Seabridge Completes Independent Engineering Study on Red Mountain Gold Project
Report's Preliminary Projections - 8 Year Mine Life with Average Cash Operating Cost at US$213Per Ounce

Toronto (Canada) — Steffen Robertson and Kirsten (Canada) Inc. (“SRK”) has completed an Engineering Study dated August, 2003 on Seabridge¬s 100% owned Red Mountain underground gold project located 18km east of the town of Stewart, B.C. The objectives of the study were to build on previous project work to identify the best project development approach, and to assess the current economics of the project. Further on-site work is in progress to assess alternate tailings disposal options which could reduce capital costs and improve project economics.

Background
Between 1991 and 1994, previous owner Lac Minerals delineated a sizeable gold-silver resource through diamond drilling and subsequently drove a 1700m decline to facilitate drilling, and to obtain a bulk sample. The project was sold to Royal Oak Mines in 1995, and in the following year the underground development was extended by 305m and additional surface and underground drill programs were completed. In 1994, a feasibility study was partially completed by Rescan Engineering Limited for Lac Minerals. In 2001, previous owner North American Metals Corp. (“NAMC”) estimated the mineral resources and undertook limited engineering studies of project development alternatives. Seabridge acquired the Red Mountain Project from NAMC in February 2002.

Prior to completing the acquisition of Red Mountain, Seabridge commissioned D. L. Craig, P. Geol. to perform an independent technical review of the resource model dated May, 2001, and in the process, satisfied the requirements under National Instrument 43-101 for public disclosure. Gold resources at Red Mountain at a zero cut-off grade are estimated as follows:

SRK reviewed previous studies and evaluated the development alternatives relating to various aspects of the project. The best development alternatives are:

Based on an initial review of the project economics, SRK utilized a cutoff grade of 6g/t Au (based on a gold price of US$375/oz) to delineate contiguous zones of mineralization to assess various mining and processing scenarios as part of the Engineering study.

SRK decided to include inferred resources in the study because of their high degree of confidence that additional drilling will upgrade this material to the indicated category. Resources above the 6 g/t Au cut off grade in all categories (measured, indicated and inferred) total 1,216.6kt at grades of 9.14g/t gold and 28.7g/t silver.

Tonnes available for extraction shown in the following table were estimated by a resource conversion process that applied dilution and mining recoveries to the individual deposits comprising the resources above the 6.0 g/t cutoff grade. The parameters were based on preliminary mining designs for different areas of the deposit that included both longhole, and cut-and-fill mining methods.

Project Development Description
The 1000tpd trackless underground mine, assumed to be owner operated, would be accessed through the existing exploration decline and a new portal at 1650m elevation. Production tonnes by mining method are planned at 65% longhole, 29% cut and fill, and 6% development muck. Longhole stope tonnes vary from 18 to 35kt. Backfill would consist of both cemented and unconsolidated waste rock, and no development waste rock would remain on surface at project completion. Mucking to a main muck pass would be accomplished by 6yd and 4yd scoops. An underground rock breaker would size the muck to be hauled out of the mine in 20t trucks.

A 1000tpd gold-silver recovery mill would reclaim feed from a run-of-mine stockpile. The mill process would include a normal two-stage SAG/Ball mill grinding circuit with high capacity thickening, cyanide leaching, carbon-in-pulp adsorption, carbon elution and regeneration, electro-winning and refining, and cyanide destruction with SO2 and air. Metallurgical recoveries are estimated at 90% for gold and 80% silver.

Mill tailings would be discarded to an earth and rock constructed tailings dam (with water reclaim facilities) near the mill. The tailings facility, proposed to be located in the Red Mountain cirque, follows the design used in the 1994 feasibility study. It is the recommendation of SRK that a further study be undertaken by Seabridge to assess alternative tailings facility locations and designs which could materially reduce the capital cost of the tailings storage facitity.

The project schedule has the new access road opened up for traffic by the end of the first operating season (mid-May through October). The pre-production period extends through seasons 2 and 3 with mill construction, tailings dam construction, and development of the underground mine. Eight seasons of production (157.5kt/a) follow in seasons 4 to 11. Mine closure is planned for season 12.

Project Costs
Estimated site operating costs are at Cdn$68.46 per tonne. Due to the seasonal nature of the project, SRK envisions that it may be difficult for the owner to fully supply all manpower each spring through an annual hiring campaign. For this reason, a labour premium of approximately 14% was added to the operating costs, such that some funds would be available to utilize contractor supplied labour as necessary.

Total capital costs are estimated at Cdn$61.8 million, exclusive of off-site owner¬s costs and working capital. The pre-production portion of capital is $60.3million. Included in this estimate is $9.2 million for the tailings dam. As indicated above, SRK believes that further work should be performed on assessing alternate tailings dam locations and designs which could result in a material decrease in the capital cost of the tailings facility.

Preliminary Economic Projections
The term “base case” refers to the project as described in this study. It represents SRK¬s best preliminary estimate of gold production, and capital and operating costs. The gold price assumption in the model was varied to determine the “break even” gold price for the project. At a 5% discount rate, the base case model indicates a break even project is achieved at a gold price of US$399/oz.

Under SRK¬s base case analysis, life of mine cash operating costs average US$213 per ounce and total costs, inclusive of capital, average US$358 per ounce.

Sensitivity analyses were also run for these two scenarios; firstly a 50% increase in mineable tonnage, and secondly cost reductions of 15% for both capital and operating costs. At a 5% discount rate, the break even gold price was reduced from US$399/oz to US$350 and US$338 respectively. In its report, SRK has deemed the exploration potential at the project to be “excellent”.

The calculations taken from the SRK Report use the "All Categories" resource estimate set out in the table above, which includes inferred resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The foregoing economic projections are preliminary in nature, they include inferred resources that are too speculative geologically (without additional work) to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that these estimates and assumptions will be realized.

Risks and Opportunities
The main risks associated with the project are related to:

The full SRK report will be posted on SEDAR shortly.

National Instrument 43-101 Disclosure
The SRK Study and the information concerning it contained herein were prepared under the supervision of Ken Reipas, P.Eng., and employee of SRK and Qualified Person as defined by National Instrument 43-101. SRK and Mr. Reipas are independent of the Company.

Seabridge has been designed to provide its shareholders maximum leverage to the price of gold. The Company has acquired a 100% interest in eight North American gold projects which collectively contain an estimated 8.74 million ounces of resources in the measured and indicated categories (250.1 million tonnes grading 1.09 grams of gold per tonne) plus an additional estimated 6.83 million ounces of resources in the inferred category (201.0 million tonnes grading 1.06 grams of gold per tonne). (See Gold Resources Table and press releases dated June 11, 2003, July 18, 2002, April 17, 2002, April 15, 2002, andJune 14, 2001). The Company continues to seek expansion of its gold resource base by acquisition of new projects and exploration programs largely funded by partners.

ON BEHALF OF THE BOARD

"Rudi Fronk,"
President & C.E.O.


For further information please contact:
Rudi P. Fronk, President and C.E.O.
Tel: (416) 367-9292 Fax: (416) 367-2711
Email: info@seabridgegold.net