Seabridge Gold

Courageous Lake: RESOURCES

Over the period of previous exploration at Courageous Lake, several resource estimates have been prepared. The most detailed historic estimates were conducted by Noranda in 1990 at the conclusion of its underground exploration program; by Placer Dome in 1999 at the conclusion of its exploration program; and by Resource Modeling Inc. (RMI) in July 2002, December 2004, January 2011 and January 2012 (see reserve/resource table).

2007 Resource Estimate

In January, 2007 RMI completed a new resource model incorporating the results from Seabridge's 2005 and 2006 exploration programs and in February 2007, the 2007 Courageous Lake Estimate Report setting forth this estimate was filed on SEDAR. The 2007 Courageous Lake Estimate Report provided resource estimates at various cut-off grades. In September 2005, a Preliminary Economic Assessment was completed for the project which indicated that a 0.83 gram per tonne cut-off grade was appropriate for the deposit. Using its own estimation parameters and a cut-off grade of 0.83 grams of gold per tonne, RMI calculated the resource as tabulated below.

The 2007 resource model incorporated data from a total of 488 holes drilled by Seabridge, Noranda and Placer Dome totalling 131,338 meters. Approximately two-thirds of the total drilled meterage (86,810 meters) was assayed for gold by the three companies. Gold mineralization within the Courageous Lake deposit is hosted in the upper part of an assemblage of Archean age felsic pyroclastic rocks, just below a transition zone to volcaniclastic and sedimentary rocks. During RMI's site visits, drill core was inspected against assay and geologic logs to verify the logging practices. The assay data provided in the electronic databases by Seabridge were randomly compared by RMI to certified assay lab sheets and were found to be accurately entered. No bias was found by RMI in the check assay results that were made available by Seabridge. RMI reviewed the QA/QC procedures implemented by Seabridge during its 2004, 2005 and 2006 exploration programs and found them to meet industry standards. RMI concluded that it had no reason to believe that the QA/QC procedures implemented by Noranda and Placer Dome during their exploration campaigns did not meet industry standards. RMI determined that exploration data from Seabridge's 2004-2006 campaigns and data from historical programs were collected and analyzed by reputable drilling and analytical firms and were suitable to be used for estimating mineral resources.

Similar to the 2004 estimate (also completed by RMI), block model gold grades in the new Courageous Lake resource model were estimated using an inverse distance weighting interpolation procedure. Grade estimation in the new model was restricted to rigorously constructed mineralized zones (known as "wire-frames") that were originally defined by Placer Dome, and later revised by Seabridge using geologic and mineralogic controls along with new drill data. These zones generally strike north-south and dip steeply to the west. Individual assays were capped within each zone prior to compositing the assay data. The estimated block grades were then classified into Measured, Indicated, and Inferred Mineral Resource categories using distance to drilling data and the number of drill intersections. Measured Resources were defined for blocks estimated by two or more drill holes provided that at least one sample was within five meters of the block. Indicated Resources were defined by blocks estimated by two or more drill holes with at least one sample within 22 meters of the block. Inferred Mineral Resources were defined by blocks estimated by at least one drill hole with a maximum allowable assay projection distance of 60 meters. Due to a number of unassayed Noranda drill hole intervals, RMI reduced the amount of Inferred Mineral Resources in localized areas associated with unassayed core holes. RMI has recommended that Seabridge undertake a drilling program to test some of these areas for possible additional resources. It was RMI's opinion that the new resource model was globally unbiased and locally reflected the grade of nearby drill hole composites.

The 2007 NI 43-101 compliant resource as estimated by RMI at a cut-off grade of 0.83 grams per tonne:

2011 Resource Estimate

In January, 2011, Seabridge released an updated, independent mineral resource model for the Courageous Lake project which (i) significantly increased the measured and indicated gold resources (ii) improved the average grade of the resource and (iii) increased the size of the deposit. The updated resource model was also prepared by RMI. The new NI 43-101 compliant resource estimate prepared by RMI was as follows:

This model incorporated data from 49 diamond core holes drilled in 2010 totaling about 22,000 meters. The focus of the 2010 drilling program was to upgrade inferred resources to higher categories. Using the same cut-off grade as the 2007 resource model to facilitate comparisons, measured and indicated gold resources increased by 60% while the average grade of these categories improved by 5%. Nearly all of that gain came from upgrading previously defined inferred resources to measured or indicated categories. In addition, the 2010 drilling found new inferred resources and increased the average grade of the inferred by 13% from the 2007 estimate.

