GOLD RESOURCE: Spanish Mountain estimate increases in all categories

BRITISH COLUMBIA - Vancouver-based Spanish Mountain Gold has updated the resource numbers at its Spanish Mountain gold project 70 km northeast of Williams Lake. The update shows large increases over the previous estimate on which the preliminary economic assessment was made a year ago.

Using a 0.30 g/t Au cut-off, the measured and indicated resources increased 24% to 91.1 million tonnes grading 0.62 g/t Au. In November 2010 that figure was 73.4 million tonnes at 0.64 g/t Au. The new number for the inferred resource is 170.5 million tonnes at 0.50 g/t Au, up 89% from 90.0 million tonnes grading 0.54 g/t Au last year.

The PEA was written using an economic cut-off of 0.2 g/t Au. If that cut-off were applied to the newly expanded resources, the measured and indicated resources would be 138.0 million tonnes at 0.59 g/t Au, and the inferred category would be 339.6 million tonnes at 0.37 g/t Au.

The company will continue with infill drilling as it prepares the prefeasibility study for April 2012. Visit www.SpanishMountain.com for upcoming news on the project.