| Effective December 31, 2001, Seabridge entered into an agreement with North American Metals Corp. ("NAMC") to acquire a
100% interest in the Red Mountain project. Closing of the acquisition was completed in April 2002. At closing, Seabridge
issued NAMC 800,000 common shares of Seabridge in exchange for a 100% interest in the Red Mountain project which includes:
(i) 97 mineral claims comprising 19,030 hectares; (ii) all project data including an extensive, high-quality data base and
drill core repository; (iii) an office/warehouse building in Stewart; (iv) a large complement of mining equipment at the Red
Mountain site which has been independently valued at approximately $0.5 million; (v) mineral exploration permit MX-1-422
and (vi) a related $1.5 million cash reclamation deposit lodged with the B.C. Mines Ministry. Also at closing Seabridge
assumed net smelter royalty obligations ranging from 2 to 6.5%, annual holding costs of approximately $75,000 and paid a
finder’s fee of 40,000 common shares of Seabridge in accordance with TSX Venture policy. During 2003 Seabridge purchased
additional claims at Red Mountain totalling 1,145 hectares.
In January 2002, Wheaton River Minerals Ltd. ("WRM") filed a revised reclamation plan with the B.C. Mines Ministry which has been accepted by the Ministry,
reducing the $1.5 million cash reclamation deposit to $1.0 million. Of the $500,000 being released by the Ministry, $350,000
was retained by Seabridge and $150,000 was paid to WRM.
In early 2002, Seabridge retained D.L. Craig, P. Geol., to examine and perform an evaluation of the exploration to date
and prepare a report on Seabridge’s Red Mountain Project. The report of D.L. Craig focused on the Marc, AV and JW zones and
is entitled "Red Mountain Project; British Columbia, Canada; Technical Report" (the "Craig Report") and dated March 4, 2002.
In late 2004 Seabridge retained SRK Consulting to examine the 132 and 141 zones. The report by SRK, Consulting, dated
January 2005 is entitled "Mineral Resource Estimation Zones 132 and 141, Red Mountain Gold Project, British Columbia (the
"SRK Resource Report") and was prepared by or under the supervision of Jean-Francois Couture, Ph.D. (Principal Geologist),
Kelly Sexsmith, P.Geo. and Ronald John Deptuck, B.Sc., P.Geo., employees of SRK Consulting and independent Qualified
Persons under NI 43-101. The material on the Red Mountain Project included in this Website summarizes information from the Craig Report
and the SRK Resource Report.
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