The 2011 resource model incorporated data from a total of 560 holes drilled by Seabridge, Noranda and Placer Dome totaling 150,584 meters. Gold mineralization within the Courageous Lake deposit is hosted in the upper part of an assemblage of Archean age felsic pyroclastic rocks, just below a transition zone to sedimentary rocks.

Similar to the 2007 estimate (also completed by RMI), block model gold grades for this latest Courageous Lake model were estimated using a multiple pass inverse distance weighting interpolation procedure. The 2010 drilling program was highly successful with the new drill hole assay data showing that (i) the 2007 model was a reasonable predictor of "ore and waste" and that (ii) a back analysis of comparing the 2010 drill hole intersections against the 2007 block model demonstrates a net gain of contained gold. In addition to using mineral zone wireframes to constrain the estimate of block grades, a dynamic anisotropic search strategy was used to select eligible composites. The search ellipse was allowed to dynamically conform to the hanging and footwall contacts of the key mineral zones, providing for a more geologically consistent and realistic distribution of in situ block gold grades. Individual assay grades were capped for each zone prior to compositing the assay data and interpolating block grades. The estimated block grades were classified into Measured, Indicated, and Inferred Mineral Resource categories using distance to drilling data and the number of drill holes used to estimate the block grades. For the principal mineral zones (3-5) Measured Resources were defined for blocks estimated by one or more drill holes within 7.5 meters of the block. For those same principal mineral zones, Indicated Resources were defined by blocks estimated by two or more drill holes with at least one sample within 30 meters of the block. Inferred Mineral Resources were defined by blocks estimated by at least one drill hole with a maximum allowable assay projection distance of 65 meters. It is RMI's opinion that the new resource model is globally unbiased and locally reflects the grade of nearby drill hole composites.

The following table provides global resource estimates from the 2011 model at various gold cutoff grades:

The cutoff grade for resource tabulation was set at 0.83 grams per tonne to be consistent with the cut-off grade used for previous Courageous Lake resource estimates.

2012 Resource Estimate

The mineral resource model for Courageous Lake effective January 9, 2012 increased measured and indicated gold resources by 18% to nearly 8.0 million ounces. The independent NI 43-101 compliant resource estimate, prepared by Resource Modeling Inc. ("RMI") of Stites, Idaho, is being incorporated into the project`s first Preliminary Feasibility Study (PFS) completed in 2012. The updated resource estimate is as follows:

The new model includes data from the 52 diamond core exploration holes drilled in 2011 totaling approximately 15,000 meters. The focus of the 2011 drilling program was to upgrade inferred resources within the confines of the open pit defined in the 2011 Preliminary Economic Assessment. The efficiency of the drill program and the predictability of the 2010 model proved to be exemplary. Nearly 1.2 million ounces of previously disclosed inferred resources were converted to measured and indicated in the 2011 exploration program at an expenditure of approximately $6 million or about $5 per ounce. All but one of the 52 exploration holes drilled in 2011 intercepted mineralization above the cut-off grade. New mine plans generated from this updated resource model in order to report the project's first proven and probable reserves in the PFS completed in July 2012.

The updated resource model constructed for the Courageous Lake deposit now incorporates data from a total of 589 holes drilled by Seabridge, Noranda and Placer Dome totaling approximately 169,000 meters. About 122,260 meters of the total have been assayed for gold, 53% of it by Seabridge. Gold mineralization within the Courageous Lake deposit is hosted in the upper part of an assemblage of Archean age felsic pyroclastic rocks just below a transition zone to sedimentary rocks.

