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SPA.V ·

Spanish Mountain Gold Reports Closing of Previously Announced Private Placement of Flow-through Shares

Financings

1120-1095 West Pender Street

Vancouver, British Columbia, V6E 2M6

Tel: 604.601.3651

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR

DISSEMINATION IN THE UNITED STATES

January 15, 2018

Spanish Mountain Gold Reports Closing of Previously Announced Private

Placement of Flow-through Shares

Vancouver, BC - Spanish Mountain Gold Ltd. (“Spanish Mountain ” or the

“Company”) (TSX-V: SPA) confirms that it closed its private placement with an

institutional investor for gross proceeds of $500,006 on December 14, 2017.

On closing, the Company issued 3,846,200 flow -through common shares for $0.13 each.

The gross proceeds will be used by the Company to incur exploration expenditures on the

Company’s Spanish Mountain gold project and will constitute “Ca nadian exploration

expenses” and “flow through mining expenditures” (as defined in the Tax Act) which

will be renounced to the investor for the 2017 taxation year.

All shares issued on closing were subject to a statutory four -month hold period. The

closing is subject to final acceptance by the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to sell

any of securities in the United States. The securities have not been and will not be

registered un der the United States Securities Act of 1933, as amended (the “ U.S.

Securities Act”) or any state securities laws and may not be offered or sold within the

United States or to U.S. Persons unless registered under the U.S. Securities Act and

applicable state securities laws or an exemption from such registration is available.

About Spanish Mountain Gold

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

project in southern central British Columbia. The Company has adopted a two -zone

project approach in which the pit-delineated high grade core (the First Zone) of the multi-

million ounce resource is expected to sustain a robust stand -alone operation exceeding 24

years. The positive economics of the First Zone have been demonstrated in a Preliminary

Economic Assessment. Furthermore, the Second Zone could potentially expand and

extend the project’s production profile for decades. 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:

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.

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.