SilverSpruce Resources

 Jun 28, 2011 

Silver Spruce Resources Inc.

Highlights

-- Prospecting on original PH property locates new area of radioactivity over 700 m strike length -- Airborne radiometric / magnetic / VLF-EM Survey on Popes Hill Trend began June 24 -- Ground radiometric (spectrometer) survey on original PH property underway

Silver Spruce Resources Inc. is pleased to announce that the 2011 summer field season on the Pope's Hill, Popes Hill JV and MRT, rare earth element (REE) properties has begun with a seven person field crew working out of a field camp on the Trans Labrador Highway, approximately 50 km from Happy Valley-Goose Bay. Regional and detailed prospecting, geological mapping, stream sediment sampling, detailed ground radiometric surveys on the original Popes Hill property and line cutting and detailed prospecting on the MRT property is planned. A geochemical survey has evaluated the efficacy of heavy mineral concentrate (HMC) and regular stream sediments along the Popes Hill trend.

Prospecting on the original PH property has resulted in the location of moderate to strong radioactivity with total count values of up to 3500 cps (background less than 100 cps) associated with rock samples carrying massive vein type mineralization of mixed grey to black and red unknown minerals, similar to samples from the September 2010 prospecting survey which averaged 5.73% total rare earth elements plus yttrium (TREEs), with a high value of 24% (News release dated Oct. 28, 2010), in 31 samples taken over a 7 km strike length. The area lies to the northeast of the MP showing pit and can be traced intermittently over a 700 m strike length, remaining open along strike to the east and west. Samples are mostly angular float, and/or subcrop, possibly indicative of a nearby source. Diamond drilling in January (News release March 3, 2011) was not successful in intersecting the high grade veins noted in float and outcrop in the vicinity of the MP pit indicating that the high grade zones may be occurring as pods of mineralization, possibly related to cross cutting, structural features.

Samples with moderate to strong radioactivity with total count values up to 3000 cps (background less than 100 cps) have also been acquired from the MRT property, located approximately 65 km to the east along the PH trend from the original Popes Hill property. Values up to 8.95% TREE's and 0.9% U3O8 were located on the property in 2010 and early 2011 (see news release dated Feb. 17, 2011) during prospecting and due diligence sampling respectively.

Forty eight rock samples have been sent for analysis to date with others taken but not yet gone to the laboratory. Results will be released as received.

The airborne radiometric, magnetic and VLF-EM survey on the Popes Hill trend including the Pope's Hill, MRT and Pope's Hill JV, a joint venture with the Great West Minerals Group, began on June 24. The survey, being flown at 100 m line intervals, consists of approximately 9,500 line kilometers. Contractor is Tundra Airborne Surveys of Niagara Falls ON. The survey is expected to take approximately 3 weeks. Preliminary results will be available as the survey progresses to allow early follow up with the final survey results expected in 2 to 3 months.

Follow up of anomalies or showings located in the detailed and regional work and the airborne surveys will be carried out once the regional work is completed, in late summer and the early fall, to allow trenching and drilling of targets located in the late fall and early winter.

The Company also announces that the Popes Hill JV, a 50/50 joint venture with Great West Minerals Group (GWMG) has acquired another 247 claims covering a prospective linear monzonite body, with associated REE lake sediment anomalies, located to the north of the original JV claims to the east of the original Popes Hill Property. This brings the total claims in the JV to 759 (190 km2).

Rock samples are transported to the Activation Labs preparation facility in Goose Bay, then shipped to their laboratory in Ancaster, ON. for analysis using their REE 8 package. Uranium analyses are carried out using an ICP technique, with higher values re-run using a DNC technique. The laboratory uses internal standards to check their analyses and blanks are included in each sample batch.

Plan maps of the properties, plus pictures showing the area, the showings and some of the higher grade samples are shown on the Silver Spruce website at silverspruceresources.com.

This release has been approved by Peter M. Dimmell, P.Geo. President and CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON. as defined in National Instrument 43-101.

ABOUT SILVER SPRUCE

Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 4,000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and REE districts. The company has rare earth element (REE) properties in Labrador - Pope's Hill, Pope's Hill JV (with Great West Minerals Group), MRT, RWM and the Straits and gold/silver projects (Big Easy, Rambler S.) on the island of Newfoundland.

The company seeks Safe Harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Silver Spruce Resources Inc. - Head Office Gordon Barnhill CFO & Director 902.527.5700 902.527.5711 (FAX) gbarnhill@silverspruceresources.com www.silverspruceresources.com Ascenta Capital Partners Inc. Hugh Oswald Investor Relations 604.684.4743 ext. 243 or Toll-Free: 1.866.684.4743 ext. 243 hugh@ascentacapital.com www.ascentacapital.com

SOURCE: Silver Spruce Resources Inc.

mailto:gbarnhill@silverspruceresources.com http://www.silverspruceresources.com mailto:hugh@ascentacapital.com http://www.ascentacapital.com

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Silver Spruce Resources Inc. is pleased to announce that a new mineralized alteration zone, similar to the Big Easy mineralized system, near Thorburn Lake in eastern Newfoundland, has been discovered approximately 3.5 km to the south of the Big Easy zone.

