Spanish Mountain Gold Project PEA Update Shows Stronger Economics, Regulators Allow EA Process to Resume

C. Gold Project and Receives Confirmation From Provincial Regulators to Resume the Previously Paused Environmental Assessment and Permitting Process Advancing Towards Development Spanish Mountain Gold Ltd. (“Spanish Mountain” or the “Company”) (TSX-V: SPA; FSE: S3Y; OTCQB: SPAUF) is pleased to announce the results of a Preliminary Economic Assessment and Mineral Resource Estimate Update (the "PEA", or “PEA Update”, “MRE” on the Spanish Mountain Gold Project (the “Project”) located within the Cariboo Gold Corridor, British Columbia, Canada. The PEA Update is a conceptual study showing improved potential economic viability of the Main Deposit.

The PEA will be published in an independent National Instrument ("NI") 43-101 Technical Report within 45 days of this news release and filed on SEDAR+. Once filed on SEDAR+, the PEA will supersede the Company’s existing technical report on the Project. The PEA Update study was commissioned by the Company and prepared by consultants led by BBA Engineering Ltd. ("BBA").

33 million ounces ("Moz") of payable gold, with a front-weighted production profile and attractive economics. This press release features multimedia. 2% using a gold price assumption of US$3,600/ounce ("oz"). 3%.

8-year LOM at an AISC of US$1,450/oz (C$1,958/oz). 5 years at spot gold price of $4,400/oz gold. Increased gold production: Updated drilling and resource definition has increased the tonnes and gold ounces included in the mine plan, when compared to the previous 2025 PEA. A larger open pit, with a lower overall strip ratio, is targeted, providing a longer mine life at an increased mill throughput rate.

Additionally, ounce production has been brought forward in time in the schedule, and the overall ratio of Measured to Indicated Mineral Resources included in the mine plan has been increased. Process Flowsheet Optimization: The Company advanced a significant flowsheet optimization initiative through the integration of coarse particle flotation and clean gangue rejection technologies. The optimized flowsheet has the potential to increase feed grades ahead of rougher flotation through early waste rejection, enabling higher throughput while maintaining strong gold recovery.

The resulting design is more robust and operationally flexible, with benefits extending beyond metallurgical performance to include improved dry-stack tailings characteristics and reduced operating costs. These advancements strengthen the technical basis for the 2026 PEA update and FS trade-off studies while reinforcing the Company's objective of developing a high-performing, environmentally responsible mining operation.

Significant Opportunities: Potential to further enhance Project economics and expand production rate have been identified with the addition of the maiden Phoenix deposit MRE, ongoing endowment potential extensions, and preconcentration technologies such as mineralized material sorting to boost mill feed grade, that will be examined during the FS as an expansion option. Strong Discovery Growth Potential: The 2026 Exploration diamond drill program has completed 31,587 meters (m) of a 60,000 m program on plan to complete Q4 2026.

Environmental, Permitting & Community: From March to August 2026, SMG worked closely with BC Environmental Assessment Office (“BCEAO”), Impact Assessment Agency of Canada (“IAAC”), participating Indigenous Nations and local communities to secure authorization in August from BCEAO to resume the previously paused combined provincial and federal Environmental Assessment (“EA”) processes. This authorization, received in August from BC EAO avoids EA termination and reduces duplicate components of early engagement and the Initial Project Description processes.

Consequently, pending geotechnical and condemnation drill results, SMG is on track trending towards delivering an updated draft Detailed Project Description (“DPD”) in Q4 and formal submission of the DPD in Q1 2027. These are the next steps in resuming the EA process to advance to Spanish Mountain Gold project towards a build decision in 2028. Key PEA Update Improvements and Optimizations vs. 2025 PEA The PEA Update incorporates several important improvements and de-risking initiatives compared to the 2025 PEA, all of which better positions the Project for a successful next phase of development.

Notable changes include: Improved Mine Production Schedule Gold Produced: Increased gold production in the first 10 years from an average of 153 koz to 173 koz per year. 1% in the first 10 years of production. Larger Project Scale: The Study has increased the process throughput (ROM Mill Feed) from 26 ktpd to 31 ktpd, which increases the LOM average gold production profile by 6% to 129 koz per year (from 122 koz per year). 0% increase over LOM.

Further pre-concentration of mill feed to uplift feed grade such as mineralized material sorting was investigated during the PEA. It was identified as a target case opportunity to 'bolt-on' to the base case which will be further assessed during the next stages of project development. Increase Throughput from Improved Flowsheet Design: Updated metallurgical studies and testing has resulted in modification to a coarse mill feed flotation circuit with the use of coarse particle flotation to upgrade ore feed into the main crushing circuit of the proposed processing plant. Increased process throughput from 26ktpd to 31ktpd, an increase of 19%.

