Spanish Mountain Gold Ltd. announced the commencement of a number of value-added initiatives for the Spanish Mountain Gold Project (the "Project") located in British Columbia, Canada. The work programs underway build on the successful completion of the Project's Pre-feasibility study (June 2021) in which a multi-million ounce Mineral Reserve has been delineated along with robust economics and a 14-year mine plan. The Company has engaged Ausenco as an independent expert consultant to conduct a targeted metallurgical program to further optimize the milling process incorporated in the PFS. The current flowsheet is characterized by low input costs for reagents and power as well as an average gold recovery of 90%. The new test program is expected to potentially reduce the capital and operating costs associated with the milling process. Any improvement will be quantified and captured in the Project's definitive feasibility study in due course. The targeted areas of process improvement and the potential benefits are as follows: Piloting for Direct Flotation Reactor--DFR has been described as a paradigm shift in flotation technology and has been successfully adopted by mining operations around the world to achieve savings in costs and to improve recovery. The test program is designed to demonstrate DFR ability to reject organic carbon and achieve high gold recovery to a low mass of concentrate. Process simplification--tests will be conducted to determine the potential to remove the second cleaner stage and scavenger gravity concentrate circuit in the current flowsheet without affecting the overall gold recovery. Improved gold recovery--potential recovery improvement will be investigated through a finer primary grind and the inclusion of the primary gravity circuit. The Company has engaged Linkan Engineering to develop preliminary designs for the passive treatment systems concept presented in the PFS and to conduct a study of measures to potentially inhibit neutral sulphide oxidation and any associated metal leaching. This work will further optimize the Project's water management and treatment systems to provide effective protection for local surface waters, which represents a high priority in the Company's sustainability strategy.