Sea bridge To Acquire Snowstorm Project

TORONTO - Seabridge Gold Inc. has entered into a letter of intent setting forth the terms under which it has agreed to purchase a 100% interest in the Snowstorm Project from Paulson Gold Holdings, LP. The Snowstorm Project consists of 31 square miles of land holdings strategically located at the projected intersection of three of the most important gold trends in Northern Nevada: the Carlin Trend, the Getchell Trend and the Northern Nevada Rift Zone.  

The Letter of Intent contemplates that Seabridge will acquire all of the outstanding shares of the private company that owns a 100% interest in the Snowstorm Project. Paulson has agreed to a 60-day exclusivity and non-solicitation period to allow the parties to complete further review and settle a definitive agreement.  The Snowstorm property consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15 year period and explored over the past 10 years.  The Snowstorm acquisition also includes an extensive package of data generated by previous operators. Although potential targets are hidden under Tertiary cover, the existing data supports the project's outstanding exploration potential. Geological and geochemical evaluations of Snowstorm have documented hydrothermal alteration zones consistent with large Northern Nevada deposit types. Geophysical surveys have confirmed the structural settings which host large Northern Nevada deposit types. Limited drilling has demonstrated that some of the target areas are at a depth amenable to surface exploration and resource delineation.