London, ON N6H 5N1 Canada
September 3, 2008
SBB ? TSX.V
SILVER ANNOUNCES Q2 FINANCIAL RESULTS
VANCOUVER ? Sabina Silver Corporation
(the ?Company?) (SBB ? TSX.V) announced today the financial results for the
period ended June 30, 2008. The
Company ended the first half of 2008 with cash and security investment
resources of $44,598,201.
?Although the first half of 2008 was a
challenging one for Sabina? said Tony Walsh, President and CEO, ?the Company is
now poised to deliver on its commitments to create further shareholder
wealth. A strategic plan has been
created that both pushes the large Hackett River Project forward, while at the
same time looking for opportunities to provide solid share performance and
create further value during the interim.?
Hackett River is the Company?s flag
ship project in Nunavut Canada. Not
only is it one of the largest undeveloped silver projects around, but it is in
one of the world?s most appealing mining jurisdictions. As announced earlier this month, the
Company has added some key team members; is focusing on preserving cash; has
completed this year?s required work to push Hackett River forward; and is
evaluating other projects and companies for merger and acquisition
?We believe all these things are adding
value to the Company, and put us in a great position with a great message when
we start our major marketing campaign this month,? said Mr. Walsh, ?I have no
doubt that Sabina has the elements of an attractive investment and that we will
be able to communicate that to the investment community.?
For the three months
ended June 30, 2008, the Company reported a net loss of $6,778 as compared to
net earnings of $4,543,187 for the same period in 2007. The earnings in fiscal 2007 were a result
of sales of securities during that period. The Company?s earnings are primarily
derived from the interest, sales and changes in fair value on investments held
for trading and sale. Expenses in the period were nearly offset by earnings in
the same period.
The Company had cash
and security investment resources of $44,598,201 at June 30, 2008 as compared with $50,632,747 at December 31,
2007. All security investment
resources are held in guaranteed investment certificates at Canadian banks and
in marketable Canadian securities.
The decrease in cash and investment resources is primarily due to
exploration expenditures of $8,936,422 in the six month period which was
partially offset by an increase in fair market value of marketable Canadian
securities held for resale. The Company is fully financed to reach its
feasibility and permitting objectives on the Hackett River Project.
Subsequent to the end of the quarter, Mr. John Wakeford and
Ms. Elaine Bennett were appointed Senior Vice-President, Corporate Development
and Vice-President, Finance & Chief Financial Officer respectively (see
News release dated August 20, 2008 on the Company?s website).
Mr. Wakeford has been granted 700,000 stock options
exercisable at a price of $0.99 per share for a period of five years; Ms.
Bennett has been granted 500,000 stock options exercisable at a price of $0.90
per share for a period of five years.
For the full June 30, 2008 financial statements and
Management?s Discussion and Analysis, please see the Company website at
SILVER CORPORATION is a Canadian public mineral exploration and development
company with assets at the Hackett River silver-zinc project in the Canadian
Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District and
several projects in the Red Lake gold camp.
information please contact:
Hoeller, Director, IR: 1 888 648-4218
Forward Looking Statements
Statements relating to permitting,
feasibility and exploration work at the Hackett River project and the expected
results of this work 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 on 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, 2007.
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, should change.
This news release has been authorized by the undersigned on
behalf of Sabina Silver Corporation
Walsh, President and CEO
West Hastings, 20th Floor
BC V6E 3X2
1 888 648-4218