Updated preliminary feasibility study completed for Seabridge Gold’s KSM Project

• Increase estimated mineral reserves by 27% for gold, 42% for copper, 61% for silver and 22% for molybdenum.
• Extend mine life to 52 years from 37 (2.2 billion tonnes of reserves at a throughput of 120,000 tonnes per day).
• Put in place the potential to expand throughput by 50% in the early years after start-up.
• Produce gold at an estimated base case cash operating cost ofUS$105 per ounce during first 7 years of mine life.
• Reduce base case capital payback to 6.6 years or 13% of mine life.
• Improve base case total net cash flow by US$4.5 billion.

The comparisons noted above are against the KSM March 31, 2010 PFS also prepared by Wardrop.

“The KSM project represents an extraordinary opportunity in the current economic environment. Our estimated operating costs and total costs per ounce of gold produced are well below the current average of the major gold producers,” said Seabridge President and CEO Rudi Fronk.

“At current metal prices and currency exchange rates, estimated life of mine cash operating costs are minus US$79 per ounce while total costs including all capital and closure costs are just US$220 per ounce. Projected capital costs are in line with those of comparable, large-scale undeveloped gold-copper projects and at current metal prices and currency exchange rates, capital payback takes only to 4.8 years or 9% of mine life. Furthermore, KSM has the advantage of being located in a low-risk jurisdiction.”

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Image by Seabridge Gold