Notice of Commencement of an Environmental Assessment

Spanish Mountain Gold Mine Project

Likely (BC)

October 20, 2011 (Updated June 21, 2012) -- On July 8, 2011, the Canadian Environmental Assessment Agency (the Agency) received a project description in accordance with the Establishing Timelines for Comprehensive Study Regulations.

Based on information it has received, the Agency has determined that the project is described in the comprehensive study list and that an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. As a result, a comprehensive study commenced on October 6, 2011.

Spanish Mountain Gold Ltd. is proposing to construct and operate the Spanish Mountain Gold Mine Project, approximately 70 kilometres northeast of Williams Lake, British Columbia. The Project is anticipated to process 40,000 tonnes of ore per day and is expected to produce approximately 116 metric tonnes of gold doré over a mine life of 10 years. Doré will be processed in a preparation plant on site, and is expected to be transported from site to a precious metals refiner located in Ontario. Doré transport will be contracted to a firm that will supply armoured vehicles and secure shipment. It is anticipated that mine closure will be completed within two years after the mine life (after Year 10), followed by three years of reclamation and monitoring.

An environmental assessment is required in relation to the project because Fisheries and Oceans Canada may take action in relation to subsection 35(2) of the Fisheries Act and Natural Resources Canada may take action in relation to paragraph 7(1)(a) of the Explosives Act. Transport Canada is participating in this environmental assessment as they might be required to make a decision in respect of the project.

This project is also subject to the environmental assessment requirements of the Government of British Columbia.

For further information on this environmental assessment, please contact:
Spanish Mountain Gold Mine Project
Canadian Environmental Assessment Agency
Colleen Hanlan, Project Manager
410 - 701 West Georgia Street
Vancouver  BC  V7Y 1C6
Telephone : 604-666-2431
Fax : 604-666-6990
Email : SpanishMountainGoldMineEA@ceaa-acee.gc.ca

and refer to Registry reference number 11-03-63917

For specific information on the project, please contact the proponent at:
Brian Groves
President and CEO
Spanish Mountain Gold Ltd.
920-1055 West Hastings St.
Vancouver  BC  V6E 2E9
Telephone : 604-601-3651
Fax : 604-681-6866
Email : info@spanishmountaingold.com