Silver Spruce to Begin Phase Two Diamond Drilling on Big Easy Gold/Silver Property, Eastern Newfoundland

Silver Spruce Resources Inc. (TSX VENTURE:SSE)

Highlights



--  Approx. 1,000m in 3-4 holes planned to test epithermal style
    mineralization 
--  2011 diamond drilling - best intersection 
    --  0.87 g/t Au, 33.5 g/T Ag / 30.5m (228-258.5m) in BE-11-3 
        --  and 6.04 g/T Au, 114 g/T Ag / 1m (245-246m) 
        --  incl. 6.05 g/t Au, 174 g/T Ag / 1.5m (240.5-242m) 
--  Adularia and boiling textures, typical of near-surface epithermal
    systems, noted in core re-logging



Silver Spruce Resources Inc. is pleased to announce that Cabo Drilling of
Springdale, NL has been awarded the contract for 1,000m of diamond drilling on
its road-accessible, Big Easy gold/silver property in eastern Newfoundland. The
drill will be mobilized in mid-June to test epithermal mineralization in an
altered (silicified) zone, over an area of approximately 1.7 km by up to 300m
wide. Seven drill holes totalling 1577m, the first drilling that has tested the
area, all intersected significant gold/silver mineralization over a 1.2 km
strike length in 2011 (news releases dated May 31 and June 7, 2011). 


"This Phase Two follow-up drilling program is based on our 2011 drilling, a
detailed structural interpretation of the mineralized zones by a consultant from
Caracle Creek International Consulting, and a clearer understanding of the
extensive epithermal system through the support of academic (Memorial
University) and government (NL Department of Natural Resources) studies," says
Peter Dimmell, President and CEO of Silver Spruce Resources Inc. 


These studies show the following:



1.  Banded, "bonanza style" veins were intersected in the 2011 drilling with
    the best example in BE-11-7, the northernmost drill hole, where a
    banded, 0.3m vein gave 335 g/T (greater than 10 oz/T) Ag and 2.57 g/T
    Au from 231.3-231.6m. 

2.  Adularia (potassium feldspar), sinter (hot spring silica deposits) and
    boiling textures are noted in the core and outcrop and indicate that the
    system lies at or near the paleosurface. This also indicates that higher
    grade "bonanza style gold/silver veins", if present, would likely lie at
    greater depths beneath the paleosurface than we have tested thus far. 

3.  The banded, epithermal veins noted from the 2011 drilling generally lie
    at oblique angles to the core axis indicating that, while the drilling
    intersected bedding at good angles, it may have drilled down dip on the
    veins. This may indicate that the feeder systems for the hot spring(s),
    including the mineralized veins, may not have been tested properly by
    the 2011 diamond drilling program. 



"The presence of adularia in crustiform vein and cockscomb breccia textures,
silica pseudomorphs after bladed calcite, and silica sinters preserved from the
paleosurface are all indicative of the class of low-sulfidation epithermal
systems considered highly prospective for epithermal gold/silver deposits,"
notes Dr. Graham Layne, Associate Professor, Earth Sciences at Memorial
University.


In addition to the diamond drilling, a combined airborne high resolution
magnetic and VLF-EM survey is planned to cover the entire Big Easy property. The
survey will give lithologic (rock type) and structural information on the Big
Easy-ET trend which has been traced over 5 km plus, remaining open to the north
and south along the trend.


The 121 claim (30 km2) original 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
$1.5M, 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 4th anniversary on. Another 173 claims were added in 2011
after discovery of the ET zone, 3.5 km to the south, to bring the property to
294 claims (73.5 km2).


Plan maps for Phase One drilling and a compilation map for the property are
shown on the Silver Spruce website at www.silverspruceresources.com.


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 Silver Spruce Resources Inc.

Silver Spruce is a diversified junior exploration company with a portfolio of
rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals Group),
MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term,
uranium (CMBJV, Snegamook, Double Mer, Mount Benedict) 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. For
additional information please visit the company's website -
www.silverspruceresources.com.