|August 03, 2007|
Silver Spruce, Universal Uranium & Bayswater Uranium Enter into Joint Venture
August 3, 2007 -- Silver Spruce Resources Inc. (TSXV: SSE) and Universal Uranium Ltd.(TSXV: UUL) are pleased to announce they have jointly entered into a letter agreement with Bayswater Uranium Corporation (TSXV: BAY) dated effective July 20, 2007 (the "Letter Agreement"), whereby Bayswater has been granted an option to acquire a 50% interest in 34 mineral claims (8.5 sq km or 2,100 acres) located in the Central Mineral Belt region of Labrador, Newfoundland (the "Property"), which is currently held 50% by Silver Spruce and 50% by Universal. The claims are covering a portion of, and adjoin the Stipec River uranium trend of Bayswater in the historic Central Mineral Belt uranium district in Labrador. Pursuant to the Letter Agreement, Bayswater is obligated to issue to Silver Spruce and Universal an aggregate of 200,000 common shares (of which 100,000 shares will be issued to Silver Spruce and 100,000 shares will be issued to Universal unless otherwise agreed) and expend $100,000 upon the Property by July 31, 2008.
Upon issuing the shares and making the required expenditures, Bayswater will be deemed to have exercised its option and acquired a 50% interest in the Property, with Universal and Silver Spruce each holding a 25% interest in the Property. A joint venture will then be formed between the parties with Bayswater acting as the operator.
The Letter Agreement is subject to the approval of the TSX Venture Exchange and the shares payable under the Letter Agreement, when issued of Bayswater, will be subject to a four month hold period.
Bayswater has recently completed an airborne EM and magnetic survey over the Stipec River Joint Venture lands and is planning further prospecting, rock and soil sampling and possibly drilling of favourable targets this year. In a news release dated July 12, 2007 Bayswater reported that: "The EM survey identified a 12 kilometre long southwesterly trending conductive zone coincident with the Stipec River trend of uranium prospects (Zone A, B, C, D and E). Numerous surface grab samples in 2006 from various prospects along this trend commonly assayed 0.1% to 0.4% U3O8." This favourable conductive zone occurs partly on the Stipec River Joint Venture land; however, the bulk of the favourable zone and all known uranium prospects are on claims in which Bayswater has a right to acquire a 100% interest from Longview Capital Partners Inc. under an option agreement. To date nine drill holes have been completed on the Stipec River Zone A and E Prospects on land subject to the Bayswater/Longview option. Assay results are pending from a number of radioactive zones identified in drill core from this drilling.
ABOUT UNIVERSAL URANIUM LTD.
Universal is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. Universal Uranium Ltd. is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.
ABOUT SILVER SPRUCE RESOURCES INC.
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) and other areas of potential in Labrador, Canada. With interests in over 11,800 claims totaling approximately 3,000 square kilometres, Silver Spruce is the one of the largest landholder in one of the world's premier emerging uranium districts. The large ground position, experienced partners, and strong financial backing, make Silver Spruce a leading uranium explorer in Labrador.
For Further Information Contact:
SILVER SPRUCE RESOURCES HEAD OFFICE
Gordon Barnhill, CFO & Director
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 231
Toll Free: 1.866.684.4743 ext. 231
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company seeks Safe Harbour.
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