Spanish Mountain Gold Drills 1.16 g/t Gold Over 35.16 Metres and 0.98 g/t Gold Over 41.00 Metres Extending the Near Surface Higher-Grade Domain of the New Orca Fault
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The November 17, 2025 news release provides the second set of assay results from the company's 2025 fall drill program at the Spanish Mountain Gold Project. The drilling targeted the newly defined Orca Fault area. Key intercepts include: - Hole 25-DH-1294: 1.16 g/t gold over 35.16 metres and a broader interval of 0.68 g/t gold over 107.5 metres. - Hole 25-DH-1296: 0.98 g/t gold over 41.00 metres and a broader interval of 0.71 g/t gold over 68.0 metres.
These results are from a planned 9,500-metre drill program and are intended to extend the near-surface, higher-grade gold mineralization within the main deposit's pit-constrained resource. The company also noted the issuance of 325,000 common shares for mineral claim acquisition.
This news is a routine, positive update that confirms and builds upon the first set of results from this drill program, which were released on November 3, 2025. The intercepts of approximately 1 g/t gold are consistent with the grades needed for a bulk tonnage, open-pit operation and are valuable as they are near-surface, potentially improving the project's economics by enhancing the early years of the mine life as modeled in the July 2025 Preliminary Economic Assessment (PEA).
The results successfully extend the mineralization at the Orca Fault target, validating the company's geological model and demonstrating the potential to add higher-grade ounces within the existing pit shell. This is an incremental de-risking event, not a transformative discovery. The market should view this as the company methodically executing its stated plan to optimize and expand its resource following the robust PEA. It reinforces the project's potential but does not fundamentally alter the investment thesis or valuation.
The progression of news in 2025 shows a clear strategy: - Q1-Q2: Spectacular exploration success, notably the high-grade K-zone discovery (April 24) and extensive mineralization at Phoenix (June 2). - Q3: Delivered a cornerstone PEA (July 3) showcasing a large-scale, economic project at current gold prices, followed by a critical C$7.2M financing (August 27) to fund the next steps. - Q4: Commenced a follow-up drill program (September 12) and ore sorting studies (October 20) to refine and optimize the PEA model.
The current news fits perfectly into the Q4 objective. It is positive because the drilling is successful, but it is routine because it is an expected outcome of the ongoing infill and step-out program.
Spanish Mountain Gold Ltd. is a Canadian-based resource development company focused on its 100%-owned Spanish Mountain Gold Project in the Cariboo Gold Corridor of British Columbia. The project is host to a large, pit-constrained gold resource.
The flagship project's viability was outlined in a July 2025 PEA, which envisions a 24.5-year life-of-mine, conventional open-pit operation processing 26,000 tonnes per day. The PEA highlights robust economics, with a base case (US$2,450/oz Au) after-tax NPV5% of C$1.0 billion and an IRR of 18.2%. The project's total M&I resource stands at 4.2 million ounces of gold. The company is focused on optimizing and de-risking the project to reach a construction decision by 2027. The project's properties are subject to a 2.5% NSR, which can be bought down.