Sabina Silver Corp | Company Profile

Company Profile

Sabina is currently evolving from a junior exploration company into an intermediate development company through its substantial 100%-owned Hackett River Silver-Zinc Project in Nunavut, in the Canadian Arctic. The Hackett River Project is currently undergoing a prefeasibility assessment anticipated to be completed in the third quarter of 2008. In addition, the Company is carrying out work on its Del Norte Silver-Gold Project in the Stewart-Eskay Creek Mining District of British Columbia as well as exploring four promising gold projects in the Red Lake Mining District in Ontario. The Company is well financed with no debt, and has approximately C$44 million in cash and C$7.0 in marketable securities (at December 31, 2007). In addition, warrants exercisable over the next 18 months representing a further C$50 million. These financial resources in conjunction with a management team that has demonstrated proven success in exploring, developing, building and operating large projects in difficult environments provide the platform for Sabina to become a leading Canadian mining company.

Hackett River - Flag Ship Project

Location

The Hackett River Project is located in the West Kitikmeot Region of Nunavut, Canada’s newest territory, approximately 75km southwest of Bathurst Inlet on the Arctic Ocean, Canada’s third coastline. The Project is situated in the Slave geological province of the Canadian Shield, an area that has been prolific for the exploration and development of mineral resources over the years.

Accessibility

The Hackett River Project sits approximately 23 kilometers from the proposed Bathurst Inlet Port and Road (“BIPR”) which is currently progressing through the permitting process in Nunavut. This proposed road is a private initiative that would include construction of a deep water port at Bathurst Inlet and an all weather road south to Contwoyto Lake to connect to the winter road coming north from Yellowknife. The proposed road and port would enable easy mobilization of equipment and supplies by barge during the summer months as well as transportation of concentrate not only from Hackett River, but from other projects in the region. This proposed road demonstrates Nunavut’s recognition of mineral development
as a key driver for sustainable development in the territory. As part of the Hackett River Project design, however, a 75 km all weather road has been included into the design and construction plan for the Project that would connect the Project with its own port at Bathurst Inlet, should the BIPR development be delayed.

Resources

The currently defined Hackett River resources are included in three main deposits in close proximity, although there is significant potential for additional discoveries of mineable resources on the Hackett River tenements. The East Cleaver and Main “A” Zone are robust thick precious and base metals beginning near-surface allowing for open pit opportunities, while the Boot Lake deposit, which extends to 600m and remains open at depth, is more amenable to underground mining. The deposits are dominantly silver (Ag) and zinc (Zn) rich, with by-product copper (Cu), lead (Pb) and gold (Au).

The existing resources on the project are projected to be:

Development

A Preliminary Economic Assessment, completed by Wardrop Engineering Inc. in March 2007, envisions a mine plan with average annual production of 324.7 million pounds zinc, 12.4 million ounces silver, 20.7 million pounds copper, 37.0 million pounds lead, and 17.2 thousand ounces gold over a mine life of 13.6 years. According to the Wardrop Study, a discounted cash flow analysis of the Hackett River Project achieves a pre-tax net present value (NPV) of C$345 million at an 8% discount rate with a pre-tax
internal rate of return (IRR) of 20.6% and a payback period (PBP) of approximately 3 years after the start of concentrate production.The Project features a bulk mining plan which includes ore production from open pits at Main Zone and the East Cleaver deposits and a maximum of 5,750 tonnes of ore per day from a large underground mine on the Boot Lake deposit for a total of 10,000 tonnes per day. Initial capital (3year) costs are projected at C$527 million,with open pit mining costs of C$12.74 per tonne of ore milled or C$2.24 per tonne over the life of mine. Considerable upside expansion potential remains on the known 3 resource deposits with a new discovery at the shallow, high grade Jo Zone in late 2007 providing immediate opportunities to add to the resources. The Project is now undergoing a Prefeasibility assessment which is being conducted by AMEC Inc. An updated resource is expected to be announced at the end of the first quarter of 2008 with the Pre-feasibility being completed in the third quarter of 2008.

Permitting

In January 2008, a Preliminary Project Proposal was submitted to the NunavutImpact Review Board formally initiating the permitting process for the Project. Environmental baseline and other studies are continuing throughout 2008 to support completion of a draft Environmental Impact Statement, which is expected to be completed the First Quarter of 2009.

Exploration at Hackett River

As the majority of work at Hackett River focused on developing the known deposits to feasibility, the Project has been largely under explored. It is management’s belief that there are opportunities at the Hackett River Project to increase the existing resource. Drill intercepts from the Jo Zone, an exploration target located approximately 4 kms from the proposed Hackett River milling site, suggest the potential for a fourth mineral deposit for the Project. Selected high-grade sub-intervals listed below from depths near surface to 115 meters indicate the exceptionally high silver and zinc grades encountered during the 2007 Jo Zone drilling:

As part of the 2008 program, the Company will return to the Jo Zone with the objective of drilling the zone to include it in the 2009 resource estimate.

Del Norte Silver-Gold Project,
Stewart Eskay Creek Mining
District Gold Assets at Red Lake
Gold Camp

In addition to several very promising gold assets in the Red Lake Gold Camp of Ontario, site of the world’s highest grade underground gold mine, Sabina holds the right to earn 65% in the Eskay Creek look-alike Del Norte Project in British Columbia which in 2005 returned a drill intercept of 110oz/ ton silver and 2.08oz/ton gold over 2.8ft within a 51 foot mineralized interval grading 0.363 oz/ton gold equivalent.

Corporate Summary

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