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SPA: More Drill Results Above Resource Grades

What you need to know:
• This morning, SPA announced assay results from two more drill holes as part of its 9,000-10,000m fall drill program.
• Today’s results (similar to the previously reported two holes on November 3rd) confirm strong grades over wide intervals within the proposed pit (in areas previously modelled as lower-grade and/or waste), including 0.98 g/t Au over 41m and 1.16 g/t over 35m.
• The drill results reported today and in the last release are well above resource grades and could have a material impact on future economics.
• Drilling supports advancement toward a 2027 construction decision, building on a PEA with $1.03B NPV5% and 18% IRR at US$2,450/oz.

This morning, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) announced additional assay results from drill holes 25-DH-1294 & -1296 completed as part of its 2025 fall diamond drill program at its Spanish Mountain Gold project in BC. After reporting the first set of assay results (on November 3rd), SPA has quickly built on these results, also intersecting strong grades, well above resource average grades, within the pit limits, and close to surface. The results from these two holes reported today include hole-1294 intersecting 0.68 g/t Au over 108m, including 0.98 g/t over 41m and hole-1296 intersecting 0.71 g/t Au over 68m, including 1.16 g/t over 35m. These results again support management’s thesis that closer spaced infill drilling will add higher grade gold mineralization (in early years of the mine life) and potentially add ounces to the already large deposit. We are maintaining our BUY rating and our $0.40/share target price on Spanish Mountain Gold.

Today’s results were part of SPA’s 9,000-10,000m fall drill program and were drilled in the newly defined Orca Fault area (Figure 1). This fall program followed a 5,590m program completed in September 2024 and a 10,000m program finished in May 2025, highlighting the Company’s ability to advance this project quickly. Assays are pending on six additional drill holes completed in the Orca Fault Area and five completed on the A12 target. The program is expected to conclude in Q1/26 and will inform the decision whether to proceed to a PFS or FS (expected in H1/26).

Highlights from today’s release include:
• 25-DH-1294: 0.68 g/t Au over 107.5m (from 64m), including 0.98 g/t over 41.0m and 0.79 g/t over 30.5m.
• 25-DH-1295: 0.71 g/t Au over 68.0m (from 36m), including 1.16 g/t over 35.2m, including 3.61 g/t over 8.2m.