Spanish Mountain Gold Unearths Vast, High-Grade Zones in BC

VANCOUVER, BC – February 26, 2026 – Spanish Mountain Gold Ltd. has announced exceptional drilling results from its flagship project in British Columbia, revealing broad zones of high-grade gold mineralization that significantly bolster confidence in the deposit's scale and economic potential. The latest assays from the Orca Fault target area, part of an expanded drill program, have intersected substantial gold intercepts near the surface, reinforcing the project's path toward a potential construction decision in 2027.

The results stem from five new drill holes within the company's 100%-owned Spanish Mountain Gold Project, located in the historic Cariboo Gold Corridor. Highlights include drill hole 26-DH-1328, which intersected a remarkable 205.87 metres grading 0.58 grams per tonne (g/t) of gold, including a richer sub-interval of 47.00 metres at 1.19 g/t gold. Another hole, 26-DH-1329, returned 142.00 metres of 0.77 g/t gold, containing a high-grade section of 23.50 metres at 1.57 g/t gold.

These findings are crucial as they confirm the continuity of mineralization over a significant area, now traced over a 530-metre strike length and across a width of 200 metres. The company's 2025 Fall Drill Program has already surpassed its initial targets, completing approximately 13,819 metres of drilling, with assays from seven additional holes still pending.

De-Risking a Billion-Dollar Project

The new drilling data provides critical validation for the project's geological model and adds considerable weight to its already robust economic projections. In mid-2025, Spanish Mountain Gold released an updated Preliminary Economic Assessment (PEA) that outlined a large-scale, long-life mining operation with compelling economics. That assessment projected an after-tax Net Present Value (NPV) of C$1.03 billion and an Internal Rate of Return (IRR) of 18.2%, based on a gold price of US$2,450 per ounce.

The PEA envisions a 24.5-year mine life with average annual production of over 203,000 ounces in the first five years. A key factor in the project's low-risk profile is that nearly 99% of the resources factored into the PEA are in the high-confidence Measured and Indicated categories. The latest intercepts, particularly their near-surface location and high-grade nature, are expected to not only expand this resource but potentially enhance the overall grade, which could further improve the project's financial outlook.

The company's systematic exploration approach, featuring tighter drill spacing around the newly defined Orca Fault target, is successfully unlocking this additional potential. By consistently hitting wide, mineralized zones, Spanish Mountain Gold is demonstrating the potential for a large, open-pittable resource that is fundamental to its development strategy.

Riding a Bullish Gold Market

The progress at the Spanish Mountain project is occurring against a backdrop of a surging global gold market. With prices climbing past US$2,950 per ounce in early 2025 and some analysts forecasting a rise to over US$3,100 by year-end, the economic climate for developing new gold mines has rarely been more favorable.

This bull market is fueled by a confluence of factors, including aggressive purchasing by global central banks seeking to diversify reserves, persistent geopolitical instability driving safe-haven demand, and market expectations of impending interest rate cuts from major central banks like the U.S. Federal Reserve. For junior mining companies like Spanish Mountain Gold, this high-price environment makes securing financing and advancing capital-intensive projects toward production a more viable proposition. The strong market fundamentals provide a powerful tailwind for the project's C$1.25 billion initial capital expenditure outlined in the 2025 PEA.

Powering a 'Green' Future in the Cariboo

Beyond its resource potential, Spanish Mountain Gold is positioning its project to be a leader in sustainable mining. The company has publicly stated its goal to build "the greenest gold mine in Canada," a vision underpinned by concrete technological and environmental strategies.

A cornerstone of this plan is the decision to power the entire operation with renewable energy from BC Hydro's electrical grid. The company has already secured approval for funding assistance to advance the design of a new 60-megawatt power line to the site. This move will allow for the use of an electric mining fleet, drastically reducing greenhouse gas emissions, noise pollution, and the project's overall carbon footprint compared to traditional diesel-powered operations.

Furthermore, the mine plan incorporates dry-stack tailings management. This modern technique de-waters tailings into a filtered cake that can be compacted, creating a more stable landform and eliminating the risks associated with conventional slurry tailings dams. This approach not only enhances environmental safety but has also been received positively by local communities and Indigenous partners. The project is currently navigating a rigorous joint environmental assessment process under both British Columbia's and Canada's stringent regulations, a process that began in 2022.

Regional Impact and Technical Confidence

Located just 70 kilometers from the city of Williams Lake, the Spanish Mountain project is poised to become a major economic engine for the Cariboo region. The area has a deep history in mining, with nearby operations like the Gibraltar and Mount Polley mines creating a pool of skilled local labor. The project is expected to generate approximately 300 direct, full-time jobs and create numerous indirect opportunities through local procurement and service contracts.

The company has emphasized its long-standing relationships with local First Nations, with whom it has established protocol agreements that pave the way for future Impact Benefit Agreements. This commitment to community engagement and shared prosperity is a critical component of securing the social license to operate.

Underpinning the excitement around the project's potential is a foundation of rigorous technical validation. The company uses the advanced PhotonAssay™ method for analyzing drill core, a non-destructive technique that provides rapid and accurate results. To ensure data integrity, Spanish Mountain Gold runs a comprehensive Quality Assurance and Quality Control (QAQC) program, including cross-analysis with traditional fire assay methods and the systematic insertion of blanks and certified reference materials. This meticulous approach gives investors and stakeholders high confidence in the reported mineralization and the underlying resource model.

With an expanded drill program continuing into 2026 and more results on the way, Spanish Mountain Gold is systematically advancing its project on all fronts. The combination of a growing, high-quality resource, a strong gold market, and a clear commitment to sustainable development positions the Spanish Mountain project as a significant future contributor to Canada's gold production landscape.