Summary

The Courageous Lake project is a gold project covering approximately 67,000 acres located in the Northwest Territories, Canada. Seabridge has a 100% interest in the project, subject to a 2% NSR on certain portions of the property. Geology of the Courageous Lake Project is characterized by a series of north to northwest trending Archean metavolcanic and metasedimentary rocks that form a portion of the Slave Structural Province. These rocks are within the Yellowknife Supergroup and are locally referred to as the Courageous Lake Greenstone Belt ("CLGB").

Gold was first discovered in the Courageous Lake area in 1936. Beginning in 1976, Noranda Exploration Ltd. initiated exploration in the Courageous Lake Volcanic Belt. Exploration activities included geological reconnaissance, airborne, EM and magnetic surveys, ground follow-up and claim staking. From 1982 to 1987, Noranda conducted extensive core drilling on the property from the surface and also constructed a winter road to the property. In late 1987, Noranda made the decision to sink a vertical shaft to provide access for conducting an underground definition drilling program and to be able to test gold grade continuity and tenor by drifting and raising on ore grade shoots.

Little additional work was performed on the property until Placer Dome optioned the property in 1998. Placer performed regional lithogeochemical sampling/prospecting and detailed mapping and channel sampling on the Courageous Lake property. Placer also conducted a core drilling/sampling program in order to verify Noranda's previous work and to provide infill sample data.

Over the period of exploration at Courageous Lake, several resource estimates have been prepared. Prior to Seabridge's acquisition of the project, detailed resource estimates were prepared by Noranda in 1990 at the conclusion of its underground exploration program and by Placer Dome in 1999 at the conclusion of its exploration program.

In 2002, Seabridge engaged Resource Modeling Inc. ("RMI") of Tucson, Arizona to review the resource model prepared in 1999 by Placer Dome and to independently estimate gold resources based on a geostatistical review of the available data. During 2004, Seabridge conducted additional exploration activities at Courageous Lake, including approximately 7,500 meters of new core drilling. Following these activities, Seabridge commissioned RMI to update the model and estimate new gold resources. In its updated report dated December 30, 2004, RMI has calculated a measured resource at a 0.83 gram per tonne cut-off grade of 3.38 million tonnes grading 2.55 grams of gold per tonne (277,000 ounces of gold) and an indicated resource of 47.0 million tonnes grading 2.28 (3,445,000 ounces) for a total measured and indicated gold resource of 3.72 million ounces. In the inferred category, RMI estimates the project contains an additional 77.4 million tonnes of material grading 2.10 grams of gold per tonne (5,229,000 ounces).

In late 2002, Seabridge engaged a group of independent consultants to undertake a scoping study for Courageous Lake. During 2003, preliminary reports were completed on key mining and metallurgical issues relating to the project. In January 2004, Seabridge authorized the independent consultants to upgrade capital and operating cost estimates in the Courageous Lake scoping study to pre-feasibility levels to better define the economics of the project. The study was completed in September, 2005.

Seabridge estimates its annual holding costs of the Courageous Lake Project to be approximately $167,000.

Courageous Lake Gold Resources at 0.83 grams
per tonne cut-off

Seabridge also engaged TJS Mining/MET Services, Inc. to review Hatch's work and to prepare a 43-101 Report. In its review, TJS Mining adopted Hatch's work and conclusions. The TJS Report, dated September 7, 2005, is available on SEDAR.