Sabina Gold & Silver Corp. Announces $15.0 Million "Bought Deal" Financing

VANCOUVER, BRITISH COLUMBIA, Oct 18, 2010 (Marketwire via COMTEX News Network) --

Sabina Gold & Silver Corp. (the "Corporation") (TSX:SBB) is pleased to announce that it has entered into an agreement with Dundee Securities Corporation, and a syndicate of underwriters to be determined, to purchase, on a bought deal basis, 2,810,000 flow-through common shares (the "Flow-Through Common Shares") at a price of $5.35 per share for gross proceeds of $15,033,500.

The gross proceeds of the Flow-Through Common Shares will be used to aggressively advance the Company's projects in Nunavut, particularly at Back River, with a preliminary 2011 exploration budget of approximately $40 - $45 million. The exploration program and budget is subject to final review and board approval.

A cash commission equal to 5.0% of the gross proceeds raised in the offering will be paid to the underwriters.

The Flow-Through Common Shares to be sold under this offering will be offered by way of a private placement in the Provinces of British Columbia, Alberta, and Ontario.

The offering is scheduled to close on November 5, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange, and other applicable securities regulatory authorities. All securities issued will be subject to a four month hold period. SABINA GOLD & SILVER CORP. is a Canadian public mineral exploration and development company with assets at the Hackett River silver, Back River gold and Wishbone projects in Nunavut, Canada and several projects in the Red Lake gold camp.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

SOURCE: Sabina Gold & Silver Corp.

Sabina Gold & Silver Corp. Nicole Hoeller Director, Investor Relations (604) 998-4175 #202 - 930 W First St.