Royal Gold and Seabridge Agree to Private Placement/Royalty Partnership in KSM

Toronto, Canada - Seabridge Gold Inc. (AMEX:SA, TSX:SEA) announced today that it has reached an agreement with Royal Gold Inc. (the "Agreement") whereby Royal Gold will take down a private placement in Seabridge common shares at a premium to market and Seabridge will grant to Royal Gold an option to acquire a royalty on production from Seabridge's 100% owned KSM project. The agreement is subject to TSX approval which is expected shortly.

The private placement in Seabridge is for 1,019,000 common shares at C$29.44 per share (US$30.39), totaling C$30 million in cash. The purchase price for the shares is equal to a 15% premium over the weighted average trading price of Seabridge shares on the TSX for the five day trading period ending 2 days prior to today's announcement. The option granted to Royal Gold is to acquire a 1.25% Net Smelter Royalty ("NSR") on all gold and silver production sales from KSM for C$100 million. The option is exercisable for a period of 60 days following the announcement of receipt of all material approvals and permits, full project financing and certain other conditions.

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