Spanish Mountain Gold Ltd. reported encouraging results based on significant progress achieved on a number of valueadded initiatives for the Spanish Mountain Gold Project (the "Project") located in British Columbia, Canada. As announced on September 9, 2021, the work programs underway build on the successful completion of the Project's Prefeasibility study (PFS filed in June 2021) in which a multimillion ounce Mineral Reserve has been delineated along with robust economics and a 14year mine plan. Environmental Assessment: The Company continues to execute its stated strategy of fasttracking its multimillion ounce Resource through the process for environmental assessment/permitting.

In addition to ongoing technical analyses and comprehensive field surveys, the Company has launched multiple initiatives to intensify ongoing engagements with all three Indigenous Nations whose traditional territories include the project area. Significant progress has been made as: Indigenous Nations Engagement -- the Company signed an Engagement Protocol Agreement with Xatll First Nation in October 2021 and Lhtako Dené Nation in December 2021 formalizing the engagement process between the Nations and the Company; and proceeded with the process of completing a LifeofMine relationship agreement with Williams Lake First Nation. Management has also initiated presubmission review of the draft Initial Project Description with all three First Nations.

Continuous engagement with Indigenous Nations will remain an integral part of the Project. Initial Project Description (IPD) -- the draft Initial Project Description for the Project is now in presubmission review with all three First Nations. Management has adopted an engagement practice in which the First Nations communities will have opportunities to address their interests and concerns throughout the EA process.

The Company expects to submit the IPD to the B.C. Environmental Assessment Office and Impact Assessment Agency of Canada within the first quarter of the year and thereby formalize the first stage of both the provincial and the federal EA processes. Sitewide Water Balance -- the Company commenced a field program in September 2021 to study groundwater flows in the area of the planned open pit and Tailings Storage Facility. In spite of challenging operating environment caused by extreme weather events and the pandemic, the field staff successfully completed the targeted drill holes over a wide area where monitors will be installed.

The drilling crew was demobilized in December. The field work resumed in midJanuary to perform pump test in order to monitor and gather ground water data needed for the development of the sitewide water balance for the Project. The water balance model is a critical tool for formulating effective water management strategy and cost optimization.

The Company has targeted ambitious environmental assessment milestones to be achieved within 2022 as: submission of the Initial Project Description to the provincial and federal agencies submission of Detailed Project Description to the provincial and federal agencies signing of LifeofMine relationship agreement with all three First Nations launching open houses and consultations with surrounding communities to the extent allowed by pandemic restrictions formulating critical environmental strategies based on comprehensive data collected and the Best Practice in Environmental, Social & Governance.