Property Description and Ownership

The Back River Project is comprised of seven property blocks; Goose, George, Boot, Boulder, Needle, Dell, and the Bath1 Claim, which are centered in the south-western part (Kitikmeot Region) of Nunavut Territory, Canada. Back River is situation approximately 520 km northeast of Yellowknife, NWT, 225km east of the closed Lupin gold mine and 50 km southeast of the Hackett River Silver Zinc Project, now owned by Xstrata Zinc Canada Ltd. The seven Back River properties are all wholly owned by Sabina.

Geology and Mineralization

The current gold deposits at Back River comprise deposits at Umwelt, Llama and Goose (all on the Goose block) and the George deposits approximately 60 km to the north on the George block. The Goose and George deposits are historical deposits which formed the resource basis upon which Sabina acquired the property.

These deposits are hosted by sulphidized carbonate, oxide and silicate iron formation that are cut by barren and sulphide-bearing quartz veins. Most of the known or observed gold mineralization identified is associated with quartz veins, silification and shearing. The gold mineralization occurs within silicified and variably sulphidized iron formation and to a lesser extent, meta-sedimentary units that appear to have a spatial association with narrow porphyritic felsic dykes and mudstones wherever these units are present.

Gold mineralization on the Goose deposit is predominantly structurally controlled. The deposit is situated within the lower iron formation and underlying sediments beneath the Goose antiform structure,which resides within a 500m + wide corridor of widely spaced, subparallel north to northeast trending southeast dipping, normal faults that have up to 30 m of left-lateral displacement and a down dropping of individual fault blocks of up to 75m. Gold mineralization at George (Local 1, Local 2, Slave, GH and Lone Cow Pond) is located within oxide iron formation near the stratigraphic base of this unit. Less significant gold mineralization is also hosted within silicate iron formation. Gold bearing zones are associated with sulphide concentrations in the iron formation and are commonly accompanied by increased quartz veining and attendant alteration of the surrounding rocks.

Since acquisition by Sabina in June 2009, five new gold mineralized zones, Echo, Llama, Umwelt, Goose Neck South and Camp zone have been discovered on the Goose block. Initial interpretation of the geology and gold mineralization for these new discoveries has similarities to the Goose deposit. There are significant variations in sulphide concentrations, intensity of alteration and host lithologies (predominantly the lower iron formation).

Exploration

Sabina acquired the Back River Project from Dundee Precious Metals (DPM) on June 9, 2009. Since acquisition, nearly all exploration has been confined to the Goose property and all exploration has focused on finding new gold mineralization away from the existing Goose deposit.

2009:

Sabina completed a diamond drill program consisting of 6,690 meters and 27 diamond drill holes. Work also included geophysics consisting of Mag and IP surveys, ground geophysics consisting of walking and skidoo Mag surveys, and mapping and prospecting north of Llama Lake. Drilling commenced in July and continued into September, 2009.

2010:

Sabina completed 157 diamond drill holes totally 40,203 meters of core on the Goose block. Drilling was focused on the Echo, Llama and Umwelt target. This drilling resulted in the discovery of significant new gold mineralized zones at Llama and Umwelt. Drilling commenced in March and continued into October, 2010.

2011:

Sabina completed 132 diamond drill holes totaling 53,451 meters of core on Back River Project. Drilling was mostly focused on the Goose block to expand and increase the existing resources on the Llama and Umwelt deposits. Additional discovery level targets were drill tested in 2011 that resulted in the discovery of new gold mineralized zones at Goose Neck South and Camp Zones. Drilling also took place on the George block where 39 diamond drill holes were completed totally 8,378 meters looking for targets that were analogous to the deposits at the Goose block.

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