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Toronto, Canada… Seabridge Gold announced today that it has agreed to sell its remaining interest in the Noche Buena project to Minera Penmont, S. de R.L. de C.V. (“Penmont”) for US$10.12 million in cash. Closing is expected within the next 30 days. Penmont is a joint venture between Fresnillo plc. and Newmont USA Limited, a wholly owned subsidiary of Newmont Mining Corporation.

As background, in late 2008 Seabridge sold its 100% working interest in the Noche Buena project to Penmont for US$25 million in cash and a commitment by Penmont to pay Seabridge a further US$5 million upon commencement of commercial production from Noche Buena and a 1.5% net smelter royalty payable on all production from Noche Buena sold for US$800 per ounce of gold or greater. On closing of this transaction, Seabridge will no longer have any interests in the Noche Buena project.

Seabridge President and CEO Rudi Fronk said: “The cash proceeds will be used to continue advancing our core projects, KSM and Courageous Lake, towards feasibility. One of the elements of our strategy is to fund our core projects through the sale of non-core assets such as Noche Buena in order to minimize common share dilution. We hope to make further asset sales over the next several months. Our aim is to increase our proven and probable gold reserves, which now stand at 30.2 million ounces, while maintaining a low number of outstanding shares, which now totals 42.3 million fully-diluted,” he said.

Seabridge holds a 100% interest in several North American gold projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. KSM is one of the world’s largest undeveloped gold/copper projects. Proven and probable reserves for the KSM project (see news release dated March 31, 2010 for details) using a gold price of US$850 per ounce, a copper price of US$2.25 per pound are as follows:

Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101.

All reserve and resource estimates reported by the Corporation were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Source: Company website

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