Mr. Peter Mah reports

SPANISH MOUNTAIN GOLD SIGNS FACILITIES STUDY INTERCONNECTION AGREEMENT WITH BC HYDRO AND STRENGTHENS DEVELOPMENT TEAM

Spanish Mountain Gold Ltd. has signed a facilities study agreement with BC Hydro and Power Authority, the provincial Crown corporation responsible for generating, purchasing, transmitting and distributing electricity in British Columbia, for the interconnection of the Spanish Mountain gold project, located in the Cariboo gold corridor, British Columbia, Canada. The company also announces the appointment of Michael Buchanan, PGeo, as vice-president, exploration.

Peter Mah, president and chief executive officer, commented: "Signing the facilities study agreement is a significant milestone toward a construction decision for the project. Secure, reliable and clean grid power is a cornerstone of the project. We are also thrilled to announce the addition of Michael to our team. His experience leading large-scale exploration programs and working closely with communities will be a tremendous asset to the company as we advance the project through feasibility. Together, these steps reflect our commitment to building a strong development team and derisking the project on the path to a construction decision."

Highlights:

• Facilities study agreement signed with BC Hydro -- a milestone toward a construction decision. The interconnection of a 60-megawatt load requires a new BC Hydro 230-kilovolt switching station, which is targeted to be ready for operation by first half 2030;
• Mr. Buchanan appointed vice-president, exploration -- Mr. Buchanan is an economic geoscientist with more than 20 years of global exploration experience. He most recently served as director, exploration -- Americas -- at Teck Resources Ltd. (2020 to 2024), where he was responsible for leading an annual exploration budget of more than $50-million. He previously held senior roles at Anglo American in Chile, Peru and Mexico/United States, and served as a board director of the Association for Mineral Exploration B.C. (2015 to 2021).

BC Hydro facilities study agreement

BC Hydro and Spanish Mountain Gold have signed a facilities study agreement for the interconnection of a 60 MW load, which requires a new BC Hydro 230 kV switching station to be constructed near the BC Hydro McLeese Lake capacitor station. The scope of work covers the feasibility design and project definition phases, including engineering design, project management, stakeholder engagement, and capital cost estimates of plus or minus 15 per cent for implementation of the project. The facilities study is targeted for completion in second half 2027, and the station is targeted to be ready for operation by first half 2030.

Grid power is a key part of the company's plan to build a lower-carbon, lower-cost mine. The facilities study agreement is a further step in the work required to reach a construction decision, alongside the 2026 preliminary economic assessment update (see press release dated Sept. 21, 2026), the environmental assessment process and the feasibility study.

Appointment of vice-president, exploration

Mr. Buchanan joins the company Oct. 26, 2026, and will lead the company's exploration and resource development programs as the project advances through the feasibility study. He is an economic geoscientist with more than 20 years of experience in grassroots and near-mine exploration for base and precious metals, with a strong focus on health, safety, environment and community programs.

Mr. Buchanan most recently served as director, exploration -- Americas -- for Teck Resources (2020 to 2024), where he led exploration country managers and regional chief geologist across copper and zinc projects and presented a project portfolio supporting annual budgets of more than $50-million. He previously held roles of increasing responsibility at Teck as director, exploration -- North America (2017 to 2020) -- and manager, exploration -- Canada/United States (2013 to 2017) -- and at Anglo American as exploration manager in Chile, general manager in Peru and senior geologist in Mexico/United States, among other roles (2005 to 2013). Mr. Buchanan holds a master of economic geology from the University of Tasmania and a BSc (honours) in geology from the University of British Columbia, is a professional geoscientist (PGeo) with Engineers and Geoscientists B.C., and served as an elected board director of the Association for Mineral Exploration B.C. from 2015 to 2021.

Stock option grant

The company granted incentive stock options to purchase an aggregate of 775,000 common shares of the company to certain officers, employees and consultants of the company in accordance with the company's stock option plan. The options are exercisable at a price of 23.5 cents per share for a period of 10 years, expiring on Oct. 19, 2036.

About Spanish Mountain Gold Ltd.

Spanish Mountain is focused on advancing its 100-per-cent-owned Spanish Mountain gold project toward construction of the next gold mine in the Cariboo gold corridor, British Columbia. On May 1, 2026, the company received the first instalment of $22.5-million (U.S.) in connection with the sale of a 1.5-per-cent net smelter royalty to Wheaton Precious Metals for $55-million (U.S.) (see news release from May 1, 2026). In second quarter 2026, the company initiated a feasibility study on the project, which is fully financed and will position the company to make a construction decision in 2028.

The company is seeking new ways to achieve optimal financial outcomes that are safer, minimize environmental impact and create meaningful sustainability for communities, which the company terms the relentless pursuit of better gold.

We seek Safe Harbor.