Spanish Mountain Gold Ltd. (TSX-V: SPA) (FSE: S3Y) (OTCQB: SPAUF) is pleased to announce that it has entered into a royalty agreement with Wheaton Precious Metals Corp. pursuant to which Wheaton will acquire a 1.5% net smelter returns royalty on gold and silver production from the Spanish Mountain Gold Project for aggregate cash proceeds of US$55 million, to be paid in three installments.

Spanish Mountain Gold, President, Chief Executive Officer & Director, Peter Mah, commented: “We are thrilled to partner with Wheaton. Entering into the definitive financing agreement propels the Spanish Mountain Gold project feasibility study forward, which the Company aims to complete in 18 months, enabling a build decision in 2028. This financing secures the Company’s vision and strategy as an emerging precious metals developer in the Tier 1 Cariboo District, BC Canada.”

Wheaton Precious Metals, President & Chief Executive Officer, Haytham Hodaly, commented: “Wheaton is pleased to support the advancement of Spanish Mountain, a long‑life gold project in British Columbia, a jurisdiction we know well. The project’s scale and long‑term potential align with our disciplined approach to growth in established mining jurisdictions.”

Key Transaction Terms

The first installment of US$22.5 million is expected to be received by Spanish Mountain Gold in the next few weeks. The second installment of US$12.5 million is payable to Spanish Mountain Gold following the completion of 60,000 metres of drilling at the Project. The third installment of US$20 million is payable to Spanish Mountain Gold on the receipt of approvals under the Environmental Assessment Act (British Columbia) for the construction, development, and operation of a mine at the Project.

The Company may buy-back one third of the NSR if the Company undergoes a change of control prior to the earlier of December 31, 2030 and achievement of a completion test based on actual throughput at the Mine compared to the target. Further, if the Company has not fully achieved the completion test on or before April 1, 2030, the percentage of the NSR will increase up to 0.15%, with the adjustment depending on actual throughput at the Mine compared to the target, unless, at the Company’s election, in lieu of such adjustment, the Company pays Wheaton US$6 million. If the completion test is not fully achieved by the anniversary of the Outside Date or subsequent anniversaries, the same NSR adjustment, or payment in lieu, will apply until the completion test is achieved.

National Bank Financial has acted as a financial advisor to the Company with respect to the Transaction.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold Ltd. is focused on advancing its 100%-owned Spanish Mountain Gold Project towards its goal to build the next gold mine in the Cariboo Gold Corridor, British Columbia. On August 18, 2025, the Company filed an NI 43-101 Technical Report on SEDAR+ that sets out the Project’s de-risked and optimized Preliminary Economic Assessment (PEA), with an updated Mineral Resource Estimate (MRE). We will continue to advance the Project to position the Company to make a construction decision in 2028. We are striving to be a leader in community and Indigenous relations by leveraging technology and innovation to build the ‘greenest’ gold mine in Canada. The Relentless Pursuit for Better Gold means seeking new ways to achieve optimal financial outcomes that are safer, minimize environmental impact and create meaningful sustainability for communities.