Seabridge Gold Inc

Seabridge Gold Inc. is rapidly advancing the KSM gold-copper project in British Columbia, one of the world’s largest undeveloped gold-copper projects, scheduled to complete a Feasibility Study in early 2010. This project justifies a successful strategy of advancing a portfolio of gold projects for sale to a major mining company. Seabridge recently sold its Noche Buena project in Mexico, increasing its cash on hand to about $30 million. This will allow Seabridge to meet several milestones at KSM important for appreciation including the following:

• Resource estimate update for the KSM project 1Q09
• Updated Preliminary Assessment for KSM project 2Q09
• Engineering studies for KSM in 2009
• Preliminary Feasibility Study for KSM project by 1Q10

With a relatively modest number of shares outstanding and total gold resources totaling about 49 million ounces, Seabridge provides exceptional leverage to higher gold prices. We are initiating coverage of Seabridge with a Buy rating, price target of $54.00 per share and a High risk assessment.

Investment Thesis
Seabridge Gold Inc. (NYSE: SA, TSX: SEA) is accelerating development of one of the largest gold (and copper) deposits in the world. The Kerr-Sulphurets-Mitchell gold-copper resource, or the KSM project, is likely to increase in size as the identified deposit remains open to expansion within the conceptual pit and beyond. In-fill and step-out drilling continues to identify additional mineralized areas within the pit, and when converted from waste rock to ore, operating costs should be reduced, improving rates of return. The KSM project has already achieved a resource size and footprint which rivals some of the world’s largest operating mines. The KSM project is located in the mining friendly political jurisdiction of British Columbia, and benefits from relatively close proximity to Barrick Gold Corporation’s (NYSE:ABX) Eskay Creek Mine.