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SPA.V ·

Spanish Mountain Gold Announces Commencement of New PEA

Corporate Updates

1120-1095 West Pender Street

Vancouver, British Columbia, V6E 2M6

Tel: 604.601.3651

February 14, 2017

Spanish Mountain Gold Announces Commencement of New PEA

VANCOUVER, BC - Spanish Mountain Gold Ltd. (the “Company ”) (TSX-

VENTURE:SPA) is pleased to announce the engagement of a team of experienced

consultants to conduct a new Preliminary Economic Assessment in accordance with

standards mandated by NI 43- 101 for the Spanish Mountain Gold Proj ect (the "Project")

located near Likely in central British Columbia, Canada.

Each member of the PEA team has been involved in the Project’s previous studies and is

familiar with its technical attributes. They will contribute in their respective areas of

expertise as follows:

• Moose Mountain Technical Services— Lead Consultant, Mine Plan & Metallurgy

• Discovery Consultants—Geology and Exploration

• Giroux Consultants Ltd.—Resource Estimating

• Knight Piésold Ltd.—Tailings, W ater Balance & Permitting

The PEA will investigate the technical and economic viability as well as the quality of

the Company’s multi-million ounce gold resource; specifically its new two -zone project

approach in which the resource’s high-grade core (the First Zone) is expected to sustain a

profitable stand- alone operation exceeding 20 years. The Company ha s recently

announced a tentative mine plan for the First Zone at 20,000 tonnes per day (Nov. 22,

2016) and a streamlined flowsheet for the metallurgical recovery process (Jan. 31, 2017).

The PEA is expected to capture the opportunities and potential savings associated with

the planned lower production rate as identified in internal and external studies to date.

The Company expects to announce the results of the PEA in the second quarter of 2017.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd is focused on advancing its flagship Spanish Mountain gold

project in southern central British Columbia. The positive economics of the multi-

million ounce Mineral R esource have been demonstrated in a previous Preliminary

Economic Assessment. The Company is currently investigating a two -zone project

approach in which the resource’s high grade core (the First Zone) is expected to sustain a

profitable stand- alone operation exceeding 20 years. Additional information about the

Company is available on its website: www.spanishmountaingold.com

On Behalf of the Board,

SPANISH MOUNTAIN GOLD LTD.

Larry Yau,

Chief Executive Officer

Inquiries:

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.

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.