Mr. Peter Mah reports

SPANISH MOUNTAIN GOLD ANNOUNCES METALLURGICAL TEST PROGRAM AND DRILL RESULTS

Spanish Mountain Gold Ltd. has released details on a new metallurgical test program and assay results from the 2022 metallurgical drill program for its Spanish Mountain gold project located in the Cariboo gold corridor near Likely, B.C., Canada.

A new metallurgical test program has been scoped and tendered to assess the potential benefits and flowsheet improvements using coarse ore floatation. The company anticipates to award and begin testing later in Q1 2024. The program will include using the 2022 metallurgical diamond drill hole samples. The results of the test program will provide inputs for the Whittle enterprise optimization.

Peter Mah, Spanish Mountain Gold's president, chief executive officer and director, comments, "We are excited about this new program which may show that a coarser grind decreases power consumption, improves downstream processes such as tailings and water management, and favourably impacts costs and production."

Metallurgical drill result highlights:

• 0.77 gram per tonne (g/t) gold (Au) over 56.6 metres (m) from 119.4 m in drill hole 22-DH-1259;
• 0.59 g/t Au over 99.5 m from 3.0 m, in drill hole 22-DH-1261;
• 1.03 g/t Au over 101.5 m from 15.0 m in drill hole 22-DH-1262;
• 0.79 g/t Au over 76.0 m from 20.0 m in drill hole 22-DH-1263.

Drill program summary

The drill program consisted of five HQ2 diamond drill holes totalling 1,026 m. The drill holes were collared at specific locations within the 2021 prefeasibility study report (PFS) defined pit Main zone area designed to maximize the mineralized intercepts within the major geometallurgical domains to provide optimal samples for the metallurgical test work. The mineralized intervals were calculated on downhole weighted gold assay results using parametres from the PFS mineral resource estimate including a cut-off grade of 0.15 g/t Au and a minimum five m width.

Drill core processing and quality assurance -- quality control program

Atlas Drilling Ltd. of Kamloops, B.C., was contracted to undertake the drill program. Drill core was emptied into core boxes directly from the core tube at the drill site for every three-metre run and the core boxes securely delivered to the Spanish Mountain Gold core shack facility at the end of every shift. The core is measured for recovery and this information is logged along with other geotechnical data. Any discrepancies with the drill shift report are noted and rectified. The company is not aware of any drilling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to in this new release.

The drill core processing was conducted by Discovery Consultants of Vernon, B.C., under the supervision of the company's exploration manager. The drill core was geologically logged to identify lithologies, structure and the gold mineralized zones. Sample intervals of nominally one m were selected based on the geological logging and are allocated unique sample number tickets and marked for cutting. The geological and sample logging data was collated and verified by the company.

The sample intervals are cut in halves using a purpose-built diamond blade rock saw. Half-core samples were collected in labelled bags and the other half remains in the original core box stored on site. Quality control (QC) samples, including certified reference material standards, blanks and duplicates, are inserted into the sample sequence at regular intervals on a rotating basis to monitor laboratory performance and provide quality assurance (QA) of the assay results. Sample bags are securely shipped to the lab labelled with company and lab contact information to ensure sample security and chain of custody during transport.

The samples were submitted to the ALS Geochemistry Lab in Vancouver, B.C., for preparation and assaying. The entire sample is crushed to 70 per cent passing minus two millimetres and a 1,000-gram aliquot is split and pulverized to 85 per cent passing minus 75 microns. Analysis for gold was by metallic screen fire assay and atomic absorption (AA) finish. A suite of 30 other elements were analyzed by four-acid digest digestion inductively coupled plasma atomic emission spectroscopy (ICP-AES). ALS Canada Ltd. is accredited by the Standards Council of Canada and is an ISO/IEC 9001:2015 and 17025:2017 certified analytical laboratory in North America. ALS Geochemistry is independent of the company.

When the assay lab certificate of analysis were received, the QA/QC data were assessed for accuracy and precision of the results and, if found to be within certain parametres, the assay data were accepted as final and merged with the other downhole drill hole logging data for further interpretation.

Qualified person

Troy Gill, MAIG, vice-president, exploration, for Spanish Mountain Gold, is the qualified person as defined under National Instrument 43-101 who reviewed and approved the contents, and verified the data disclosed in this news release.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold is advancing its 100-per-cent-owned Spanish Mountain Gold project toward construction of the next gold mine in the Cariboo gold corridor, British Columbia.

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