Mr. Gordon Barnhill reports

SILVER SPRUCE UPDATES EXPLORATION ACTIVITIES:BIG EASY, LOBSTICK, RAMBLER SOUTH PROJECTS, NL

Silver Spruce Resources Inc. has released an update on exploration activities for the summer of 2010. Projects being worked on include the Big Easy gold-silver and the Rambler South gold-base metal properties, both on the island of Newfoundland, as well as the Lobstick uranium property in Labrador. All of these projects are accessible by road for cost-efficient exploration.

Big Easy

The 121-claim (30-square-kilometre) property located near Thorburn Lake in east-central Newfoundland was optioned from Alex Turpin and Colin Kendall, prospectors. The option agreement to earn a 100-per-cent interest subject to a 3-per-cent net smelter return with a 1.5-per-cent buyback for $1.5-million totals $110,000 plus 1.6 million shares over three years. A yearly advance royalty payment of $20,000 per year deducted from future NSR payments is also payable from the fourth anniversary onward.

Trenching began on July 12 and was completed on July 20. The trenching targeted an area where prospecting had located an extensive area of gold-silver anomalous angular boulders of silicified conglomerate. Seven trenches ranging from 20 to 60 metres in length were excavated along a 700-metre strike length. Overburden varies from under one m to over six m. The first two trenches, both 45 to 60 m long, failed to reach bedrock due to an extensive till cover. Five trenches (No. 3 to 7), all 10 to 50 m in length, exposed a 700-by-75-metre zone of epithermal-style alteration consisting of intense silicification and pyritization, with some clay alteration (kaolinite). Bedrock in trenches No. 3, 4, 6 and 7 consists of intensely sheared to brecciated silicified, pyritized conglomerate or sandstone, cut by banded quartz veins which range from a few millimetres to 20 centimetres. Pyrite is ubiquitous through the zone occurring as disseminated grains, blebs and micro-stringers, ranging from 2 per cent to 25 per cent, with an average of 5 per cent. Bedrock exposed in the fifth trench is a band of white to grey cherty to chalcedonic quartz vein material over a width of four m, which carries minor disseminated pyrite. The trenches are being washed in preparation for geological mapping and channel sampling. Prospecting has also located highly altered (silicified) conglomerate units 150 m to the south of the sixth trench (the southernmost trench). However, the boggy terrain makes trenching impossible in this area. Large angular altered (silicified) boulders similar to bedrock uncovered in the trenching program have been located up to one kilometre to the north of the trenched area. Additional follow-up is planned for this area. The mapping and channel sampling of the trenches should be completed in early August. Results will be reported as received.

Rambler South

The Rambler South property located on the Baie Verte Peninsula of north-central Newfoundland totals 101 claims (2,525 hectares). It was optioned from Northeast Exploration Services, Krinor Resources Inc. and Peter Dimmell (PMD). Terms of the option to earn a 100-per-cent interest subject to a 2.5-per-cent NSR with a 1-per-cent buyback for $1.5-million over three years include payments totalling $95,000, issuance of 1.05 million shares, a work commitment of $500,000 by the end of the second year and a yearly advance royalty payment of $10,000, deducted from future NSR payments and payable from the fourth anniversary onward.

Exploration this summer has included line cutting in the eastern and western parts of the Krissy trend grid, soil geochemistry in the same area and along the Krissy trend between the 2010 line cut areas, prospecting and geological mapping along the Krissy trend, and limited prospecting and geological mapping on the Brass Buckle zone. This work is primarily testing very low-frequency-electromagnetic anomalies defined by Fraser filter values, which appear to define the Krissy shear zone and possible associated shear systems on the Krissy grid. Results for initial rock sampling along the Krissy trend have been positive with visible gold and values up to 25.3 g/t Au from two separate suboutcrop samples from the L24E area, where the shear zone is at least 10 m wide, as well as a new boulder with visible gold which gave an assay value of 1.68 g/t Au, located approximately 25 m to the north of the Krissy boulder on L17E. Recrystallized quartz veins in mafic volcanics, giving values of up to 259 parts per billion Au with elevated copper values in the range of 300 to 500 parts per million, were located in the L17E area to the north of the Krissy boulder, behind the only drill hole which tested the area in 1995. Results from the first 16 rock samples along the Krissy trend, primarily of recrystallized quartz veins and associated sericite schists, gave values from five ppb (non-detected) to 25.3 g/t with six samples giving values over one g/t Au and nine over 100 ppb Au. Gold mineralization including visible gold at the Krissy zone is associated with sulphide-rich (pyrite-rich) recrystallized quartz veins along a shear zone up to 10 m wide, with related linear quartz porphyry bodies. Significant previous values from the zone include 12.5 g/t over 1.5 m in a channel sample in the second trench near L22E and 9.96 g/t over 0.51 m in an intersection of 4.23 g/t over 1.4 m in KT-09-1, also near L22E. The Krissy boulder is approximately 500 pounds of recrystallized quartz with pyrite and visible gold in an altered or sheared sericitic volcanic or porphyry unit, located on L17E. Krissy and the recently discovered boulder of similar structure carrying visible gold located 25 m to the north are both approximately 500 m to the west of the second trench, across the ice direction, and remain unsourced.

Lobstick

The 1,062-claim (265-square-kilometre) property was acquired by option and staking in October, 2009, after uranium mineralization was discovered by Jean Pierre Ashini and Raphael Riche, Innu prospectors, in the felsic volcanics and tuffs during prospecting surveys supported by the company. The option agreement to earn a 100-per-cent interest subject to a 2-per-cent NSR with a 1-per-cent buyback for $1-million totals $40,000 and 600,000 shares over two years. A yearly advance royalty payment of $10,000 deducted from future NSR payments is payable from the fourth anniversary onward (see Stockwatch news release dated Oct. 29, 2009, for details). The property covers all of the significant felsic volcanic units of the Blueberry Hill group and anomalous uranium in lake sediment anomalies in the area. The claims were acquired to cover uranium prospective areas based on values of 1,120 ppm (2.23 pounds per ton) and 513 ppm (1.03 pounds per ton) U3O8, located by the Innu prospectors allied with Silver in October, 2009 (see Stockwatch news release dated Oct. 29, 2009). The geological setting is also considered to be similar to that of the Michelin deposit of Fronteer Development in the Central mineral belt of Labrador, in that it is uranium mineralization in a foliated felsic volcanic or tuff unit associated with shearing. A combined radiometric-magnetic survey has been completed under contract by Tundra Airborne Surveys. Flight line spacing was 100 m at a mean terrain clearance of approximately 75 m. A total of approximately 3,800 line kilometres was flown. Results will be released as they are received. Ground follow-up will evaluate radiometric and lake sediment anomalies in the late summer or early fall.

Most rock samples and all soil samples from the Rambler South property were analyzed at Eastern Analytical Laboratories in Springdale, Nfld., for Au by fire assay (0.5 assay tonne) plus ICP-11 for other elements. A number of rock samples were also submitted to Accurassay Laboratories in Thunder Bay, Ont. Data on Rambler South -- including compilation maps, a plan map of the 2009 drilling and pictures from the area -- are shown on the Silver Spruce website along with compilation maps for both the Big Easy and Lobstick areas. The company would like to acknowledge the contribution of the Newfoundland Department of Natural Resources under the Newfoundland junior exploration assistance program of up to $150,000 of matching funding for the Lobstick property. This release has been approved by Mr. Dimmell, PGeo, vice-president of exploration for Silver Spruce. He is a qualified person as defined in National Instrument 43-101.