Mr. Peter Mah reports

SPANISH MOUNTAIN GOLD ANNOUNCES 9-10,000 METRE DRILL PROGRAM

Spanish Mountain Gold Ltd. has contracted Hardrock Diamond Drilling Ltd. (HRDD) for its upcoming drilling program at its Spanish Mountain gold (SMG) project, which is located in the Cariboo gold corridor, near Likely, B.C., Canada.

Drill program objectives are:

• Extend near-surface, higher-grade gold mineralization in five key priority areas: Main deposit, Phoenix deposit, K-zone, Outcropping Tuff (OT) target and the A12 target;
• Collect drill hole sample material from the Phoenix deposit for ore sorting metallurgical studies looking to reject waste material and increase the gold content of mineralization entering the process plant;
• Derisk infrastructure locations identified in the 2025 PEA (preliminary economic assessment) (see July 3, 2025, news release) through drilling of high-priority exploration targets to inform future engineering studies.

The diamond drill program (approximately 9,000 to 10,000 metres in 27 HQ3-sized drill holes), with holes ranging in depth from 250 m to 600 metres, is planned to commence in Q3 (third quarter) 2025 and is expected to be completed in Q1 (first quarter) 2026. Drilling will utilize downhole tools for oriented drill core and split tube core barrels for structural measurements and enhanced core recovery, respectively.

The company's development strategy is focused on optimizing, derisking and advancing the SMG project toward a build decision in 2027. In July, 2025, the company published a new mineral resource estimate (MRE) and preliminary economic assessment (PEA) (see July 3, 2025, news release), which outlined several opportunities for follow-up drilling within the Main and Phoenix deposits and nearby targets.

For the upcoming drill program, work will be targeting extensions where higher-grade gold mineralization has been intersected in the near-surface environment, leveraging understanding gained in the fall, 2024, and winter, 2024 to 2025, drilling programs. An exploration drill program in 2024 (5,590 metres) was successfully and safely completed in September, 2024, and a 10,001-metre exploration drill program was completed in late May, 2025.

The technical team continues to focus on understanding the controls to higher-grade gold mineralization incorporating new and historic geological, structural, geochemical and geophysical studies. This work has greatly aided targeting and continues to confirm the favourable lithological and structural controls to mineralization in the Main and Phoenix deposits, and expansion potential outside the current MRE. High-priority targets outside of the MRE include the OT and A12 targets, which have seen limited historical drilling, however, the prospectivity of these two targets is exemplified by this past winter's drill hole, 25-DH-1275, at OT, which intersected 62.20 metres grading 0.60 g/t gold, including 5.04 metres grading 4.69 g/t gold, which also had a subset of 1.95 metres grading 9.72 g/t gold (see April 1, 2025, news release). Further drilling is needed in these important targets.

High-priority targets

Main deposit

The area around drill holes 25-DH-1281 and 25-DH-1282 is a key element to targeting higher-grade gold mineralization in the Main deposit and especially important to follow-up, since none of the winter, 2025, drill holes in the Main deposit were included in the 2025 MRE (see April 21, 2025, news release). Until 2025, drilling had not focused on what is now considered the preferred drilling direction of an azimuth of 120 degrees, which resulted in significantly higher-grade intercepts than the grade of the MRE of the Main deposit. Drill hole 25-DH-1281 intersected 123.00 metres grading 1.08 g/t gold and drill hole 25-DH-1282 intersected 211.90 metres grading 0.36 g/t gold, including 100.30 metres grading 0.52 g/t gold, which included an interval of 16.00 metres grading 1.43 g/t gold. This highlights the opportunity for extending this zone of higher-grade mineralization with additional stepout holes and identifying new zones of higher-grade mineralization using the preferred drilling direction.

K-zone

The K-zone, which is located in the southwest portion of the Main deposit, will be a high-priority target in the planned drill program. Drill hole 25-DH-1286 intersected 139.00 metres grading 4.18 g/t gold, including 0.75 metre grading 719.26 g/t gold in the winter, 2025, drill program (see April 24, 2025, news release). This intercept is the highest recorded on the SMG project and stepout drill holes in the upcoming program will look to further develop information on the orientation and extent of these important near-surface, high-grade vein structures. It is important to note that all winter, 2025, drill holes from K-zone were not included in the 2025 MRE and therefore the high-grade intercept had no impact on the block model.

