Sabina Silver Announces Closing of Back River Transaction

VANCOUVER, BRITISH COLUMBIA, Jun 10 (MARKET WIRE) --
Sabina Silver Corporation (the "Company") (TSX VENTURE: SBB) announced
today that the previously announced Back River asset purchase from Dundee
Precious Metals ("DPM") has been completed.

"I am happy to report on the closing of what I believe is a great value
creating transaction for Sabina shareholders," said Tony Walsh, President
& CEO. "The Back River assets present significant exploration
opportunities and we are excited to get working on the property.
Currently, we are gearing up to start drilling on Goose Lake in mid-July
and are finalizing plans for work on the Wishbone properties."

Pursuant to the transaction, in exchange for the Back River Project, the
Company issued:

- Cdn$7 million in cash;

- 17,000,000 Sabina common shares;

- 5,000,000 Class A Unit Warrants; and

- 5,000,000 Class B Unit Warrants

Each of the Unit Warrants ("Units") is exercisable for one common share
and one-half of one common share purchase warrant ("Warrant") of Sabina.
The Class A Unit Warrants will be automatically exercised upon a decision
to proceed to a feasibility study or proceed to production on the Back
River project and in certain other events. The Class B Unit Warrants will
be automatically exercised upon a positive production decision with
respect to the project. Each whole Warrant, if issued, will be
exercisable for five years from the date of closing, to purchase one
Sabina common share at a price of Cdn$1.07 per Sabina common share.

As a result of the transaction, without giving effect to the exercise of
the Special Warrants, DPM holds 18.8% of Sabina's outstanding common
shares.

In conjunction with the transaction, David Fennell and Jonathan Goodman
have been appointed to the Board of Directors.

Work Planned on the Back River Projects

The Back River Assets consist of two main components, the original Back
River property hosting the George and Goose Lake gold deposits and a
recent new project area, the Wishbone Project. The Back River gold
deposits contain a resource of 1.19 million indicated ounces of gold and
1.16 million inferred ounces of gold at an average grade of 10 grams per
tonne and are proximal to Hackett River, with George Lake being
approximately 40 km to the south east. The Wishbone property covers a
large portion of the Hackett River Greenstone Belt and hosts Sabina's
Hackett River Project as well as other smaller base and precious metal
deposits. The combined properties total approximately 3,000 square km and
cover a largely unexplored highly prospective greenstone belt.

Back River Exploration

Work at Back River will focus on the Goose Lake deposit which currently
hosts 603,000 indicated ounces of gold at 11.9 g/t and 295,000 inferred
ounces at 9.2 g/t.

Management has identified Goose Lake as the immediate exploration target.
The current resource lies within a thick folded iron formation with a
shallow plunging fold hinge. This makes Goose Lake deposit a favourable
target for open pit development.

The Goose camp was opened earlier this winter and a resupply program of
fuel and drilling supplies was completed to support a two drill program
this summer.

The exploration objectives for the Back River project in 2009 can be
summarized as follows:

- To conduct a short IP or ground based geological survey to better
define the target locations and orientations prior to diamond drilling.

- To conduct a total of 5000 to 6000 metres of diamond drilling at the
Goose Lake deposit, focusing on priority targets outside the current
deposit area.

- A budget of $3.23 million has been planned for Goose Lake target
drilling.

The drill targets identified include the following:

The Goose Neck target is located 1.9 km west of the Goose Lake deposit.
This target consists of a strong geochemical anomaly, and the geophysical
signature indicates the presence of thick folded iron formation. A single
historical diamond drill hole (93GO-037) returned assays of 4m grading
5.73 g/t au.

The Washout is a priority target and is located approximately 1 km west
of the Goose Lake deposit. Geologically this target consists of a broad
folded section of demagnetized iron formation which is near a large
felsic intrusive. It is interpreted that the large intrusive acted as a
heat source and hydrothermal fluids have altered the iron formation
significantly thereby creating potential for gold deposition in this
large area. A ground induced polarization survey will be completed to
refine the 2009 diamond drill targets.

