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The Back River gold project, a gold hosted in iron formation project, is situated approximately 60KM away from Hackett, adjacent to the Wishbone Greenstone belt and offers the opportunity to become a mid-tier gold producer. The Company has been targeting a notional minimum gold production profile of 300,000 ounces per year for a minimum of 10 years.

Prior to moving towards scoping or economic studies, the Company's 2010 objective was to increase the global resource at Back River by an additional 700,000 ounces. With this target in mind, the Company's primary focus at Back River was at the Goose claims block where gold is hosted within wide units of folded iron formation resultinig in thick, shallow gold targets, potentially amenable to open pit extraction.

To assess these targets, Sabina's exploration team has developed an exploration "tool box". This tool box is based on (among other things) interpreting geological and geophysical signatures used to identify areas on the iron formation that have been altered by high temperature geological events. This set of exploration assumptions worked well for the team in 2009 and 2010. Within six months of field work, three new gold discoveries were made on the Goose block, two of which are significant: Llama and Umwelt. These two deposits remain open and are priority targets for drilling in 2011.

Resources for Llama and Umwelt were announced in March of 2011 and exceeded the 700,000 target considerably.

In September of 2011, the Goose deposit, was remodeled into an open pit project adding approximately 360k ounces to the resources.

In November 2011, the Company announced another update to its Umwelt Resource at Back River, bringing the total resource to over six million ounces of gold at an average grade of just under 6 g/t Au. The Company has embarked on a Preliminary Economic Assessment of the project which is anticipated to be completed at the end of Q1, 2012.

Back River holds an 43-101 indicated resource of 22.33 million tonnes grading 5.62 g/t gold (4.03 million ounces gold) and an additional inferred resource of 10.03 million tonnes grading 6.23 g/t gold (2.02 million ounces gold).


RESOURCE UPDATES

Back River Mineral Resources - March 3, 2011
Classification	Location	Tonnes	Grade	Ounces
		('000s)	(g/t Au)	('000s)
Indicated	Llama	1,860	9.4	562
	Umwelt	4,601	6.0	900
	Goose	1,577	11.9	603
	George	1,838	10.0	590
Total Indicated		9,876	8.33	2,655
Inferred	Llama	980	5.7	180
	Umwelt	1,067	6.4	221
	Goose	992	9.2	295
	George	2,563	10.5	866
Total Inferred		5,602	8.65	1,562

Notes:

1. CIM definition standards were followed for Mineral Resources
2. The Qualified Person under National Instrument 43-101 for the Llama and Umwelt Mineral Resource estimate is Patti Nakai-Lajoie, P. Geo., Roscoe Postle Associates Inc. (RPA).  The Qualified Person for the Goose deposit and George Property Mineral Resource Estimate is Douglas Cater, P. Geo, Sabina Gold & Silver Corp.
3. Mineral Resources are estimated at Llama and Umwelt are estimated at a pit discard cut-off grade of 0.76 g/t Au.  Preliminary open pit shells were used to constrain the Llama and Umwelt resources.  Mineral Resources at the Goose deposit and George Property are underground resources estimated at a cut-off grade of 5 g/t Au. High assays were capped at 70 g/t Au at Llama and 60 g/t Au at Umwelt.
4. High assays were capped at 33 g/t Au for domain groups 10 to 40, 110 g/t Au for groups 50 -- 54 , 70 g/t Au for groups 60 -- 67 and 60 g/t Au for groups 70 -- 73 at the Goose Deposit. The composites for the George Property were capped to a maximum grade ranging from 20 g/t Au to 50 g/t Au.
5. Llama and Umwelt parent block dimensions are 10 m E x 20 m N x 5 m high, with a minimum sub-block dimension of 0.5 m E x 1 m N x 0.5 m high.  Goose deposit parent block dimensions are 10 m E x 20 m N x 5 m high with a minimum sub-block dimension of 0.5 m E x 1 m N x 0.5 m high.  The George Property deposits were estimated based on a parent block cell size of 10 m E x 20 m N x 20 m RL (with the exception of GH which was 10 m Ex 30 m Nx 30 m RL) with sub-blocking of 0.5 m E x 2 m N x 2 m RL.
6. Llama and Umwelt resources are estimate using a gold price of US$1200 per ounce and George and Goose deposit resources are estimated using a 5 g/t Au lower cut-off grade.
7. Bulk densities used for Llama and Umwelt were 3.02 t/m3 in iron formation, 2.80 t/m3 in greywacke, 3.0 t/m3 in gabbro, 2.73 t/m3 in felsic dyke, and 1.80 t/m3 in overburden. Bulk densities used for the Goose deposit were 3.03 t/m3 in the lower iron formation, 2.93 t/m3 in the upper iron formation/grewacke, 2.99t/m3 in internal greywacke, 2.79 t/m3 in external greywacke, 2.71 t/m3 in felsic dykes and 1.80 t/m3 in overburden.  Bulk densities used for the George Property resource ranged from 3.02 -- 3.11 t/m3 in the iron formations, 2.77 t/m3 in the non iron formation lithologies, 2.99 t/m3 in the gabbro, 2.77 t/m3 in the greywacke, 2.71 t/m3 in felsic dykes and 1.80 t/m3 in overburden.
8. Mineral Resource estimates may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other factors.
9. Numbers may not add due to rounding

The RPA and Coffey Mining mineral resource estimates and classification are in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources (CIM) definitions dated December 11, 2005 incorporated into NI 43-101.

LLAMA DEPOSIT

A total of 61 holes totalling 16,700m were completed at Llama where the continuity of mineralization has been extended 500 metres along strike to a depth of 250 metres. Approximately six holes remain with assays pending.

Initial interpretations of Llama suggest that it is a fold structure consisting of both an upper and lower iron formation with an interbedded sediment core all of which have been intruded by a series of late stage felsic dykes. However, the geological interpretation of the area is still evolving and is largely based on visual interpretation of mineralization and structures in the core.

UMWELT DEPOSIT

A total of 54 holes and 15,448 metres of drilling were completed on Umwelt.

The continuity of mineralization in the Umwelt area has now been established over a 500 metre length with intercepts as deep as 250 metres. The strong continuity at shallow depth of this zone could provide opportunities for open pit extraction.

Drilling at Umwelt has identified an anti-form structure with a fold hinge that plunges to the south. Thick zones of gold mineralization are associated with the fold hinge in what is now known as the East Zone. Mineralization also occurs along a separate iron formation horizon immediately to the west known as the West Zone.

All of the assay results from the East Zone continue to indicate that it is the stronger of the two zones at Umwelt.

The Umwelt area appears similar to that of the overlying property scale geology which is underlain by folded Beechey Lake turbiditic meta-sediments with oxide and silicate facies banded iron formations that are cut by felsic and gabbroic dikes.

Mineralization identified to date has been interpreted as hosted within a turbiditic sedimentary sequence of locally sulphidized silicate and oxide facies iron formations interbedded with varying amounts of lesser mineralized greywacke, siltstone and mudstone. Gold mineralization has been noted as occurring within quartz +/- carbonate veining and sulphidized iron formation lithologies most often associated with arsenopyrite +/- pyrite +/- pyrrhotite. Evaluation of geology and mineralization within the Umwelt Lake area is ongoing.

To view the Back River resources, please click here.