Phoenix deposit

The Phoenix deposit was the focus of drill programs in 2024 and 2025, which outlined a large, near-surface gold endowment in its inaugural MRE (see July 3, 2025, news release). Drilling in the upcoming program will be focused along the main north-northwest-trending Evelyn fault that transects most of the favourable, mineralized trend over a distance of 1.4 kilometres (km) and has yield higher-grade gold results such as drill hole 25-CCR-062, which intersected 62.00 metres grading 1.47 g/t gold, including 4.00 metres grading 17.28 g/t gold (see June 2, 2025, news release). Other notable intercepts at the Phoenix deposit include drill hole 25-CCR-056, which intersected 116 metres grading 0.40 g/t, including 13.12 metres grading 1.27 g/t gold (see June 2, 2025, news release).

North-northwest-trending faults that appear to be a major control to mineralization at the Main deposit may also be important controls to mineralization at the Phoenix deposit.

A12 and OT targets

The A12 target is located along strike and west of the Main deposit MRE and is coincident with a strong gold-in-soil and geophysical anomaly. Drill holes in the upcoming program are primarily condemnation holes to derisk the surface infrastructure footprint for the process plant and dry stack tailings management facility as identified in the 2025 PEA. However, the favourable soil geochemistry and geophysics immediately west of the open pit may be associated with extensions to the Main deposit and provide a near-open pit opportunity that could have a significant positive impact to the SMG project.

The OT target is a recent discovery based on drilling a geological target in drill hole 25-DH-1275, which intersected 62.20 metres grading 0.60 g/t gold, including a smaller intercept of 5.04 metres grading 4.69 g/t gold (see April 21, 2025, news release). The hole was collared 1.35 kilometres northwest of the pit constraining the 2025 MRE and is a high-priority target for the upcoming drill program.

2025 summer surface exploration program

The technical team completed a limited summer exploration program in 2025 that had the objective to further delineate and refine high-priority targets that will be the focus of the upcoming drill program. Work included geological mapping, geochemical sampling of rocks, soils and colluvial material in the K-zone, OT target and A12 target. The total of samples (over 70 samples) been remitted for analysis and results are pending.

Qualified person

Julian Manco, MSc, PGeo, director of exploration with Spanish Mountain Gold, is the qualified person as defined under National Instrument 43-101, who has reviewed and has approved the contents of this news release.

About Hardrock Diamond Drilling

Since its inception, in 2004, HRDD has prioritized steady growth and has evolved into a full-scale drilling company. Equipped with all the necessary heavy machinery and mechanical prowess necessary for diverse coring projects, the company has established itself as one known for quality and reliability. The founding members of the team remain in charge today, ensuring top-notch expertise on projects. For HRDD, excellence requires maintaining safety, ensuring reliability, optimizing costs and upholding environmental responsibility. HRDD stated mission is to "build strong, long-lasting relationships with clients, to prove efficient and cost-effective drilling services, to offer an experienced and loyal team, to exceed its client's expectations and to continue to improve."

About Spanish Mountain Gold Ltd.

Spanish Mountain is focused on advancing its 100-per-cent-owned Spanish Mountain gold project toward construction of the next gold mine in the Cariboo gold corridor, British Columbia. On Aug. 18, 2025, the company filed a National Instrument 43-101 technical report on SEDAR+ that sets out the project's derisked and optimized preliminary economic assessment (PEA), with an updated mineral resource estimate (MRE). The company will continue to advance the project to position the company to make a construction decision in 2027. It is striving to be a leader in community and indigenous relations by leveraging technology and innovation to build the greenest gold mine in Canada. The relentless pursuit for better gold means seeking new ways to achieve optimal financial outcomes that are safer, minimize environmental impact and create meaningful sustainability for communities.

We seek Safe Harbor.