Similar to the 2010 estimate (also completed by RMI), block model gold grades for this updated Courageous Lake  model were estimated using a multiple pass inverse distance weighting interpolation procedure. The outstanding success of our 2011 drilling program confirmed the validity of the resource model. In addition to using mineral zone wireframes to constrain the estimate of block grades, a dynamic anisotropic search strategy was used to select eligible composites. The search ellipse was allowed to dynamically conform to the hanging and footwall contacts of the key mineral zones, providing for a more geologically consistent and realistic distribution of in situ block gold grades. Individual assay grades were capped for each zone prior to compositing the assay data and interpolating block grades.

The estimated block grades were classified into Measured, Indicated, and Inferred Mineral Resource categories using distance to drilling data and the number of drill holes used to estimate the block grades. For the principal mineral zones (3-5) Measured Resources were defined for blocks estimated by one or more drill holes within 7.5 meters of the block. For  mineral zones 3 and 4 within the heart of the deposit (section 4400 to 5000 north), Indicated Resources were defined by blocks estimated by two or more drill holes with at least one sample within 40 meters of the block.   Indicated Resources were defined for other zones based on distances from drill data ranging from 15 to 30m.  For the primary mineralized zones, Inferred Mineral Resources were defined by blocks estimated by at least one drill hole with a maximum allowable assay projection distance of 65 meters. Inferred Resources were assigned to secondary mineralized zones up to 40m from drilling data.

It is RMI's opinion that the new resource model is globally unbiased and locally reflects the grade of nearby drill hole composites.

The following table provides global resource estimates from the new model at various gold cutoff grades:

The cutoff grade for resource tabulation was set at 0.83 grams per tonne, consistent with the cut-off grade used for previous Courageous Lake resource estimates (2007 and 2010) in order to facilitate comparisons. The cutoff grade used in the 2011 Preliminary Economic Assessment was 0.67 grams per tonne, based on a gold price of $990.

2014 Resource Estimate Walsh Lake

The Walsh Lake resource estimation was completed in the first quarter of 2014 and presented in a news release dated March 11, 2014. This estimation was completed by Resource Modeling Inc. ("RMI") of Stites, Idaho. Resources at Walsh Lake are all classified as inferred and it is uncertain if these resources can contribute to the FAT reserves. At this time, the Company is using the Walsh Lake resources as a guide to direct work in the area, and until additional information is acquired does not consider these resources material to the Courageous Lake reserves.

The Walsh Lake model is based on 53 diamond core holes (totaling 17,450 meters) spaced at approximately 50 meters. The discovery was made in 2012 (see news release dated September 10, 2012). This new resource area is about 10 kilometres south of the FAT deposit where Seabridge has developed a 6.5 million ounce proven and probable gold reserve. The north part of this target area is connected by a road network between the FAT deposit and the historical, high-grade Tundra Gold Mine. Walsh Lake is believed to be a series of structural zones, parts of which are on strike with the deposits exploited in the Tundra Gold Mine.

Block gold grades were estimated using a multiple pass inverse distance weighting interpolation procedure. Manually constructed mineral zone wireframes were used to constrain the mineralized structures identified in drilling. High-grade outlier gold assay grades were capped prior to compositing the assay data to 3m lengths. A portion of the estimated blocks were classified as inferred resources using mineralized continuity that was established by probabilistic interpolation methods. Initial metallurgical testing indicates the gold at Walsh Lake can be recovered by direct cyanide extraction (see news release dated May 16, 2013). The resource estimate is constrained within a conceptual pit limit based on a gold price of $1300 per ounce, gold recovery of 90% and a pit slope of 50 degrees.

It is RMI's opinion that this resource model is globally unbiased and locally reflects the grade of nearby drill hole composites.

Gold resource estimates included herein were prepared by Resource Modeling Inc. under the supervision of Michael Lechner, who is independent of Seabridge and a Qualified Person as defined by National Instrument 43-101. Mr. Lechner is a highly regarded expert in his field and frequently undertakes independent resource estimates for major mining companies. Mr. Lechner has reviewed and approved this disclosure.

All disclosure of a scientific or technical nature was prepared by, or under the supervision of, William E. Threlkeld (Licensed Registered Geologist #790 in the State of Washington and Registered Professional Geoscientist in British Columbia, #155516), a Vice President of Seabridge. Mr. Threlkeld is a "Qualified Person" under National Instrument 43-101.