Over the period of previous exploration at Courageous Lake, several resource estimates have been prepared. The most detailed historic estimates were conducted by Noranda in 1990 at the conclusion of its underground exploration program; by Placer Dome in 1999 at the conclusion of its exploration program; and by RMI in July 2002 and December 2004.

In January, 2007 RMI completed a new resource model incorporating the results from Seabridge's 2005 and 2006 exploration programs. The study provided resource estimates at various cut-off grades. In September 2005, a Preliminary Assessment was completed for the project which indicated that a 0.83 gram per tonne cut-off grade was appropriate for the deposit. Using its own estimation parameters and a cut-off grade of 0.83 grams of gold per tonne, RMI calculated a measured resource of 6.29 million tonnes grading 2.92 grams of gold per tonne (591,000 ounces of gold) and an indicated resource of 53.0 million tonnes grading 2.14 (3,648,000 ounces) for a total measured and indicated gold resource of 4,239,000 ounces. In the inferred category, RMI estimates the project contains an additional 93.7 million tonnes of material grading 1.98 grams of gold per tonne (5,966,000 ounces).

The new resource model constructed for the Courageous Lake deposit incorporates data from a total of 488 holes drilled by Seabridge, Noranda and Placer Dome totalling 131,338 meters. Approximately two thirds of the total drilled meterage (86,810 meters) was assayed for gold by the three companies. Gold mineralization within the Courageous Lake deposit is hosted in the upper part of an assemblage of Archean age felsic pyroclastic rocks, just below a transition zone to volcaniclastic and sedimentary rocks. During RMI's site visits, drill core was inspected against assay and geologic logs to verify the logging practices. The assay data provided in the electronic databases by Seabridge were randomly compared by RMI to certified assay lab sheets and were found to be accurately entered. No bias was found by RMI in the check assay results that were made available by Seabridge. RMI reviewed the QA/QC procedures implemented by Seabridge during its 2004, 2005 and 2206 exploration program and found them to meet industry standards. RMI concluded that it had no reason to believe that the QA/QC procedures implemented by Noranda and Placer Dome during their exploration campaigns did not meet industry standards. RMI determined that exploration data from Seabridge's 2004-2006 campaigns and data from historical programs were collected and analyzed by reputable drilling and analytical firms and were suitable to be used for estimating mineral resources..

Similar to the 2004 estimate (also completed by RMI), block model gold grades in the new Courageous Lake resource model were estimated using an inverse distance weighting interpolation procedure. Grade estimation in the new model was restricted to rigorously constructed mineralized zones (known as "wire-frames") that were originally defined by Placer Dome, and later revised by Seabridge using geologic and mineralogic controls along with new drill data. These zones generally strike north-south and dip steeply to the west. Individual assays were capped within each zone prior to compositing the assay data. The estimated block grades were then classified into Measured, Indicated, and Inferred Mineral Resource categories using distance to drilling data and the number of drill intersections. Measured Resources were defined for blocks estimated by two or more drill holes provided that at least one sample was within five meters of the block. Indicated Resources were defined by blocks estimated by two or more drill holes with at least one sample within 22 meters of the block. Inferred Mineral Resources were defined by blocks estimated by at least one drill hole with a maximum allowable assay projection distance of 60 meters. Due to a number of unassayed Noranda drill hole intervals, RMI reduced the amount of Inferred Mineral Resources in localized areas associated with unassayed core holes. RMI has recommended that Seabridge undertake a drilling program to test some of these areas for possible additional resources. It is RMI's opinion that the new resource model is globally unbiased and locally reflects the grade of nearby drill hole composites.

RMI calculated the gold resources applying the definitions set out in National Instrument 43-101.

The January 2007 resource model will be used to update the September 2005 Preliminary Economic Assessment of the Courageous Lake deposit. The update is scheduled for completion in early 2008.

Courageous Lake Gold Resources at 0.83 grams
per tonne cut-off (January 9, 2007 Resource Estimate)