Spanish Mountain talks Phoenix ore sorting gains

Mr. Peter Mah reports SPANISH MOUNTAIN GOLD RECEIVES POSITIVE PARTICLE ORE SORTING RESULTS FOR THE PHOENIX DEPOSIT HIGHLIGHTING PRODUCTION UPSIDE Spanish Mountain Gold Ltd. has released the phase 1 test results for sensor based particle sorting on the gold mineralization from the Phoenix deposit. These results, which essentially reject waste and enhance grades to the process plant, were completed as part of the continuing trade-off studies as the company prepares to advance its Spanish Mountain Gold (SMG) project toward feasibility. The SMG project is in the Cariboo gold corridor, British Columbia, Canada. Highlights: X-ray transmission (XRT) results based on the samples tested from the Phoenix deposit show an upgrade potential of two or more times the grade of the sample through a high mass rejection of waste and lower-grade material in the order of 50 per cent to 70 per cent of the feed mass. Particle ore sorting resulted 85-per-cent to 92-per-cent recovery of gold from the samples. President and chief executive officer Peter Mah stated: "The amenability of the Phoenix gold mineralization to XRT ore sorting is an exciting new opportunity for the project to potentially increase milled grades and expand gold production during the first decade of production for the proposed mine. Ore sorting phase 1 test results show the potential to improve the project scale and economics while derisking portions of the resource, especially lower-grade feed. Preconcentrating mineralization essentially moves more gold through the process plant, which could significantly uplift processed grades, gold production and overall project economics. Follow-up testwork will include overall flow sheet recovery targeting the inclusion of results in a PEA update during H1 2026." Phoenix deposit -- particle ore sorting Spanish Mountain Gold commissioned ABH Engineering Inc. (see Oct. 20, 2025, news release) to complete a phase 1 ore sorting study as part of continuing studies to optimize the run-of-mine (ROM) feed material into the mill and process plant from the PEA (preliminary economic assessment) (see July 3, 2025, news release). ABH previously completed amenability tests on the mineralization from the Main deposit that indicated positive results with XRT ore sorting to increase process plant mill feed grades and gold produced while targeting lower costs and improved project economics for the SMG project (see Jan. 21, 2025, news release). The particle ore sorting work on the Phoenix deposit has benefited from the results from an earlier study on the Main deposit completed with ABH (see Jan. 21, 2025, news release). The current work program will create multiple products and algorithms to determine the optimal sorting conditions for achieving the highest possible increase to gold recovered per tonne milled through the mill and processing plant. There are numerous benefits that stream from particle ore sorting for the SMG project, and it is an important, potential optimization to the ROM feed grade of the process plant that could result in higher metal production, lower operating capital per tonne processed and higher metal recoveries postprocessing. Particle ore sorting can also aid in the rejection of barren material that leads to the reduction of fine tailings, reduced materials handling charges for transportation, reduced process plant and tailings capital expenditures, and, ultimately, lower impact to the local receiving environment through reduced water, reagents and overall infrastructure footprint. For the phase 1 testing, a total of 96 individual, 7.5-centimetre pieces of half-core samples designed to be representative of the Phoenix deposit were collected from drill core stored in the drill core archives at the SMG project. These samples were analyzed using XRT sorting technology. Testing was conducted at Saskatchewan Research Council (SRC) using Tomra's commercial-scale XRT machine coupled with their enhanced AI (artificial intelligence) programs, obtain and contain. Results from the testing at SRC show that, based on this phase 1 sample set, the Phoenix deposit material is very amenable to sorting using XRT sensors. The Phoenix deposit samples, averaging a grade of 0.48 grams per tonne Au, are shown to have the potential to yield an upgrade of the ROM (run-of-mine) feed grade by two or more times, while achieving 85-per-cent to 92-per-cent gold recovery and rejecting 50 per cent to 70 per cent of the sorter feed mass. Based upon these very positive results, Spanish Mountain Gold initiated the phase 2 sample collection for the Phoenix deposit, comprising two, 100-kilogram (kg) bulk sample sets of quartered drill core, broken into 5.0 to 7.5 cm pieces, representing material less than the cut-off grade of the Phoenix deposit mineral resource estimate (MRE) of 0.20 g/t gold (see July 3, 2025, news release) and the average grade of the MRE, 0.44 g/t gold. These two bulk samples from the Phoenix deposit are now running in parallel with a similar particle ore sorting study on five 100 kg bulk sample sets from the Main deposit at the SRC. The different feed grades of the two bulk samples from Phoenix deposit allow for modelling the sorter performance with a higher level of confidence because these larger samples are more representative of the deposit. Results to be announced in future press releases. Next steps With positive results received from the phase 1, particle ore sorting work on Phoenix deposit, ABH is undertaking the modelling and optimization of the preliminary operating points that will inform the analysis of the phase 2 work results, the XRT of the two, 100 kg bulk samples. Qualified person Brent Hilscher, PEng, vice-president of mineral processing with ABH Engineering, is the independent qualified person as defined under National Instrument 43-101 who has reviewed the technical information in this news release and has approved the content for dissemination. Jason Dunning, MSc, PGeo, head of exploration (senior technical adviser) with Spanish Mountain Gold, is the non-independent qualified person as defined under National Instrument 43-101 who has reviewed the technical information in this news release and has approved the content for dissemination. About Spanish Mountain Gold Ltd. Spanish Mountain Gold is focused on advancing its 100-per-cent-owned Spanish Mountain gold project toward its goal to build 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. The company 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.