Spanish Mountain Gold Expands Near Surface Mineralization Intersecting 295.50 Metres of 0.54 G/T Gold Including a Higher Grade Interval of 107.00 Meters of 0.93 G/T Gold as Part of Its Feasibility Study Drill Program

Spanish Mountain Gold Ltd. (SPA) has released assay results for 28 diamond drill holes, numbered 26-DH-1391 through 26-DH-1418, from its 2026 Feasibility Drill Program at the Spanish Mountain Gold project in the Cariboo Gold Corridor, British Columbia. Approximately 33,353 meters of the planned 60,000-meter program is now complete, with assays pending for a further 25 holes. The program targets infill drilling and resource expansion at the Main Deposit, supporting a feasibility study targeted for completion in the first half of 2028.

Key intercepts reported, based on core length rather than true width, include:

• 26-DH-1414: 295.5 m @ 0.54 g/t Au from 41.0 m, including 107.0 m @ 0.93 g/t from 170.0 m and 7.85 m @ 1.18 g/t from 308.75 m
• 26-DH-1391: 340.0 m @ 0.36 g/t Au from 14.0 m, including 48.0 m @ 0.64 g/t from 14.0 m and 146.0 m @ 0.54 g/t from 174.0 m
• 26-DH-1408: 152.65 m @ 0.52 g/t Au from 8.85 m, including 99.27 m @ 0.73 g/t from 8.85 m (the highlight text also cites a 47.93 m @ 1.03 g/t sub-interval from 35.0 m)
• 26-DH-1399: 118.0 m @ 0.55 g/t Au from 18.0 m, including 25.0 m @ 1.35 g/t from 68.0 m
• 26-DH-1412: 187.15 m @ 0.28 g/t Au from 4.5 m, including 42.0 m @ 0.64 g/t from 118.0 m
• 26-DH-1418: 111.8 m @ 0.34 g/t Au from 222.2 m, including 21.8 m @ 0.92 g/t and 16.0 m @ 1.16 g/t
• 26-DH-1400: 135.0 m @ 0.32 g/t, including 15.0 m @ 1.61 g/t; 26-DH-1394: 134.0 m @ 0.22 g/t, including 48.0 m @ 0.44 g/t; 26-DH-1406: 110.4 m @ 0.38 g/t, including 58.5 m @ 0.61 g/t; 26-DH-1395: 116.1 m @ 0.32 g/t
• Weak/narrow: 26-DH-1393 (51.73 m @ 0.20 g/t), 26-DH-1402 (4.10 m @ 0.45 g/t), 26-DH-1404 (8.0 m @ 0.37 g/t), 26-DH-1410 (10.55 m @ 0.83 g/t), 26-DH-1417 (35.0 m @ 0.26 g/t)

The release states that true thickness is not determined and does not disclose a cutoff grade. The laboratory used was MSALABS in Prince George, employing the Chrysos PhotonAssay PA1408X method. QA/QC protocols included blanks, certified reference materials (CRMs), and duplicates, covering a minimum of 20% of samples. The Qualified Person for the project is Dr. Mathew Ball, P.Geo.

Spanish Mountain Gold Ltd. (SPA) is an advanced developer with a published preliminary economic assessment (PEA), an updated mineral resource estimate (MRE) of 342 Mt @ 0.42 g/t M&I for 4.66 moz, a fully funded feasibility study, a US$55M royalty package from Wheaton, and a targeted build decision in 2028. For a company at this stage, a drill batch only moves the equity if it changes the reserve, the mine plan, the mine life, or the capital and permitting path. This batch does none of those directly; it supports the resource model and marginally brightens the near-surface grade distribution.

The purpose of the drilling is infill and resource definition with a secondary expansion ambition. The anchor is the 0.42 g/t resource grade, and these holes are at or above it over meaningful widths.

