Seabridge Gold Inc. to Acquire SnipGold Corp. by Way of Plan of Arrangement

TORONTO, ONTARIO--(Marketwired - April 19, 2016) - Seabridge Gold Inc. (TSX:SEA)(NYSE:SA) ("Seabridge") and SnipGold Corp. (TSX VENTURE:SGG) ("SnipGold") are pleased to announce that they have entered into a definitive agreement dated April 18, 2016 (the "Arrangement Agreement") pursuant to which Seabridge has agreed to acquire all of the issued and outstanding common shares of SnipGold (the "SnipGold Shares") by way of a statutory Plan of Arrangement under the Business Corporations Act (British Columbia) (the "Arrangement").

Rudi Fronk, Seabridge's CEO and Chairman, said: "The board of directors of Seabridge believes the proposed transaction will enhance our exploration potential in an area where our technical team has built up significant expertise. This proposal also meets our transaction test of immediately increasing our gold resource ownership per share. Our KSM Project has geological similarities to SnipGold's Iskut Project and the two properties are near enough to each other to offer synergies in terms of personnel and infrastructure.

"This business combination offers SnipGold shareholders the opportunity to maximize the potential value of their Iskut property by accessing the technical and financial resources needed to explore, engineer and permit their project. SnipGold shareholders will also benefit from Seabridge's more senior exchange listings and greater liquidity. In our view, the proposal offers shareholders of the combined company the potential for enhanced capital appreciation with exposure to a larger asset base in B.C.'s prolific Golden Triangle."

Patrick Soares Chairman of SnipGold said: "SnipGold's Board of Directors believes that our loyal shareholder base will benefit from this combination of companies. We are pleased by the premium that shareholders are receiving from Seabridge, which we think is in recognition of not only the exploration efforts of SnipGold management, but the underlying value of SnipGold's property. Seabridge has the ability to fund the project going forward with minimal dilution to its shareholder base."

John Zbeetnoff, President and CEO of SnipGold said: "I am pleased the SnipGold project will pass to a mid-tier company that has the funding capacity to build upon our technical efforts that advanced the understanding of the area. Our project offers Seabridge excellent high grade gold and bulk tonnage resource expansion and discovery potential at several drill ready targets.