Back River Gold District in Nunavut, Canada.

Sabina recently filed an Updated Feasibility Study on its first mine on the district, the Goose Mine, 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 (NI) 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.

The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the Kitikmeot Inuit Association and has committed to various sustainability initiatives under the agreement.

In February 2022, the Company announced it had completed a comprehensive project financing package for US$520 million comprised of:

• A US$225 million senior secured debt facility with Orion Mine Finance;
• A US$75 million gold prepay facility with Orion Mine Finance;
• A US$125 million gold stream arrangement with Wheaton Precious Metals; and
• A US$95 million private placement of Sabina Common shares subscribed to by both Orion and Wheaton Precious Metals.

The Company continues to advance development at its Goose Mine as well as continues exploration activities on the next area of focus on the belt: the George Property.

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.