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SPA: Drills 0.68 g/t Au over 140m & Extends Orca Fault

What you need to know:
• This morning, SPA announced assay results from three drill holes as part of its 9,000-10,000m fall drill program (7,800m completed).
• Highlights include: 0.68 g/t Au over 141m, 0.55 g/t over 103m and 0.80 g/t over 26m (all from separate holes).
• Today’s results continue to stack on top of previously released results, all of which reported drill results within the pit limits and well above resource grades.
• Drilling supports advancement toward a 2027 construction decision, building on a PEA with $2.3B NPV5% and 32% IRR at US$3,300/oz.

This morning, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) announced assay results from drill holes 25-DH-1300, -1302, and -1304 as part of its 2025 fall diamond drill program at its Spanish Mountain Gold project. This is SPA’s fourth batch of assays as part of this drill program, and the results continue to impress. We will note that this program is mainly infilling, yet the majority of drill holes are hitting wide zones of mineralization that are well above the average resource grade. This signals to us that not only will resource confidence improve, but there exists much upside in resource growth by converting what was previously considered waste or low-grade to higher-grade resources. We are maintaining our BUY rating and our $0.40/share target price on Spanish Mountain Gold.

The Orca Fault area is becoming a major contributor to higher-grade gold mineralization in the heart of the Main Deposit (now over 430m in strike, Figures 1 & 2). We will also note that several intercepts reported today were close to the surface and still above the average resource grade. Mineralization in these areas could materially improve the economics of a future mine plan, and SPA is actively working this new information into future drilling.

Highlights from today’s release include:
• 25-DDH-1300: 0.68 g/t Au over 141m, including 1.07 g/t over 17m and 0.95 g/t over 67m.
• 25-DDH-1302: 0.55 g/t Au over 103m, including 0.81 g/t over 48m.
• And 0.50 g/t Au over 73m, including 0.77 g/t over 33m with a higher-grade subset of 1.23 g/t over 16m.
• 25-DDH-1304: 0.80 g/t Au over 26m, including 1.61 g/t over 8m.

The Company has completed 7,800m of the 9,000-10,000m of exploration drilling planned as part of the 2025 Fall Drill Program. Assays remain pending from 16 holes at the newly defined Orca Fault area and from 3 on the A12 target. We remind readers that SPA already completed a 10,000m drill program in May 2025.