Royal Gold Increases KSM Royalty Option

TORONTO - Seabridge Gold Inc. reported that Royal Gold, Inc. has exercised its option to acquire, by way of private placement, C$18 million in Seabridge treasury shares. The private placement consists of 1,004,491 Seabridge common shares. By exercising the Share Option, Royal Gold obtains a second royalty option to acquire a further 0.75% net smelter return ("NSR") royalty on all gold and silver production from Seabridge's KSM project. Royal Gold can exercise the second royalty option by electing to acquire the 0.75% NSR within 60 days following Royal Gold's agreement that the KSM project is in receipt of all material approvals and permits, full project financing and certain other conditions and paying Seabridge C$60 million in three equal payments over the 18 month period after such election.

Seabridge President and CEO Rudi Fronk said that the Company welcomed Royal Gold's decision to increase its royalty option at KSM. "Our interests going forward continue to be fully aligned... to find the right partner to build and operate a mine at KSM when the time is right. The additional C$18 million private placement will be used in part to complete the Environmental Assessment process which is nearing completion of the pre-Application Phase. Following five years of work and over $100 million in expenditures at the KSM Project, we expect to file the Environmental Assessment Application with the Provincial and Federal Regulators in January, 2013."