Royal Gold and Seabridge Close Private Placement/Royalty Partnership in KSM

Seabridge Gold SA announced today that it has closed its previously announced private placement with Royal Gold Inc. whereby Royal Gold has purchased 1,019,000 common shares of Seabridge at C$29.44 per share (US$30.39), totaling C$30 million in cash. The purchase price for the shares is equal to a 15% premium over the volume weighted average trading price of Seabridge shares on the TSX for the five day trading period ending June 14, 2011. In connection with the private placement, Seabridge granted Royal Gold an option to acquire a 1.25% Net Smelter Royalty ("NSR") on all gold and silver production from KSM for C$100 million. The option is exercisable for a period of 60 days following the announcement of receipt of all material approvals and permits, full project financing and certain other conditions. Seabridge has also granted Royal Gold an 18 month option to acquire an additional C$18 million in Seabridge common shares that would be priced at a 15% premium over the market price at the time of subscription. If exercised, this additional investment in Seabridge shares would provide Royal Gold an option to acquire a further 0.75% NSR on all gold and silver production from KSM for an additional C$60 million on the same conditions as the 1.25% NSR.