Mr. Greg Davison of Silver Spruce reports

SILVER SPRUCE AND PARTNER COLIBRI RESOURCE ANNOUNCE RECEIPT OF SEMARNAT ENVIRONMENTAL PERMIT, LAND ACCESS AGREEMENTS AND MOBILIZATION FOR 2024 CORE DRILLING PROGRAM AT DIAMANTE AU-AG PROJECT, SONORA, MEXICO

Silver Spruce Resources Inc., along with its partner, Colibri Resource Corp., have received approval of the informe preventivo (see Colibri's news release dated Jan. 9, 2024) by the Mexican government environmental authority, SEMARNAT, via Minera BIMCOL S.A. de C.V. (BIMCOL or the vendor) for the companies' second drilling program at the Diamante project.

GM Consultoria y Proyectos de Ingenieria Ambiental S.A. de C.V. (GMCA), of Hermosillo, Sonora, was contracted to manage the environmental permitting process. The 12-month permit covers 17 drill sites.

"With our environmental permits for drilling and our land access agreements now in hand, and with the recent geological target mapping, surface geophysics and geochemistry program at Diamante completed, the companies are advancing rapidly toward an April, 2024, core drilling program," stated Greg Davison, Silver Spruce vice-president, exploration, and director. "We are pleased with the high quality of the report preparation for SEMARNAT by GMCA culminating in excellent turnaround received from the environmental authorities.

"Heavy equipment was contracted and mobilized for the set-up operations under the direction of Colibri's senior geologist. We expect to have the pad preparation completed ahead of the drill team arrival on site," said Mr. Davison. "The drilling is planned to test priority target areas and to build on positive results from the 2022 and 2023 exploration programs. Colibri will manage the planned 1,000-metre diamond drilling program from a select group of the permitted drill targets. Final drill collar location maps and planned orientations will follow with the announcement of drill mobilization shortly."

The companies also announce that a drilling contract was signed with Diamond Drills Mexico S.A. de C.V., based in Hermosillo, Sonora, Mexico, and local heavy equipment was contracted and mobilized for trail and drill pad preparation. In addition, agreements were signed with several ranches on the claims enabling land access to selected drill targets.

The drill-ready 1,057-hectare Diamante gold-silver (Au-Ag) property is located eight kilometres northwest of the town of Tepoca and 160 kilometres southeast of the capital city of Hermosillo, eastern Sonora, Mexico. Diamante offers strong precious metal tenor with a polymetallic endowment, multiple quality targets, styles of mineralization, limited artisanal mining and small-scale production, and, of particular significance for the companies' exploration moving forward, no records of drilling prior to the companies' recent program.

Diamante exploration

The Diamante property hosts numerous historical artisanal and small-scale mining sites, and combined with mineralization on the Jackie property exhibits the geological characteristics of epithermal low to intermediate sulphidation Ag-Au (lead-zinc) (Pb-Zn)), high sulphidation Au-Cu (gold-copper) and potential transition zones within and peripheral to porphyry style Au-Cu mineralization.

Sporadic surface exploration since 2011 has resulted in several surface showings comprising epithermal precious and base metal mineralization (Au-Ag plus or minus Cu, Pb and Zn). Colibri and Silver Spruce commenced geochemical and geological exploration activities on Diamante during 2021. The 2022 exploration plans included a 2,000-metre reverse circulation drill program on Diamante 1 and 2 to evaluate four to seven of the principal targets exhibiting high grades of polymetallic Au-Ag-Pb-Zn-Cu mineralization with coincident alteration, shearing and veining.

Mineralization was reported visually as pyrite, arsenopyrite, chalcopyrite, sphalerite, argentiferous galena, argentite, hematite, and probable metal oxides, carbonates and sulphates, including copper carbonate (malachite), copper sulphates and plumbojarosite.

Colibri (operator) and Silver Spruce completed the first-ever drill program on Diamante at the El Pillado and La Prieta targets located on Diamante 1. Results from the 2022 drilling include 2.48 grams per tonne (g/t) Au and 56.7 g/t Ag over an intersection length of 9.0 metres (m) from La Prieta and 0.26 g/t Au and 184.5 g/t Ag over an intersection length of 6.0 m from El Pillado. Drilling at both targets intersected highly anomalous base metals in highlighted drill assay intervals. Through the fall of 2023, Colibri and Silver Spruce completed a program of geological mapping, rock sampling and stream sediment sampling on Diamante, resulting in the discovery of two new surface showings (see Colibri's news release dated Jan. 9, 2024). The prioritization of targets and drill plan for Diamante is based on this work combined with comprehensive compilation and interpretation of historical exploration information.

The targets under consideration for drilling include La Prieta-Aguaje, El Chon-El Chon Oeste, La Olla-La Cruz, Pillado-El Caso, Calton, El Cumbro and Mezquite-Raizudo targets (see Silver Spruce's news releases of April 26, 2021, and Jan. 24, 2022, and Colibri's news release dated jan. 9, 2024). Disseminated and stockwork mineralization at Anomalia Sur and El Puerto offers two known bulk low-grade targets for subsequent drilling programs.

Project background

Silver Spruce can acquire up to a 50-per-cent interest in four Diamante concessions with a cumulative land position of 1,057 hectares (see news release dated April 29, 2021). The Diamante property consists of the Diamante 1 and Diamante 2 concessions located adjacent to the Jackie property, which covers 1,113 hectares, providing Silver Spruce with a total of 2,170 hectares of exploration ground. The property is very well situated in terms of resource and logistics for exploration and is easily accessible from Sonora state Highway 16, which transects Diamante 1, and on several ranch trails and dry river beds to Diamante 2.

The property is located within the west-central portion of the Sierra Madre occidental volcanic complex within the northwest-trending Sonora gold belt of northern Mexico. Mining and exploration in the surrounding area are very active with adjacent and nearby properties held by Alamos Gold, Argonaut, Agnico Eagle, Evrim, Newmont, Garibaldi, Kootenay Silver and Penoles among others. Diamante is located approximately 12 kilometres northwest of Minera Alamos's Santana Au development project, which is nearing commercial production.

Qualified person

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

Jamie Lavigne, PGeo, a director for Colibri, is a qualified person as defined in NI 43-101 and has reviewed and approved the technical information in this news release.

About Silver Spruce Resources Inc.

Silver Spruce is a Canadian junior exploration company holding 100 per cent of the Melchett Lake Zn-Au-Ag 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 continues to investigate opportunities that management has identified or that have been presented to the company for consideration.

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