In September 2005, a Preliminary Assessment for the Courageous Lake project was completed by TJS Mining-Met Services Inc. (TJS), Roscoe Postle Associates Inc. (RPA) and EBA Engineering Consultants Limited (EBA) (TJS, RPA and EBA collectively, the "Project Consultants"). The Preliminary Assessment is dated September 7, 2005 and is entitled "Seabridge Gold Inc., Courageous Lake Project, Preliminary Technical Assessment". The Preliminary Assessment incorporated the December 2004 resource estimate prepared by Resource Modeling Inc. (RMI). The mining and geological aspects of the estimates contained in this Preliminary Assessment Study were prepared by RPA under the direction of James Hendry and Richard Routledge, both of whom are independent of Seabridge and are Qualified Persons as defined by NI 43-101. The environmental, geotechnical and tailings management sections of the report were prepared by EBA under the direction of Eric Fier, who is also independent of Seabridge and a Qualified Person as defined by NI 43-101. TJS, under the direction of T.J. Smolik who is independent of Seabridge and a Qualified Person as defined by NI 43-101, prepared all remaining parts of this report.

The Preliminary Assessment contains the expression of the professional opinion of TJS, RPA and EBA, based on: (i) information available at the time of preparation, (ii) data supplied by outside sources, (iii) conclusions of other technical specialists named in this report, and (iv) the assumptions, conditions and qualifications in this report. The quality of the information, conclusions and estimates contained in the report are based on industry standards for engineering and evaluation of a mineral project and is consistent with the intended level of accuracy. The study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that this Preliminary Assessment will be realized. The remainder of this section summarizes the findings of the study.

The independent consultants concluded that given the resource size, location and grade, a year round, open-pit bulk mineable operation with on-site processing is the most suitable development scenario. A base case scenario was developed for the project incorporating a 25,000 tonne per day operation (9.0 million tonne per year throughput) resulting in a projected 8.5 year operation with average annual production of 545,000 ounces of gold at a life of mine average cash operating cost of US$279 per ounce recovered. The base case scenario utilized measured, indicated and inferred resources in the mine plan. Initial capital costs for the project are estimated at US$630 million, including a contingency of US$96.4 million (18.1%). The total cost per ounce of production (including cash operating costs and total capital costs over the life of the mine) is estimated at US$423. The intended level of accuracy of the capital and operating cost estimates is +30%/-20%.

At a gold price of US$450 per ounce, the base case cumulative pre-tax net cash flow over the life of the project is estimated at US$94 million. At a gold price of US$550 per ounce, the cumulative pre-tax net cash flow over the life of the project is estimated at US$553 million.

Mine Planning
RPA reviewed the resource model prepared by RMI as part of its development of the mining plan for the project. RPA concluded that the December 2004 resource model was suitable for the purposes of the study, but noted that further work would be required, including in-fill drilling, to advance the project to a pre-feasibility or bankable feasibility level.

Based on estimated processing and administrative costs, a 90% recovery rate and a gold price of US$400 per ounce, RPA determined that a cutoff grade of 0.83 grams of gold per tonne was appropriate. At a 0.83 gram per tonne cutoff, gold resources stated by RMI for the project are as follows:

Courageous Lake gold resources at 0.83 grams
per tonne cut-off (December 2004 resource estimate)

RPA used Whittle (Lerchs Grossman) software to determine the optimum pit shell. Incorporated in the pit optimization analysis were the pit slope criteria developed by EBA. RPA also determined that a mining dilution factor of 12% was appropriate for the base case estimate. Based on their analysis, RPA estimated the in-pit diluted resources within the ultimate pit limit as follows:

Courageous Lake in-pit material above 0.83 gram
per tonne cut-off

In order to assess the impact of higher mining dilution, RPA developed a sensitivity case incorporating an 18% dilution factor. Based on the results of sensitivity analysis, RPA concluded that the size and shape of the open pit and its associated economics are not very sensitive to the estimate of the mining dilution factor.

In order to maximize the early release of the highest grade, and lowest stripping ratio, RPA developed a phased mining strategy. In this approach, the highest economic value material is the focus of the initial development phase of the open pit, with progressively larger pit shells developed sequentially outward until the final phase establishes the ultimate pit limit described above. The maximum mining rate was set at 90 million tonnes per year with the mill feed rate set at 9.0 million tonnes per year.

In order to maximize productivity and minimize unit mining costs, large-scale, state of the art mining equipment has been selected for the mine operation. Haulage trucks with a 240 tonne payload capability combined with large capacity cable shovels of three pass loading per truck have been specified. Manpower requirements were estimated based on a 12 hour shift schedule working four days on and four days off with four full crews of operating and maintenance personnel providing 24 hour per day, 7 day per week operation. Over the life of the mine, RPA has estimated average mining costs of US$0.84 per tonne of material mined.

Metarllurgical Process and Plant
Earlier studies completed by Hatch Inc. in 2002 and 2003 on metallurgical issues relating to the project concluded that (1) the project’s gold to sulphur ratio compares favourably with other operating refractory gold mines and (2) material from the FAT deposit can produce a high-grade flotation concentrate that captures 93-94% of mill feed gold content at a relatively coarse grind. Subsequent testwork supervised by Hatch has resulted in a 90.8% overall recovery estimate for the project. Total processing costs are estimated at US$8.61 per tonne.

