Mr. Bruce McLeod reports

SABINA & KITIKMEOT INUIT ASSOCIATION ANNOUNCE BINDING TERM SHEET FOR LAND TENURE AND INUIT BENEFITS FOR THE BACK RIVER GOLD PROJECT, NUNAVUT, CANADA

Sabina Gold & Silver Corp. and the Kitikmeot Inuit Association (KIA) have executed a binding term sheet setting forth the principal terms that are to be included in a definitive framework agreement (FA). The FA, upon completion, would be a comprehensive agreement, which would set out rights and obligations with respect to surface land access on Inuit-owned land and will include an Inuit impact and benefits agreement (IIBA) among other obligations required by the Nunavut agreement.

"On behalf of the KIA board, I am pleased to announce the signing of this binding term sheet," said Stanley Anablak, president of the KIA. "We believe we have negotiated terms that focus on the interests of Inuit of the Kitikmeot region, providing them with training, employment, business opportunities and direct economic benefits from the Back River project. Throughout our negotiations, KIA's primary concern was including appropriate measures in the term sheet to conserve the land, water and wildlife while advancing socio-economic development for the region. We have made significant advancements in both socio-economic and caribou mitigation concerns. We thank the Sabina team for their effort and commitment to complete the term sheet and look forward to completing the definitive agreements in the coming months."

Bruce McLeod, president and chief executive officer of Sabina, commented: "The FA terms have been negotiated in good faith with a result that benefits both Sabina and all of our Nunavut stakeholders. We appreciate the considerable effort by the KIA throughout the process and are looking forward to working with the KIA upon completion of the FA to implement the initiatives contemplated by the FA. We believe the FA terms demonstrate our genuine long-term commitment to the Inuit of the Kitikmeot region and Nunavut and that our already-strong partnerships in the region will be made stronger."

The FA, when completed, would have a maximum term of 20 years and would include, among others, the following key provisions and agreements:

• Land use licences, which would permit Sabina to conduct non-exclusive exploration work at Back River;
• Advanced exploration leases permitting various advanced exploration and preproduction activities at Back River;
• Commercial leases authorizing the development of mines and related operations and closure activities at the Goose property;
• A 1-per-cent net smelter return royalty paid to the KIA on production at Back River on the properties that are subject to a commercial lease;
• A grant of 6.7 million Sabina shares to the KIA upon the effective date of the IIBA;
• An IIBA setting out commitments associated with Inuit employment, training and education, Kitikmeot business opportunities, formation of an Inuit environmental advisory committee, and investments in community infrastructure projects with the objective of supporting regional wealth creation initiatives within Kitikmeot communities;
• An initial investment of $4-million in regional wealth creation initiatives in the Kitikmeot, $2-million of which could occur following execution of definitive agreements, and the rest no later than upon a production decision, with additional payments commencing the third year following commercial production if Sabina-related employment targets are not achieved. The purpose of the regional wealth creation initiative is to create new long-term operating jobs outside of the mine to expand and diversify the Kitikmeot economy;
• An annual payment to the KIA of up to $1-million to cover KIA's cost of implementing the FA;
• Water and wildlife compensation agreements, including additional payments, if Sabina fails to implement caribou mitigation commitments regarding calving and postcalving periods made to the Nunavut Impact Review Board.

Under the binding term sheet, the parties have agreed to negotiate in good faith toward completing the FA and the other definitive agreements contemplated in the term sheet. The transactions contemplated in the term sheet are subject to the completion of the FA and such definitive agreements. Work is in progress on the FA and definitive agreements, which are targeted to be completed by early in 2018. The term sheet and the FA, involving the issuance of 6.7 million Sabina shares to the KIA, are subject to any necessary regulatory and Toronto Stock Exchange approval.

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is a well-financed, emerging precious metal company with district-scale, advanced, high-grade gold assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.

In addition to Back River, Sabina owns a significant silver royalty on Glencore's Hackett River project.

The company had approximately $36.6-million in cash and equivalents on June 30, 2017, not including the $6-million flow-through financing completed in September, 2017.

We seek Safe Harbor.