The Orca Fault discovery campaign from December 2025 to March 2026 re-rated the stock from a C$0.12 low to C$0.40, but that gain has substantially round-tripped. Shares closed at C$0.27 on October 7, 2026, below the C$0.32 level at the time of the July 27 drill release and well below the C$0.40 reached on the September 21 PEA-update day. The immediate cause of the recent slide is corporate: Xatśūll First Nation's October 1 termination of the 2012 and 2021 engagement agreements knocked the stock from C$0.34 to C$0.26 in a single session. The market is not priced for a drilling repeat; it is priced for First Nations and financing risk.

Measured against the equity, which has a market cap of approximately C$139M against a US$2.16B after-tax net present value (NPV) at US$3,600/oz, the gap between price and published NAV is enormous. This is explained entirely by the US$1.05B initial capital expenditure, the financing and dilution path, the environmental assessment and First Nations process, and the low 0.42 g/t head grade. A 28-hole infill batch does not close any of those gaps. It does incrementally de-risk the resource block model ahead of the feasibility study, which is real but slow-burn value.

Spanish Mountain Gold Ltd. (TSX-V: SPA; OTCQB: SPAUF; FSE: S3Y) is a Vancouver-based gold developer whose sole material asset is the 100%-owned Spanish Mountain Gold project in the Cariboo district of British Columbia, roughly 70 km from Williams Lake with paved highway access 6 km from site.

Resource (per the September 21, 2026 update): * Main Deposit M&I: 342.0 Mt @ 0.42 g/t Au for 4.66 moz Au plus 7.2 moz Ag * Main Deposit Inferred: 42.4 Mt @ 0.28 g/t Au * Phoenix Deposit Indicated: 0.09 Mt @ 0.25 g/t (0.72 koz) * Phoenix Deposit Inferred: 54.45 Mt @ 0.36 g/t (629 koz) * Consolidated M&I: 342.1 Mt @ 0.42 g/t (4.66 moz) * Consolidated Inferred: 96.8 Mt @ 0.32 g/t (1.01 moz)

All consolidated figures are at a 0.15 g/t Au cutoff.

The September 21, 2026 PEA update describes a 25.8-year conventional open pit and mill at 31,000 tpd, 3.33 moz payable gold LOM, average LOM AISC of US$1,450/oz, initial capital of US$1,050M, and an after-tax NPV5% of US$2,156M with a 35.2% IRR at US$3,600/oz gold (US$3,142M and 46.3% at US$4,400/oz). Strip ratio improved to 1.8:1, LOM gold recovery 89%. Prior-period context — not disclosed in today's release — the presentation cites a C$1.0B after-tax NPV5% for the July 2025 PEA at US$2,450/oz. These are two different studies and should not be conflated.

On April 21, 2026 the company agreed to sell a 1.5% NSR on gold and silver to Wheaton Precious Metals for US$55M in three instalments — US$22.5M received May 1, 2026, US$12.5M on completion of 60,000 m of drilling, and US$20M on receipt of Environmental Assessment Act approvals. The company also holds buydown rights that would reduce the combined NSR burden to 2–2.5% for US$25.9M.

Financial position (prior-period context, Q1-2026 to March 31, 2026, before the May 1 instalment): cash C$1.37M, working capital C$4.28M, net loss C$255,043, with a going-concern flag on dependence on additional financing. The subsequent US$22.5M receipt resolves the immediate liquidity question and broadly reconciles to the C$30.6M cash cited in the investor presentation as of May 6, 2026. Shares outstanding were 510.7M at Q1-2026 and 516.1M as of the presentation; fully diluted 596.7M including 72.7M warrants and 7.8M options. Notable holders include Eric Sprott (~9%) and Ian Watson (~3%). Management is Peter Mah (President/CEO), Mark Ruus (CFO) and Julian Manco (Director of Exploration).

The BC Environmental Assessment Office accepted the plan to resume the previously paused EA and is not pursuing termination; a draft Detailed Project Description is expected Q4 2026 with formal submission Q1 2027, a feasibility study targeted for H1 2028 and a construction decision in 2028.