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SPA: Orca Fault Extends to over 500m

What you need to know:
• This morning, SPA announced assay results from six drill holes as part of its 9,000-10,000m fall drill program (8,220m completed).
• Today’s results extend higher-grade mineralization over ~500m along the Orca Fault’s SE extension, reinforcing upside within the Main Deposit.
• Drilling supports advancement toward a 2027 construction decision, building on a PEA with $2.3B NPV5% and 32% IRR at US$3,300/oz.
• On the back of strong drilling momentum, a 100%+ share price move, and higher gold prices, we are increasing our target price to $0.80/share.

This morning, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) announced assay results from six drill holes as part of its 2025 fall diamond drill program at its Spanish Mountain Gold project. All six drill holes were drilled within the Orca Fault southeastern extension, an area which has historically successfully hit mineralization but has not been systematically explored. With SPA’s share price rising >100% in the last month (improving the Company’s access to capital) and the gold price continuing to climb, we are reassessing our target price. We are maintaining our BUY rating and increasing our target price to $0.80/share (previously $0.40/share) on Spanish Mountain Gold.

The Orca Fault area continues to be a major contributor to higher-grade gold mineralization in the heart of the Main Deposit. This southeast extension area has returned narrow but higher-grade intervals that collectively extend the Orca Fault Target to over 500m of strike (Figures 3 & 4). Today’s results are important in both extending the Orca Fault Target along strike and reinforcing that tighter drill spacing is unlocking additional mineral potential at the Main deposit.

Highlights from today’s release include:
• 25-DH-1307: 0.50 g/t Au over 52.0m (from 30m), including 1.07 g/t over 20.0m and 1.28 g/t over 11.3m.
• 25-DH-1309: 0.99 g/t Au over 11.5m, including 1.59 g/t over 5.7m.
• 25-DH-1310: 0.76 g/t Au over 26.3m, including 2.55 g/t over 3.0m.
• 25-DH-1311: 0.98 g/t Au over 40.0m, including 1.37 g/t over 10.0m.
• 25-DH-1312: 0.53 g/t Au over 64.5m, including 1.36 g/t over 13.2m.
• 25-DH-1313: 0.66 g/t Au over 74.4m, including 1.25 g/t over 23.7m, including 8.61 g/t over 2.0m.

The Company has completed 8,220m of the 9,000-10,000m of exploration drilling planned as part of the 2025 Fall Drill Program. Assays and geochemistry remain pending for 12 holes at the newly defined Orca Fault area. We remind readers that SPA already completed a 10,000m drill program in May 2025.