Spanish Mountain Gold Further Accelerates Project Timeline and Declares Project Fully Funded to Be "Shovel Ready"

Vancouver, British Columbia--(Newsfile Corp. - July 28, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) ("Spanish Mountain" or the "Company") is pleased to provide an update on its Spanish Mountain gold project (the "Project") following management's review of project deliverables given currently available cash. The Company previously announced, in a news release dated July 14, 2020, plans for a field program this summer and the completion of the inaugural Preliminary Feasibility Study (PFS) with a reserve statement for the Project's proposed Phase 1 operations within 12 months. Phase 1 targets exclusively the near-surface/ higher-grade portion of the mineral deposit, comprising less than 30% of the measured and indicated ounces of the Project's multimillion ounce gold resource.

The Company now expects to deliver the Project's PFS and reserve statement during the first quarter of 2021, in approximately nine months time. Subsequent to the PFS, management intends to deliver other major project milestones and believes that the Project is now fully funded through detailed investigative field work, a full feasibility study, the environmental assessment process and construction permitting leading towards a construction decision, the so-called "shovel ready" stage.

The Company's technical team will immediately conduct a detailed review of the project timeline going forward with the objective of delivering the above multiple major project milestones within the shortest timeline possible. It is intended to perform several components simultaneously in order to maximize efficiency. The team's work is expected to build on the extensive detailed project work completed to date. Further details of the project work will be announced as we progress rapidly through the aggressive timeline.

Larry Yau, CEO, commented: "I believe the success of our latest financing is a strong endorsement for our project strategy and highlights the potential value of our multi-million ounce gold resource.

"We are now fully funded to fast track our project all the way to become 'shovel ready', arguably the optimal valuation point in a project's development path. Fortunately, our hard work in the past few years allows us to advance the project from the Preliminary Economic Assessment completed in December, 2019 to a construction decision with an unusually compressed timeline and a modest budget."

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 fully funded towards a construction decision. The Company has prioritized the development of the first phase of the Project in which the pit-delineated high-grade core of the deposit is potentially expected to sustain a stand-alone operation of 11 years. The potential viability of the Project's 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.

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