Spanish Mountain Gold Signs Facilities Study Interconnection Agreement with BC Hydro and Strengthens Development Team

The planned power connection requires a new switching station, targeted to be ready for operation in H1 2030.

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VANCOUVER, British Columbia--(BUSINESS WIRE)-- Spanish Mountain Gold Ltd. (the "Company" or "Spanish Mountain Gold") (TSXV: SPA; FSE: S3Y; OTCQB: SPAUF) is pleased to announce that it has signed a Facilities Study Agreement (Facilities Study) with BC Hydro and Power Authority ("BC Hydro"), the provincial Crown corporation responsible for generating, purchasing, transmitting, and distributing electricity in British Columbia, for the interconnection of the Spanish Mountain Gold project (the "Project"), located in the Cariboo Gold Corridor, British Columbia, Canada. The Company also announces the appointment of Michael Buchanan, P.Geo., as Vice President, Exploration.

Peter Mah, President and CEO, 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 de-risking the Project on the path to a construction decision."

Highlights:

• Facilities Study Agreement (Facilities Study) signed with BC Hydro – a milestone toward a construction decision. The interconnection of a 60 MW load requires a new BC Hydro 230 kV switching station, which is targeted to be ready for operation by H1 2030.
• Michael 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 (2020–2024), 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/USA, and served as a Board Director of the Association for Mineral Exploration BC (2015–2021).

BC Hydro Facilities Study Agreement (Facilities Study)

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 (SMM) 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 ±15% for implementation of the project. The Facilities Study is targeted for completion in H2 2027, and the station is targeted to be ready for operation by H1 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 September 21, 2026), the environmental assessment process and the feasibility study.

Appointment of Vice President, Exploration

Mr. Buchanan joins the Company October 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 Limited (2020–2024), 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 (2017–2020) and Manager, Exploration - Canada/USA (2013–2017), and at Anglo American as Exploration Manager in Chile, General Manager in Peru, and Senior Geologist in Mexico/USA, among other roles (2005–2013). Mr. Buchanan holds a Master of Economic Geology from the University of Tasmania and a B.Sc. (Hons) in Geology from the University of British Columbia, is a Professional Geoscientist (P.Geo.) with Engineers and Geoscientists BC, and served as an elected Board Director of the Association for Mineral Exploration BC 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 $0.235 per share for a period of ten years, expiring on October 19, 2036.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold Ltd. is focused on advancing its 100%-owned Spanish Mountain Gold project towards construction of the next gold mine in the Cariboo Gold Corridor, British Columbia. On May 1, 2026, the Company received the first instalment of US$22.5 million in connection with the sale of a 1.5% NSR to Wheaton Precious Metals for US$55 million (see news release from May 1, 2026). In Q2 2026, the Company initiated a feasibility study on the Project, which is fully funded 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”. For more information on Spanish Mountain Gold, please visit the Company's website: www.spanishmountaingold.com or the Company’s profile on www.sedarplus.ca.

On Behalf of the Board,
"Peter Mah"
President, Chief Executive Officer and Director
Spanish Mountain Gold Ltd.

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

FORWARD-LOOKING INFORMATION:

Certain of the statements and information in this press release constitute "forward-looking information". 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 considered forward-looking information. The Company's forward-looking information is based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release and includes but is not limited to information with respect to the scope, timing and outcome of the BC Hydro Facilities Study, the construction and in-service timing of the new BC Hydro switching station, and the connection of the Project to the BC Hydro grid; the role and contribution of the Company's Vice President, Exploration; and the timeline to make a construction decision. Other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261027847925/en/

For more information, contact:
Peter Mah
(604) 601-3651
info@spanishmountaingold.com

Source: Spanish Mountain Gold Ltd.