Limited exploration on the southern extension of the Big Easy trend resulted in the discovery on a brook of similar alteration/mineralization, mainly silicification, carrying disseminated pyrite in brecciated sedimentary units with quartz veining - the ET zone. Three grab samples gave values of 39, 28 and 125 ppb Au and less than 0.5, less than 0.5 and 3.5 ppm Ag, respectively. The highest value was a composite grab sample. These results are similar to those originally found in outcrop and float on the Big Easy zone.

Arsenic was also elevated with a high value of 152 ppm with the higher gold value. The mineralization occurs over a 50 m area on the brook however it disappears under overburden to the north, south and west. Trend of the zone is approximately 150-160 degrees making the true width of the exposed portion of the zone at least 30 m, open to the west. Seven rock samples were also taken from altered (sericitized, minor silicification) sedimentary units (sandstones to conglomerates) with variable white quartz veining, located 1 to 2 km to the east of the ET showing and 9 stream sediment and 15 soil samples were taken along a northeasterly trending brook, where the ET showing is located, which cuts across the southern claim block and in the area of the sericitized sedimentary units to the east. One soil sample from along the brook, associated with a weakly anomalous As value of 38 ppm (background 5 ppm), gave 15 ppb Au (background less than 5 ppb). No anomalous gold values were found in the stream sediments however As values from 8 to 62 ppm (background 5 ppm) were found in the lower part of the brook. Anomalous Zn (up to 202 ppm) and Co (up to 256 ppm) were found associated with elevated manganese (Mn) values (greater than 2000 ppm) and are considered to be related to Mn scavenging. The bog ponds and brooks are not ideal for stream or soil samples with most giving high Mn and iron (Fe) values related to the boggy terrain which the brook traverses.

The Big Easy mineralized zone is a new gold/silver discovery in an area not previously known to host significant gold mineralization. The zone lies in the Avalon Zone along the northern extension of the Burin Peninsula high sulphidation belt where extensive precious metal exploration is being carried out.

Seven drill holes totaling 1,577 m, the first drilling on the property, tested the Big Easy mineralized zone over an approximate 1 km strike length in May, intersecting strongly altered (silicified/sericitized/chloritized) and mineralized sedimentary units (see news releases dated March 24, April 8, May 3, June 1 and June 7, 2011). The best gold/silver intersection was in DDH BE-11-3 (News Release May 3, 2011), 0.41 g/t Au and 15.4 g/T Ag over 89.2 m from 183 m to 272.2m, including 0.87 g/t Au and 33.5 g/T Ag over 30.5 m from 228 m to 258.5 m, including 2.5 g/t Au and 74.1 g/T Ag over 7 m from 239 m to 246 m, including 6.05 g/t Au and 174 g/T Ag over 1.5 m from 240.5 m to 242 m and 6.04 g/T Au and 114 g/T Ag over 1 m from 245 m to 246 m.

It is not known if the alteration and mineralization extends consistently from the Big Easy zone in the north to the newly discovered ET zone in the south, over a 4.5 km strike length, open to the north and south. Some structural control, as shears, faults and related foliation is noted in both showings, however extensive bog cover with almost nonexistent outcrop exposure makes tracing the alteration/mineralization very difficult.

The company has staked another 173 claims tied on to the southern and eastern boundary of the original Big Easy property to protect the new alteration zone and any possible extensions. The property now consists of 294 claims (73 km2). Regional exploration will be carried out on the new claims in the late summer or fall. All drill data for the Big Easy zone is being compiled to a 3D database to allow modeling of the system for a Phase 2 drilling program to be carried out later in the summer or in the early fall.

The original 121 claim (30 km2) property, located near Thorburn Lake in eastern Newfoundland, was optioned from prospectors Alex Turpin and Colin Kendall. The option agreement, to earn a 100% interest subject to a 3% NSR with a 1.5% buyback for $1.5M, is a total of $110,000 plus 1.6 shares over three years. A yearly advance royalty payment of $20,000 per year, deducted from future NSR payments, is payable from the 4th anniversary on. The second option payment, which was due on April 21, 2011, has been paid. A 2 km area of influence is part of the agreement.

Samples were submitted to the Eastern Analytical laboratory in Springdale, NL. a recognized local laboratory, for analysis by fire assay for Au and an ICP-11 technique for pathfinder elements including As and Sb, base metals and Ag. Values greater than 6 ppm Ag, the upper detection limit for Ag using the ICP method, are reanalyzed if required, by a wet chemical method and an AA finish to give accurate assay values for Ag.

Plan maps of the recent staking and the present land position, the diamond drilling, the IP chargeability and resistivity and a compilation map, plus pictures showing the ET showing, the drilling and drill core from Big Easy, are available on the Silver Spruce website at silverspruceresources.com.

This release has been approved by Peter M. Dimmell, P.Geo. President and CEO of Silver Spruce Resources Inc., who is a Qualified Person (QP) in NL and ON. as defined in National Instrument 43-101.

ABOUT SILVER SPRUCE

Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 4,000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and REE districts. The company has rare earth element (REE) properties in Labrador - Pope's Hill, RWM and the Straits and gold/silver projects on the island of Newfoundland.

The company seeks Safe Harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Silver Spruce Resources Inc.