Spanish Mountain Successfully Completes Field Program and Affirms Delivery of Preliminary Feasibility Study in the First Quarter of 2021

Vancouver, British Columbia--(Newsfile Corp. - December 9, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) ("Spanish Mountain" or the "Company") is pleased to announce that its technical team has successfully completed the last module of the field work for the current year and is on track to complete and deliver the results of a Preliminary Feasibility Study (PFS) for the proposed Phase 1 operation of its Spanish Mountain gold project (the "Project") in British Columbia, Canada.

Field Work Completed in 2020

As previously reported, the last module of the field program was designed to further expand the Project's multimillion ounce gold resource through strategic drilling near the current boundary of the deposit. A total of 28 exploration drill holes covering approximately 4,500 metres was completed. These drill holes were selected from four different areas of the deposit and the results from which are expected to provide additional targets for future resource drilling programs. Assay results will be announced and incorporated in an updated resource estimate in due course.

The Company began the current year's field work in August. The initial work module generated a significant amount of data from 33 geotechnical drill holes, 600 metres of diamond drill holes and 84 test pits, which appear to support the proposed project configuration as outlined in the Preliminary Economic Assessment (PEA) filed in December 2019, which also delineates the Project's current mineral resource.

Throughout the field season, the health and safety protocols put in place by management have effectively safeguarded the health of our employees, consultants and community members. There were no reported cases of COVID-19 transmission or work disruptions at the exploration camp near Likely, BC.

Timeline for Preliminary Feasibility Study

Consistent with the Company's strategy of fast-tracking the development scenario for Phase 1 of the Project, the technical team and consultants are diligently incorporating the latest data from the field work and are expected to meet the objective of delivering the PFS during the first quarter of 2021. Phase 1 of the Project focuses on processing exclusively the near-surface/ higher-grade portion of its multimillion ounce gold resource as a standalone operation.

Compared to the 2019 PEA, the Company's technical team has determined that doubling the mill throughput to 20,000 tonnes per day can be expected to deliver the optimal combination of capital expenditure, operational efficiency, economic metrics, mine life and production profile. The PFS will also delineate a Mineral Reserve for Phase 1 of the Project.

Larry Yau, CEO commented: "We are grateful for our onsite technical team who has achieved outstanding performance under the challenging environment caused by the pandemic. Their diligence has allowed us to collect the valuable data towards attaining our ambitious project objectives. We can all look forward to a high quality, data-driven study in a few months' time.

"The next phase of activities for the new year will be even more intensive and consequential for our Project and is expected to advance the Project on multiple fronts including additional project optimization, environmental assessment, resource expansion and the commencement of a full feasibility study."

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. The Company has commenced a Preliminary Feasibility Study for Phase 1 with the target of completion during the second quarter of 2021. Phase I focuses on the pit-delineated high-grade core of the deposit that is potentially expected to sustain a stand-alone operation for more than a decade. The potential viability of Phase 1 has been demonstrated in a 2019 Preliminary Economic Assessment, which profiles an operation with low operating cost and modest capital expenditures. 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: info@spanishmountaingold.com
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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