What you need to know: • Spanish Mountain is the 100% owner of the Spanish Mountain Gold Project, which hosts a 4.2Moz resource (M&I) and recently published a robust PEA outlining a 24.5-year mine life. • With a base case NPV5% of $1.0B and 98% of mine tonnage in the M&I category, the project is rapidly advancing toward a construction decision. • Management and directors own 18%, aligning interests with investors, while Eric Sprott and Ian Watson own 11% and 6%, respectively. • SPA trades at just 0.06x its attributable NAV vs. peers at 0.20x. Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) is a Vancouver-based junior gold developer advancing its 100%-owned Spanish Mountain Gold Project in British Columbia’s prolific Cariboo Gold District. The Company recently completed an updated Preliminary Economic Assessment (PEA) in July 2025, which envisions a 24.5-year open-pit mine life producing ~3.0Moz of payable gold. Under the PEA-base case (US$2,450/oz Au), the after-tax NPV5% is $1.03B with an IRR of 18%, while at US$3,300/oz Au, the after-tax NPV5% jumps to $2.32B and 32% IRR. These robust economics and advanced development timeline, targeting a construction decision by 2027, and management’s significant ownership, underpin a bullish investment thesis for investors. We are initiating coverage on Spanish Mountain Gold with a BUY rating and a target price of $0.40/share. Investment Thesis Summary Large-Scale, Low-Cost Project The 2025 PEA models a throughput of 26,000tpd for 24.5 years, producing ~3.0Moz Au and 6.2Moz Ag equating to an annual average gold production of 122Koz over the life of mine. Gold production is front-loaded (~203Koz/yr in the first 5 years), supporting rapid capex repayment (3.4 years at the base case or 2.0 years at US$3,300/oz Au). De-Risked Resource Base. With ~251km of drilling completed, resource confidence is high as ~98% of production in the PEA comes from the Measured and Indicated category. This makes progressing towards a pre-feasibility study or full feasibility study much faster, as limited infill drilling is required. Significant Growth Potential. Despite already hosting ~4.7Moz total gold resources (4.2Moz M&I and 0.5Moz Inferred), there is significant exploration potential along the 12km of strike that remains open in all directions. This is notably expressed by the Company's recent initial resource estimate from its new Phoenix deposit, which was not included in the PEA financial model. The Company is cashed up to execute on its development plan and, like Osisko Development’s Cariboo Project, is targeting upside expansion potential with ‘bolt-on’ sensor-based sorting. This would uplift mill feed grades and improve gold production. Strong Insider Alignment & Vision. Officers and directors are heavily invested, holding 18% of the outstanding shares, while prominent shareholders include Eric Sprott (~11%) and Ian Watson (~6%). Management has publicly likened the Spanish Mountain Project to earlier stages of Artemis Gold’s Blackwater Mine. Discounted Valuation. SPA currently trades at 0.06x NPV and US$10/oz in-the-ground compared to its peers at 0.20x NPV and US$131/oz in-the-ground. We value SPA using 0.2x NPV, translating to our $0.40/share target price.