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In February 2000, the Issuer entered into an option agreement whereby it had
the right to acquire from Atlas a 100% interest in the Grassy Mountain Project
by paying Atlas US$1.7 million in cash, Seabridge common shares and notes. To
accommodate Atlas, preference for cash, in late December 2002 the purchase terms
of the option agreement were restructured whereby the Issuer delivered to Atlas a
US$300,000 option payment in exchange for the right to acquire a 100% interest in
the Grassy Mountain Project for US$600,000 due on or before March 31, 2003. Seabridge
also agreed to provide US$500,000 in financing for an Atlas subsidiary due on or before
March 31, 2003, which financing was provided in April, 2003. In March, 2003 the Issuer
provided notice to Atlas they would be exercising the purchase option, and the Issuer
completed its acquisition of the Grassy Mountain Project in April 2003.
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