Mr. Greg Davison reports

SILVER SPRUCE CONTRACTS IN3D GEOSCIENCE TO COMPILE 2022 MPX GEOPHYSICS MAG/RADIOMETRICS/VLF AIRBORNE SURVEY AND HISTORICAL DATA ON MYSTERY AU PROJECT, EXPLOITS GOLD BELT, CENTRAL NEWFOUNDLAND AND LABRADOR

Silver Spruce Resources Inc. has contracted in3D Geoscience (in3D) to compile and interpret the 2022 MPX Geophysics Ltd. and all available historical data from the Mystery Au (gold) project.

"Given the regional exploration success focused along major, secondary and tertiary structural elements in the Exploits Subzone as per [a figure in the original news release], the company acquired new high-resolution geophysical data, as per [a second figure in the original news release], illustrating enhanced details of significant branching and intersecting structural linears, key to district mineralization targets, in our ongoing gold exploration at Mystery," said Greg Davison, vice-president of exploration and director of Silver Spruce. "Significant regional data is available through published sources and government databases to provide overlap and continuity along the local structure and geology."

"in3D will carry out individual and multiple data processing on each of the data sets from the MPX geophysical surveys, with derivatives, filters and inversions to visualize trends and patterns not necessarily shown with any specific individual parameter, with integration of raster and digital data from historical files," said Mr. Davison. "in3D provided a similar compilation study for the company's Melchett Lake project in Ontario with excellent high-resolution results over less than 100- to 500-metre depth windows for deep Cu-Zn-Ag volcanogenic massive sulphide (VMS) targets from the initial reporting stages of the work. We look forward to their insights on the Mystery property."

MPX geophysical survey

The airborne survey comprised three grids totalling 1,691 line kilometres along E-W (east-west) (Marilyn and Till, now contiguous as Marilyn) and N-S (north-south) (Mystery) flight lines with 100 metre nominal line spacing, and 180 line km of orthogonal tie lines with 1,000-metre nominal line spacing. The detailed airborne survey parameters were described previously (see press releases of Nov. 4, 2021, and Feb. 23, 2022).

Exploration

The properties comprise a large, virtually untested area with many outcrop showings and mineralized float, prospective geology, and regional and second order geophysical structures within and adjacent to the company's holdings. The company has staged plans to continue regional till sampling for gold grain analysis and soil geochemistry, regional, and property-scale airborne geophysical compilation and interpretation, prospecting, ArcGIS geological, and geophysical data compilation and, as warranted, submit additional permit applications to undertake a maiden drilling program, and grid soil sampling with a tighter grid spacing. Further wide-spaced sampling also is proposed for both the currently incomplete areas near anomalous sample results and infill sampling for several targets of the claim package.

Project background

The company signed a definitive agreement in September, 2021, with two parties (the vendors) to acquire 100 per cent of three early stage gold exploration properties, Mystery, Till and Marilyn, located near Grand Falls, Nfld., Canada, 20 to 25 kilometres west of New Found Gold Corp.'s Queensway project and 15 to 35 kilometres south of Sokoman Minerals Corp.'s Moosehead gold project. The recently staked claims are contiguous to this property and subject to first rights under the five km area of interest in the agreement.

The 14,790-hectare project is located within the Exploits subzone, an extensive area of mineral exploration activity and discoveries over the past two years. The properties are well situated in terms of exploration logistics, located close to each other and 10 to 45 kilometres south by Bay d'Espoir Highway from Bishop's Falls, Nfld. The properties are located less than 70 kilometres from the Gander International Airport and are easily accessible from major paved roads and local logging and bush roads and trails.

The region is structurally complex and located, in large part, between several major crustal lineaments. Numerous major to lesser subparallel features merge and bifurcate along strike and are transected by NW and EW trending faults. These deep-seated structures, which juxtapose geological terranes over hundreds of kilometres, are key to the location and formation of orogenic gold deposits containing several million ounces of gold as reported by junior companies in the district.

Early work in 2003 to 2004 by Rubicon Minerals on the Mystery Lake area reported massive to semi-massive occurrences of arsenopyrite and gold assay values to 17,678 parts per billion (17.7 g/t Au). Historical assays were reported for 123 samples collected by the Vendor from Mystery and Marilyn (see press release of Sept. 14, 2021). Eighteen samples reported Au greater than 0.5 g/t (maximum 12.5 g/t Au). Cu values were reported up to 9.85 per cent with minor Ag, Pb and Zn. Arsenic was highly anomalous in 36 samples reporting over 2,200 parts per million upper limit for inductively coupled plasma (ICP-OES) analysis, strongly associated with elevated Au values and displayed as minor to abundant arsenopyrite.

Multiple surface occurrences are reported of agate chalcedony to colloform and crystalline silica veining and multiphase breccias, carbonate replacement by quartz, and open-space filling quartz and calcite, all textures indicative of the upper zones of epithermal systems and structural conduits in orogenic systems, and are accompanied by gold, arsenopyrite, stibnite, chalcopyrite, bornite and Cu carbonate mineralization in quartz veins, black shale and other sedimentary units, and ultramafic and gabbroic intrusions.

Silver Spruce collected new rock samples and received an independent report on the mineral and rock textures potentially related to shallow epithermal and/or orogenic vein-style mineralization. The company completed an initial phase of till and soil sampling in late 2021, and an airborne magnetic, VLF-EM and radiometric survey in February, 2022 (see press release of Feb. 23, 2022). Contracting for detailed interpretation of the regional geophysics and property airborne data are expected shortly.

The company's reconnaissance sampling (95 sites) was completed before the winter 2021 shutdown and an additional 34 of the readily accessible sites were tested during the 2022 field season. The 2023 till sampling (66 sites) of the new claims identified the company's best gold grain frequency data so far with a maximum of 39 grains in GR-37 in the southern part of the claims and other significant results spread from north to south throughout the Marilyn claims.

Qualified person

Greg Davison, PGeo, Silver Spruce vice-president of exploration and director, is the company's internal qualified person for the Mystery project and is responsible for approval of the technical content of this press release within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, under Toronto Stock Exchange guidelines.

About Silver Spruce Resources Inc.

Silver Spruce Resources is a Canadian junior exploration company that has signed definitive agreements to acquire 100 per cent of the Melchett Lake zinc-gold-silver project in Northern Ontario and, with Colibri Resource Corp., in Sonora, Mexico, to acquire a 50-per-cent interest in Yaque Minerales SA de CV holding the El Mezquite gold project and up to a 50-per-cent interest in each of Colibri's Jackie gold project and Diamante gold-silver project. Silver Spruce has signed definitive agreements to acquire 100-per-cent interest in the Mystery gold project in the Exploits subzone gold belt in Newfoundland and Labrador and the Pino de Plata silver project in western Chihuahua, Mexico. Silver Spruce Resources continues to investigate opportunities that management has identified or that have been presented to the company for consideration.

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