The Llama/Jackaroo area is located approximately 6 kilometers northwest
of the Goose deposit and consists of an area of complex folded iron
formation units that have been cut by felsic intrusive units. There is no
previous drilling in the key target area. Prospecting and detailed
mapping will be completed prior to drill testing.

Wishbone

An initial budget of $750,000 has been set for the summer exploration
program for the Wishbone project to explore for both gold deposits and
base metal rich volcanic massive sulphide (VMS) deposits. The Wishbone
project covers a VMS district-scale land package over the highly
prospective extension of the Hackett River Greenstone belt outside of the
main Hackett River deposit area. It has received minimal historical
exploration work and hosts two other VMS deposits; Savant Exploration's
Yava and Xstrata's Musk VMS deposits. In 2008, a 12,350 line km VTEM
survey was completed by DPM over the southern portion of the property.
This survey successfully defined at least 200 prospective EM anomalies.
Work will focus on following-up these anomalies and will include 1,200 m
of diamond drilling. The initial priority will be given to gold and VMS
targets that are proximal to Hackett River to best impact possible
synergies with Hackett. In addition, an evaluation will begin on the
large block of claims to the north of Hackett River where favourable
hydrothermal alteration has been previously identified in regional
mapping.

Quality Assurance

Mineral resources for Goose Lake and George Lake were generated by RSG
Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are
posted on www.sedar.com. Mr. John Wakeford, P.Geo. and a Qualified Person
in accordance with NI 43-101 has reviewed the resources referred to above
and has approved their dissemination.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and
development company with assets at the Hackett River silver-zinc project
in Nunavut and several projects in the Red Lake gold camp. The Company is
well capitalized with approximately $40 million in cash and marketable
securities at March 31, 2009. The strategy to grow the company focuses on
two mandates: 1) to continue to focus on enormous exploration and
development potential of the Hackett River silver-zinc and Back River
gold projects; and 2) maintain a strong balance sheet to acquire
accretive precious metals assets.

Forward Looking Statements

Statements relating to the Back River Acquisition and the expected
results of this transaction are forward-looking statements within the
meaning of securities legislation of certain Provinces in Canada. Forward
looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", 'projects",
"potential" and similar expressions, or that events or conditions "will",
"would", "may", "could" or "should" occur. Information inferred from the
interpretation of drilling results and information concerning mineral
resource estimates may also be deemed to be forward looking statements,
as it constitutes a prediction of what might be found to be present when
and if a project is actually developed. These forward-looking statements
are subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in the
forward-looking statements, including, without limitation: risks related
to fluctuations in gold prices; uncertainties related to raising
sufficient financing to fund the planned work in a timely manner and on
acceptable terms; changes in planned work resulting from weather,
logistical, technical or other factors; the possibility that results of
work will not fulfill expectations and realize the perceived potential of
the Company's properties; uncertainties involved in the estimation of
metal reserves and resources; the possibility that required permits may
not be obtained in a timely manner or at all; the possibility that
capital and operating costs may be higher than currently estimated and
may preclude commercial development or render operations uneconomic; the
possibility that the estimated recovery rates may not be achieved; risk
of accidents, equipment breakdowns and labour disputes or other
unanticipated difficulties or interruptions; the possibility of cost
overruns or unanticipated expenses in the work program; the risk of
environmental contamination or damage resulting from Sabina's operations
and other risks and uncertainties, including those described in Sabina's
Annual Report for the year ended December 31, 2008.

Forward-looking statements are based on the beliefs, estimates and
opinions of Sabina's management on the date the statements are made.
Sabina undertakes no obligation to update these forward-looking
statements should management's beliefs, estimates or opinions, or other
factors, change.

This news release has been authorized by the undersigned on behalf of
Sabina Silver Corporation.

Tony Walsh, President and CEO

To view the map accompanying this release please click on the following
link: http://media3.marketwire.com/docs/0610sbb.jpg

Contacts:
Sabina Silver Corporation
Nicole Hoeller
Director, IR
1 888 648-4218
nhoeller@sabinasilver.com
www.sabinasilver.com

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