Mr. Michael Kinley reports

SILVER SPRUCE ANNOUNCES PRIVATE PLACEMENT OF UP TO $500,000

Silver Spruce Resources Inc. has arranged a private placement of up to 33,333,334 units at a price of 1.5 cents per unit for gross proceeds of up to $500,000. Each unit will consist of one common share and a warrant to purchase an additional common share at an exercise price of five cents per share for a period of five years from the date of the issuance of the warrants.

The proceeds from the private placement will be used for exploration of the company's mineral projects and general working capital.

Finders' fees will be paid on the private placement in accordance with the policies of the TSX Venture Exchange.

All securities issued in connection with the private placement will be subject to a statutory hold period expiring four months and one day from issuance in accordance with applicable securities legislation. Insiders may participate in the private placement. The extent of insider participation, if any, has not yet been determined.

The private placement is subject to the approval of the TSX Venture Exchange.

About Silver Spruce Resources Inc.

Silver Spruce Resources is a Canadian junior exploration company holding 100 per cent of the Melchett Lake zinc-gold-silver project in Northern Ontario and has signed definitive agreements to acquire a 100-per-cent interest in the Mystery Au project near recent discoveries by Sokoman Minerals Corp. and New Found Gold Corp. among others in the Exploits gold belt, Newfoundland and Labrador, a 100-per-cent interest in the Pino de Plata Ag project located 15 kilometres west of Coeur Mining's Palmarejo mine in western Chihuahua, Mexico, and up to a 50-per-cent interest in Colibri Resource's Diamante Au-Ag project located from five kilometres to 15 kilometres northwest from Minera Alamos's Nicho deposit in Sonora, Mexico. Silver Spruce also has a 50:50 joint venture agreement with Colibri on the nearby Jackie Au project. Silver Spruce Resources continues to investigate opportunities that management has identified or that have been presented to the company for consideration.

We seek Safe Harbor.