Mr. Peter Mah reports

SPANISH MOUNTAIN GOLD ACQUIRES 28 MINERAL CLAIMS, EXPANDS EXPLORATION OPPORTUNITIES TO GROW MINERALIZATION

Spanish Mountain Gold Ltd. has entered into a purchase agreement dated Oct. 16, 2026, with an arm's-length vendor, pursuant to which it will acquire 28 mineral claims, an area over 2,000 hectares, that are contiguous with the company's Spanish Mountain gold project.

Peter Mah, president and chief executive officer, commented: "This claims purchase substantially expands the claim area of the Spanish Mountain gold project. We are excited about the exploration opportunities on the claims acquired, their growth prospects and the potential to support long-term project economics."

On closing of the acquisition, the vendor will receive: (i) $37,500 in cash; (ii) $37,500 of common shares (calculated using the closing price of the common shares on the day prior to closing); and (iii) a 0.5-per-cent net smelter returns royalty (NSR), subject to the company's right to purchase the entire NSR for $500,000. Further, on the one-year anniversary of closing, the vendor will receive $37,500 in cash and $37,500 of common shares (calculated using the closing price of the common shares on the day prior to the anniversary date). The number of common shares issued to the vendor on closing and the one-year anniversary will be subject to a maximum number of shares determined in accordance with TSX Venture Exchange requirements.

Closing is subject to TSX-V acceptance and will occur immediately following receipt of such acceptance. No finder's fee is payable in connection with the acquisition. All common shares issued pursuant to the acquisition will be subject to a four-month hold period.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold 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 in British Columbia. On May 1, 2026, the company received the first instalment of $22.5-million (U.S.) in connection with the sale of a 1.5-per-cent net smelter return royalty to Wheaton Precious Metals for $55-million (U.S.) (see news release from May 1, 2026). In Q2 2026, the company initiated a feasibility study on the project, which is fully financed and will position the company to make a construction decision in 2028.

The company is seeking new ways to achieve optimal financial outcomes that are safer, minimize environmental impact and create meaningful sustainability for communities, which the company terms "the relentless pursuit of better gold."

We seek Safe Harbor.