Silver Spruce Reports Encouraging Diamond Drilling Results From Big Easy Gold/Silver Property, Eastern Newfoundland

Silver Spruce Resources Inc. (TSX VENTURE:SSE) is pleased to announce the
results of its second phase diamond drilling program on the road-accessible, Big
Easy gold/silver prospect in eastern Newfoundland. The 2012 drilling was
designed to test the area of the wide gold /silver intersection in DDH BE-11-3
and to test a structural interpretation of mineralized veins noted in the seven
hole (1,577 metres) 2011 drill program. The gold/silver mineralization is
associated with a large, altered (silicified) system that covers an area of
approximately 1.7 kilometres by up to 300 metres wide (news release - July 17,
2012). 


A total of 1,080 metres in five drill holes in 2012 tested the epithermal-style
mineralization over a 200 metre strike length. The widest mineralized zone was
located, as was the case in the 2011 drilling, at depth in DDH BE-12-12. This
intersection gave values of 1.3 g/T gold (Au) and 36.7 g/T silver (Ag) over 8.7
metres from 200.1 to 208.8 metres, including 4.6 g/T Au and 101.3 g/T Ag over
2.2 metres from 202.2 to 204.4 metres, including 7.9 g/T Au and 130 g/T Ag over
1.2 metres from 202.3 to 203.5 metres. This zone is comprised of brecciated
quartz-adularia veining in a black matrix of fine-grained mineralization (see
picture on website). Near surface, banded quartz-adularia veins, typical of
epithermal systems, gave narrow, high grade values in silver and lower but
significant values in gold, as follows:




--  BE-12-9 - 5.65-5.9m (0.25m) - 276 g/T silver, 1.73 g/T gold 
--  BE-12-9 - 15.9-16.4m (0.5m) - 144 g/T silver, 1.25 g/T gold 
--  BE-12-10 - 30.7-30.9m (0.2m) - 191 g/T silver, 2.11 g/T gold  



Extensive banded quartz-adularia veins and areas of chalcedonic (opaline) quartz
up to one metre wide, but generally from 1-30 centimetres wide, as well as
brecciation with associated veining and silicification, were also noted.
Orientations of the mineralized veins varied but were significantly better than
the 2011 drilling, where almost all the veins ran along the core axis,
indicating probable down-dip drilling. Orientations of the veins in 2012, with
the drill holes drilled 270 degrees (to the west) instead of 090 degrees (to the
east) as in 2011, varied from 20 to 90 degrees to the core axis, averaging 40 to
50 degrees. The widths of the significant intersections are not exact due to the
fact that the core angles (angle of intersection) of the mineralized zones and
veins are variable. However, it is estimated that most zones would give true
widths varying from 50-90 per cent of the intersected widths.


The most significant values from the 2012 diamond drilling are summarized below.
Plan maps and a summary of the drilling; compilation maps of the property; and
pictures showing the drilling, drill core and other exploration on the property
are shown on the Silver Spruce website at www.silverspruceresources.com. 




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       Significant Values from Big Easy Property 2012 Diamond Drilling      
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Hole #                From          To      Length   Gold (Au)   Silver (Ag)
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                         m           m           m         g/T           g/T
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BE-12-8               22.3          25         2.7         0.2  less than 1
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and                   45.3        45.7         0.4        0.05          18.0
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BE-12-9                  5         7.3         2.3        0.42          49.8
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         incl.        5.65         5.9        0.25        1.73         276.0
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and                   12.8        13.8           1         2.0          17.0
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and                   15.9       17.55        1.65        0.63         109.3
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         incl.        15.9        16.4         0.5        1.25         144.0
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BE-12-10              25.6       25.85        0.25         3.4          68.0
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and                   29.6        34.2         4.6        0.62          18.4
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         incl.        30.7        30.9         0.2        2.11         191.0
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         incl.        33.9        34.2         0.3        4.14          90.0
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and                   40.4        40.8         0.4        1.09          10.0
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and                   94.5        95.4         0.9        1.05           1.0
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and                    101      112.25       11.25         0.8           3.8
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         incl.         101       102.5         1.5        1.97           4.0
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         incl.       111.5      112.25        0.75        2.28           8.0
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BE-12-11               9.8        12.3         2.5         1.7          33.5
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         incl.        10.8        11.2         0.4        4.39          69.0
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BE-12-12              27.7        28.7           1        0.78          48.0
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and                  174.7       176.5         1.8        0.78           7.1
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and                  200.1       208.8         8.7         1.3          36.7
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         incl.       202.2       204.4         2.2         4.6         101.3
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         incl.       202.3       203.5         1.2         7.9           130
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Note: The drill core was sawn in half, with half sent to the Accurassay     
 Laboratory in Thunder Bay, ON for analysis for gold by fire assay (ALFA1 - 
 30 g sample) and an ICP technique (ICPAR1) for other elements, including   
 silver. Ag assays greater than 100 g/T were rerun using an ore grade       
 technique. Duplicates were taken every tenth sample for quality assurance  
 and check sampling is planned. The other half of the core is retained for  
 further study.                                                             
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Initial Interpretation of 2012 Drilling Results 

