Sabina Gold & Silver Corp. (TSX:SBB) (SBB-T) announced today the completion of the previously announced bought deal financing. The offering was comprised of 10,345,000 Flow-Through Common Shares (“FT Shares”) at $2.90 per share. In addition, the underwriters exercised an over-allotment option for an additional 1,551,750 FT Shares at $2.90 per share bringing the total gross proceeds of the offering to $34,500,575. The financing was underwritten by a syndicate of underwriters led by Dundee Securities Ltd. and including BMO Capital Markets, RBC Capital Markets, Desjardins Securities Inc., Paradigm Capital Inc., Cormark Securities Inc., Salman Partners Inc. and Primary Capital Inc., who received a cash commission of 5.0% of the gross proceeds.

In addition to the brokered offering, the Company has sold, on a non-brokered private placement basis, and on the same terms as the brokered placement, 206,735 FT Shares at $2.90 per share for additional gross proceeds of approximately $0.6 million.

“This additional funding ensures we are fully funded through feasibility and permitting at Back River while also providing us with greater flexibility to continue to plan and carry-out aggressive exploration programs in 2013 and beyond, which the results of our recently announced PEA and positive 2012 exploration results to-date justify,” said Rob Pease, President & CEO. “The Board and management believe that exploration will continue to add substantial value to our projects and to the Company. In a market where access to capital is increasingly scarce, we are pleased to see continued support for our projects from shareholders.”

All of the FT Shares issued pursuant to the private placements are subject to a four month hold period expiring October, 2012. The total gross proceeds of approximately $35.1 million must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2013.

The Company expects to have approximately $120 million in cash at December 31, 2012.

SABINA GOLD & SILVER CORP.

Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.

Sabina’s primary properties consist of the Back River Gold Project, the Wishbone Claims, a vastly prospective grass roots gold project and the Hackett River silver royalty, all located in Nunavut. The silver royalty on Xstrata’s Hackett River silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.

Forward Looking Statements

Statements relating to mineral resource estimates at Llama, Umwelt, George and Goose and the expected impact of these mineral resources are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties, including those described in Sabina’s Annual Report for the year ended December 31, 2011.

Forward-looking statements are based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management’s beliefs, estimates or opinions, or other factors, change.

This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Rob Pease, President & CEO