Open Pit Mine Design Expansion and Growth: Through targeting lower strip ratios based upon improved geotechnical assessments, additional resources included in the mine plan and better stockpile management, an optimum open pit was selected to maximize efficiency. 0:1 in the 2025 PEA, a 10% reduction. Mineral Resource Estimate: Additional drilling, the resultant assays, and a new pit design using US$3,400 per ounce gold, increased the Main deposit Measured, Indicated contained gold ounces by 500 koz. Inferred ounces in the Main Deposit increased by 227 koz.

3 Moz life of mine. This PEA with updated mineral resource estimate marks another key milestone for the Company as it prepares to complete a feasibility study (FS) and build decision by H1 2028. Our ongoing 60 km drill program to support the FS is approximately 50% complete and expected to be completed towards the end of Q4 2026. The drilling is expected to provide further opportunities to enhance scale, assist with locating proposed mine infrastructure and important technical information to complete the FS that will also enable permitting to advance.

8:1. 30% Annual Average Free Cash Flow US$M (C$M)(4) $63 ($85) $128 ($173) $150 ($202) $214 ($289) Annual Average Free Cash Flow Yr. 96 Notes for Table 1 1. Spot price is based on the CIBC Consensus Gold Price as of Closing on Sep 1, 2026, rounded down to the nearest $100/oz for gold and $1/oz for silver.

2. Cash Costs consist of mining costs, processing costs, mine-level G&A, offsite charges, and royalties less by-product credits. Refer to the “Non- Gaap Financial Measures” section in Appendix A of this news release for more information. 3.

All-In Sustaining Costs (AISC) includes cash costs plus sustaining capital, closure costs, and salvage credits. Refer to the “Non-GAAP Financial Measures” section in Appendix A of this news release for more information. 4. Free cash flow is calculated as after tax cash flow from mine-site operating activities less capital expenditures, including closure costs (net of salvage value).

Refer to the “Non-GAAP Financial Measures” section in Appendix A of this news release for more information. 5. Processing throughput per day can come from run of mine and rehandling from stockpile. 6.

Numbers may not add due to rounding. 8% of the proposed mill feed from the Main deposit. Mineral Resources are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that economic forecasts on which this PEA is based will be realized.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Table 2 lists the breakdown by resource category of the run of mine ("ROM") mill feed for the PEA life of mine plan. 20 Notes: 1. ROM mill feed represents material scheduled for processing in the PEA life-of-mine plan.

2. Contained ounces are based on estimated grades and tonnages and do not represent recoverable metal. 3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

4. 1 Mt of Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA results will be realized. Mineral Resource Estimate for the Main Deposit Note: The Main Deposit is included in the financial modelling for the 2026 PEA.

15 g/t gold cut-off (see Table 3). There is no certainty that Mineral Resources will be converted into Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources include Inferred Mineral Resources which have had insufficient work to classify them as Indicated Mineral Resources.

It is uncertain but reasonably expected that Inferred Mineral Resources could be uplifted to Indicated Mineral Resources with additional drilling. 1. The lithological model was developed based on data from the extensive re-logging program of 170,000 m drill core that was completed in 2023 and 2024, in addition to geochemical classification of sampled intervals eligible for such analysis, which includes both historical and modern drilling. 3 g/t over a minimum width of 3 m.

Two primary styles of mineralization were recognized. Early mineralization includes disseminated stratiform mineralization in argillite-bearing lithologies. Late mineralization includes gold associated with late-stage quartz veins. Three high-confidence faults were modelled, including the North Fault, South Fault, and Fault 1.

The Main Block is bound by the North and South Faults, representing significant discontinuities in stratigraphy and mineralization. Within the Main Block, Fault 1 introduces a minor offset in the main block. 5% royalty. 03/t).

50/t) for mill processing and include site G&A. 8%, and payability for silver is 90%. Process recovery for gold is 90%, while process recovery for silver is 50%. 73 to US$1.

2 M contained ounces of silver (17% increase over the 2025 silver MRE). 2 M ounces of silver. Table 3: Mineral Resource for the Main deposit — 2025 Category Cut-off Grade (g/t) Tonnes (kt) Au Avg. Grade Au (koz) Ag Avg.

95 454 Mineral Resource for the Main deposit — 2026 Category Cut-off Grade (g/t) Tonnes (kt) Au Avg. Grade Contained Au (koz) Ag Avg. 86 1,174 Notes for Table 3: 1. Geo of Equity.

2. Mineral Resources are classified in accordance with CIM (2014) definition standards. 3. Bulk density is assigned on a block-by-block basis.

4. 15 g/t gold cut-off grade. 5. Metal price assumptions include US$3,400/oz Au and US$45/oz Ag.

6. Metallurgical recovery assumptions are 90% for gold and 50% for silver. 7. 8% for gold and 90% for silver.

8. Numbers may not add due to rounding. 9. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

10. The qualified persons responsible for this section of the technical report are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate other than those disclosed in this news release and in the PEA Technical Report. Mineral Resource Estimate for the Phoenix Deposit Note: The Phoenix Deposit is not included in the financial modelling for the 2026 PEA.