Spanish Mountain Successfully Completes First Module of Field Program and Mobilizes for Resource Expansion Drilling

Vancouver, British Columbia--(Newsfile Corp. - October 19, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) ("Spanish Mountain" or the "Company") is pleased to announce that its technical team and contractors have successfully completed the first module of this year's field program as planned and have immediately launched the resource drilling program at its Spanish Mountain gold project (the "Project").

As announced in a news release dated August 20, 2020, the objective of the first module was to develop additional data in support of the proposed project infrastructure as outlined in the Preliminary Economic Assessment (PEA) filed in December 2019, which delineates the Project's current mineral resource. A significant amount of data has been generated from 33 geotechnical drill holes, 600 metres of diamond drill holes and 84 test pits, which appears to support the project configuration proposed in the PEA.

The Company is rapidly advancing project work related to the Project's proposed Phase I, which focuses on the pit-delineated high-grade core of the deposit as a standalone operation. Details of the plan to achieve major project milestones will be announced shortly.

Resource Drilling

The Company is mobilizing to conduct a strategic drilling program within the Project's Main Zone in order to continue expansion of its multi-million ounce gold resource. As reported previously, the Company expects to fast-track Phase 1 of the Project to a construction decision while simultaneously expanding its sizable resource. A drilling crew is being mobilized at the Company's exploration camp and is expected to drill approximately 6,000 metres during this phase of the program. The Company may adjust the size of the program based on feedback from field staff and may also continue with this initiative next year in order to achieve the objective of aggressive resource expansion.

In accordance with the health and safety protocols mandated by the health authorities, company personnel have put in place various safety features and procedures that will be strictly enforced by management on-site throughout the duration of the field program. The camp and the enhanced operating procedures have been inspected and approved by the provincial health agency. Management believes that the necessary precautions have been taken to safeguard the health of our employees, consultants and community members and to avoid potential interruptions to the field work. No health or safety issues have been reported since the camp opened in August 2020.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd. is focused on advancing its multi-million ounce Spanish Mountain gold project in southern central British Columbia. The Project is well funded to pursue the dual objectives of fast tracking Phase 1 of the Project to be "shovel ready" and actively expanding the mineral resource. Phase 1 focuses on the pit-delineated high-grade core of the deposit that is potentially expected to sustain a stand-alone operation of at least 11 years. The potential viability of Phase 1 has been demonstrated in a Preliminary Economic Assessment. The PEA illustrates the project potential with a combination of modest capital requirements (US$270m) and low operating cost (AISC $549/oz) over its mine life. Additional information on the PEA and about the Company is available on www.sedar.com and on the Company's website: www.spanishmountaingold.com

On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.

Larry Yau
Chief Executive Officer

Inquiries:
SPANISH MOUNTAIN GOLD LTD.

Phone: (604) 601-3651
E-mail: [email protected]
Website: www.spanishmountaingold.com

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS: Certain of the statements and information in this press release constitute "forward-looking statements" or "forward-looking information", including statements regarding the completion of the Preliminary Feasibility Study on the Spanish Mountain Project. Further, any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/66199