The presence of adularia (potassium feldspar), sinter (hot spring silica
deposits) and boiling textures has been noted in both the 2011 and 2012 drill
core, indicating that the mineralized zones in the drill core lie near the
paleosurface of a large epithermal system. 


"We are very encouraged by these results," says Peter Dimmell, President and CEO
of Silver Spruce. "The presence of sinter in the Trench 6 area in the southern
part of the alteration zone and extensive opaline to chalcedonic silica in the
drill core indicates that we are most likely in the upper parts of the
epithermal - hot spring system, and above the area where "bonanza grade" gold
and silver veins would typically be found. The fact that our best gold/silver
intersections have been in our deeper holes and that these still represent
significant values over reasonable widths is very exciting. Having these values
high in the system, above where we believe the "bonanza grades" should lie,
bodes well for higher gold and silver values at depth." 


2011 Drilling Results Recap

All 2011 drill holes intersected gold/silver mineralization over a 1.2 kilometre
strike length (news releases dated May 31 and June 7, 2011). The best
intersection, in BE-11-3, gave 0.87 g/T gold and 33.5 g/T silver over 30.5
metres (228 to 258.5 metres), including 6.05 g/T gold, 174 g/T silver over 1.5
metres (240.5 to 242 metres) and 6.04 g/T gold, 114 g/T silver over 1 metre (245
to 246 metres); as well as a banded, "bonanza style" 0.3 metre vein in BE-11-7,
the northernmost drill hole, located approximately 700 m to the north of the
2012 drill area, which gave 335 g/T (greater than 11 oz/t) silver and 2.57 g/T
gold (231.3 to 231.6 metres). 


Next Steps 

The company has gained significant additional information from the 2012
drilling; however, these systems are complex and there was no previous drilling
in this area prior to Silver Spruce's 2011 program. In the coming weeks, data
from the 2011 program will be combined with the 2012 drill results and an
airborne magnetic survey will be carried out to help define the mineralized
structure over the known 1.7 kilometre long Big Easy zone and between the Big
Easy and ET zones, discovered 3.5 kilometres to the south along strike in 2011.


"There is no doubt that this strong mineralized system deserves investigation at
depth," notes Dimmell. "With the additional information from the recent
drilling, the structural modeling and the airborne survey, we will be able to
determine the best place for deep drilling in the coming winter." 


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


About the Big Easy Property 

The road accessible, 294 claim (73.5 square kilometre) property, located near
Thorburn Lake in eastern Newfoundland, was optioned from prospectors Alex Turpin
and Colin Kendall. The agreement, to earn 100% interest subject to a 3% NSR with
a 1.5% buyback for $1.5 M, is for a total of $110,000 plus 1.6 M shares over
three years. A yearly advance royalty payment of $20,000 per year, deducted from
future NSR payments, is payable from the fourth anniversary on. 


About Silver Spruce Resources Inc.

Silver Spruce is a diversified junior exploration company with a portfolio of
gold/silver (Big Easy), uranium (Snegamook, A7, Double Mer, Mount Benedict,
CMBJV) and rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals
Group), MRT, RWM and the Straits) projects in Newfoundland and Labrador. With
interests in more than 4,000 claims totalling more than 1,000 square kilometres
in Labrador, Silver Spruce is one of the largest landholders in one of the
world's premier emerging rare earth and uranium districts.