First Component of US$520 million Project Financing Package

Sabina Gold & Silver Corp. (TSX:SBB) (OTCQX:SGSVF) is pleased to announce that it has closed the first tranche of the US$95 million equity private placement to Orion Mine Finance and Wheaton Precious Metals Corp. in connection with the previously announced Project Financing Package to fund construction and development of the Goose Mine at Sabina’s 100% owned Back River Project in Nunavut, Canada.

The first tranche of the private placement in connection with the US$520 million financing package comprises the issuance of 46,209,769 common shares of the Company to Orion and 12,322,605 common shares of the Company to WPM for total net proceeds of approximately CAD$75.5 million.

“We are very happy with WPM’s increased position and Orion’s addition to Sabina’s shareholder registry,” said Bruce McLeod, President & CEO. “We believe their investment in the Company reflects their confidence in the merits of Goose mine and in Sabina’s ability to execute and deliver the Project. We look forward to continuing to report on our progress as we begin to kick off our 2022 activities”

In connection with the Financing, as previously announced, Sabina executed final documentation with respect to: (i) the provision by Orion of a senior secured project finance debt facility in the principal amount of US$225 million and a gold prepay facility in the amount of US$75 million, (ii) the purchase by Orion of 100% of the annual refined gold production from the Project based on prevailing market prices, (iii) the purchase by Orion, on a private placement basis, of up to US$75 million of Sabina common shares, (iv) a US$125 million gold stream arrangement with WPM and the purchase by WPM on a private placement basis of up to US$20 million of Sabina common shares.

Equity Financings

Orion and WPM have subscribed to a total private placement of 72,732,692 and 19,395,384 common shares of Sabina respectively at a price of C$1.30. This private placement is scheduled to close in three tranches with this being the initial, the second by the end of Q1, 2022 and the third in Q2, 2022. The proceeds of the Financing will be used to fund 2022 development initiatives and procurement commitments and includes repaying the previously announced US$20 million Sprott bridge loan in accordance with its terms.

About Sabina

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 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.