The annual design throughput of the processing plant designed by Hatch is 9.78 million tonnes per year with a nominal annual throughput of 9.0 million tonnes. The run-of-mine ore is processed through a primary gyratory crusher and stored in a coarse ore stockpile. From there, the ore is reclaimed by conveyor and sent to a semi autogenous grinding (SAG) mill for primary grinding. After sizing by hydrocyclones, the oversize material is sent to secondary grinding in a ball mill. The properly sized material is sent to flotation for further processing. The flotation circuit consisting of 130 cubic meter flotation cells, connected in series, is estimated to recover 93.0% of the gold in concentrate. The concentrate is then sent through a regrind and thickening plant consisting of hydrocyclones and regrind ball mills. The material is then sent to a conventional pressure oxidation plant consisting of an autoclave preheater, vertical autoclave vessels with flash vessels in parallel, slurry coolers and a cooling tower. After the slurry is cooled, it is sent for washing to reduce the acidity. The washed slurry containing the gold is then sent to a CIP neutralization circuit and the diluted acid to a CCD neutralization circuit. The gold is then recovered from solution in an electrowinning circuit.

Infrastructure
The remote location of the Courageous Lake project requires that it generates its own power, maintains a permanent camp, provides access by air and maximizes warehousing and storage due to site access only being available by winter road and air. The required load of approximately 58,000 kW is supplied by two 25 MVA @ 13.8 kV gas turbines, supplemented by a 8 MVA @ 13.8 kV steam turbine. Gas turbines were chosen to maximize fuel efficiency due to the fuel storage requirements. An airport with a 6,500 foot runway, apron and hangar have been incorporated into the study. A ring road of approximately 5,000 meters in length with a width of 8 meters has also been included.

Environmental and Project Scheduling
From this point forward, it is estimated that the project would take approximately six years to commence production. To be proactive in project permitting, Seabridge initiated environmental baseline data collection and community consultation in 2004 and continued the work during 2005. As a result, the time to complete the environmental and permitting process for the project is now estimated at two years. During the two year environmental process, the in-fill drilling, bulk sampling and final feasibility could be completed. Final detailed engineering and procurement would subsequently require approximately two years. The construction and commissioning period is estimated at an additional 21 months to two years.

Tailings Management
The preferred location for a tailings impoundment is east of the FAT deposit. This area is proximal to the proposed mill site and pit. A "wet tailings" scenario will require a footprint of almost two square kilometers with major engineering and construction of an impoundment to hold approximately 77.4 million tonnes of processed material. As well, a waste ore dump is located west of the proposed mill site.

Project Operating Costs
Average operating costs over the 8.5 year mine life are estimated as follows:

Estimating annual operating costs in U.S. dollars

The intended level of accuracy of the operating costs estimates stated above is +30/-20%.

Project Capital Costs
The initial capital costs for the project are estimated as follows:

Estimated initial capital costs in U.S. dollars

Total sustaining capital and closure costs over the life of the mine are estimated at US$48,243,000.

The intended level of accuracy of the capital costs estimates stated above is +30%/-20%.

Base Case and Sensitivity Financial Analysis
Using the input parameters described above and a gold price of US$450 per ounce, net cash flows were developed for the base case. The following sensitivity analysis was also performed:

Gold Price: US$500, 550 and 600. The estimated breakeven gold price for the project at US$423 per ounce; therefore, any gold price below this level would generate a negative net cash flow in the base case.

Gold Grade (g/T): 2.25, 2.50, 2.75, 3.00. From reported 2005 exploration results, Seabridge suggests that a new structural interpretation of gold distribution within the FAT deposit could result in a material increase in average grade of the deposit.

Capital Cost: +/- 10%

Operating Cost: +/- 10%

Mining Dilution: 18%

Mine life extension: 4 years at average grade and strip ratio of base case. Based on reported 2005 exploration results by Seabridge Gold, there is the opportunity to extend the production life of the project through strike extensions to the north and south. This would result in a substantially lower total cost per ounce of production.

Pre-tax net cash flows for the base case and sensitivity analysis are as follows:

Courageous Lake cumulative pre-tax net
cash flow projections

Project Opportunities
Work on the Courageous Lake project is ongoing to evaluate modifications which could improve project economics. The opportunities identified are as follows:

Tailings options: further testwork may prove out paste tailings as an option which may reduce the tailings footprint, tailings capital and operating costs.

All-weather road: providing an all-weather road to the site would have a large positive impact on the project. Such a road is being considered by the various levels of government. There would be a significant reduction in on-site storage requirements, especially fuel oil and lime.

Power generation sharing: providing a network to share power between the mines in the area. There are three mines in the area that potentially could share power generating facilities and costs. This approach is presently being investigated in Nevada by Newmont, Phelps Dodge and Barrick Gold.

Mine life extensions: as demonstrated in the sensitivity analysis, the potential extension of mine life could have a positive material impact on the project's pre-tax net cash flow. The independent consultants have recommended additional exploration to follow-up on 2005's exploration results.