Mr. Peter Mah reports

SPANISH MOUNTAIN GOLD CLOSES $6 MILLION NON-BROKERED PRIVATE PLACEMENT

Further to its news release on May 4, 2023, Spanish Mountain Gold Ltd. has closed its non-brokered private placement to issue 28,571,429 units of the company at a price of 21 cents per unit for aggregate gross proceeds of $6-million.

Each unit consists of one common share of the company and one-half of one share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share of the company at a price of 25 cents per common share for a period of 24 months, subject to earlier expiry if the 10-day volume-weighted average price exceeds 30 cents per common share.

The company intends to use the proceeds from the offering for exploration and development at its Spanish Mountain project, and for general working capital purposes. All securities issued in connection with the offering will be subject to a statutory hold period of four months.

Certain insiders of the company have subscribed to the units in connection with the offering. Such participation is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any securities issued to nor the consideration paid by such persons will exceed 25 per cent of the company's market capitalization.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold is focused on advancing its 100-per-cent-owned Spanish Mountain gold project in south-central British Columbia. The company is simultaneously pursuing the dual objectives of delivering critical project milestones for the multimillion-ounce mineral reserve and further expanding the overall mineral resource. The 2021 prefeasibility study demonstrates the project's potential to be a mining operation with a robust project economics with a strong production profile (over 150,000 ounces per year) and profitability (all-in sustaining cost of $801 (U.S.) per ounce) over a mine life of 14 years. Details on the project and the company are available on SEDAR and on the company's website.

We seek Safe Harbor.