Sabina Gold & Silver Updates Progress for the Goose Mine Development

~70% Procurement and 40% Overall Civil Works Completed

Procurement continues in 2022 to secure commitments for equipment pricing and delivery

VANCOUVER, British Columbia, May 16, 2022 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) provides an update on advancements of the Goose Mine development at the Company’s 100% owned Back River Gold District in Nunavut, Canada. The Goose Mine is the Company’s first mine on the 80 km long Back River Gold District, a multi-generational mining district already with a high-grade world class gold endowment.

The first quarter of 2022 culminated in one of the most important milestones for the Company to date. Debt, streaming and equity financings were completed with a total of over C$800 million arranged, well in excess of the requirements of the 2021 Updated Feasibility Study (“UFS”).

More importantly, with financing in hand, pre-construction, logistical and procurement activities have accelerated. In anticipation of the financing, Sabina had prepared tender documents and purchase orders which enabled the Company to quickly procure critical components necessary for this year’s sealift.

The UFS CAPEX estimate was C$610 million. Of that, approximately C$218 million was identified as direct equipment and materials purchases.  Since last year, Sabina has procured, or has committed agreements to procure, just over 70% of all direct purchases identified in the UFS.  Reconciliation on purchases have seen an average overall inflationary escalation of 14% since March of 2021, with a 20% escalation on the purchases made in 2022.  Efforts now focus on securing the remaining 30% (C$62 million) of materials and equipment.

Earthworks at the plant site are ~67% complete, which reflects an overall Project civil works completion rate of ~40%. To date, the Project is trending an ~10% quantity reduction from UFS estimates.

“Inflation and global supply chain issues have impacted all new capital investment projects and Sabina continues to monitor these potential impacts as we develop the Goose Mine,” said Bruce McLeod, President & CEO. “We are fortunate that our strategy of pre-planning and accelerating procurement efforts has reduced our exposure to inflationary impacts.”

Advancement Highlights and Schedule and Cost De-risking Events

Engineering

• FLSmidth (“FLS”) has been chosen to supply the key equipment for the Goose Mine processing flowsheet. The equipment package is valued at approximately US$39 million and is due to be delivered by mid-2023, for implementation ahead of the mine start-up date of Q1, 2025;