A first choice September, 2016 Forward Looking Information - PowerPoint PPT Presentation

Goose Gold Project, Back River, Nunavut, Canada A Gold Miner in the Making A first choice September, 2016

Forward Looking Information Statements relating to our belief as to the timing of completion of the environmental assessment, the results of the final public hearings, the timing of receipt of a project certificate and permits and the timing of the start of construction and the first gold pour, and the results of further optimization studies to the feasibility study, the potential tonnage and grades and contents of deposits and the potential production from and viability of Sabina’s properties are forward looking information within the meaning of securities legislation of certain Provinces in Canada. Forward looking information 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,” “opportunities,” and similar expressions, or that events or conditions “will,” “would.” “may,” “could,” or should occur. The forward looking information is made of the date of this presentation. This forward looking information is 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 information, including, without limitation: the effects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development; the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising 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; risk of accidents, equipment breakdowns and labour disputes; access to project funding or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; title matters; government regulation; obtaining and receiving necessary licenses and permits; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties including those described in Sabina’s annual information form for the year ended December 31, 2015 available at www.sedar.com Forward looking information is based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update the forward looking information should management’s beliefs, estimates or opinions, or other factors, change, except as required by applicable law 2

Key Investment Highlights A scarcity of gold and de-risked gold projects make Sabina one of the few highly leveraged undervalued opportunities  Regional scale (80km belt)  Strong community support  Large high grade  Attractive to producers resource/reserve looking to replenish supply  Pro responsible  Exceptional team  ~C$43 million in cash at June development  Feasibility complete 30, 2016  Robust at US$1150 gold  Expect to end 2016 with and C$0.80 ~C$38 million 3

Environmental Assessment & Permitting Broad support for the Project from communities and agencies alike  Office in Cambridge Bay with Community Liaison  Letters of support from representatives from Kitikmeot hamlets to Minister  Years of engagement and relationship building  We have proven our commitment to the people of the Kitikmeot “…the [NIRB] board wishes to recognize the considerable collaboration, data-sharing, and co-operation that was the hallmark of this review.” 4

Environmental Assessment & Permitting Process Milestone Date  Submitted Project Proposal To NIRB June 14, 2012  Minister directs NIRB to conduct a review of the project December 17, 2012 under Article 12, Part 5 NLCA  NIRB issues Final Guidelines for the Review April 30, 2013  Submitted Draft Environmental Impact Statement January 20, 2014  Technical Meetings, Community Round-Table and Pre- November 13-20, 2014 Hearing Conference  Pre-hearing Conference Decision released December 19, 2014  Final Environmental Impact Statement submitted November 23, 2015  Final Technical Review and Public Hearings April 25 – 30, 2016  NIRB Project Recommendation On Ministers Desk June 15, 2016 All information from all parties to Minister’s office for review September 30, 2016 Minister’s Decision Re: NIRB Recommendation TBD Water License and all other permits TBD 5

NIRB Process  Final public hearings April 25-30 th , 2016  Many questions were raised and issues discussed during the hearings  At the end of the hearings, all regulatory agencies , the Government of Nunavut, the Kitikmeot Inuit  On June 16, 2016, NIRB issued recommendation that Association and project shouldn’t go ahead at this time. community  Recommendations and suggestions on a number of issues, members from all in particular caribou  NIRB recognized that the project does not interact with hamlets expressed caribou calving and post calving grounds today, but are support for the concerned about caribou changes in migration in the future project 6

Caribou Calving and Post-calving Core Areas  No overlap with the Project  Bathurst herd - west of Project  Beverly herd - east of Project Green – calving grounds Purple – post calving grounds Source data: GN, DOE 2003 - 2014 No winter ice road throughout calving and post calving period

What are we doing?  We continue to receive broad based support for the project (letters posted to NIRB ftp site)  Kitikmeot Inuit Association (land owner) and the Government of Nunavut re-affirmed their support  We continue to engage with stakeholders in the communities and non-government agencies – community tour completed  Submitted comprehensive response to INAC in response to NIRB Report  We are working to incorporate updated measures and commitments made at the hearings into our proposals should 8

Our Response to the NIRB Recommendation We believe the NIRB Report hasn’t fully considered  The extensive community and Inuit support for the project  The significant socio-economic benefits to the Kitikmeot  The evidence provided by all parties  the fact that Sabina has already agreed to more protective measures than other projects in the North in many areas  The mandates and responsibilities of federal and territorial agencies and the KIA tasked with oversight of environmental protection We have asked the Minister to reject or send back the NIRB Recommendation 9

Significant Community Consultation- We have listened Number of Meetings Number of Major TOTAL Correspondences (as of April 1, 2016) Cambridge Bay 55 8 63 Kugluktuk 52 10 62 Bathurst Inlet & Bay 9 7 16 Chimo Gjoa Haven 17 4 21 Taloyoak 20 3 23 Kugaaruk 17 3 20 Other (e.g. northern trade shows & 33 13 46 conferences, SEMCs, newsletters) Yellowknife / Other 14 25 39 Locations in the NWT TOTAL 217 73 290  We have worked closely with all communities, Hamlet Councils, HTO’s, As of July, 2016 Elders & Youth advisory Groups  Incorporated traditional knowledge with scientific data in all 10 approaches

Key support from Government and KIA  “…As a result, KIA recommends that the Report be returned to the Board under paragraph 12.5.7.(e) with your [Minister of INAC] instructions to focus any further investigations on matters related to the Project’s impacts on caribou and the best approaches to mitigation of such impacts.” - Stanley Anablak, President, Kitikmeot Inuit Association  “In the GN’s opinion, it is possible to develop terms and conditions to address the concerns expressed by the NIRB of the efficacy and adaptability of mitigation measure[s] for terrestrial wildlife, including caribou. Accordingly, referring the Final Hearing Report back to the NIRB for further review and public hearings may be the most responsible and expeditious way forward, and the one that provides the best opportunity to advance responsible development to provide economic opportunities for Nunavut’s communities while respecting Inuit societal values and protecting the integrity of our land, water and wildlife.” Government of Nunavut 11