Seabridge Gold Sells Residual Interest in KSP Project

TORONTO - SnipGold Corp., a wholly-owned subsidiary of Seabridge Gold Inc. has entered into an agreement with Colorado Resources Ltd. whereby Colorado has agreed to purchase SnipGold’s 49% interest in the KSP Project. The transaction will result in Colorado owning a 100% interest in the KSP Project upon payment to Seabridge of $1,000,000 in cash, 2,000,000 Colorado common shares and a 2% NSR on the property (half of which can be repurchased at any time for $2,000,000). Closing of the transaction is subject to TSX Venture Exchange approval.

KSP adjoins Seabridge’s 100%-owned Iskut Project in northwestern British Columbia, Canada where Seabridge is currently conducting a multi-million dollar drill program exploring for high grade gold deposits.

Seabridge obtained a 100% interest in the KSP Project as part of its acquisition of 100% of SnipGold Corp. in June, 2016. At the time of the SnipGold acquisition, the KSP Project was subject to an exploration earn-in agreement in favor of Colorado as operator. In May, 2017, Colorado announced that it had earned a 51% interest in KSP and outlined the 2017 exploration spending that would vest a further 29% interest.

Seabridge Chairman and CEO Rudi Fronk said the sale of SnipGold’s residual interest in KSP is part of Seabridge’s ongoing program of divesting non-core assets in order to focus on projects in which it is sole owner and operator. “Our corporate objectives are better served by taking a passive interest in KSP and allocating our resources to exploration programs now in progress at KSM and Iskut.”

Seabridge Gold holds a 100% interest in several North American gold resource projects. The Company’s principal assets are the KSM and Iskut properties located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories.