Sabina Completes $15.9 Million Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2010) -

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Sabina Gold & Silver Corp. (TSX:SBB) announced today the completion of the previously announced bought deal private placement. The private placement was comprised of 7,500,000 flow-through common shares at a price of $2.00 per share for gross proceeds of approximately $15,000,000 million. The syndicate of underwriters was led by Dundee Securities Corporation and included Salman Partners, BMO Nesbitt Burns Inc., RBC Dominion Securities Desjardins Securities, Laurentian Bank Securities, Paradigm Capital Inc., Haywood Securities Inc., and Mackie Research Capital Inc. In consideration for their services, the underwriters received a cash commission equivalent to 5.0% on the gross proceeds of this transaction.

In addition to the brokered private placement, the Company has also sold, on a non-brokered basis and on the same terms as the brokered placement, 450,500 flow-through shares at $2.00 per share for gross proceeds of $901,000.

"We're planning to continue to aggressively work on our Nunavut exploration programs to follow up on the successes and new discoveries at the Hackett River/Wishbone and Back River projects in 2009 and this year to date. The new Llama Lake gold discovery at Back River is very exciting for the Company and warrants considerably more drilling," said Tony Walsh, President & CEO "This financing will provide a significant portion of the funding for the 2011 programs. We expect to end this year with approximately $30 million in cash and will be well positioned to continue to move our projects forward."

All the common shares issued pursuant to the private placements are subject to a four month hold period expiring October 1, 2010. The total gross proceeds of approximately $15.9 million must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by December 31, 2011.

Exploration Programs for 2010

The Company is currently working on exploration programs for the Hackett River, Back River and Wishbone properties which commenced in mid March 2010. The Company expects to drill about 26,700 meters at Hackett River and Wishbone combined and 20,000 meters at Back River with total spending of approximately $26 million. Additionally, the Company is in the process of formalizing an option agreement on the Cook Lake North and South properties in Northern Manitoba, where it expects to commence drilling sometime in the fourth quarter.

SABINA GOLD & SILVER CORP. is a Canadian public mineral exploration and development company. Key assets include the Hackett River silver project, the Back River gold project and the Wishbone grassroots exploration project all in Nunavut. Additionally, the Company has several projects in the Red Lake gold camp and an option on the Cook Lake North & South properties directly adjacent to the recently discovered Lalor deposit in Manitoba. Sabina also has interests in the Red Lake District of Ontario on which it plans work.

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

Elaine Bennett, Vice President & CFO 930 West 1st Street, Suite 202 North

(END) Dow Jones Newswires (212-416-2400)

June 03, 2010 07:30 ET (11:30 GMT)

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