News release

Suite e 920 – 1055 W West Hastings S St. 

Vancouv ver, BC   V6E 2E E9 

Tel (604) 601 365

September 20, 2011

Spanish h Mounta ain Gold Announc ces Don C Coxe’s A Appointm ment to th he Board of f Directo ors

Spanish M Mountain Go

old Ltd. (th he “Compa

any”) (SPA

A-TSXV) is pleased to

• announce the

appointment t of Donald C Coxe to the Company’s board of dir rectors. Mr. Coxe has m more than thirtyn nine years o of institution nal investme ent experienc ce in North America an nd has main ntained a hig ghly v visible prese ence in majo or business c communities s as an advis sor to corpor rate boards a and speaker for b business con nferences an nd industry events worldw wide. He ha as been a str rategic consu ultant to seve eral m major gold m mining comp panies over t the last deca ade.

M Mr. Coxe is Strategy Ad dvisor to BM MO Financial Group and d Chairman o of Coxe Adv visors LLP. His erence calls are distribu i investment j journal, Bas sic Points, p published sin nce 1992, an nd his confe uted exclusively to BMO cli ients in Nor rth America a, Europe an nd Asia. M Mr. Coxe also heads up the Global Com mmodity Stra ategy investm ment manage ement team— —a collabora ation of Cox xe Advisors and H Harris Inves stments. He is advisor t to the Coxe e Commodity ty Strategy F Fund and th he Coxe Glo obal A Agribusiness Income Fu und in Canad da, and the V Virtus Globa al Commodit ty Stock fund d in the US.

M Mr. Coxe ha as consistent tly been nam med as a top portfolio str rategist by B Brendan Woo od Internatio onal and was awa arded a lifet time achieve ement award d in 2011. H He was ranke ed number o one in the 20 007, 2008 and 20 009 surveys. Mr. Coxe’s website: h http://www.c coxeadvisors s.com provid des more det tails o on his impre essive career r and achieve ements.

I Ian Watson, , Chairman of the Board d, said today y: “We are delighted th hat Don Cox xe has accep pted o our invitatio on to join t the board o of Spanish M Mountain G Gold. His r reputation, e experience and l feasibility and strategic adv vice will be of enormous s help to the e company, e especially as s it nears full t the financing g for going i into producti ion.”

T The Compa any also ann nounces that Don Sharp has elected d to retire fr rom the Com mpany’s boa ard. M Mr. Sharp h has been a di irector since e 2009 and h has agreed to

• remain as an advisor t to the Company

for a period of twelve m months follow wing his retir rement. The e Company w wishes to ac cknowledge M Mr. Sharp’s serv vice and cont tributions to

• the board.

T The Compa any’s board of directors has autho orized granti ing stock purchase opt tions to cert tain d directors and d employees s to acquire an aggregate e of 1,325,0 000 common n shares at an n exercise pr rice o of $0.82 exp piring Septem mber 20, 201

16. The fore egoing is sub bject to regu ulatory accep ptance.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia, Canada. The Company has more than $20 million in working capital, has no debt and owns 100% of four gold properties located in British Columbia. Additional information about the Company is available on its website: www.spanishmountaingold.com

On behalf of the Board,

SPANISH MOUNTAIN GOLD LTD

Brian Groves

President and CEO

Contact:

Colin Clancy or B&D Capital Partners

(604) 601-3651 (604) 685-6465

[email protected] www.spanishmountaingold.com

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Management has assumed that these will be our major projects going forward. Risks include that we are unable to satisfy environmental or other regulators, that we determine that our resources are not commercially viable, or that we have difficulties due to unavailability of labour or equipment.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.